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Transport and Higher Education Ministries Allocate 300 Million Baht to Develop Thai Rail Industry, Target 70% Local Content Within 3 Years

Governmentpolicy13 Aug 2026 19:05 GMT+7

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Transport and Higher Education Ministries Allocate 300 Million Baht to Develop Thai Rail Industry, Target 70% Local Content Within 3 Years

The Ministry of Transport and the Ministry of Higher Education, Science, Research and Innovation have joined forces with the Rail Technology Research and Development Institute (Public Organization) and the State Railway of Thailand (SRT), investing 300 million baht to promote Thai-made rail system innovations. They aim for 70% local content, hoping to create a New S-Curve to drive the economy and successfully upgrade Thailand’s railways within 3 years.

Mr. Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, revealed the cooperation between the Ministry of Higher Education, Science, Research and Innovation (MHESI), the Rail Technology Research and Development Institute (Public Organization) (RTRI), and the State Railway of Thailand (SRT) to develop Thailand’s rail industry for the global market. He said the government must look beyond just building routes or procuring trains; it needs to create an integrated transportation ecosystem linking intercity trains, urban mass transit, freight transport, and other seamless travel modes.

The goal is to provide convenient and safe travel for the public while enabling businesses to efficiently transport goods via rail. Innovation is key to upgrading the quality, safety, and sustainability of Thailand’s rail system. However, the technology must meet real operational needs, be economically viable, reduce foreign dependence, and boost Thai industry’s competitiveness on the world stage.

, Mr. Siripong Angkasakulkiat, Deputy Minister of Transport, said this collaboration shows that MHESI’s research is not just theoretical but practically applicable. The Ministry of Transport is advancing comprehensive rail transport, including urban and intercity passenger trains, double-track railways, and high-speed rail. Over the next 20 to 30 years, rail development will continue steadily. Rail advancement requires adopting the world’s most modern technology in Thailand, but progress cannot happen if such technology cannot be produced domestically, lacks standards, or fails to transfer knowledge and build local expertise.

Therefore, this cooperation marks a significant step for Thailand’s rail system. He urged that this partnership should not be just a formal signing; within a short period—not waiting 10 to 20 years but within 3 years, the lifespan of this government—the agencies involved must demonstrate results that show technology is applied to rail systems. This will create a new future-oriented industry cluster driven by technology and innovation, generating a true New S-Curve economic growth for the Thai people.

“Tech to Track” — investing in Thai-made rail technology to enhance standards, safety, and service quality is a tangible achievement within Prime Minister Anutin Charnvirakul’s government and is hoped to be a starting point that transforms Thailand’s future forever.

Associate Professor Dr. Kanda Boonsothornsatit, Director of the Competitive Enhancement Fund Management Unit (CEF), said that over the next 10 years, SRT will need about 2,500 passenger and freight carriages. This presents a significant opportunity for Thai industry. Additionally, the Rail Transport Act B.E. 2568 (2025) is now enforced, marking a turning point in standards, safety, and private sector participation. For CEF, SRT’s challenge is ensuring practical usability, while RTRI will support standards, testing, and enterprise development to ensure research results can be produced and have a market. The goal is to raise domestic production from 20% up to 70%, depending on technology type and production readiness, enabling Thai enterprises to grow and Thai people to use quality, safe, and reliable rail services.

, Mr. Anan Phonnimdaeng, Governor of the State Railway of Thailand (SRT), said SRT will apply research knowledge in line with its operations, bringing real-world challenges from train operations, maintenance, signaling systems, locomotives and bogies, and services to develop research questions. SRT supports studying, experimenting, and testing promising technologies under international safety standards to turn cooperation into practical applications. The ultimate goal is a rail system that is standardized, safe, and efficient. Some research outcomes have already been trialed on current rail systems.

Dr. Piang-Ao Laohawilai, Director of the Rail Technology Research and Development Institute (Public Organization) (RTRI), said building a sustainable rail industry requires strong foundations in domestic testing systems and industrial workforce. This cooperation is a crucial step to link “research funding – technology developers – standards – actual users – industry” with focused aims to turn research into usable technology, increase domestic production share, and open business opportunities for Thai operators. The ultimate goal is to reduce dependence on foreign technology and circulate economic value within the country.



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