Cabinet approves 18 billion baht loan for State Railway of Thailand

The Cabinet approved an 18-billion-baht loan for the State Railway of Thailand (SRT) to address its financial shortfall and endorsed a plan to auction SRT assets as part of long-term revenue generation efforts.
Government spokesperson Siripong Angkasakulkiat announced that the Cabinet approved the proposal for SRT to borrow 18 billion baht to cover its operating expenses for fiscal year 2026, as the organization has been unable to generate sufficient income to meet its costs.

The Ministry of Transport explained that SRT has continued to incur losses due to heavy financial obligations, including interest and loan repayments, leaving limited funds for railway infrastructure maintenance such as rail ties, tracks, bridges, signaling systems, and nationwide crossings. High maintenance costs for aging assets, including stations, locomotives, passenger cars, freight cars, and carriages, have further added to the burden. Ongoing operational costs, such as vehicle operation, management, and pension liabilities, have caused persistent financial strain, resulting in insufficient revenue to sustain operations.

SRT reported a cash deficit of 18 billion baht, which was necessary to alleviate liquidity problems for fiscal year 2026 and ensure continued operational stability. In response, the Ministry of Transport proposed the Cabinet’s approval of the loan to cover this shortfall.

During the meeting, Deputy Prime Minister and Minister of Transport Phiphat Ratchakitprakarn informed the Prime Minister about SRT’s accumulated debt and the agency’s ongoing inability to generate sufficient income, despite possessing substantial assets that remain underutilized.

Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas proposed that the Ministry of Finance further assess the issue and prepare to auction SRT’s valuable assets through private sector participation. The approach aims to generate revenue and provide a sustainable solution to SRT’s long-term financial challenges.
The Cabinet’s approval of both the loan package and the asset management plan represented a critical step toward resolving the State Railway of Thailand’s financial difficulties while pursuing a more sustainable financial structure for the state enterprise.