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China derails plan for high speed railway through Thailand opting for slower option

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Reports said the two sides had yet to reach an agreement on funding as Thailand considers the interest rate offered by China's Export-Import (Exim) Bank too high. Photo: Xinhua

China has decided against a much-hyped plan to build a high-speed railway running through Thailand, and instead opted for a medium-speed alternative that can support cargo transport, Thailand's deputy prime minister said yesterday.

Despite reports about issues over the project's funding and possible delays, Pridiyathorn Devakula said construction of the dual-track mid-speed system would likely start in November - although Thai authorities are still weighing funding options.

The project - consisting of two lines linking southern China's Kunming city to northeast Thailand's Nong Khai - had been touted as part of Beijing's high-speed railway diplomacy to further project its economic power in the region.

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Until December, when Chinese Premier Li Keqiang visited Thailand, Chinese state media still referred to the project as a high-speed railway.

The decision to build a standard gauge, mid-speed line was unexpected, prompting some to describe it as a setback to China's high-speed railway ambition.

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Devakula said Thailand was "convinced" by China to go for slower trains.

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