CP Urges State to Resolve Airport Land Handover Delays

CP Group is pressing the government to address obstacles and land transfer issues affecting the high-speed rail project connecting three airports, insisting that contract termination is not their primary objective. Srithai Jinasitthikul, CEO of Asia Aero One Company Limited, stated that CP remains committed to advancing this critical national infrastructure project. The main impediment is not the private sector's desire to cancel the contract, but rather multiple unresolved constraints—particularly delays in land handover, which directly impact construction and project financing. The private sector has continuously engaged with the State Railway of Thailand and relevant agencies to resolve land transfer issues, yet certain legal and on-ground limitations cannot be addressed within existing legal frameworks. Many areas, despite being handed over, face restrictions preventing actual construction, such as legal constraints regarding public drainage systems and site conditions requiring multi-agency policy-level intervention. These long-standing problems cannot be resolved by one contracting party alone. Srithai emphasized this is not meant to blame State Railway or any agency, as all parties want the project to proceed. However, upon implementation, constraints have emerged that differ from the original project planning and tender specifications (TOR), requiring joint solutions. Delayed land handover also directly affects project financing, as financial institutions prioritize site readiness and project execution capability. If the site remains unprepared, risk assessment and project fundraising will inevitably suffer. Another factor diverging from TOR and project initiation is passenger volume assumptions for U-Tapao Airport. Originally projecting high growth, current data shows that Suvarnabhumi Airport's capacity expansion has lowered U-Tapao passenger forecasts, significantly impacting the project's financial model—an issue all parties have continuously discussed. The private sector's approach is not contract termination but collaborative efforts with government to overcome obstacles and keep the project moving forward, believing the high-speed rail remains essential for national development. However, should legal, land transfer, or other constraints prove truly irreparable and contract conditions cannot be fulfilled, alternative options per contractual procedures may eventually be considered through mutual discussion—though contract termination is not the primary goal. "What we've consistently pursued is finding solutions together, not ending the project," Srithai stated. "If all parties can resolve these constraints, the project can move forward for the nation's benefit."