An aerial photograph shows a plot of land near Mae Nam railway station in Bangkok's Klong Toey district, covering a total of 277.5 rai or 44.4 hectares. (File photo: Pattarapong Chatpattarasill)

The State Railway of Thailand (SRT) aims to increase its annual land rental income to 5 billion baht by 2026, a 35% rise from the current 3.7 billion baht.

Deputy Governor Anan Phonimdaeng revealed after an SRT board meeting yesterday that the panel approved having its subsidiary, SRT Asset (SRTA), rent out and manage land and properties to enhance its administrative proficiency.

The asset management subsidiary will start with a four-rai land plot on Ratchadaphisek Road and the Glas Haus Ratchada Building on it, which will be developed into offices and commercial spaces.

Tenants on the Ratchadaphisek land plot, whose rental contract had been extended from February 2024 to July 31, will have their rental contract renewed on Aug 1, with the term being increased from 10 to 30 years.

Mr Anan added that as the rental collection had included the building's estimated values of around one billion baht, it may result in more income for the SRT from real estate management.

Mr Anan said that the SRT currently manages around 12,000 rental contracts, including contracts for core businesses located at SRT railway stations, such as cafés, as well as those for non-core businesses, including some vacant land plots.

The SRTA is also working on a fish market project at Thonburi Station, using the same model as a fish market in Japan. The project will hold a public hearing due to concerns about parking spots, said Mr Anan.

The land plot, which currently houses the Central Ladprao shopping mall, is also undergoing price evaluation, he said.

The SRT currently generates around 9.7 billion baht of income a year, with 3.7 billion baht of that coming from asset management. It is expected to increase the income from asset management to five billion by next year, a 35% increase, and is expected to generate up to 10 billion baht a year in annual income, said Mr Anan.

In related news, Mr Anan said that the contract for the 224-billion-baht high-speed rail line between Don Mueang, Suvarnabhumi, and U-Tapao airports is under the Office of the Attorney General's review.

The contract is expected to be completed by next month, and the Notice to Proceed (NTP) document is set to be issued in September, Mr Anan added.