Government looks to local companies for electric train parts

       The government wants to attract more local companies to produce parts for its electric train project in order to cut costs and reduce imports, says a senior Industry Ministry official.
       The Office of Industrial Economics will encourage other state agencies, such as the Board of Investment, to help local producers benefit from the government investment projects.
       "The move is an attempt to help local industries gain from the 'Strong Thailand'investment scheme by providing those local [operators] opportunities to build new industry and to promote Thailand as an electric train production hub to serve Asean market in the future," said OIE director-general Arthit Wuthikaro.
       The OIE today will discuss production capabilities for electric train parts with the Transport and Science and Technology ministries and the Federation of Thai Industries' plastic, and electrical and electronics clubs.
       The Transport Ministry will disclose the trains' specifications and private operators will be allowed to bid for a supply contract if they meet the requirements.
       The Industry Ministry will then propose policies, such as BoI incentives, to attract investment for the local production of electric train parts, while the Science Ministry will provide technical assistance to the firms.
       "Putting local content usage in the terms of reference for bidders to comply with is against World Trade Organisation rules, but incentives granted through the BoI will make the costs cheaper for bidders and increase their chance to win the bid while local industries also benefit," said Mr Arthit.
       He believes the initiative will establish policies to develop a local electric train and parts industry.
       Wanlop Tiersiri, director of the Thai-land Automotive Institute supported the move, saying parts can be made locally.
       The 11 electric train projects planned to link downtown Bangkok with the city's outskirts will create huge demand for train parts, and manufacturers would likely consider investing locally to benefit from this, he said.
       "In the past, we only had limited routes, but this time the megaproject investment is clear. Many routes will be established with clear direction on the financing. When demand is clear, bidders will do whatever they can to win the bid," Mr Wanlop said.
       Train manufacturers from Germany and Japan have expressed interest in joining the bidding because of the potential for strong demand in the Asean region, he said.
       "They can see future demand for parts replacement in Thailand and neighbouring countries that plan to develop electric train routes," he said.