The State Railway of Thailand (SRT) has filed a lawsuit seeking more than 13.3 billion baht from CP Group-backed Asia Era One and seven other parties over a disputed Airport Rail Link payment, while assuring passengers that train services will continue as normal.
The SRT announced yesterday, October 22, that it had taken the case to the Central Administrative Court on October 21, seeking payment for investment rights under the high-speed rail project linking Don Mueang, Suvarnabhumi and U-Tapao airports.
The claim includes 10.67 billion baht in outstanding principal and approximately 2.66 billion baht in default interest, bringing the total to 13.335 billion baht.
Under a public-private partnership agreement signed two years earlier, the SRT required Asia Era One to make the payment by October 24, 2021.
The company, originally registered as Eastern High-Speed Rail Linking Three Airports Co Ltd, subsequently changed its name to Asia Era One.
The railway agency said it had repeatedly pursued payment and followed the dispute resolution procedures outlined in the contract. However, the two parties were unable to reach an agreement, prompting legal action.
Alongside Asia Era One, the lawsuit names Bangkok Bank and Siam Commercial Bank, which each provided contractual guarantees worth 1 billion baht.
Five other companies that issued guarantees linked to their investment stakes were also named: Charoen Pokphand Holding (70%), China Railway Construction Corporation (10%), Bangkok Expressway and Metro (10%), CH Karnchang (5%) and Italian-Thai Development (5%).
The SRT is seeking to enforce the relevant bank guarantees and shareholder-backed guarantees, subject to their contractual limits.
The lawsuit follows months of disagreement over the three-airport high-speed rail project, with CP Group previously seeking to terminate its investment contract amid disputes over contractual obligations.
The uncertainty also raised concerns about the continued operation of Bangkok’s Airport Rail Link, which connects Suvarnabhumi Airport with the city centre.
However, the SRT agreed to extend Asia Era One’s operating arrangement until January 31, 2027, to prevent disruption while preparing to transfer responsibility to its subsidiary.
The SRT board subsequently approved plans for SRT Electrified Train Co Ltd to take over operations from February 1, 2027.
Despite the ongoing legal proceedings, the SRT stressed that Airport Rail Link services remain unaffected, adding that passenger safety and convenience would remain priorities throughout the dispute.
The story State railway seeks billions from CP-backed airport train operator as seen on Thaiger News.