BANGKOK — Eight years after it was first proposed, Khon Kaen’s planned red-line light rail project remains stalled due to unresolved financing and land acquisition issues. The 26-kilometre tram line, designed to connect Samran and Tha Phra, carries an estimated construction cost of 23 billion baht (approx. USD 630 million), but continues to lack the necessary financial backing.
Despite strong commitment from local authorities, particularly the five municipalities involved, no financial institution has yet agreed to fund the project. Banks have cited uncertainties regarding return on investment, absence of government guarantees, and a lack of clarity on land availability as key concerns.
According to a July 2025 update by the transport innovation news team at Daily News, the CKKM-CRRC Consortium — led by Thai company Cho Thavee PCL and China’s CRRC Nanjing Puzhen — is attempting to secure long-term loans from domestic and international financial institutions. The consortium has also been working with financial advisors to explore new credit channels, with a revised goal of securing funding within the next 12 months.
The project, first initiated in 2017, was designed to be Thailand’s first locally driven light rail system outside of Bangkok, fully financed and managed by the Khon Kaen Transit System Co., Ltd. (KKTS), a state enterprise set up by the five municipalities. The consortium was selected to oversee the design, construction, and system installation. However, more than three years have passed without success in securing the required loans.
Another key obstacle has been the inability to finalize land for the proposed depot and maintenance centre. Authorities had initially eyed 200 rai (32 hectares) within the Rice Research Center under the Ministry of Agriculture and Cooperatives. The area is centrally located and considered ideal for supporting future tram lines. Discussions are ongoing, with officials also scouting alternative government-owned land in the area to avoid further delays.
Stakeholders insist the project remains active, with all parties reaffirming their commitment to bringing modern public transport infrastructure to the rapidly growing city of Khon Kaen. The tram is expected to help alleviate traffic congestion, improve urban mobility, and provide an affordable transportation option for residents.
Under the original timeline, construction was set to begin in 2019, with operations launching in 2022. However, those dates have been repeatedly postponed due to persistent obstacles. No revised construction schedule has been confirmed.
The proposed system will consist of 20 stations, including 12 at ground level and eight elevated stops. Fares are expected to start at 15 baht and go up to 25 baht per ride. Ridership is projected at around 60,000 passengers per day once operational. The CKKM-CRRC Consortium has maintained its original bid price while awaiting formal contract signing.
