Obstacles to railway deal must be ironed out for region's benefit

The latest twists and turns in the mega railway project between China and Thailand have triggered concerns in both countries. Such an undesirable scenario may be normal for an ordinary business deal, but the railway cooperation between the two countries deserves more prudence and sincerity as it is based on the premises of reciprocity and win-win outcomes.

Thai Prime Minister Prayut Chan-o-cha made a surprising announcement last month that Thailand would solely finance the construction of the first phase of a railway line linking China to Thailand, the track from Bangkok to the central Thai town of Nakhon Ratchasima, instead of seeking financial assistance from China as planned.

According to media reports quoting Thai Transport Minister Arkhom Termpittayapaisith, the issues of contention include the interest rate at which China was offering to finance the deal and the total cost of the investment.