On Friday, the share price of CH. Karnchang Public Company Limited (SET: CK) at the time of 11.05 a.m. was at THB 12.90, a THB 0.80 or 6.61% increase with a total trading value of THB 158.54 million.
Stecon Group Public Company Limited (SET: STECON) at the same time was at THB 7.25, a THB 0.35 or 5.07% increase with a total trading value of THB 224.27 million.
Prime Minister and Minister of Interior Anutin Charnvirakul called a meeting to address safety measures in transport infrastructure construction following the crane collapse incident on the high-speed rail project, where the crane fell onto Express Diesel Air-Conditioned Train No. 21 traveling from Krung Thep Aphiwat Central Terminal Station to Ubon Ratchathani Station.
The incident occurred near Ban Thanon Khot railway area between Nong Nam Khun and Sikhio stations, Sikhio Sub-district, Sikhio District, Nakhon Ratchasima, on January 14. Another crane constructing the expressway on Rama 2 Road collapsed at the Tha Chin bridge in Samut Sakhon province on the morning of January 15.
Anutin questioned the punitive measures against Italian-Thai Development Public Company Limited (SET: ITD), the main contractor, highlighting that there have been four recurring incidents in the past ten months—from the collapse of the State Audit Office building to the latest event—yet there has been no concrete punishment thus far.
He laid down four decisive conditions to address and resolve these issues seriously:
1) He will not accept the “caretaker government” excuse and asserts that the caretaker period during Parliament dissolution must not be cited to shirk responsibility, as public safety and people’s lives are urgent issues that cannot wait.
2) Prepare to terminate ITD’s contracts in the two problematic projects and replace them with new contractors. Although the high-speed rail project is over 85% complete, any irresponsible contractor will have its contract terminated and replaced, with damages to be claimed from the former contractor.
3) The State Railway of Thailand (SRT) must take responsibility. He reprimanded the SRT Governor, stating that the service provider cannot deny accountability when accidents cause fatalities among passengers or the public.
4) He forbids shirking responsibility for placing companies on the “Blacklist”. Relevant departments, such as the Comptroller General’s Department and respective project owners, must not shift blame regarding the blacklisting of irresponsible contractors. Legal provisions must be strictly enforced to restore public and foreign investor confidence.
Koraphat Vorachet, Division Head of Research at Krungsri Securities (KSS), stated that these incidents would positively impact the sentiment for competing contractors such as CK, giving a resistance level of THB 12.50-13.00, and STECON with resistance at THB 7.00-7.50, while recommending avoidance of ITD.
Kasikorn Securities noted that recurring accidents in construction have prompted stricter enforcement of the “Contractor Record Book” measure, already approved by the Cabinet and awaiting official enactment.
This measure aims to assess contractors’ track records and safety standards, which may lead to disqualification or increased restrictions for those with substandard histories from bidding on government contracts.
Kasikorn believes this policy could shift the competitive landscape among construction firms. Large contractors with proven track records and strong safety standards that rely mainly on government projects, such as CK and STECON, are likely to benefit and may gain more public contracts in the future.
