China's giant state enterprises are chasing investment opportunities in Thailand's ambitious logistics development plan. China Railway Construction Corporation and China Railway Engineering Corporation have expressed interest particularly in the planned high-speed train and double-track rail link with southern China's train network, said Deputy Commerce Minister Alongkorn Ponlaboot.

The government also plans to extend the rail network from the northeast to the deep-sea port at Laem Chabang.

The two Chinese state enterprises are expected to invest several hundred billion baht in the projects, said Mr Alongkorn.

The priorities in the national logistics development framework from 2009-14 include a double-track rail network, a second inland container depot, deep-sea ports, highways and motorways, and expanding Suvarnabhumi airport.

About 200 billion of the planned 800-billion-baht in loans for the 1.43- trillion-baht second economic stimulus package will go to developing logistics to increase Thailand's competitiveness, said Mr Alongkorn.

Thai logistics costs came 31st of 150 nations in a World Bank index in 2007. Logistics in 2007 were 18.9% of GDP, against 9-11% in developed countries.