Assessing the viability of enhancing logistics and supply chain operations: a case study of the Eastern Economic Corridor

ABSTRACT

This study examines the impact of the Eastern Economic Corridor (EEC) rail project on Thailand’s logistics and supply chain operations using both qualitative and quantitative methods. Pearson’s correlation analysis reveals a negative correlation of −0.3354 for economic factors and a positive correlation of 0.3179 for logistic performance, indicating a moderate to strong negative correlation with the EEC line’s progress. Survey results show that 62.30% of respondents live in urban areas of Chonburi or Rayong. Transportation preferences indicate that 72.13% use a single mode, mainly private cars, with public transport rarely used (1.64% daily) and typical travel times of 30 minutes to an hour for 60.66%. Awareness of the HSR project is low, with over 57% unfamiliar, but 54.10% strongly agree on its importance for regional economic growth. Feasibility studies show 54.10% find it highly feasible to use HSR, expecting benefits in job creation, tourism, and business opportunities. Environmental and social concerns suggest affordable pricing, targeted job creation, and support for vulnerable groups to ensure social equity. Recommendations include improving transport integration, fostering economic and social equity, and prioritising environmental sustainability to support Thailand’s long-term development goals.

KEYWORDS:

• Logistic and supply chain
• high-speed rail
• socio-economic
• big data
• pearson correlation

1. Introduction

Logistics systems are integral to Thailand’s economy and the daily lives of its people, especially in the aftermath of the COVID-19 pandemic. According to the Thailand Logistics Report, logistics costs in the country rose to 2.26 trillion baht ($61.02 billion), marking a 3.1% increase, even as the national GDP saw a decline of about 2% from 2018 to 2019. This discrepancy highlights underlying issues in the transportation and logistics infrastructure that need addressing (Pavlenko et al., 2020).

Logistics involve strategically selecting and planning the transportation and storage of goods from their origin to the end customer. The goal is to fulfil customer demands efficiently and cost-effectively (Nation Economic and Social Development Council NESDC, 2020, Karkula, 2014). Challenges such as rising energy costs, regulatory constraints, transportation system inefficiencies, and driver shortages are prompting a re-evaluation of logistics strategies across business sectors (Garibotto et al., 1998; Rungskunroch et al., 2021a).

The geographic complexity of a country can significantly hinder logistics efficiency. For example, Japan and Indonesia face considerable logistical challenges due to their extensive archipelagos, necessitating innovative approaches like enhanced ferry services (Kaewunruen et al., 2019; Rungskunroch et al., 2021b). Similarly, Thailand’s logistics are facilitated through seven key modes: pipeline, rail, road, water, air, transport-related services, and postal services. Notably, rail services have been the most cost-effective, ranging from 1.9 to 2.1 billion Thai baht from 2015 to 2020. However, the growing reliance on rail for logistics poses new challenges and complicates further development (Emparanza et al., 2020; Newswire, 2021).

This backdrop makes it imperative to undertake a detailed feasibility study focusing on the EEC railway line to identify potential improvements that can optimize logistics efficiency, reduce costs, and better meet customer needs. Such a study will offer insights into enhancing Thailand’s logistics framework and ensuring its effective integration with the supply chain, thereby supporting sustained economic growth and development (Newswire, 2021).

Building on this foundation, the following research questions are designed to delve deeper into the economic dynamics and operational impacts of the EEC railway project, shedding light on the correlation between economic indicators and project progression, as well as the interplay between current rail services and broader logistics and supply chain operations in the context of the EEC’s development by focusing on these research questions (RQ) as follows.

RQ 1: How do different economic indicators correlate with the progress of the EEC rail service during its construction phase?

RQ 2: How does the current rail service and logistics and supply chain operations in Thailand related to the development of the EEC?

By addressing these questions, this study also aims to provide a comprehensive understanding of the current state and potential future impacts of the EEC rail service on Thailand’s logistics and supply chain operations, ultimately contributing to the country’s economic development and competitiveness.

2. Literature review

2.1. The background of Thailand’s railway network

Thailand’s railway network has a long history, with its first operation dating back to 1950. Over the years, the service has been extensively expanded to cover major cities across the country. However, despite its extensive reach, rail service in Thailand has not garnered as much attention from passengers and industries compared to other modes of transportation. This is due to several prominent challenges that hinder the utilization of rail service for both passenger travel and logistics purposes, including the limited number of stops and concerns about service quality and frequency.

To address these issues and pave the way for a more efficient logistics and supply chain system, Thailand has embarked on a massive reformation plan through the implementation of HSR projects. The primary objective of Thailand’s HSR projects is to connect major cities within the country, and there are also plans to establish international links with neighbouring countries. The introduction of these ambitious projects has the potential to significantly impact the country’s logistics and supply chain system, as individuals will have more transportation options available to them, leading to potential shifts in their mode of choice (EECO, 2019).

HSR has emerged as the primary mode of public transit and logistics worldwide, particularly in economically advanced countries like France, Germany, Japan, and China. The development of HSR networks has witnessed remarkable growth, expanding from a total length of 4,620 to 52,000 kilometres (km) within just two decades (Kumar et al., 2023). There are several reasons for this exponential growth, one of which is the widely held belief among transportation experts that HSR service is indispensable for fully realizing the potential of efficient transportation and logistics systems. The speed, reliability, and capacity of HSR make it an ideal choice for the transportation of both passengers and goods over medium to long distances, providing significant advantages in terms of reduced travel time, increased convenience, and enhanced supply chain efficiency (Rungskunroch et al., 2021).

With Thailand’s venture into High-Speed Rail (HSR) projects, there is a strong anticipation of transformative changes in the country’s logistics and supply chain systems. The enhanced connectivity and accessibility provided by HSR will offer people more transportation options that align with their specific needs and preferences. Consequently, this development requires a thorough examination of the interplay between rail services and various logistic factors to ensure the seamless integration of HSR into the existing logistics framework, thereby optimizing its benefits and mitigating potential challenges.

2.2. The EEC project

The EEC project is a major economic development initiative by the Thai government, designed to transform the eastern region of Thailand into a high-tech and innovation-driven economic zone and created high-quality jobs, and enhanced the country’s competitiveness in strategic sectors such as advanced manufacturing, robotics, aerospace, biotechnology, and digital technology (Nation Economic and Social Development Council NESDC, 2020, Rungskunroch et al., 2021a). This initiative focuses on three key provinces including Chachoengsao, Chonburi, and Rayong. To facilitate this transformation, the government has implemented a comprehensive range of policies and incentives, including tax breaks, investment privileges, streamlined regulations, and significant infrastructure improvements. These efforts aim to attract both local and foreign investors by providing favourable conditions for establishing and operating businesses within the EEC (EECO, 2019; Newswire, 2021; Senarak, 2020).

Infrastructure development is pivotal to the success of the EEC project. The government plans to invest heavily in expanding and upgrading transportation networks. This includes constructing new highways, railways and the development of high-speed rail (HSR) links. These enhancements will significantly improve connectivity within the EEC and throughout Thailand, promoting better integration of the region into both the national and global economies (Kumar et al., 2023).

Moreover, the project includes the development of smart cities, industrial estates, and specialised zones, designed to create a conducive environment for business and promote sustainable practices. The EEC aims to position the eastern region as a hub for industries that drive innovation, technology transfer, and knowledge-based economic activities.

The EEC project is expected to generate significant economic benefits for Thailand, attracting substantial investments, creating high-skilled job opportunities, fostering technology transfer, and boosting exports. The project aligns with Thailand’s strategic goals of transitioning towards a knowledge-based economy and promoting sustainable development within the region, as illustrated in Figure 1.

Figure 1. An overview of multi-modal transportation in Thailand’s EEC.

For the successful implementation of the EEC project, collaboration between the government, private sector, and various stakeholders is crucial. This collaborative effort will involve continuous monitoring, evaluation, and strategic adjustments to address any challenges that arise and maximise the project’s long-term benefits.

3. Research methodology

Following RQ1, this study assesses the impact of the rail service on Thailand’s logistics and supply chain system, identifying influential factors that significantly shape its future development. The study comprehensively evaluates the correlation between rail service and logistic factors related to the industry. These findings will provide valuable insights for policymakers, industry stakeholders, and researchers, facilitating informed decision-making and strategic planning to enhance the efficiency, competitiveness, and sustainability of the country’s logistics sector.

RQ2 reflects the feasibility of the successful implementation of the EEC project, measuring it against current logistic and supply chain services. This question will support policymakers in understanding passengers’ and industries’ perceptions regarding the introduction of new services.

This study employs a mixed methods approach to address RQ1 and RQ2, utilising qualitative and quantitative methods, respectively. Figure 2 presents a flowchart outlining the structured research methodology focused on assessing the viability of the EEC project in enhancing logistics and supply chain operations. The methodology begins with a literature review to establish a theoretical framework, followed by a bifurcated approach to data collection. The research involves gathering official data on railway infrastructure and socio-economic factors, using qualitative methods to explore correlations between these factors. Concurrently, quantitative data is collected from 200 respondents via survey forms to address RQ2. Both datasets undergo data cleaning and analytical procedures. Subsequently, a correlation analysis is conducted to interpret the interactions between infrastructure metrics and user satisfaction, synthesising these critical aspects. Detailed descriptions of each stage of the methodology are provided in Sections 3.1–3.4. Furthermore, the culmination of this analysis yields policy recommendations aimed at facilitating long-term advancements for the EEC initiative, as detailed in Section 5.

Figure 2. An overview of research methodology.

3.1. Data collection stage

To answer RQ1, the research conducted in this study relies on a comprehensive collection of social factor datasets obtained from reputable sources such as the World Bank (Cohen et al., 2009; World Bank, 2023a, 2023b, 2023c, 2023d, 2023e, 2023f). The datasets cover a substantial timeframe spanning from 1950 to 2022, the first year of operation. Data specific to Thailand’s railway system is also obtained from the State Railway of Thailand (SRT).

Eight key factors have been identified in this research as significant in the development of logistics and supply chains. Each factor plays a unique role in shaping logistic performance and economic outcomes. The list of factors and their definitions are shown in Table 1.

Table 1. Lists of logistic performance and economic factors.

Factor	Abb.	Definition
Employment to population ratio	EPR	This factor involves comparing the number of currently employed workers to the entire working-age population in a given region. It provides insights into the level of employment and workforce participation within the logistics and supply chain sector (World Bank, 2023d).
Poverty headcount	PHR	This factor measures the proportion of the population living in poverty on a national level. It helps gauge the socio-economic conditions and challenges faced by individuals, which can have implications for logistics and supply chain activities (World Bank, 2023a).
GDP growth	GDP	This variable assesses the annual change in a country’s economic production, indicating the rate of expansion over time. The growth of the GDP is closely intertwined with the development and demand for logistics and supply chain services (World Bank, 2023e).
Transport (exports) services	CSE	This factor pertains to the export percentage of services related to passenger transport, movement of goods, rental of carriers with crews, and associated support services provided by residents of one economy for residents of another. It reflects the international trade of transportation services (World Bank, 2023f).
Transport (imports) services	CSI	This factor represents the import percentage of services related to passenger transport, movement of goods, rental of carriers with crews, and associated support services provided by residents of one economy for residents of another. It captures the demand for transportation services from other economies (World Bank, 2023b).
Competence and quality of logistics services	CQLS	This factor evaluates the competence and quality of logistics services provided within the country. It takes into account various aspects, such as efficiency, reliability, tracking, and tracing capabilities, as well as customer satisfaction (World Bank, 2023c).
Quality of trade and transport-related infrastructure	QTTI	This factor assesses the quality of trade and transport-related infrastructure, including ports, roads, rail networks, and communication systems. It is crucial for the smooth flow of goods and efficient logistics operations ().
Ease of arranging competitively priced shipments	EACPS	This factor measures the ease with which competitively priced shipments can be arranged, considering factors such as customs procedures, documentation requirements, and regulatory frameworks. It influences the overall cost-effectiveness of logistics operations (Cohen et al., 2009).

The study specifically focuses on the growth of the EEC line, allowing for a targeted examination of the factors influencing logistics and supply chain development in this region. This targeted approach provides a clearer understanding of the EEC line’s impact on the logistics and supply chain system.

3.2. Data cleansing stage

The study, relying on extensive longitudinal datasets, encountered a data deficiency issue, with approximately 5% of values missing. To address this limitation, a data imputation technique was employed. Specifically, the mean imputation method was adopted, substituting the missing data with the average value of the respective variable.

3.3. Survey collection stage

To answering the RQ2, the research conducted 200 surveys among residents of Chonburi and Rayong provinces, focusing on dimensions of economic development. This stage aims to gain a deeper understanding of the individuals who are stakeholders of the EEC project.

3.4. Pearson’s correlation analysis stage

The relationship between the growth of rail networks and logistic factors has been thoroughly explored using Pearson’s correlation analysis, revealing significant insights into how rail infrastructure development impacts economic and logistic dynamics. Hornung (2014) investigated the effects of railroad access on urban population growth in nineteenth-century Prussia, utilising causal analysis techniques including Pearson’s correlation to understand the direct impacts of rail expansion on urbanisation and economic growth. The findings highlighted a positive correlation between rail access and urban prosperity, reinforcing the critical role of rail in economic development (Hornung, 2014).

Similarly, the rail freight dynamics under the Belt and Road Initiative were analysed using Pearson’s correlation to examine the relationship between rail network enhancements and logistic performance across transcontinental routes, offering insights into how rail connectivity influences logistic efficiency (Uygun et al., 2021). Additionally, some research discussed the interplay between rail and road transportation modes, employing Pearson’s correlation to dissect the competitive and complementary aspects of multimodal transport networks, thus providing a broader understanding of how rail expansions impact logistic sectors (Niérat, 1988; Cohen et al., 2009).

Some scholars applied both K-Nearest Neighbour and Pearson’s Correlation Coefficient techniques to benchmark the socio-economic impacts of HSR networks, illustrating the profound effects on community demographic groups, including the young and elderly. Their study underscored the potential of HSR to enhance quality of life and economic conditions through a detailed computational model-based analysis (Rungskunroch et al., 2022). This method is applied in the data collection stage, as mentioned in section 2.2. The Pearson’s equation is shown below.

(1) $\mathit{P}=\mathit{\hspace{0.17em}}\frac{\sum \left({\mathit{A}}_{\mathit{i}}-\mathit{a}\right)\left({\mathit{B}}_{\mathit{i}}-\mathit{b}\right)}{\sqrt{\sum {\left({\mathit{A}}_{\mathit{i}}-\mathit{a}\right)}^2\mathit{\hspace{0.17em}}\sum {\left({\mathit{B}}_{\mathit{i}}-\mathit{b}\right)}^2}}$(1)

where p = Correlation coefficient, A_i= social component values i, a = the average of the social variables’ values i, B_i= the overall distance of the railway’s network in year i; b = the average value of the progress on EEC’s network.

4. Results

4.1. Pearson’s correlation

The Pearson’s correlation analysis can be revealed differently depending on the research areas. This research pursues the interpretation of the engineering theme. The interpretation of the analysis results is represented in five levels including perfect (−1 or + 1), strong (± 0.5 - ± 1.0), moderate (± 0.3 - ± 0.5), weak (± 0.1 - ± 0.3), and non-related (0) (Hornung, 2014; Rungskunroch et al., 2021). And the result of this study is shown below in Figure 3 and Table 2.

Figure 3. The Pearson’s correlation result.

Table 2. The results of Pearson’s correlation (PCC), average values, and interpretation.

Factors	Dimension	PCC’s result	Average	Interpretation
EPR	Economic	− 0.65096	− 0.33536	Moderate Negative
PHR		− 0.27859
GDP		− 0.317
CSE		− 0.23246
CSI		− 0.1978
CQLS	Logistic performance	0.204682	0.317928	Moderate Positive
QTTI		0.374915
EACPS		0.374186

4.2. Survey result

The analyses presented in Tables 2 through 7 provide a comprehensive overview of the multiple dimensions impacted by the HSR project in the Eastern Economic Corridor. Table 2 outlines the correlations between various factors as determined by Pearson’s correlation coefficient, setting a quantitative foundation for interpreting impacts. Tables 3 and 4 delve into demographic factors and their relation to public transportation and regional development, respectively, highlighting how different population segments interact with and benefit from the project.

Table 3. The analysis of demographic.

Demographic	Results	%
Age (year)	<18	0.00%
	18–24	1.64%
	25–34	63.93%
	35–44	18.03%
	45–54	9.84%
	55–64	3.28%
	>65	3.28%
Gender	Men	31.15%
	Women	65.57%
	n/a	3.28%
Occupation	Agriculture, forestry, or fishing	6.56%
	Mining or construction	0.00%
	Manufacturing	37.70%
	Transportation or utilities	0.00%
	Wholesale or retail trade	8.20%
	Finance, insurance, or real estate	4.92%
	Professional or technical services	0.00%
	Education or healthcare services	0.00%
	Arts, entertainment, or recreation	0.00%
	Public administration	1.64%
	Other	42.62%
Educational	Vocational colleges or schools	6.56%
	Bachelor’s degree	62.30%
	Master’s degree	29.51%
	Doctoral degree	0.00%
Residential area	Urban district	62.30%
	Suburban district	37.70%

Table 4. The analysis of public transportation and regional development.

Public Transportation and Regional Development: Evaluating the Impact of the EEC High-Speed Rail Project	Results	%
How often do you use public transportation services?	Daily	1.64%
	Weekly	3.28%
	Monthly	9.84%
	Rarely	60.66%
	Never	24.59%
How long is your travel time/journey each day?	Less than 30 mins	18.03%
	From 30 mins to 1 hour	60.66%
	From 1 hours to 2 hours	18.03%
	More than 2 hours	3.28%
How many modes of transportation do you currently use for travel/tourism?	1 mode	72.13%
	2 modes	19.67%
	3 modes	4.92%
	4 modes	2.28%
	More than 4 modes	1.00%
How familiar are you EEC HSR project?	Very familiar	3.28%
	Quite familiar	11.48%
	Neutral	1.64%
	Quite unfamiliar	36.07%
	Not very familiar	21.31%
How many benefits do you foresee from the HSR project?	1	18.03%
(Options: Reduced travel time, Increased connectivity, Environmental benefits, Economic growth, Others)	2	22.95%
	3	27.86%
	4	29.50%
	All	1.63%
How much do you agree with the following statement: “The Eastern Economic Corridor (EEC) HSR project is essential for the growth and economic development of the region?	Strongly agree	54.09%
	Agree	44.26%
	Neutral	1.64%
	Disagree	0.00%
	Strongly disagree	0.00%

Table 5 explores public awareness of the HSR project, an essential aspect for gauging community engagement and support. Table 6 extends this analysis by examining the economic opportunities the project presents, particularly focusing on industry, local business, and employment perspectives. Finally, Table 7 assesses the sustainability and social impacts, offering insights into the long-term benefits and challenges posed by the project.

Table 5. The analysis of an awareness of the HSR project in the EEC area.

Awareness of the HSR project in the EEC area	Results	%
If the HSR project is completed, how likely are you to use it for travel?	Very likely	54.10%
	Quite likely	29.51%
	Neutral	1.64%
	Quite unlikely	4.92%
	Very unlikely	1.64%
What factors influence your decision to use HSR services?	1	16.39%
(Options: Cost, Convenience, Travel Time, Reliability, Environment Impact)	2	21.31%
	3	29.51%
	4	14.75%
	All	32.79%

Table 6. The analysis of an economic opportunities from HSR: industry, local business, and employment perspectives.

Economic Opportunities from HSR: Industry, Local Business, and Employment Perspectives	Results	%
Which industries do you think will benefit the most from the HSR project?	Manufacturing, Transportation and logistics, Tourism and hospitality	27.87%
How do you think the HSR project will impact local businesses in your area?	Increased demand for goods and services, Greater access to new market, Improved supply chain efficiency	71.77%
In your opinion, what are the potential economic benefits of the HSR project for job seekers and the labor market?	Job creation in construction and related industries, Job creation in service and tourism industries, Improved access to job opportunities in different regions	50%

Table 7. The analysis of sustainability and social impact of the HSR project.

Sustainability and Social Impact of the HSR Project	Results	%
How important is the environmental impact of the HSR project to you?	Important	32.78%
Do you have any concerns about the environmental impact of the HSR project?	Very Important	27.89%
In your opinion, how will the HSR project impact air quality and greenhouse gas emissions in the region?	Important	36.05%
How do you think the HSR project will affect land use and urban planning in your area?	Urban expansion and land utilization	65.57%
How do you think the HSR project will affect social cohesion and access to transportation for vulnerable groups (e.g. low-income individuals, elderly, disabled)?	Reduce noise impacts	27.86%
What measures should be taken to mitigate the negative environmental impacts that may arise from the HSR project?	Affordable pricing and fares, Targeted job creation and training programs, Accessible station design and facilities, public subsidies or support for vulnerable groups	45.90%

Collectively, these analyses not only underscore the multifaceted benefits of the HSR project but also address the complexities and challenges it introduces. This holistic understanding is crucial for stakeholders and policymakers as they consider further steps to maximize the project’s positive outcomes while mitigating adverse effects.

5. Discussion

5.1. An analysis of Pearson’s correlation

The main purpose of this research is to perform an exhaustive analysis of the influence of the EEC rail service, alongside eight logistical and economic factors, with the aim of identifying future trajectories of the logistics and supply chain systems in Thailand (Kaewunruen et al., 2019; Rungskunroch et al., 2021a, 2021b). These eight factors, integral to our comprehensive analysis, demonstrate correlation values within a spectrum that ranges from −0.6510 to 0.3749.

For clarity, and to enhance the precision, this study further segregated these factors into two principal dimensions. The first, the economic dimension, encapsulates aspects such as EPR, PHR, GDP, CSE, and CSI. The second dimension pertains to logistic performance and comprises the CQLS, QTTI, and EACPS. And the results derived from these separate dimensions were −0.3354 and 0.3179, respectively. It is evident that all the incorporated economic factors exhibit a moderate to strong negative correlation with the EEC line’s progress. This observation can be attributed to the fact that the EEC railway project is currently under construction, and hence, its potential impact on Thailand’s economy remains latent. At this juncture, the railway project does not appear to have significantly stimulated economic activity or development within the nation.

However, the analysis presents a contrasting narrative when considering the logistic performance dimension. These factors consistently display values that fall within the ambit of moderate positive correlation. This notable uptick in the positive correlation values is a direct consequence of the significant enhancement of logistic performance in Thailand. A salient feature of this improved logistic performance has been the successful integration of multimodal transport systems within the EEC area. The multifaceted approach towards integrating road, rail, air, and sea transport has not only streamlined the existing logistics chain but also facilitated a more efficient and effective goods and passenger movement across Thailand. This progress reflects a substantial logistical growth that the EEC project has spurred, even during its construction phase.

Moreover, these findings are in concordance with the preliminary results drawn from the study’s survey. Most of the respondents, comprising locals and stakeholders, have expressed a strong belief that the EEC project, despite being under construction, has already brought significant societal and economic changes. They believe that the project has enhanced their quality of life by promoting local industries, improving access to better infrastructure, and offering potential employment opportunities. The anticipation of the project’s completion has further spurred this optimism, with expectations of even more significant advancements in the future. Upon completion, the EEC railway project will not only revolutionise Thailand’s transportation sector but will also catalyse its economic development, positioning it as a prominent economic corridor within Southeast Asia.

5.2. Survey results

The survey’s demographic data reveal a diverse respondent profile, including age, gender, occupation, education, and residential area. Notably, a substantial majority of 63.93% are within the 25–34 age range, and 65.57% are female, reflecting the survey’s location in an industrial estate where many women are housewives. Educationally, 62.30% have a bachelor’s degree and 29.51% have a master’s degree, indicating a well-educated participant base. Moreover, 62.30% reside in urban areas of Chonburi or Rayong, highlighting the urban-centric nature of the sample. These demographic insights are crucial for contextualising the survey results, suggesting a certain level of engagement and perspective influenced by the respondents’ background.

5.2.1. Transportation preferences and usage patterns

The survey explored transportation preferences within the area through three key questions. It was found that 72.13% of respondents use only a single mode of transportation for their daily commute and travel, with private car usage emerging as the predominant mode, indicating a strong preference for personal vehicles over other forms of transport. Additionally, a portion of the population engages in multimodal travel, utilising more than one type of transportation.

To further understand transportation habits, the survey inquired about the frequency of public transportation usage and daily travel durations among the respondents. A significant 60.66% indicated a rare use of public transport within the study area, while only 1.64% reported using it daily, as illustrated in Figure 4. Regarding travel time, 60.66% of participants noted their typical journey falls between 30 minutes to an hour, and 18.03% reported travel times of less than 30 minutes, as shown in Figure 5. This data highlights a preference for brief, primarily private vehicle-based commutes over regular public transportation use.

Figure 4. The frequency of public transport usage by respondents.

Figure 5. Travel duration data of the survey respondents.

5.3. Awareness of the HSR project in the EEC

The research investigates the familiarity of the local population with the High-Speed Rail (HSR) project within the Eastern Economic Corridor (EEC), aiming to analyse the potential economic and social impacts of the project’s full operation in the future. The study found that over 57% of the population are still unfamiliar with the HSR project in the area, with only 11.18% reporting a high level of familiarity due to direct involvement or connection with the project.

Furthermore, more than 30% of the population anticipate that the introduction of HSR could transform society in multiple dimensions, including comprehensive economic growth in the region, positive environmental impacts, and benefits to travel. Additionally, 54.10% strongly agreed that the HSR project is essential for the economic growth and development of the region.

5.3.1. Feasibility of using HSR and economic impact

The questionnaire regarding the feasibility of using HSR services was designed to gather opinions on the likelihood of using the service once fully operational. The survey results indicate that 54.10% believe it is highly feasible to use the service, with only 1.64% expressing reluctance due to concerns over potentially unreasonable costs. Consistent with these findings, 29.58% of respondents identified cost as a significant factor in their service choice, while 21.31% noted that other factors, such as convenience, reliability, and safety, also play a crucial role.

The economic benefits and impacts arising from the HSR project in the EEC are of significant interest to both the public and business sectors. As the first HSR project developed in Thailand, the EEC route involves considerable investment compared to other transport systems and has a lengthy construction period.

In analysing these impacts, researchers conducted a survey with six questions in Section 5, including four multiple-choice questions and two open-ended questions for comments. The findings indicate that over 44.26% of respondents believe the HSR will positively affect job creation, tourism, the development of the Eastern region, and business opportunities. Only 9.84% expect benefits in just one of these areas.

Another focus was on the ‘industries that will benefit most from the HSR project’, with 27.87% of respondents identifying three key industries: tourism, transport and logistics, and real estate and construction. Regarding the ‘impact on local businesses in the HSR service areas’, 71.77% believe there will be impacts across 1–3 areas, anticipating developments in supply chains, demand for goods and services, and rising real estate prices.

Lastly, the ‘economic benefits of the HSR project for job seekers and the labour market’ showed that approximately 50% of respondents foresee impacts on 2–3 areas, mainly affecting job creation in the construction industry and leading to higher wages in the region. Similarly, existing studies explored the interplay between employment promotion and social protection systems, highlighting how targeted employment strategies in sectors related to railway services can enhance job opportunities for citizens with reduced competitiveness in the labour market (Loktyukhina & Burankova, 2022). Additionally, researchers have provided a comprehensive analysis of the labour market dynamics in Gujarat, emphasizing how infrastructure projects like railways can influence labour force participation, job composition, and employment quality, ultimately affecting regional economic development (Singh et al., 2023).

5.3.2. Environmental and social consideration

This section addresses the survey respondents’ awareness and concerns regarding the environmental and social impacts associated with the construction and subsequent operation of the HSR project. Approximately 32.78% of respondents emphasised the project’s environmental impact, with 27.89% believing it would significantly affect air quality and greenhouse gas emissions in the region. Furthermore, 36.05% opined that the project prioritises incorporating green infrastructure and sustainable design practices. However, 47.54% perceived that the project would only moderately address social cohesion and accessibility for vulnerable groups (e.g. low-income individuals, the elderly, and people with disabilities), with additional comments suggesting limited connectivity between HSR services and local communities, potentially inadequately serving the elderly.

Moreover, concerns over the environmental impacts from the HSR project are considered low, as only 1.63% of respondents felt heavily affected by the construction phase. Meanwhile, 65.57% believe the operation will impact land use and urban planning, particularly regarding urban expansion and land utilisation. Regarding measures to mitigate environmental impacts, 27.86% expressed a desire to reduce noise impacts.

The final point addresses suggestions for the government to design measures that promote social equity and benefit all members of society through the HSR project. Key policies desired by 45.90% of respondents include affordable pricing and fares, targeted job creation and training programmes, accessible station design and facilities, and public subsidies or support for vulnerable groups, to further encourage the use of HSR services.

Therefore, despite its current construction phase, the EEC project appears to have already begun stimulating certain aspects of Thailand’s economy, predominantly within the logistics and supply chain sectors. These early indicators suggest the EEC project’s potential and its anticipated contribution to Thailand’s socio-economic growth.

6. Policies recommendation

Based on the detailed analysis of the EEC project’s impact on Thailand’s logistics and supply chain, particularly focusing on the development of HSR, the following policy recommendations are proposed. These recommendations aim to leverage the transformative potential of the EEC’s HSR project, ensuring it acts as a catalyst for sustainable economic growth, social equity, and environmental stewardship in Thailand.

6.1. Enhance multimodal transport integration

The positive correlation between logistic performance indicators and the advancement of the EEC HSR underscores the critical importance of enhancing the integration of multimodal transportation systems within the region. Enhancements should focus on improving physical and operational connections between the HSR and other transport modes, such as road, air, and sea transport. This integration is pivotal for streamlining logistics chains, facilitating the efficient movement of goods and passengers, and contributing to Thailand’s overall logistical growth.

The development of comprehensive transport hubs that seamlessly integrate various modes of transport is essential. Strategic planning and design in developing these hubs can significantly reduce travel times and enhance passenger convenience (Liu et al., 2013). Moreover, the implementation of advanced digital platforms is indispensable for efficiently managing multimodal logistics operations. These platforms should utilize digital cargo identification and optimized routing to boost operational efficiency and decision-making (Bely et al., 2015; Vakulenko & Evreenova, 2019). Public-private partnerships (PPPs) play a transformative role in developing multimodal transportation infrastructure. PPPs can drive investment, support sustainable economic growth within the transport sector, and enhance infrastructure and services (Fanti et al., 2015; Hu et al., 2007; Jiao, 2013; Levitin & Mayboroda, 2010; Shakirova & Boltaevna, 2021).

6.2. Foster economic and social equity

The moderate impact of the HSR project on social cohesion and accessibility for vulnerable groups necessitates policies ensuring equitable distribution of benefits among all societal segments, including low-income individuals, the elderly, and people with disabilities. These policies aim to enhance both economic and social impacts through several strategic measures.

Firstly, implementing affordable pricing and fare structures for the HSR can enhance accessibility for all income groups. Research indicates that flexible ticket pricing strategies significantly affect passenger demand, as evidenced by studies in the Beijing – Shanghai transportation corridor (Zhang et al., 2017) and the Wuhan-Guangzhou corridor (Yao et al., 2013). Secondly, developing targeted job creation and training programs in sectors likely to benefit from the HSR project, such as construction, logistics, and tourism, is crucial. Such initiatives can drive regional development and job creation, particularly in construction and related sectors (Gong et al., 2017; Volkova, 2020).

Lastly, designing stations and related facilities to be fully accessible is essential to ensure inclusivity for people with disabilities and the elderly (Kao et al., 2010). Evaluations of accessibility at transportation hubs provide valuable insights into improving inclusivity through thoughtful design considerations (Andriani, 2019; Arakawa & Matsuda, 2021; Brunello, 2011).

6.3. Prioritise environmental and sustainable development

As concerns over environmental sustainability continue to grow, incorporating green infrastructure and sustainable design principles into the development of HSR projects and associated facilities is imperative. Emphasizing environmentally friendly construction practices and materials is crucial to minimize the carbon footprint of national HSR projects. Some studies advocate for the use of sustainable materials and modular construction techniques, which can significantly reduce emissions and enhance sustainability (Hemmat et al., 2023; Sizirici et al., 2021; Sullcapuma Morales, 2023; Yaman & Rashid, 2021).

Additionally, implementing measures to mitigate noise pollution and protect local wildlife habitats during and after construction is essential for sustainable development. Some scholars discuss effective strategies to mitigate environmental impacts on wildlife, including the use of wildlife crossing structures and fencing, which can be applied to HSR projects (Qiao et al., 2017).

Investing in renewable energy sources to power HSR operations can significantly reduce greenhouse gas emissions and enhance air quality in the EEC region. Some research illustrates the critical role of renewable energy in minimizing environmental impacts and supporting sustainable transportation infrastructure (Philipp et al., 2016).

6.4. Develop robust monitoring and evaluation frameworks

To ensure the long-term success and sustainability of the HSR project, it is essential to develop robust monitoring and evaluation frameworks. These frameworks should include comprehensive performance indicators to track the project’s progress and impact on logistics efficiency, economic growth, social equity, and environmental sustainability. Regular assessments can identify areas for improvement and ensure that the project continues to meet its objectives effectively.

7. Conclusion

This study investigates the impact of the EEC rail project on Thailand’s logistics and supply chain operations through Pearson’s correlation analysis and a survey of 200 stakeholders. The correlation analysis reveals values of −0.3354 for economic factors and 0.3179 for logistic performance, indicating a moderate to strong negative correlation with economic indicators and a positive correlation with logistic performance, respectively. These findings suggest temporary economic challenges during the construction phase, but enhanced efficiency in logistic operations.

The survey results provide additional insights, revealing that the majority of respondents are aged 25–34 (63.93%), predominantly female (65.57%), and well-educated, with 62.30% holding a bachelor’s degree and 29.51% a master’s degree. Most respondents reside in urban areas of Chonburi or Rayong (62.30%). Transportation preferences indicate that 72.13% use a single mode, mainly private cars, with rare use of public transport (only 1.64% daily) and typical travel times of 30 minutes to an hour for 60.66%. Awareness of the HSR project is low, with over 57% unfamiliar, yet 54.10% strongly agree on its importance for regional economic growth. Feasibility studies show 54.10% find it highly feasible to use HSR, with expected benefits in job creation, tourism, and business opportunities, particularly in tourism, transport, logistics, and real estate. Environmental and social concerns highlight the project’s impact on air quality, land use, and urban planning, with suggestions for affordable pricing, targeted job creation, accessible station designs, and support for vulnerable groups to ensure social equity.

Based on these findings, the study emphasizes the importance of enhancing multimodal transport integration, ensuring equitable access to HSR services, and adopting sustainable construction practices. These strategies are essential for maximizing the EEC rail project’s benefits, fostering economic growth, and promoting social equity and environmental stewardship in Thailand. The successful implementation of these policies will position the EEC as a significant contributor to Thailand’s economic and social development.

Author Bio

P.M. took part in either the initial drafting or the critical revisions of the manuscript for significant intellectual content. P.R. played a major role in either the project’s conception and design, data collection, or the evaluation and understanding of the data. Both P.M. and P.R. commit to being responsible for the entirety of the work, ensuring that any concerns about the work’s accuracy or integrity are properly addressed and resolved. S.T. and V.W. consulted throughout the duration of this research project.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The first author gratefully acknowledges the financial support provided by the New Gen Researcher Fund, the Rajamangala University of Technology Thanyaburi (RMUTT) research foundation scholarship (NRF66D0703), and the National Science, Research and Innovation Fund, Thailand Science Research and Innovation (TSRI), through Rajamangala University of Technology Thanyaburi (FRB67E0725) (Grant No.: FRB670027/0168).