Thailand's State Railways Board approved a 122.7 billion baht ($3.5 billion USD equiv.) Phase 2 southern rail project spanning three routes (Chumphon–Surat Thani–Hat Yai–Padang Besar, totalling 534 km). The budget increased 18.3 billion baht from 2024 estimates due to environmental design adjustments, flood-resistant rerouting near Hat Yai (where November 2025 flooding damaged tracks), and higher material/fuel costs. Cabinet approval targeted for late August 2026, with construction contract bidding to begin early 2027 and piling work starting July 2027. Execution spans 4–6 years across 4 contracts. Relevance to Thai SMEs: major infrastructure spend likely to boost regional transport/logistics and construction supply chains.