Cost, Politics Prove Decisive Factors in Royal Thai Navy’s Submarine Selection
June 29, 2015 - by Forecast International
Dan Darling, International Military Markets Analyst, Forecast International.
As part of its effort to resurrect a submarine capability after 64 years of dormancy, the Royal Thai Navy has selected a Chinese proposal to provide three submarines at a cost of THB12 billion ($355 million). The Chinese proposal was one of six offers, with the others coming from France, Germany, Russia, South Korea and Sweden. A majority of the 17-member submarine procurement committee appointed by the RTN voted in favor of the Chinese bid, with the remainder split between the bids from Germany and South Korea. In the end, the Chinese-built option was deemed the best value for the money and downselected as the preferred candidate.
While price no doubt factored heavily in the decision, there are other aspects to consider. One is technology transfer to local Thai industry, which, according to one committee member, China expressed a willingness to provide. Another issue is the provision of a training package for RTN submariners – again, an aspect covered by the Chinese bid.
Finally, there is the geopolitical aspect. Since the Royal Thai Army undertook a coup in May 2014 – its 19th in Thailand’s modern history – relations with China have grown warmer, as the military junta ruling the country has incurred rebukes from long-standing ally, the United States, over its actions. Naturally, the ruling junta would prefer to deal with a country and government disinclined to interfere with the internal politics of Thailand.