Over almost a decade, Thailand has been experiencing along period of economic growth, leading to transitionfrom a predominantly agricultural economy to anindustrialized economy. Other than the skills of the Thaipeople and the availability of resources, this feat has beenprimarily the result of massive local and foreigninvestment. Most of investment has occurred in the areaknown as the Eastern Seaboard (ESB). As may beexpected, the industries expand, and with this growth thedemand for infrastructure system especially intransportation system supporting logistics activitiesincreases.Unlike in developed countries, roadway system inThailand has been largely invested, while the investmentin the railway system considerably declines.Consequently, the Thai railway system tends to lose itscompetitiveness to the road transportation, despite of itsseveral advantages such as the high efficiency, largefreight volume, cost effectiveness, time punctuality, speedsafety and low energy consumption, specifically atmedium to long distance transportation.As a result from the low investment, the provision ofrailway system infrastructure and facilities becomes ratherlimited, while the demand of service lines has beenincreasing annually during the past ten years. Suchdemand has become apparent in the transport ofcontainers and bulky products such as cement and mineraland petroleum products. For instance, the increasingdemand on container transport from Lad Krabang InlandContainer Depot (ICD-Lad Krabang) to Laem Chabang(LCB) in currently limited by the rolling stock numberand service track capacity.While the demand continues to grow and the railwaysystem still keeps advantages of medium-to-long distancetransportation over other modes, there is a clear need inthe increase in railway system investment. The mainobjective of this paper is to evaluate the potential ofservice expansion of the railway freight transportation in Thailand. The more efficient railway system will offer alower transportation cost, hence the production cost, andenhance the competitiveness in the foreign tradeopportunity.