Thailand is pitching a multibillion-dollar project that will significantly cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait – one of the world’s busiest sea lanes.
Prime Minister Srettha Thavisin told investors in San Francisco, California, on Monday that the project can cut travel time by an average of four days and lower shipping costs by 15 per cent.
With traffic volumes projected to exceed the Malacca Strait’s capacity by 2030, the new project will ensure seamless flow of goods, he said.
The so-called Landbridge project will cost about 1 trillion baht (US$28 billion), with seaports to be built on either side of the country’s southern peninsula and linked by highway and rail networks, according to the government. The 100km (62-mile) connection would replace a decades-old Thai proposal to dredge a canal through the Kra Isthmus.
The Malacca Strait – a narrow sea lane between Malaysia and Singapore – is the shortest sea route linking the Asia-Pacific region to India and the Middle East. About a quarter of the world’s traded goods pass through the strait, and it will only become busier, pushing up shipping costs, Srettha said, noting that there are more than 60 maritime accidents a year on average in the passage.
“The Landbridge will be an additional important route to support transportation and an important option for resolving the problems of the Malacca Strait,” Srettha said. “This will be a cheaper, faster and safer route.”
The port on the west will have the capacity to handle 19.4 million tonne equivalent units (TEUs), while the eastern one is designed for 13.8 million TEUs, together accounting for about 23 per cent of the Port of Malacca’s total cargo, he said.
The proposed Landbridge bridge is to replace a decades-old Thai plan to dredge a canal through the Kra Isthmus. Photo: SCMP
Srettha said the project, which he had also pitched to investors in China and Saudi Arabia in recent weeks, would help create 280,000 jobs and propel Thailand’s annual economic growth rate to 5.5 per cent when it is fully implemented. Southeast Asia’s second-largest economy grew 2.6 per cent last year and is forecast to expand 2.5 to 3 per cent in 2023.
The Landbridge “presents an unprecedented opportunity to invest in this commercially and strategically important project that connects the Pacific Ocean and the Indian Ocean, connecting people in the East with the West”, he said.
Thailand had for decades discussed an idea for a canal that would traverse the nation’s narrowest point and trim the travel distance by 1,200km, but that proposal was dismissed several times over environmental concerns.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
