Thailand’s Land Bridge megaproject will forge a new link between the Pacific and Indian oceans, relieving shipping congestion in the Malacca Straits. It is expected to become a key link in the China-led Belt and Road project, requiring over 1 trillion baht in investments and taking a total of eight years to complete.
The Land Bridge project will boost trade and investment and bring other benefits for Thailand, Associate Professor Aat Pisanwanich, director of the Centre for International Trade Studies at the University of the Thai Chamber of Commerce, says.
It will connect the Andaman Sea in Ranong province to the Gulf of Thailand in Chumphon province, cutting the distance that cargo shipments have to travel and avoiding navigation through the narrow Malacca Strait. The new route will also aid the shipment of goods from Thailand to markets in India, Southeast Asia, the Middle East, and Europe.
However, the Land Bridge project faces competition from Malaysia’s East Coast Rail Link (ECRL). Thailand must guarantee that Chumphon port matches that of Malaysia’s Port Klang. Otherwise, shipping businesses may continue using Malaysia’s services.
The project aims to increase the GDP of the southern region by 1.4 trillion baht. It is planned to enhance economic activities in the local private sector and attract more foreign investment to the southern region, resulting in over 100,000 new jobs.
The Land Bridge Project is expected to attract interest from China, Japan, India, and Saudi Arabia, among others. Large Thai businesses expected to benefit from the project include the rubber industry, processed fruit industry, and future food industry.
The Land Bridge project is projected to capture an economic share of 15-20% from Singapore and Malaysia, based on the value of logistics transportation.
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