Thailand to scrap $38.3 billion land bridge project after study

[Yellow is Okay]

A drone image of Highway 44, a route linking Krabi and Surat Thani provinces as part of Thailand’s proposed land bridge project to connect the Andaman Sea and the Gulf of Thailand. PHOTO: REUTERS​

BANGKOK – Thailand plans to scrap its proposed land bridge mega project that would link the Gulf of Thailand and the Andaman Sea, after a government study found it was no longer economically viable and poses significant environmental risks.

A government committee recommended terminating the project, earlier estimated at a cost of about 1 trillion baht (S$38.3 billion), Finance Minister Ekniti Nitithanprapas said in a news briefing on July 24. The updated study found it would lose money overall, compared with an earlier assessment that projected substantial economic gains, he said.

The 100km connection, which could cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait, returned to the spotlight in 2026 as tensions around the Strait of Hormuz underscored the vulnerability of global shipping routes.

In April, Deputy Prime Minister Phiphat Ratchakitprakarn said the government would accelerate the project.

The study also showed the project’s expected financial return had fallen to 4.8 per cent from 8 per cent, while cargo volumes were projected to be as much as 16 per cent lower than previously estimated.

Nine of the world’s 10 largest shipping lines have already invested in competing projects, leaving limited interest in the land bridge proposal, the official said.

The pitch for the land bridge project included seaports to be built on either side of the country’s southern peninsula and linked by highway and rail networks. The idea replaced a decades-old Thai proposal to dredge a canal through the Kra Isthmus.

Separately, the latest study warned the project could damage environmentally sensitive areas, including Ranong’s biosphere reserve and wetlands, and threaten key marine tourism sites.

Instead of pursuing the land bridge project, the government plans to upgrade Ranong Port and develop a rail link that would connect the Andaman coast with Thailand’s existing rail network to improve freight transport, Ekniti said.

The recommendation will be submitted to Thai Prime Minister Anutin Charnvirakul and the Cabinet for approval. Ekniti said the government has incurred no losses from the earlier plan because no land had been acquired and construction has not started.

“The project offers an important lesson that large infrastructure investments should begin with a clear assessment of the country’s strategic priorities and environmental considerations before agencies proceed with detailed project studies,” Ekniti said. Bloomberg

 

[c14-Isotope]

Made zero sense for Thailand to take multi billion dollar loans only to build a corridor for China.
Well, one more idea to bypass Malacca has kicked the bucket.

 

[Thinking]

Smart move. Don't become a "road" for other countries unless you are the one doing most of the driving.

 

[Pakistanithinktank]

If it was Pakistan, politician would have built in 2 to 3 years, drag the project to increase the cost.
Pakistan corrupt politicians, as someone (Orya Maqbool Jan) recently put it in the interview, if they needed 16 billion, they ask for 18 billion, two billion for party and money laundering.

 

[retaxis]

Made zero sense for Thailand to take multi billion dollar loans only to build a corridor for China.
Well, one more idea to bypass Malacca has kicked the bucket.

China has arctic sea route and route through russia/central asia and route through myanmar. The minute war starts, China will have the malacca straits completely blocked over the top of any other blockades.

but none of that actually matters since China can impose blockade of straits of malacca and the people who suffer the most are trading nations like Japan, SK, Indonesia, Taiwan etc..

The malacca strait blockade is something that harms US allies far more than it can ever harm china. India lack of understanding of this simple factor is astonunding and the real threat of China cutting the chicken neck off and taking north east india and blockading India water supply remain a real threat as it does not threaten the rest of the world.