Thailand’s proposed land bridge project could boost various sectors

Photo courtesy of Bangkok Post

The potential implementation of the proposed land bridge project in Thailand could significantly benefit sectors such as contractors, industrial estates, transport, and finance, according to industry analysts.

The project, which has been under discussion by various governments for four decades, aims to connect the Andaman Sea to the Gulf of Thailand, specifically via the provinces of Ranong and Chumphon. The primary motive behind the project is to reduce logistics costs by avoiding traffic in the Malacca Strait.

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Kasikorn Securities highlighted that if the government successfully implements this project, major beneficiaries would be industrial estates, notably WHA Corporation and Amata Corporation. These companies might acquire new plots to establish an industrial hub in the future area.

Besides, contractor groups, for whom prominent stocks include Italian-Thai Development (ITD), CH Karnchang (CK), and Sino-Thai Engineering and Construction (STEC), are likely to secure contracts to construct ports and railroads, including those linking to neighbouring countries.

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The projected increase in transport demand is also expected to boost logistics stocks such as Triple I Logistics (III), Wice Logistics, and Regional Container Lines (RCL). Other potential beneficiaries include Ratchthani Leasing (THANI) and Asia Sermkij Leasing (ASK), which offer leasing finance for commercial vehicles.

On the same note, Krungsri Capital Securities (KCS) predicts that CK, STEC, and Seafco Plc, a specialist in deep foundations, will see the most significant stock gains from the land bridge project, provided it proceeds as planned. KCS further notes that the construction of the project’s first phase will necessitate a budget of 520 billion baht, reported Bangkok Post.

This proposed land bridge project, therefore, could spur economic growth by creating new opportunities for several sectors, thereby positioning Thailand as a major regional transit hub. However, the details of the project are still limited, and the actualisation of these benefits depends on the government’s ability to bring this project into existence.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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