Thailand plans 1 trillion baht land bridge to boost trade efficiency
The Ministry of Transport has introduced draft legislation for establishing a Southern Economic Zone, facilitating a substantial Land Bridge transport project to connect the Andaman Sea with the Gulf of Thailand.
This bill proposes a commission to expedite the Southern Economic Corridor’s development across Chumphon, Ranong, Surat Thani, and Nakhon Si Thammarat.
Transport Minister Suriya Jungrungreangkit expressed hopes for the SEC Act to be effective by September. Under Pheu Thai’s leadership, the Land Bridge project, costing approximately 1 trillion baht (US$29 billion), aims to connect seaports in Ranong and Chumphon with new highway and rail links.
This 100-kilometre connection would reduce shipping times between the Indian and Pacific Oceans by bypassing the Malacca Strait, a congested ocean route between Malaysia and Singapore.
The draft bill also outlines the SEC commission, led by the prime minister, to oversee logistics, infrastructure, and IT developments in the designated areas, as well as project financing. It will undergo public hearings before advancing to Cabinet and Parliament.
Previously, former Prime Minister Srettha Thavisin promoted the Land Bridge project to international investors in the United States and China, garnering interest but limited subsequent engagement. The ministry targets completion by 2030, with foreign investors permitted to own over 50% of joint ventures for infrastructure development.
The deep sea ports in Ranong and Chumphon are projected to cost around 630 billion baht, according to the Office of Transport and Traffic Policy and Planning.
However, the project faces opposition from environmentalists and some southern communities. Protesters last year voiced concerns that the proposed SEC committee might operate as an independent state for investors, potentially easing labour and land use regulations and bypassing environmental safeguards, reported Bangkok Post.
In other news, the Thai Ministry of Transport has instructed the Aeronautical Radio of Thailand Company Limited (AEROTHAI) to enhance Phuket Airport’s flight handling capacity. By 2025, the aim is to increase from 25 to 35 flights per hour.
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