News
Prime Minister Srettha Thavisin of Thailand has unveiled a land-bridge project, building seaports on both the east and west side of the Kra Isthmus, the narrowest part of the Malay Peninsula, and linking them with highway and rail networks. He has attracted investment in the new route to connect Asia-Pacific with India and the Middle East in place of the Strait of Malacca.
The port on the west will have capacity to handle 19.4 million TEUs, while the eastern one is designed for 13.8 million TEUs, together accounting for about 23% of the Port of Malacca’s total cargo.
The project will cost about THB1 trillion ($28.17 billion). The 100-kilometer (62-mile) connection between the ports would replace a decades-old Thai proposal to dredge a canal through the Kra Isthmus.
Srettha told investors in San Francisco on Monday that the project can cut travel time by an average of four days and lower shipping costs by 15%. About a quarter of the world’s traded goods pass through the strait. With traffic volumes projected to exceed the Malacca Strait’s capacity by 2030, however, the new project will ensure a seamless flow of goods, he said.
Thailand aims to complete the project by 2030. and foreign investors will be allowed to own more than 50% in joint ventures with local companies. Bangkok is trying to attract investment from China, Saudi Arabia, the U.S. and others.
