According to Suriya Jungrungreangkit, Thailand’s Transport Minister, the proposed southern land bridge megaproject, with a projected cost of 1 trillion baht is not being suspended or cancelled. However, he emphasized that extensive research and thorough scrutiny are necessary before making any definitive advances. Suriya’s statements came in response to fears from Wichai Sudsawat, a United Thai Nation (UTN) Party MP from Chumphon, that the much-touted venture would be shelved indefinitely.
Mr. Sudsawat underlined that this project, conceptualized by the previous regime and factoring high in the UTN’s plans, aims to strengthen connectivity and pave the way for economic growth in the southern regions of Thailand. Initially rolled out by the Prayut-Chan-o-cha government in 2021, the land bridge project is expected to complement the nation’s economic dynamo – the Eastern Economic Corridor (EEC) while connecting Andaman Sea and Gulf of Thailand via two strategic transit hubs in Chumphon and Ranong.
Minister Suriya clarified that the Office of Transport and Traffic Policy and Planning (OTP) is actively engaged in studying key aspects of the project. Despite high upfront costs and potential environmental concerns, the minister assured that development plans prioritizing the public interest would be executed smoothly with other governmental agencies contributing to the successful delivery of the project.
The OTP has engaged a company to do a feasibility study, carry out an environmental impact assessment (EIA), and devise an appropriate construction and business development model. Though these necessary tasks were hindered by the COVID-19 pandemic, crucial insights are expected to be presented to the cabinet next month.
Pongkawin Jungrungruangkit, Suriya’s adviser, predicted that the EIA report should be ready for cabinet sanctioning by the end of next year, with bidding expected to commence in mid-2025.
Panya Chupanich, OTP director, mentioned that a colossal sum of 1 trillion baht needs to be raised privately to fund this project. The government will play its part by handling land expropriation if necessary. The ministry plans to hold roadshows in China, the US, and Europe to engage more international investors.
As part of the project, a dual port system at Laem Riw cape in Chumphon on the Gulf of Thailand side, and at Laem Ao Ang cape in Ranong on the Andaman side, costing over 636 billion baht will be established. A motorway and a dual-track railway intended to connect these southern provinces, will also be built at an estimated cost of over 223 billion baht.
The land bridge project is poised to dramatically reduce the journey time from nine days on the Strait of Malacca route to five days. It will boost connectivity between the EEC project, southern China, Asean and the member countries of the Bay of Bengal Initiative for Multi-Sectorial Technical and Economic Cooperation.
Chaichan Charoensuk, the chairman of the Thai National Shippers’ Council (TNSC), expressed optimism about the project but cautioned that in-depth study and meticulous planning are required before the project can take off. He recommended that the proposed ports in Ranong and Chumphon should incorporate ‘smart’ and ‘green’ technologies, and that laws should be updated to reduce paperwork and support effective transshipment.
However, proposed changes in laws to facilitate transshipment have also raised concerns about an influx of illegal goods. Sombat Premprabha, vice-chairman of the TNSC, suggested a pilot system should be set up at Laem Chabang port for three months to evaluate its effectiveness. Sombat also advocated a review of the suspension of any plan to build the oil and gas pipelines since this segment of the project could attract major investment from oil-rich Middle Eastern countries, especially Saudi Arabia, alluding to their recent rekindled relations with Thailand.
In conclusion, the proposed land bridge project, despite its financial and environmental implications, if executed thoroughly and thoughtfully, can significantly boost Thailand’s connectivity, transport, and trade, projecting it into the international shipping hub arena.
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