Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Thailand has decided to scale back its proposed USD 30 billion land bridge project after a government review raised concerns over its commercial feasibility, financial risks and environmental impact. Instead of proceeding with the original coast-to-coast logistics corridor, the government will focus on expanding the existing Ranong Port and improving rail connectivity in southern Thailand. The review also highlighted declining project viability, potential fiscal liabilities, outdated environmental assessments and the need for stronger public consultation. Authorities, however, said improving transport infrastructure remains important to support future regional trade.
Thailand has decided to revise its proposed USD 30 billion land bridge project after a government review found that the large-scale infrastructure plan is no longer commercially viable. The government said it will now prioritise the expansion of the existing Ranong Port in southern Thailand and improve related rail infrastructure instead of moving ahead with the original proposal.
The land bridge project was initially designed as a major logistics corridor connecting Thailand's east and west coasts. The plan proposed linking two new deep-sea ports at Chumphon on the Gulf of Thailand and Ranong on the Andaman coast. The corridor was intended to provide an alternative shipping route to the congested Strait of Malacca, one of the world's busiest maritime trade passages.
According to the government's latest review, the project could place a significant financial burden on the country and create future fiscal liabilities. The assessment found that the project's net present value had dropped sharply from 637.7 billion baht to a negative 10.3 billion baht, indicating that the expected economic returns no longer justified the investment.
The review further noted that the project's financial outlook is highly dependent on global economic conditions, international trade volumes and shipping demand. Any slowdown in these areas could further weaken its commercial prospects.
Environmental concerns also played a major role in the government's decision. The review pointed to potential risks to Ranong's mangrove forests, marine ecosystems, fisheries, tourism sector and coastal communities if the original project were implemented. It also stated that the environmental impact assessments prepared earlier are now outdated and require fresh evaluation before any major development is considered.
Authorities additionally observed that there is currently no immediate commercial need for constructing a new deep-sea port on the Gulf of Thailand, as existing port capacity remains adequate. The review also recommended strengthening public consultation through broader engagement with affected communities before undertaking large infrastructure projects.
Instead of developing new ports, the government will focus on upgrading the existing Ranong Port and improving railway connectivity to strengthen logistics networks in southern Thailand. The review also emphasised the need to continue investing in transport infrastructure to support rising freight movement, particularly cargo linked to the Thailand-Laos-China railway, which has become an important regional trade route in recent years.
The land bridge project has been promoted by successive Thai governments as part of the country's long-term strategy to position itself as a regional logistics hub and reduce dependence on the Strait of Malacca. The proposal had attracted interest from international investors and logistics companies, although questions over financing, environmental impact and commercial demand had persisted since its announcement.
Source Reuters
Advertisement
Facebook
Whatsapp
