Thailand’s land bridge versus Melaka straits and Port of Singapore?

Thailand’s land bridge versus Melaka straits and Port of Singapore?

If you are wondering what is this land bridge, it’s a project which involves connecting the Andaman Sea with the Gulf of Thailand. Briefly, for ships to bypass the straits of Melaka and thus also skipping the mighty Singapore port altogether. It may not be able to capture every ship but estimates have pointed that the number could be significant since it will save the ships a few days’ of traveling time.

Article in bangkokpost.com. The southern Land Bridge mega project will move forward as the government is currently drafting the Southern Economic Corridor (SEC) bill, which is required for the project to continue, Transport Minister Suriya Jungrungreangkit said on Monday.

The one-trillion-baht project, which will see a shipping shortcut and various supporting infrastructure built to connect Ranong and Chumphon in the South, will carve out an alternative route for cargo ships heading from the Andaman Sea to the Gulf of Thailand and vice versa. The government is hoping the new shipping lane will not only cut journey times but also stimulate the South’s economy. Do read the full Article in bangkokpost.com.

How will this land bridge be helping the Thai economy?

Boosting Thai economy

Economically, it should boost the economy of Thailand from the fees it could get from the shipping lines and depending on how successful this could be, it will also be a negative news for all the ports which are now being used by shipping lines passing through the straits of Melaka including the mighty Singapore port and also the expanding Port of Tanjung Pelepas.

Safety of the land bridge versus Melaka straits

There are also reports saying that it will be safer too since there should not be any pirates. I am not too sure about the definition of ‘safety’ because things can still go wrong. Here’s one huge case causing logistical nightmare just over a year ago. The impact was felt worldwide too.

“In March 2021, the Suez Canal was blocked for 6 days by a container ship which run aground in the canal.” Source: https://en.wikipedia.org/wiki/2021_Suez_Canal_obstruction

How will Malaysia be impacted?

Here’s one earlier view about the possibility that Malaysia may also already have a land bridge but maybe not a straight line like Thailand’s land bridge.

Earlier article on Thailand’s land bridge project here: 15 years later? ECRL is ready sooner

Will this be happening anytime soon?

I personally believe I would retire earlier than when the land bridge would be ready. This project involves funds which the Thai government may not have. It will need foreign capital injection. In other words, it will have to attract this and perhaps sell some ownership of the land bridge to a foreign company. I am not too sure what will this mean to the country as a foreign entity will partially own an important infrastructure within the country.

The construction of this scale ‘one side of Thailand to the other side!’ will take a long time too. From available news, “Construction will be divided into three phases: the first phase is expected to start in 2026 and finish by the end of 2030; the second is to start in 2031 and finish by 2034; and the last phase is to start in 2035 and finish in 2036.” (Source: bangkokpost.com)

Happy following this huge news for Thailand, Malaysia, Singapore and the shipping lines world.

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