Thailand has revived plans for a 1 trillion baht (US$30.5 billion) land bridge linking the Gulf of Thailand with the Andaman Sea, aiming to offer an alternative route to the Strait of Malacca, according to Reuters.
The proposal has regained momentum following the conflict in Iran and the closure of the Strait of Hormuz, which highlighted the risks of relying on major maritime chokepoints.
According to Reuters, the project includes two new deep-sea ports in Chumphon and Ranong, connected by a 90-kilometre logistics corridor featuring a standard-gauge railway, highways and links to Thailand’s existing rail network.
Thai officials believe the corridor could reduce logistics costs by nearly 30% and cut transit times by up to 14 days for cargo moving between southern China and ports serving South Asia and the Middle East.
The planned ports would have a combined capacity of 20 million TEUs annually.
Thailand is targeting regional feeder services rather than ultra-large container ships, hoping to capture part of the transshipment market that currently moves through the Strait of Malacca.
However, analysts questioned the project’s commercial viability. Reuters reported that investors remain cautious due to the project’s high cost, while shipping lines would need to accept the additional handling required to transfer cargo between ships by land.
The proposal also faces opposition from local communities and environmental groups. Reuters said Thai regulators have ordered a new Environmental and Health Impact Assessment before the project can move forward.
A government-appointed panel is expected to submit its recommendations by the end of July.
