Thailand offers a $28 billion Malacca Strait bypass project

Bangkok (Thailand), November 15: The Thai government is introducing to investors a $28 billion project to significantly cut transit times between the Indian Ocean and the Pacific Ocean by building a bypass around the Strait of Malacca.
Bloomberg news agency reported on November 14 that Thai Prime Minister SretthaThavisin told investors in San Francisco, California (USA) on November 13 that the above project could cut the average travel time by 4 days. and reduce shipping costs by 15%. He affirmed that with traffic volume expected to exceed the capacity of the Strait of Malacca by 2030, the new project will ensure the smooth flow of goods.
According to the Thai government, the new project called Landbridge will cost about 1,000 billion baht (28 billion USD), with seaports to be built on either side of the peninsula. southern part of the country and is connected by a network of highways and railways.
The 100 km long connection route will replace Thailand's decades-long proposal to dredge a canal through the Kra Isthmus. The proposal was to build a canal through Thailand's narrowest point and reduce the travel distance to 1,200 km, but was rejected many times because of environmental concerns.
Prime Minister Srettha said that about a quarter of the world's trade goods pass through the Strait of Malacca and this strait will only become busier, leading to higher shipping costs. He also noted that there are on average more than 60 maritime accidents each year on this sea route.
"Landbridge will be an additional important route to support shipping and an important option to solve the problems of the Strait of Malacca. This will be a cheaper, faster and safer route," Mr. Srettha emphasized.
Mr. Srettha said the Landbridge project will help create 280,000 jobs and boost Thailand's annual economic growth rate to 5.5% when this project is fully implemented. The Thai economy grew 2.6% last year and is forecast to grow 2.5-3% in 2023, according to Bloomberg.
The Thai government aims to complete the Landbridge project by 2030 and foreign investors will be allowed to own more than 50% of the shares in joint ventures with Thai companies in building ports and infrastructure. related floor.
Prime Minister Srettha also emphasized that the Landbridge project "offers an unprecedented opportunity to invest in a commercially and strategically important project connecting the Pacific and Indian Oceans, connecting people in the East with The West".
Thai officials will host a presentation on the Landbridge project to potential American investors at the APEC Economic Leaders' Meeting in San Francisco this week.
Prime Minister Srettha said that American companies interested in this project include SSA Marine Inc., Port of Long Beach, Oracle Corp. and Webtec. Previously, Mr. Srettha also introduced the Landbridge project to investors in China and Saudi Arabia.
Source: ThanhNien Newspaper