- Thailand is gearing up for a monumental project by sidestepping the Malacca Strait.
- Reducing travel time by an average of four days and cutting shipping costs by 15%.
- The government is planning to introduce new legislation.
Project Overview
Thailand is gearing up for a monumental 1 trillion baht project, aiming to slash shipping times between the Indian and Pacific oceans by sidestepping the Malacca Strait. The plan involves a competitive bidding process for a 50-year concession to a consortium, potentially comprising various industry players, reports Bloomberg.
Project Phases
The ambitious “Landbridge” initiative spans four phases scheduled between 2025 and 2040. The goal is to achieve break-even within 24 years of commencement.
Key Components
Prime Minister Srettha Thavisin’s proposal involves the creation of two new seaports, connected by comprehensive highway and rail networks across Thailand’s southern peninsula. This infrastructure overhaul is poised to position Thailand as a pivotal transit hub for global trade.
Impact and Benefits
Once finalized, this colossal undertaking promises to reroute vessels away from the Malacca Strait, reducing travel time by an average of four days and cutting shipping costs by 15%. Additionally, it’s projected to generate a significant upsurge in job opportunities, estimated at around 280,000 positions, and forecasted to bolster Thailand’s annual economic growth to 5.5%.
Legislation and Development
The government is planning to introduce new legislation to facilitate not only the project’s development but also the growth of the surrounding regions.
This project heralds a transformative era for Thailand’s economic landscape, aiming to reposition the nation as a pivotal player in global trade and transportation networks.
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Source: Bloomberg
