Thailand is planning a 1 trillion baht ($29 billion) international bidding to build a "land bridge" along the country's narrow southern region. The nation wants to provide a shorter route for cargo between the Pacific and Indian Oceans, bypassing the Strait of Malacca and Singapore.
The winning consortium, which may include shippers, logistics operators, port managers, real estate developers, and industrial investors, will be granted concessions for 50 years. The project, known as Landbridge, will be divided into four phases from 2025 to 2040, with the potential to break even within 24 years. Thailand's Transport Minister Suriya Juangroongruangkit presented the plan to Japanese investors in Tokyo on Monday.
Prime Minister Srettha Thavisin has proposed this significant project to potential investors from the United States, China and the Middle East. The plan, which has the potential to transform Thailand into a major transit hub for international trade, involves connecting two new ports on either side of the southern peninsula with a network of highways and railways.
When completed, the project will allow ships to bypass the Strait of Malacca, reducing the average transit time by about four days and cutting shipping costs by 15%.
The government also plans to enact new legislation to facilitate the development of the project and surrounding areas, Suriya said.
On Monday, Srettha also emphasized that this project will help create 280,000 jobs and boost Thailand's annual economic growth rate to 5.5% when the project is fully implemented. Notably, Thailand's economy grew by 2.6% last year and is projected to achieve a growth rate of between 2.5% and 3% in 2023.
