The Thai government is pushing ahead with the Landbridge project, a major infrastructure plan to connect the Indian and Pacific Oceans by bypassing the Malacca Strait, a vital waterway between the Malay Peninsula and Sumatra, Indonesia.
With an investment value of 1 trillion baht (approximately US$29 billion), the project is expected to enhance global trade efficiency while positioning Thailand as a key logistics hub in Southeast Asia.
Faster Trade, Bigger Profits
The Landbridge project involves the construction of two deep-sea ports—one in Ranong (Andaman Sea) and the other in Chumphon (Gulf of Thailand). These ports will be connected by a 100-kilometer land corridor consisting of highways and railways.
This infrastructure is designed to expedite the transportation of goods between the two oceans, reducing reliance on the Malacca Strait, the world’s busiest trade route, which frequently experiences congestion.
New Bill Paves Way for Landbridge
Thailand’s Ministry of Transport has proposed a new bill to establish the Southern Special Economic Zone in support of the Landbridge project. This legislation aims to accelerate the development of the Southern Economic Corridor (SEC), which spans the provinces of Chumphon, Ranong, Surat Thani, and Nakhon Si Thammarat.
A special commission, led by the Prime Minister, will oversee the region’s development and seek additional funding. By forming this commission, the government aims to streamline the approval process and ensure the project’s efficient implementation.
Transport Minister Suriya Jungrungreangkit hopes the bill will be enacted by September this year.
As part of its strategy to attract foreign investment, the government is allowing international investors to hold more than 50% ownership in joint ventures with local companies for Landbridge infrastructure development. This initiative is expected to accelerate project completion, which is targeted for 2030.
Thailand’s Landbridge: Faster, But Riskier?
If successful, the Landbridge project could reduce shipping times between oceans by up to five days compared to the conventional route through the Malacca Strait. This would enhance Thailand’s competitiveness in global maritime trade and boost the growth of its logistics sector.
However, the project also faces significant challenges, particularly from environmental and social perspectives. Environmental activists have raised concerns about its impact on local ecosystems, as the project area is home to hundreds of rare species. Additionally, some local communities oppose the project due to its potential disruption to their livelihoods.
