Thailand Revives $30 Billion Land Bridge Project to Compete with Malacca Strait

By Panu Wongcha-um

RANONG, Thailand, June 18 (Reuters) – Fisherman Chaiyaporn Arunrasamee watched the Andaman Sea from his net‑laden boat as Thailand’s government revived an ambitious “Land Bridge” plan that would move cargo between ports on opposite sides of the peninsula.

“Personally, I don’t want it to happen at all,” Chaiyaporn said, referring to a project that Prime Minister Anutin Charnvirakul has resurrected after the Iran‑Iraq war and the recent Hormuz Strait closure underscored the world’s dependence on narrow maritime chokepoints.

The proposal envisions a 1 trillion‑baht (≈ $30.5 billion) logistics corridor linking two new deep‑sea ports: Chumphon on the Gulf of Thailand and Ranong on the Andaman coast, where Chaiyaporn, 50, has spent his life fishing.

“This will be built right where we make our living,” he told Reuters last month from the small fishing village of Baan Hat Sai Dam, surrounded by mangroves.

Reuters visited the affected communities and interviewed more than 15 residents, local officials, experts and project planners. Government documents reviewed by Reuters reveal details of a scheme promising lower costs and faster shipments, but hampered by complex logistics, local opposition and a massive price tag that has yet to attract large investors.

Analysts say the corridor is unlikely to rival the Malacca Strait as a global conduit, but it could serve as a strategic, smaller‑scale route for Thailand.

The 900‑km (550‑mile) Malacca Strait, bordered by Indonesia, Thailand, Malaysia and Singapore, offers the shortest sea link between East Asia, the Middle East and Europe.

“The land bridge may eventually become a modular national‑security asset, securing energy routes and boosting Thailand’s western export capacity,” said Eugene Mark of Singapore’s ISEAS‑Yusof Ishak Institute.

According to an internal government presentation, the corridor could cut logistics costs by up to 30 % and reduce transit times by as much as 14 days for cargo moving between southern China and Indian‑Ocean ports serving South Asia and the Middle East.

The core of the plan is a standard‑gauge railway spanning the 90 km (56‑mile) stretch between the two ports, capable of handling 20 million TEU (twenty‑foot equivalent units) per year. A complementary meter‑gauge line would connect the freight flow to Thailand’s existing rail network, while multi‑lane highways and local roads would integrate the corridor into the national transport system.

Thai estimates indicate that about 80 % of container traffic at major Malacca‑Strait ports, including Singapore, consists of trans‑shipment cargo rather than goods bound for local markets. “We want to capture a share of that 80 % market, especially the feeder segment,” said Jiraroth Sukolrat, director‑general of Thailand’s Office of Transport and Traffic Policy and Planning, referring to vessels under 12,000 TEU.

Feeder‑to‑feeder movements between the Gulf of Thailand and the Andaman Sea could be roughly 10 % cheaper and six days faster than comparable routes through Singapore, mainly because of lower congestion. “We are not targeting giant mainline vessels,” Jiraroth added.

A government‑appointed panel is reviewing the project and its impact assessments, with findings expected by the end of July. The Land Bridge concept, first floated in 2020, builds on two decades of earlier infrastructure schemes that stalled due to policy shifts and financing gaps.

Unlike previous versions, the current plan omits petrochemical complexes and oil refineries, focusing instead on ports, railways and light industry. “The concept hasn’t really changed; what’s changed is the packaging,” said independent researcher Wipawadee Panyangnoi, who wrote her doctoral dissertation on the proposal. “Earlier drafts emphasized industrial estates and petrochemicals, which sparked opposition. Today the language centers on transport and logistics, which is easier for the public to accept.”

Convincing cargo liners to incur the extra handling, overland transport and re‑loading costs remains a major challenge, Mark said. “Demonstrating that this double‑handing model can truly compete with the seamless flow through the Malacca Strait is the key hurdle.”

The state will act as regulator and supporter, while financing is expected to come primarily from private investors. “A consortium of shipping lines, port operators, financiers and land developers will be needed,” Jiraroth explained.

Investor interest so far is cautious, reflecting policy uncertainty and the project’s massive capital requirements. Geopolitically, neighboring countries are watching closely. “Chinese state enterprises are unlikely to commit significant capital unless they secure strong operational leverage, which could provoke domestic political backlash over foreign control,” Mark noted. “Thailand must balance diplomacy to keep the corridor from becoming a geopolitical flashpoint.”

Local resistance is growing. Chaiyaporn is among a dozen residents along the 90‑km corridor whose livelihoods depend on fishing and farming. In Phato district, where durian plantations and coffee farms generate substantial income, some question the need for large‑scale industrialisation. “My hometown’s durian industry alone brings in about 10 billion baht a year without any new construction,” said coffee entrepreneur Chalermchart Seekhiao, 30.

Regulators recently ordered a fresh Environmental and Health Impact Assessment after a large discrepancy emerged between government and private studies on marine life density near the proposed ports. “Local opposition rarely stops a top‑down mega‑project in Thailand, but it does add a regulatory drag that heightens investor risk,” Mark said.

($1 = 32.8400 baht)

(Reporting by Panu Wongcha‑um, additional reporting by Federico Maccioni, editing by Devjyot Ghoshal, Josh Smith and Raju Gopalakrishnan)

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