Analysis: Thailand’s proposed land bridge project easier than Kra Canal idea, but steep challenges await

BANGKOK: Thailand's plan to build a 90km land bridge across its southern region, which could see shipping trade bypass Malaysia and Singapore, is on paper easier than the long-touted Kra Canal, although it still faces steep challenges, say analysts.

These include the multi-billion dollar construction cost, security concerns in Thailand’s conflict-ridden south and the mountainous terrain where the project would prospectively be located.

Given the long-established shipping facilities and operations in the Straits of Malacca, analysts also warned that the Thai land bridge initiative could end in failure if not carefully planned.

But for Thai Prime Minister Srettha Thavisin, the project is expected to attract international investors and turn Thailand into a thriving production hub.

“This will be a global mega-project, which will shorten the duration of goods transport via the channel of the Malacca Strait by six to nine days,” he said during the Thailand-China Investment Forum in Beijing on Thursday (Oct 19).

Mr Srettha also added that Thailand is ready to welcome Chinese investors to help develop the country and promised to improve the ease of doing business in the kingdom in the future.

A NEW TRADE ROUTE LINKING THE INDIAN AND PACIFIC OCEANS

The land bridge project is designed to provide a new trade route between the Indian and Pacific Oceans. It will include two deep sea ports on Thailand’s eastern and western coasts as well as a rail and road system linking them together.

The eastern port will be located in Chumphon province on the Gulf of Thailand and the other in Ranong province on the Andaman Sea. According to Mr Srettha, the cost is estimated at US$35.6 billion.

Assoc Prof Antonio L Rappa from the School of Business at the Singapore University of Social Sciences described the venture as “simply too costly” and cautioned that the separatist movement in Thailand’s restive south as well as the mountainous terrain of the project location could affect the construction.

However, if it is successfully developed, Dr Rappa told CNA “it will significantly affect Singapore at least 50 years from now”.

The land bridge project was also studied during the previous government of Gen Prayut Chan-o-cha, who wished to expand Thailand's transport infrastructure and transform the country into a logistics hub of Asia.

THE LAND BRIDGE AND ITS PREDECESSOR KRA CANAL

The idea of creating a new maritime route by connecting the Gulf of Thailand with the Andaman Sea is nothing new. 

Historical evidence shows the concept dates back to the 17th century, when the excavation of the Kra Isthmus – the narrowest part of the Malay Peninsula in Ranong and Chumphon – was explored. 

For decades, various governments have attempted and failed to dig the so-called Kra Canal. 

According to Dr Yuttaporn Issarachai, a political scientist from Sukhothai Thammathirat Open University, the proposed excavation has been hindered by domestic politics and concerns about its impact on the environment as well as internal security.

Although the land bridge project does not involve a canal, he said it is a relatively similar idea and could face a lot of challenges, including geopolitical conflicts.

He pointed out how maritime territorial spats involve several countries such as China, Vietnam and the Philippines, and by building a new maritime passage way located near the disputed area, Thailand could be affected.

“It won’t be easy,” Dr Yuttaporn told CNA. “It could push Thailand into territorial disputes in the South China Sea. We can’t forget that maritime shipping routes involve tremendous economic profits and political stability in the region.”

However, Dr Mohd Hazmi Mohd Rusli from the Universiti Sains Islam Malaysia’s Faculty of Syariah and Law said the land bridge project could take off “if China as the main stakeholder is adamant to invest”.

A land bridge, he added, would be more feasible than a canal as it would not involve digging through the Kra Isthmus.

“The Panama or the Suez Canal… can shave off thousands of miles of voyage. However, the proposed Thai Canal (Kra Canal) could only shave off hundreds of miles,” he said.

UNLIKELY IMPACT ON SINGAPORE

The first phase of the land bridge project is expected to finish in 2030, with the final completion targeted in 2039.

Comparing it to the proposed Kra Canal excavation, Dr Yuttaporn said the land bridge should reduce the public concern about separatist activities in southern Thailand.

“When we talk about the canal, people fear it would split Thailand into two parts, which could fuel the separatist movement in the restive south,” he explained. 

“But this is a land bridge. They won’t dig a canal but build a superhighway across, that’s all.”

On Thursday, Interior Minister Anutin Charnvirakul expressed his support for the project, saying constructing it is easier than excavating the Kra Canal, according to local media reports.

He reportedly affirmed the project will not affect internal security because instead of splitting the land, the land bridge will link two coasts together.

However, analysts say whether shipping companies would opt to use the land bridge is another question. This is because ships would have to dock at either Ranong or Chumphon port and have their cargoes transported on land between them, which meant possibly more time and higher costs.

Dr Rusli believes Thailand will have to equip its ports on both coasts with adequate facilities in order to attract potential users, as most ships would prefer using the conventional Straits of Malacca and Singapore route. 

“The Straits of Malacca and Singapore route is equipped with adequate shipping facilities and mariners are used to using this route. 

“Without careful planning and preparation, this (land bridge project idea) would end up becoming the defunct Yan-Bachok Pipeline Project mooted not too long ago," said Dr Rusli, referring to a 310-km pipeline proposed by Malaysia since as early as 2007 to transport oil from the coastal city of Yan in Kedah to Bachok in Kelantan and out to the South China Sea.