Gravitas | Thailand is set to abandon one of its biggest infrastructure projects
&imwidth=600&imheight=450&format=webp&quality=medium "Gravitas | Thailand is set to abandon one of its biggest infrastructure projects")
This aerial file photo taken on March 23, 2008 shows a vessel (bottom) sailing past ships anchored along the coast of Singapore at the mouth of the Strait of Malacca. Photograph: (AFP)
Thailand is set to abandon one of its biggest infrastructure projects after a government review found the proposed $30 billion Land Bridge financially unviable and environmentally risky.
A fresh government review concluded that a $30 billion proposed land bridge project aimed at bypassing the Malacca Strait is no longer financially viable and could cause serious environmental damage.
The Thailand government now plans to scrap the mega project, which aimed to create a 100-kilometre transport corridor linking the Gulf of Thailand with the Andaman Sea.The plan envisioned cutting shipping times between the Indian and Pacific Oceans by allowing cargo to bypass the busy Malacca Strait.
The Malacca Strait, stretching around 930 kilometres, encompasses countries such as Indonesia, Thailand, Malaysia and Singapore.
It is one of the world's most critical maritime chokepoints and connects the Indian Ocean and the Pacific Ocean.Overall, it facilitates nearly 40 per cent of global trade and serves as the shortest sea route between East Asia, West Asia and Europe.
Announcing the decision at a news briefing, Thailand's finance minister said a government committee has recommended terminating the project after a revised study found it would lose money overall. That marks a sharp reversal from an earlier assessment that reportedly projected major economic benefits.
The latest review also found the project's expected financial return had allegedly dropped to less than 5 per cent from 8 per cent, while projected cargo volumes were up to 16 per cent lower than earlier estimates. Thailand's finance minister also said nine of the world's ten largest shipping lines have already invested in rival projects, leaving little commercial interest in Thailand's proposal.
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The $30 billion project had envisioned two new deep-sea ports—one on the Gulf of Thailand and the other on the Andaman coast—connected by highways, a 90-kilometre standard-gauge railway and other transport links. The railway alone was designed to handle up to 20 million tonnes of cargo every year. The study reportedly further warned that the project could damage environmentally sensitive areas, including Ranong's biosphere reserve and wetlands, while also threatening key marine tourism sites.
Instead, the Thailand government will upgrade Ranong Port and build a rail connection linking the Andaman coast to Thailand's existing railway network to improve freight transport.
The recommendation will now go before Thailand's prime minister and Cabinet for approval. Thailand's government claims it has suffered no financial loss because it never acquired land and construction never began for the proposed project.