Thailand pitches US$28 billion shipping lane that bypasses Malacca Strait: ‘cheaper, faster, safer’

With traffic volumes projected to exceed the Malacca Strait’s capacity by 2030, the new project will ensure seamless flow of goods, he said.

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“The Landbridge will be an additional important route to support transportation and an important option for resolving the problems of the Malacca Strait,” Srettha said. “This will be a cheaper, faster and safer route.”

The port on the west will have the capacity to handle 19.4 million tonne equivalent units (TEUs), while the eastern one is designed for 13.8 million TEUs, together accounting for about 23 per cent of the Port of Malacca’s total cargo, he said.

Thailand aims to complete the project by 2030 and foreign investors will be allowed to own more than 50 per cent in joint ventures with local companies in building the ports and related infrastructure. The deep sea ports in Ranong in the Andaman Sea and Chumphon in the Gulf of Thailand may cost 630 billion baht, according to the Office of Transport and Traffic Policy and Planning.

The Landbridge “presents an unprecedented opportunity to invest in this commercially and strategically important project that connects the Pacific Ocean and the Indian Ocean, connecting people in the East with the West”, he said.

Thai officials will hold a presentation for prospective US investors during the Asia-Pacific Economic Cooperation summit this week. US firms interested in the project include SSA Marine Inc, Port of Long Beach, Oracle Corp and Webtec, Srettha said.

Thailand had for decades discussed an idea for a canal that would traverse the nation’s narrowest point and trim the travel distance by 1,200 kilometers, but that proposal was dismissed several times on environmental concerns.