Overcoming the gap

Among the many large economic projects promised by previous governments but never realized, the southern land bridge stands out. It was approved in 1989 as a strategic part of the Southern Economic Corridor.

Several administrations have attempted to revive this grand project, and a recent effort was made during the government of Prayut Chan-o-cha, when the Office of Transport and Transport Policy completed a study of the project last year. Three developments - a highway crossing the land to connect Ranong on the Andaman coast and Chumphon on the Gulf of Thailand, deep-water ports in these two provinces, and a double-track railway stretching 120 kilometers - were discussed again when Prime Minister Srettha Thavisin presented this project to railway operators and potential investors in China and Saudi Arabia during his official visits earlier this month.

However, the land bridge project has faced criticism from the very beginning, as its cost could reach a trillion baht. Other critical issues are related to the potential environmental and social consequences that may arise from the construction and subsequent economic activities.

According to the final report presented by the Office of National Economic and Social Development and Chulalongkorn University in November last year, the most suitable way to connect transport routes between the Andaman Sea and the Gulf of Thailand would be to rely on rural development and minor investments. Instead of investing in new infrastructure, the report suggests utilizing and developing the existing Southern Economic Corridor development plan, as the conceptual framework was approved by the government in 2018. The study indicates that developing the corridor will help reduce inequality in southern Thailand, as the prosperity of this region lags behind that of the central and eastern parts of the country.

However, the Prime Minister has repeatedly promoted the version of the land bridge project, and the business community is closely watching the reaction to see what comes of it. The Federation of Thai Industries (FTI) believes that the decades-old proposal to build a transport link between the two coasts should make some progress during Srettha's administration, as it could be a new advantage for attracting investments without the need to create a new canal to connect the coasts, which faces fierce opposition.

The project is expected to strengthen the infrastructure supporting trade, investment, and transportation. Kriangkrai Tiennukun, the chairman of FTI, believes that the proposed land bridge was never completed due to national security concerns. The current version, referred to as the "land bridge" and promoted by the government, has nothing to do with the highly controversial proposal to dig a canal in the Kra Isthmus of Thailand. Officials prefer to connect the two coasts with a land transport system and, according to Mr. Sretta, a pipeline for oil.

“Mr. Sretta recently visited China and Saudi Arabia. One of his goals is to encourage investors from these two countries to invest in the land bridge project,” said Mr.

The project is expected to connect Ranong on the Andaman Sea with Chumphon on the Gulf of Thailand. This connection could become a new trade route for cargo delivery, serving as an alternative to the existing route from the Indian Ocean to the Pacific Ocean through the Malacca Strait. Approximately 85,000 vessels pass through the strait annually, and this number is expected to increase to 128,000 over the next ten years, according to the Thailand Industrial Estate Authority.

Previous versions of the land bridge have raised concerns among local communities regarding their impact on lifestyle and the environment, but developers believe that this revised project could offer higher wages for residents. The project is expected to strengthen the infrastructure supporting trade, investment, and transportation. Kriangkrai Tiennukun, chairman of FTI, stated that the proposal for priority investments in large-scale infrastructure projects, such as the land bridge project, will contribute to Thailand's long-term economic growth.

“The private sector has been monitoring the positive feedback from foreign investors since the visit to Saudi Arabia. Both the Saudi government and the private sector have indicated that they see this project as an opportunity to invest in energy infrastructure,” he said. “This includes the construction of pipelines for transporting oil and gas from one coast to another, as well as the creation of storage facilities for oil, which will serve as transport routes for oil from Saudi Arabia to Thailand and the ASEAN region.”

Mr. Sanan said that there is also the possibility of exporting agricultural and livestock products from Thailand, including grains, soybeans, and beef, to Saudi Arabia and the Middle East, as there is a high demand for food products in these regions. This could expand the market and income for Thai agricultural producers. If the project is successfully implemented, it will enhance the infrastructure supporting trade, investment, and transportation.

He said that the chamber of commerce expects a comprehensive study and consideration of critical factors for the scheme, such as transportation time, cargo volume, transportation costs, and the method of transport connecting the two coasts, in order to maximize economic development in the future.