Thailand plans to invest US 29 billion to renovate the Strait of Malacca, and the tender for the pro

Mondo International Updated on 2024-01-31

Thai Prime Minister Thaikshin and Transport Minister Surya launched a campaign in Tokyo to promote the "Land Bridge" renovation plan. The plan aims to change the core status of the Strait of Malacca by building a deep-water port, highway and rail in the narrow part of the southern Malay Peninsula to connect the Gulf of Thailand to the Andaman Sea. Thailand's transport minister said the winning consortium will receive a 50-year operating right, while the construction of the land bridge will be carried out in four phases and is expected to be completed by 2040.

Thailand plans to enact a new law to facilitate the project and the development of adjacent areas. Interested investors and builders may include the United States, the Middle East, and China. If the project is successful, it will bring a huge change to international ocean freight**, saving sailing time and reducing transportation costs. The Strait of Malacca is filled with a large number of ships passing through each year, and Thailand wants to take advantage of its geographical location to share in this shipping market.

Thailand's Land Bridge program has faced a number of challenges in its implementation. First, political pressure from within the country has led some academics, environmentalists, and local residents to oppose the plan, arguing that such a project would damage the environment and affect the lives of local residents. Second, the cost of the entire road and bridge project is as high as 1 trillion baht (US$29 billion), which is a huge burden for Thailand alone. As a result, Thailand has sought to cooperate with other countries to co-invest in the construction of this major project.

In addition to this, Thailand's Land Bridge plan faces competition from the China-Pakistan Economic Corridor. The China-Pakistan Economic Corridor (CPEC) transports oil from the Persian Gulf quickly to China's northwest region and to all parts of the country via oil pipelines. In contrast, Thailand's plan does not have a clear advantage over the competition. In addition, whether the countries that benefit from the Strait of Malacca will choose to sit back and wait is also an issue that cannot be ignored. China, the country with the largest number of navigable vessels and the largest energy importer, wants the Strait of Malacca to coexist peacefully with Thailand's land bridge project, and believes that one more option means one more guarantee.

The Strait of Malacca is an important maritime choke point connecting the Indian and Pacific Oceans, and ships must pass through the Strait of Malacca to reach the coasts of East Asia and the South China Sea. The Strait of Malacca, along with the Panama Canal, the Suez Canal and the Strait of Gibraltar, is known as the Four Great Sea Passages. However, the Strait of Malacca is becoming increasingly congested with the growing international rate, with about 90,000 ships and 70.4 million containers passing through it every year, accounting for 40% of the world's freight volume.

Faced with congestion and demand in the Strait of Malacca, Thailand proposed a "land bridge" plan to renovate the Strait of Malacca. By building deep-water ports, railways and highways, Thailand hopes to get a piece of the pie and become an important international shipping hub. This can not only reduce the sailing time and transportation costs, but also bring more options and guarantees to the international **.

However, there are some practical limits to whether Thailand's ambitions can be realized. First of all, Thailand's current economic strength and technological level cannot complete such a huge project alone, so it needs to cooperate with powerful countries. Second, Thailand faces domestic political pressure and environmental concerns, which could hinder the implementation of the Land Bridge.

In addition, the plan requires huge investment, with Thailand estimated to need 1 trillion baht (US$29 billion). This is a huge burden for a country. Therefore, Thailand plans to share this burden by bringing in investment from other countries to achieve the construction of the project.

Thailand's plan to invest $29 billion to renovate the "land bridge" in the Strait of Malacca will change the international shipping pattern and bring new options and guarantees to the international community. However, the plan faces a number of challenges, including political pressure from within the country, environmental protection issues, and a huge cost burden. Thailand hopes to cooperate with other countries to achieve the construction of this major project. Regardless of the final outcome, this plan will have a significant impact on the status of the Strait of Malacca and the world shipping landscape.

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