The Thai government recently launched a massive project worth $28 billion to build a “l(fā)and bridge” to circumvent the bustling Strait of Malacca. This initiative is expected to dramatically shorten shipping time between the Indian and Pacific Oceans while reducing transportation costs and have a profound impact on global shipping.

Thai Prime Minister Srettha Thavisin recently announced the launch of the project to investors in San Francisco. The approximately 100 km long land bridge will be built on both sides of the southern Thai peninsula and will connect the two seaports via the highway and rail network.

The Strait of Malacca, a key channel connecting the Asia-Pacific region to India and the shortest maritime route in the Middle East, accounts for about a quarter of the world’s trade in goods every year.Srettha noted that the busy level of the Strait of Malacca has led to increased shipping costs, with an average of more than 60 maritime accidents per year.

Time and cost efficiency:Reducing shipping time and reducing transportation costs will make the land bridge a more attractive shipping option.
Employment and economic growth:The project is expected to create 280,000 jobs, driving Thailand’s annual economic growth rate to 5.5 percent.
Opportunities for international cooperation:The Thai government has encouraged foreign investors to participate, and several U.S. companies such as SSA Marine Inc. and Long Beach Port have expressed interest in the project.

Although the project is full of potential, it also faces some challenges. In the past, Thailand has considered plans to build a canal through the Crater Strait, but has been rejected because of environmental issues. Therefore, environmental impact assessment will be one of the key factors for the success of the Land Bridge project.

Srettha said the project is not only a commercial opportunity but also of important strategic importance, connecting the Pacific and the Indian Oceans, providing new transportation routes for the people of the East.

The project is expected to be completed by 2030, and Thai officials will further introduce the project to U.S. investors during the Asia-Pacific Economic Cooperation Summit. Andaman Hall Hall and the deep sea port of Chongqing Bay in Thailand are expected to invest approximately 63 billion baht.