Landbridge project Ranong

Chatrudee Theparat
Infrastructure / Landbridge project Ranong

The government vows to continue to develop Landbridge project.

The government has vowed to continue to implement Thailand’s Landbridge project after completing the location survey of Ranong port.

Prime Minister Sreetha Thavisin said he visited the location of Ranong port, partly a significant port of Landbridge project. The project is considered to create more opportunity and revenue for people in the development areas.

The government has already conducted a study on environmental impact. However, the related agencies will carry out further the feasibility study of the project which is in charge of the Transport Ministry.

He said once the Landbridge project is developed, it will be the massive investment of Thailand after the development of Suvarnabhumi airport.

Government spokesman Chai Wacharonke said the government has vowed to continue the development the Landbridge project, along with the launch of more international roadshows this year after the US, Japan and Switzerland.

The government aims to open for the international bidding in early next year.

Asked about environmental impact on people in the areas because it is a location of reserved forest, Mr Chai said the Transport Ministry has already conducted the initial study on environment impact. However, the private sector which has interest in the project can conduct a comprehensive feasibility study if they want to invest in it.

“The PM has authorized the project because it can create great benefit to the country and generate better income to Thai people. The government will talk to the anti-groups for more understandings. Even as they are small groups, they should be deserved for the best compensation. The government has vowed to avoid any impact to people.”

The result of the initial study showed that one trillion baht investment, transporting cargo via the Landbridge will help cut the travel time of about 4 days and reduce costs by 15% averagely.

The total cargo volume at the western port will be 19.4 million TEUs and that eastern port will be 13.8 million TEUs, accounting for approximately 23% of Malacca’s port total cargo shipment.

This will cement Thailand as the hub for transportation and commerce. And as a major connecting point between the east and the west, it will also hold a key strategic position.

For crude oil, the amount produced from the Middle East for shipping is approximately 19 million barrels per day. 56% or approximately 10.7 million barrels per day passes through the Malacca Strait, with 44% going to the Asian Far East and the remaining 7% going to Southeast Asia. The Landbridge is particularly attractive for this 7% since it would help save cost at least 6%.

In addition, investors can benefit from the Landbridge development in service sector via enchanted logistics, real estate, and banking, in the primary sector via enhanced agriculture output, and in the industrial sector via new S-curves and manufacturing.

The Landbridge will drive the overall national economy by creating 280,000 job, while Thailand’s GDP is projected to grow by 5.5% per year or the equivalent of 670 billion dollars when the project is fully implemented.

In a related development, Mr Chai said the cabinet approved 18 projects valued 552 million baht of infrastructure development project in six Andaman provinces of Ranong, Krabi, Phuket, Phang-nga and Satun. The projects will be implemented within one year from 2023 fiscal budget.