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

The proposal aims to cut travel time by four days on average and lower shipping costs by 15 per cent

PM Srettha Thavisin says when completed, the shipping lane would help create 280,000 jobs and push Thailand’s annual GDP growth to 5.5 per cent

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Container and cargo ships at the Strait of Malacca. The Malacca Strait is one of the most important shipping lanes in the world. Photo: Roy Issa

Published: 6:09pm, 14 Nov 2023Updated: 10:00pm, 14 Nov 2023

Thailand is pitching a multibillion-dollar project that will significantly cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait – one of the world’s busiest sea lanes.

Prime Minister Srettha Thavisin told investors in San Francisco, California, on Monday that the project can cut travel time by an average of four days and lower shipping costs by 15 per cent.

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

The so-called Landbridge project will cost about 1 trillion baht (US$28 billion), with seaports to be built on either side of the country’s southern peninsula and linked by highway and rail networks, according to the government. The 100km (62-mile) connection would replace a decades-old Thai proposal to dredge a canal through the Kra Isthmus.

The Malacca Strait – a narrow sea lane between Malaysia and Singapore – is the shortest sea route linking the Asia-Pacific region to India and the Middle East. About a quarter of the world’s traded goods pass through the strait, and it will only become busier, pushing up shipping costs, Srettha said, noting that there are more than 60 maritime accidents a year on average in the passage.

“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.”