Thailand scales back $30 billion 'land bridge' on commercial viability concerns
A government review found the project commercially unviable and environmentally risky, with expected returns cut to 4.8% and cargo volumes 16% lower.
- On Friday, a government committee recommended terminating Thailand's $30 billion Southern Land Bridge project after a review found it would lose money overall, casting doubt on its commercial viability.
- Finance Minister Ekniti Nitithanprapas reported the project's net present value fell from 637.7 billion baht to negative 10.3 billion baht, while expected financial returns dropped to 4.8 per cent from 8 per cent.
- Environmental risks to Ranong's biosphere reserve, mangrove forests and marine tourism prompted concerns, while nine of the world's 10 largest shipping lines have already invested in competing alternatives.
- Instead of the land bridge, the government plans to upgrade Ranong Port and develop rail links connecting the Andaman coast with Thailand's existing network; Finance Minister Ekniti said no losses were incurred since construction never began.
- Originally designed to cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait, Thailand now prioritizes integrating freight demand with the Thailand-Laos-China railway as a regional infrastructure priority.
15 Articles
15 Articles
Thailand Keeps $28 Billion Landbridge Project Alive While Pivoting To Immediate Rail Upgrades
Thailand – The Thai government has clarified its stance on the massive $28 billion Landbridge megaproject, confirming that the ambitious trade route remains viable despite recent shifts in regional infrastructure priorities. Speaking at Government House, Prime Minister Anutin Charnvirakul explained that the country is simply adapting its long-term strategy to match current economic conditions. Rather […] The post Thailand Keeps $28 Billion Landb…
Thailand to Scrap $29.7 Billion Landbridge Project After Study
Thailand plans to scrap its proposed landbridge megaproject that would link the Gulf of Thailand and the Andaman Sea after a government study found it was no longer economically viable and poses significant environmental risks.
Thailand scales back $30 billion 'land bridge' on commercial viability concerns
Thailand's government said on Friday it will revise and scale down an ambitious $30 billion plan to build a coast-to-coast "land bridge" after a review cast doubt on the megaproject's commercial viability.
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