Thailand to speed up construction of $29 billion route connecting Indian, Pacific Oceans

Thailand has introduced draft legislation to establish a special economic zone in the country's south, aimed at facilitating a multibillion-dollar transport initiative connecting the Indian and Pacific Oceans.

The proposed bill would create a commission to accelerate the development of the Southern Economic Corridor in the Chumphon, Ranong, Surat Thani, and Nakhon Si Thammarat provinces, Caliber.Az reports citing Bloomberg.

According to a statement from the Thai Transport Ministry, Prime Minister Paetongtarn Shinawatra’s Pheu Thai party is spearheading the Landbridge project, estimated to cost 1 trillion baht (approx. $29 billion). This initiative envisions linking two planned seaports on opposite coasts of Thailand’s southern peninsula with a 100-kilometer highway and rail line.

By bypassing the heavily congested Malacca Strait, the project aims to significantly reduce shipping times between the Indian and Pacific Oceans.

The draft legislation is currently undergoing a public consultation process before advancing to the Cabinet and parliament for approval.

Previously, former Prime Minister Srettha Thavisin, also from the Pheu Thai party, promoted the Landbridge project to international investors during visits to the US and China.

Thailand plans to complete the project by 2030, allowing foreign investors to hold majority stakes in joint ventures with local firms for infrastructure development.

Official government data estimate that the deep-sea ports in Ranong on the Andaman Sea and Chumphon on the Gulf of Thailand are expected to cost approximately 630 billion baht (approx. $18.6 billion).

By Nazrin Sadigova