Thailand cancels RM156 billion land bridge project citing economic and environmental risks

Thailand has officially decided to scrap its ambitious land bridge project, a mega-scheme intended to link the Gulf of Thailand with the Andaman Sea. The government's decision follows recent studies that concluded the project is no longer economically feasible and carries substantial environmental risks.

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the project would incur overall losses compared to previous assessments that projected significant economic benefits.

The proposed 100-kilometer route was designed to shorten shipping times between the Indian Ocean and the Pacific, offering an alternative to the Strait of Malacca. Interest in the project had resurfaced this year amid concerns over global shipping vulnerabilities, particularly heightened tensions around the Strait of Hormuz. Deputy Prime Minister Phiphat Ratchakitprakarn had previously indicated an acceleration of the project's implementation.

However, updated assessments revealed a significant decline in projected economic benefits. The estimated financial returns have reportedly fallen to 4.8 percent, down from an earlier projection of 8 percent. Furthermore, the volume of cargo expected to utilize the route is now estimated to be up to 16 percent lower than previously anticipated. Industry sentiment also appears lukewarm, with nine of the world's top ten shipping companies reportedly having already invested in competing projects.

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nine out of the 10 largest shipping companies in the world have already invested in competing projects, limiting interest in the proposed land bridge project.

Beyond the economic concerns, the land bridge project faced criticism for its potential environmental impact. Studies warned of adverse effects on sensitive ecological areas, including biosphere reserves and wetlands in Ranong province, as well as threats to vital marine tourism locations. Instead of the land bridge, the Thai government is now considering upgrading the Ranong Port and developing a rail network connecting the Andaman coast to the existing rail system to enhance cargo transport.

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the project could affect sensitive environmental areas, including biosphere reserves and wetlands in Ranong, as well as threaten key marine tourism locations.