Thailand scales back US$30 billion 'land bridge' on commercial viability concerns

Thailand's government has decided to significantly scale down its ambitious US$30 billion 'land bridge' megaproject, citing doubts about its commercial viability. The original plan envisioned a massive logistics corridor to rival the congested Strait of Malacca.

The revised strategy will focus on enhancing existing infrastructure, specifically by expanding the port in southern Ranong province and improving associated rail connections. This decision follows a review that cast a shadow over the project's financial feasibility. The review indicated that the project's net present value had plummeted from a positive 637.7 billion baht to a negative 10.3 billion baht.

Concerns were also raised regarding the environmental impact of the proposed land bridge. The review highlighted potential risks to Ranong's mangrove forests, marine ecosystems, fisheries, tourism, and coastal communities. The assessment concluded that existing environmental impact assessments were outdated and that public consultation needed strengthening.

The government's statement noted that there is no immediate need for a new deep-sea port on the Gulf of Thailand due to limited commercial justification and existing port capacity. The review panel recommended upgrading the current Ranong port and rail links to bolster logistics. Thailand still aims to improve its transport infrastructure, including increasing freight demand linked to the Thailand-Laos-China railway.