Thailand Moves Forward with Multibillion-Dollar Southern Land Bridge Project
Draft legislation aims to establish a Southern Economic Zone for the ambitious transport initiative linking the Andaman Sea with the Gulf of Thailand.
The Ministry of Transport in Thailand has introduced draft legislation to establish a Southern Economic Zone aimed at facilitating the development of the Southern Economic Corridor (SEC).
This corridor will support a significant infrastructure project known as the Land Bridge, which is set to cost approximately 1 trillion baht ($29 billion).
The proposed Land Bridge will connect two critical seaports in the provinces of Ranong and Chumphon, integrating a new highway and rail line that spans around 100 kilometers.
This initiative is expected to significantly reduce shipping times between the Indian and Pacific Oceans by providing an alternative route that bypasses the congested Malacca Strait, one of the most trafficked maritime passages in the world.
Transport Minister Suriya Jungrungreangkit has stated that the government aims for the new SEC Act to take effect by September 2025. The draft legislation will create a commission led by the prime minister, tasked with overseeing the construction and development of logistics, infrastructure, information technology, and other essential facilities within the Southern Economic Corridor.
The commission's responsibilities will also include sourcing funding for the megaproject.
Currently, the bill is undergoing public hearings before it will be presented to both the cabinet and parliament for further consideration.
Former Prime Minister Srettha Thavisin promoted the Land Bridge project to international investors during visits to the United States and China in 2024. Although the initiative garnered significant interest, particularly from foreign stakeholders, there has been limited follow-up to date.
The construction of the deep-sea ports in Ranong and Chumphon is projected to require an investment of around 630 billion baht.
Under the current framework, foreign investors will be permitted to hold more than 50% ownership in joint ventures with local companies for the infrastructure development.
Despite the anticipated economic benefits of the Land Bridge, the project has faced opposition from environmentalists and certain local communities.
Concerns have been raised regarding the SEC committee's potential authority, which some fear could operate with powers that stretch beyond local laws, impacting labor and land use regulations, as well as environmental protections.
The Ministry of Transport has set a target for the project's completion by 2030, underscoring the government's commitment to enhancing Thailand's logistical capabilities and its strategic position in regional trade.
This corridor will support a significant infrastructure project known as the Land Bridge, which is set to cost approximately 1 trillion baht ($29 billion).
The proposed Land Bridge will connect two critical seaports in the provinces of Ranong and Chumphon, integrating a new highway and rail line that spans around 100 kilometers.
This initiative is expected to significantly reduce shipping times between the Indian and Pacific Oceans by providing an alternative route that bypasses the congested Malacca Strait, one of the most trafficked maritime passages in the world.
Transport Minister Suriya Jungrungreangkit has stated that the government aims for the new SEC Act to take effect by September 2025. The draft legislation will create a commission led by the prime minister, tasked with overseeing the construction and development of logistics, infrastructure, information technology, and other essential facilities within the Southern Economic Corridor.
The commission's responsibilities will also include sourcing funding for the megaproject.
Currently, the bill is undergoing public hearings before it will be presented to both the cabinet and parliament for further consideration.
Former Prime Minister Srettha Thavisin promoted the Land Bridge project to international investors during visits to the United States and China in 2024. Although the initiative garnered significant interest, particularly from foreign stakeholders, there has been limited follow-up to date.
The construction of the deep-sea ports in Ranong and Chumphon is projected to require an investment of around 630 billion baht.
Under the current framework, foreign investors will be permitted to hold more than 50% ownership in joint ventures with local companies for the infrastructure development.
Despite the anticipated economic benefits of the Land Bridge, the project has faced opposition from environmentalists and certain local communities.
Concerns have been raised regarding the SEC committee's potential authority, which some fear could operate with powers that stretch beyond local laws, impacting labor and land use regulations, as well as environmental protections.
The Ministry of Transport has set a target for the project's completion by 2030, underscoring the government's commitment to enhancing Thailand's logistical capabilities and its strategic position in regional trade.
