A huge 90km landbridge dubbed Thailand’s “mini Suez Canal” may soon be in the works, a move the Prime Minister believes will elevate the economy to another level.
The major link would cost £21.3 billion ($28 billion) and directly connect Ranong port on the Indian Ocean with Chumphon on the Gulf of Thailand, shaving an impressive 1,200km off the current journey.
Major deep sea terminals are set to be built in both Ranong and Chumphon, which make up the largest portion of the investment at £13.7 billion ($18 billion).
Prime Minister Srettha Thavisin is seeking investors, calling it a “global mega-project, which will shorten the duration of goods transport via the channel of the Malacca Strait by six to nine days,” although it has been previously estimated as three to four days.
He believes it will attract investors and elevate the economic development of Thailand to another level.
In a bid to revive the centuries-old Kra Canal project, this multi-billion pound proposal would likely include motorways, railroads, and pipelines, without the need to dig a canal, and would withstand 20 million TEU of containers.
If built, vessels would be able to bypass the major ports of Singapore and Malaysia and the busy sea route of Malacca Straits, which sees around 70,000 to 80,000 vessels annually.
There have been warnings the Malacca Straits could reach capacity by the end of the decade.
However, it has been estimated that closing this alongside the Singapore Straits could cost the shipping industry a huge £50 million ($65 million) per week.
The Kra Canal was first envisaged around 400 years ago and most recently proposed in 2015 when an agreement was reportedly signed between Thailand and China, although this was later denied.
It’s hoped the new approach by building overland will help see the dream realised.