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Ships no longer have to endure bottlenecks in the Strait of Malacca to transport goods between Asia and the West. That is the promise of Thailand with its bold land bridge project, which could change the game for global maritime trade.
With a colossal investment of US$28 billion, this megaproject has the potential to shorten routes, reduce costs and transform Thailand into a new logistics hub. But can this construction really compete with the historic Suez Canal? Let's understand how this project could revolutionize international trade.
The Strait of Malacca and its challenges
The Strait of Malacca, located between the Malay Peninsula and the island of Sumatra, is one of the sea passages busiest in the world. Around 30% of global trade passes through there, making it an essential route for the world economy.
Despite its importance, it faces critical challenges that directly impact maritime transport:
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Heavy congestion: Ship traffic is so high that, at certain times, vessels have to wait days to cross.
Piracy risk: The strait is one of the most vulnerable points to pirate attacks, posing a threat to carriers and insurers.
Geographical limitations: Less than 3 km wide in some places, it imposes restrictions on the size of ships that can transit, affecting transport efficiency.
Faced with these difficulties, Thailand proposed an innovative solution: the construction of a land corridor that could redefine logistics in the region.
What is the construction of the Thailand land bridge?
Thailand’s land bridge is not exactly a bridge in the traditional sense, but rather a multimodal transport corridor that will connect the Gulf of Thailand to the Andaman Sea. The project envisages:
Construction of two deep-water ports: One in Chumphon in the Gulf of Thailand and the other in Ranong in the Andaman Sea.
Multimodal infrastructure: A system of highways, railways and pipelines of approximately 90 km, allowing the efficient transport of cargo between ports.
Reducing dependence on the Strait of Malacca: The goods may be unloaded in a port, transported by land and shipped again on the other side, reducing maritime transit time.
If successful, this project could become a viable alternative to the Suez Canal and other global shipping routes.
How could this megaproject impact global trade?
By avoiding the congested Strait of Malacca, ships could save between 6 and 9 days of travel time, depending on the final destination. This time saving translates directly into cost reductions, estimated at around 15% in freight transport.
The project could position Thailand as a key hub in global trade by encouraging:
- Foreign investments in infrastructure and logistics.
- Development of new industries around ports and transport corridors.
- Job creation in the construction and logistics sector.
However, despite the optimistic expectations, some experts question whether this construction can actually offer superior value for money to traditional maritime transport.
The future of the project and its schedule
The Thai government has already set an ambitious timeline for the project:
- 2025: Start of construction bidding.
- 2026: Start of construction.
- 2030: Completion and full operation of the logistics corridor.
If all goes according to plan, Thailand could become a major hub for global trade, challenging the monopoly of the Strait of Malacca.
