Thailand Pushes ‘Land Bridge’ to Speed Trade

[webfact]

Thailand is looking for investment to build a “land bridge” across the narrow southern part of the country. The Southeast Asian nation hopes to provide a shorter path for cargo between the Pacific and Indian oceans without having to go through the Malacca Strait and Singapore.

 

Under the plan, cargo would travel by highway and railroad from the area of Chumpon on the Gulf of Thailand to Ranong on the Indian Ocean to be loaded onto waiting ships.

 

Thai Prime Minister Srettha Thavisin has been seeking support for the $28-billion project from investors around the world. At the Asia-Pacific Economic Cooperation (APEC) gathering in San Francisco, Srettha said the land bridge would connect the oceans “without requiring ships to sail down along the tip of Singapore, known to experience congestion and would cut transport duration.” He called it a "very important project, not just for Thailand, but also for the world."

 

Thailand says it is open to interest from all investors. After a meeting with Japanese businesses and leaders, Srettha said there was interest in the project without providing additional information. Thai transport minister Suriya Juangroongruangkit said more than 10 American companies expressed interest without naming them.

 

China’s interest in the area

 

China, an important trade nation in the area, has not commented on the plan for the land bridge.

 

For many years, Chinese businesses have been pushing for a deepwater project called the Kra Canal. The canal would cross the Kra Isthmus and would permit large ships to pass. The proposed project would cut at least one day of sailing time from passing through the Malacca Strait.

 

by VOA - Voice of America English News

Top image: Thailand is looking for investment to build a "land bridge" across its southern neck, which would cut cargo transit times. 

 

Full story: VOA News 2023-12-23

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

[Hawaiian]

Looking behind the scenes, it is obvious China is behind of this.  In the event of hostilities in the South China Sea commercial ships from China could hug the coast of Vietnam and across the Gulf of Thailand to Chumphon.  The Vietnamese most likely would stay neutral and not interfere.

It is doubtful Thailand would want to finance such a large undertaking and lately Bangkok has not been very receptive to accepting Beijing's money with all the strings attached.

[Henryford]

There will be big brown envelopes from China to build this to avoid the Malacca chokepoint.

[JGon]

This makes zero sense to me.

 

First look at the topography of that area. The only area "feasible" (as in it would cost less) is where I put the red line. You are still cutting through 200 meter elevation of soil. Any other area you're cutting through Mountains! The canal would be roughly 70 km long. I highly doubt that would cost 28 Billion USD.  

 

Second... all this work for what?! To save a few hundred kilometers? Both the Panama Canal and Suez save thousands of kilometers (Weeks) from voyages. This Thailand proposal would be as long as the Panama Canal, but it doesn't have a lake in the middle which means even more digging and cost.

 

This will never happen!  

[mfd101]

Even if you go for the land bridge as opposed to the canal option, the unloading and reloading facilities at BOTH ends would have to be super efficient & economical to justify the shippers' participation.

 

Which might be a challenge ...

[hotchilli]

5 hours ago, webfact said:

Thai Prime Minister Srettha Thavisin has been seeking support for the $28-billion project from investors around the world

Because Thailands broke.,

[scottiejohn]

1 hour ago, JGon said:

The canal would be roughly 70 km long. I highly doubt that would cost 28 Billion USD.  

They are not building a canal ala "Panama Canal" they are building roads etc!  From the OP;

"Thailand is looking for investment to build a “land bridge” across the narrow southern part of the country. The Southeast Asian nation hopes to provide a shorter path for cargo between the Pacific and Indian oceans without having to go through the Malacca Strait and Singapore.

 

Under the plan, cargo would travel by highway and railroad from the area of Chumpon on the Gulf of Thailand to Ranong on the Indian Ocean to be loaded onto waiting ships."

[bradiston]

2 hours ago, JGon said:

This makes zero sense to me.

 

First look at the topography of that area. The only area "feasible" (as in it would cost less) is where I put the red line. You are still cutting through 200 meter elevation of soil. Any other area you're cutting through Mountains! The canal would be roughly 70 km long. I highly doubt that would cost 28 Billion USD.  

 

Second... all this work for what?! To save a few hundred kilometers? Both the Panama Canal and Suez save thousands of kilometers (Weeks) from voyages. This Thailand proposal would be as long as the Panama Canal, but it doesn't have a lake in the middle which means even more digging and cost.

 

This will never happen!  

It's not a canal they're planning. Rail and road link. The ships won't sail across. They will unload and reload at each end.

[Peterphuket]

33 minutes ago, mfd101 said:

Even if you go for the land bridge as opposed to the canal option, the unloading and reloading facilities at BOTH ends would have to be super efficient & economical to justify the shippers' participation.

 

Which might be a challenge ...

That means when you compare that to JGon's explanation, by road becomes even less advantageous, and people will choose to sail around Singapore.

[bradiston]

35 minutes ago, mfd101 said:

Even if you go for the land bridge as opposed to the canal option, the unloading and reloading facilities at BOTH ends would have to be super efficient & economical to justify the shippers' participation.

 

Which might be a challenge ...

Yes, that would be the challenge, I agree. But strategically it has to make sense. Chennai, Kolkata, Yangon are all major ports in close proximity. Cutting out the piracy prone Malacca and Sunda straits would be a huge boon, plus those waters are too shallow for some of the largest container/tankers. Of course everyone will cry foul on China - when don't they - for tipping money into it if they do. But Sretta's looking for a consortium. This would help all maritime trading nations, including the oil states in the Middle East.

 

https://en.m.wikipedia.org/wiki/Strait_of_Malacca

 

[bradiston]

4 minutes ago, Peterphuket said:

That means when you compare that to JGon's explanation, by road becomes even less advantageous, and people will choose to sail around Singapore.

And rail? Would seem to be the best choice. Containers fit nicely onto wagons. But oil? I don't see that happening unless they build an oil line across too. Cars? Easy by rail. Etc etc.

[Peterphuket]

3 minutes ago, bradiston said:

And rail? Would seem to be the best choice. Containers fit nicely onto wagons. But oil? I don't see that happening unless they build an oil line across too. Cars? Easy by rail. Etc etc.

I was already assuming railways, but unloading and loading containers by rail too takes a lot of time, and the train really isn't going to run for 10 containers, but we'll see if it ever gets there.

[worgeordie]

I remember years ago when the canal was first proposed , MP's and

other wealthy people were rushing to buy land in the area for speculation

purposes , they must have been disappointed when it never materialised,

but had their hopes raised when during the years it was put forward again,

and again , now it could be a land bridge .....maybe

 

regards worgeordie  

[JGon]

1 hour ago, scottiejohn said:

They are not building a canal ala "Panama Canal" they are building roads etc!  From the OP;

"Thailand is looking for investment to build a “land bridge” across the narrow southern part of the country. The Southeast Asian nation hopes to provide a shorter path for cargo between the Pacific and Indian oceans without having to go through the Malacca Strait and Singapore.

 

Under the plan, cargo would travel by highway and railroad from the area of Chumpon on the Gulf of Thailand to Ranong on the Indian Ocean to be loaded onto waiting ships."

 

Ok I see... still the only way this would be feasible is if China is at war with the US and the Straits of Malacca are blocked.  

 

Shipping goods using trucks raises cost significantly (By more than a factor of 10) compared to large scale shipping. It's also has an impact on the environment as all those trucks move around. Traffic will be an issue as well and worst of all is a huge bottle neck on the goods increasing delays as it moves from ships to land and back to ships on the other side. Rail while increasing efficiency still is no as efficient as ships and it has the similar drawbacks to trucking.

 

Huge waste of resources, money, and effort for very little (if any) benefits.

[BusyB]

1 hour ago, mfd101 said:

Even if you go for the land bridge as opposed to the canal option, the unloading and reloading facilities at BOTH ends would have to be super efficient & economical to justify the shippers' participation.

 

Which might be a challenge ...

 

Apart from the pollution of trucks running back and forth as well as the rail operations, you'd also need TWO ships for one shipload.

[007 RED]

Sorry but this is almost doomed to failure before it gets anywhere near the ‘drawing board’, it’s just a big dream that’s going nowhere.

 

According to earlier reports the ‘Joly Green Giant,’ indicated that the overland bridge proposal will knock of 14 days sailing time around the Straits of Malacca and thus save both time and money for the shipping companies.

 

I seriously question his previously reported 14 days sailing time around the Straits of Malacca.  Sure, the Straits of Malacca is a busy shipping lane, but it only takes a couple of days to sail from say Chumpon to Singapore, and a further 2 days to get up to Phuket.   A total of 4 days, and perhaps allowing another day for ‘traffic jams’ or slow movement through the Straits.

 

The average SMALL container ship has a capacity of around 500 (40ft) containers.  So, when the vessel docks at Chumpon the ‘Joly Green Giant’ is proposing that these 500 containers will be off loaded onto either trucks, or trains, and transported overland to Ranong, where they will have to be reloaded onto another vessel which will be waiting at that port for those containers.

 

With one 40ft container per truck, that would mean having 500 trucks on standby at Chumpon.  Oh, and then there is the little matter that some containers may well require refrigeration. Will there be enough trucks capable of providing such facilities?

 

Can you imagine a convoy of 500 trucks ‘racing’ down the highway from Chumpon to Ranong.  The return trip will likely feature on the next instalment of ‘Fast and Furious’.  What could possibly go wrong? 

 

The alternative would be to transport the containers by train.  Given that modern freight train can haul about of 50 (40ft) containers, that would mean having 10 trains on standby at Chumpon for this one vessel.  Then you need more trains on standby for the next vessel etc.  A possible safer and more environmental solution.

 

It must also be remembered that the order in which the containers were originally loaded onto the vessel has been determined by their eventual destination.  So, when the first container is off loaded at Chumpon, it is imperative that it must subsequently be the last container to be reloaded at Ranong.  This will require good planning (again, what could possibly go wrong?) and necessitate sufficient storage area at Chumpon or Ranong to put the containers prior to being loaded onto truck/trains/vessel.

 

Now consider the LARGE, or SUPER, container ships which can have a capacity of 20,000 plus (40ft) containers like the one on the photo above.  These would be a complete nightmare.

 

How much will the off-loading, overland transportation and subsequent re-loading cost the shipping company, plus the cost of having to have 2 vessels tied up?

 

Will the off-loading, overland transportation and subsequent re-loading be quicker than the possible 5 days sailing around the Straits of Malacca?

 

I personally doubt very much that investors, or shipping companies, will want to buy into this 'hair brain' scheme as the numbers just won’t add up for them.

 

Now if the ‘Joly Green Giant’ was to suggest constructing a real canal, like the Suez or Panama canals, then that would be more likely to attract investors and shipping companies.  Also, the cost of such a project would be considerably higher than the ‘land bridge’ proposal, thus there would be far more opportunities for ‘commissions’ to be had .

[digger70]

Speeding trade?  How much time they are talking about?  It must be saving a lot off time (days, weeks)to make up for the extra time to unload ships and then load the cargo on   the waiting trucks/ trains on the other end unload the trucks /trains and load the cargo on the Waiting ships .what a bout all the double/triple handling off the loads. More chance off damaged goods.

Will be good for the thai transport people who have the chance to do the work, depending who's in charge (getting a bones) to choose the transport companies.

[mfd101]

So, all of the above. In sum, it ain't gonna happen.

[BusyB]

29 minutes ago, 007 RED said:

Sorry but this is almost doomed to failure before it gets anywhere near the ‘drawing board’, it’s just a big dream that’s going nowhere.

 

According to earlier reports the ‘Joly Green Giant,’ indicated that the overland bridge proposal will knock of 14 days sailing time around the Straits of Malacca and thus save both time and money for the shipping companies.

 

I seriously question his previously reported 14 days sailing time around the Straits of Malacca.  Sure, the Straits of Malacca is a busy shipping lane, but it only takes a couple of days to sail from say Chumpon to Singapore, and a further 2 days to get up to Phuket.   A total of 4 days, and perhaps allowing another day for ‘traffic jams’ or slow movement through the Straits.

 

The average SMALL container ship has a capacity of around 500 (40ft) containers.  So, when the vessel docks at Chumpon the ‘Joly Green Giant’ is proposing that these 500 containers will be off loaded onto either trucks, or trains, and transported overland to Ranong, where they will have to be reloaded onto another vessel which will be waiting at that port for those containers.

 

With one 40ft container per truck, that would mean having 500 trucks on standby at Chumpon.  Oh, and then there is the little matter that some containers may well require refrigeration. Will there be enough trucks capable of providing such facilities?

 

Can you imagine a convoy of 500 trucks ‘racing’ down the highway from Chumpon to Ranong.  The return trip will likely feature on the next instalment of ‘Fast and Furious’.  What could possibly go wrong? 

 

The alternative would be to transport the containers by train.  Given that modern freight train can haul about of 50 (40ft) containers, that would mean having 10 trains on standby at Chumpon for this one vessel.  Then you need more trains on standby for the next vessel etc.  A possible safer and more environmental solution.

 

It must also be remembered that the order in which the containers were originally loaded onto the vessel has been determined by their eventual destination.  So, when the first container is off loaded at Chumpon, it is imperative that it must subsequently be the last container to be reloaded at Ranong.  This will require good planning (again, what could possibly go wrong?) and necessitate sufficient storage area at Chumpon or Ranong to put the containers prior to being loaded onto truck/trains/vessel.

 

Now consider the LARGE, or SUPER, container ships which can have a capacity of 20,000 plus (40ft) containers like the one on the photo above.  These would be a complete nightmare.

 

How much will the off-loading, overland transportation and subsequent re-loading cost the shipping company, plus the cost of having to have 2 vessels tied up?

 

Will the off-loading, overland transportation and subsequent re-loading be quicker than the possible 5 days sailing around the Straits of Malacca?

 

I personally doubt very much that investors, or shipping companies, will want to buy into this 'hair brain' scheme as the numbers just won’t add up for them.

 

Now if the ‘Joly Green Giant’ was to suggest constructing a real canal, like the Suez or Panama canals, then that would be more likely to attract investors and shipping companies.  Also, the cost of such a project would be considerably higher than the ‘land bridge’ proposal, thus there would be far more opportunities for ‘commissions’ to be had .

 

Exactly.That's a great post ... lays the facts out, and not hiso pipe dreams. From a logistics point of view alone the idea is ludicrous. The so-called 'land bridge' would also be a nightmare for all involved, including anyone living in the vicinity.

 

The only sensible and viable solution would be a canal, and that's not really viable as other posters have pointed out.

[cracker1]

22 hours ago, JGon said:

This makes zero sense to me.

 

First look at the topography of that area. The only area "feasible" (as in it would cost less) is where I put the red line. You are still cutting through 200 meter elevation of soil. Any other area you're cutting through Mountains! The canal would be roughly 70 km long. I highly doubt that would cost 28 Billion USD.  

 

Second... all this work for what?! To save a few hundred kilometers? Both the Panama Canal and Suez save thousands of kilometers (Weeks) from voyages. This Thailand proposal would be as long as the Panama Canal, but it doesn't have a lake in the middle which means even more digging and cost.

 

This will never happen!  

 

[cracker1]

Just now, cracker1 said:

 

Tunnels in mountainous areas could be a possibility for part of a Canal route.

[bamnutsak]

On 12/23/2023 at 8:18 AM, webfact said:

He called it a "very important project, not just for Thailand, but also for the world."

 

 

And if you believe this the PM has a bridge to sell you.

 

 

Buffoon? Con-man? Both?

 

 

Easily the silliest idea since the Kra Isthmus Canal.

 

 

[Selatan]

On 12/23/2023 at 10:52 AM, Henryford said:

There will be big brown envelopes from China to build this to avoid the Malacca chokepoint.

I don't think China is that interested. It has been shipping goods via rail to Europe for a few years now. Look at the current shipping crisis in the Red Sea. The rail service to Europe has become even higher in demand.

 

China-Europe Railway Express stabilizes global supply chains amid security concerns in Red Sea

 

Quote

The China-Europe Railway Express operated a total of 16,145 trains in the first 11 months of this year, up 7 percent year-on-year. A total of 1.75 million 20-foot equivalent containers of goods were carried, up 19 percent year-on-year, according to China State Railway Group Co.

The China-Europe Railway Express services reach 217 cities across 25 European nations, according to the company.

 

[WhatMeWorry]

Thailand will sell its soul to China for money. Its all about money with the Thais, nothing else matters to them.

[Cabradelmar]

I pray this does not happen... bringing all those cargo ships to Thailand's shores on the Andaman Sea side (to be off-loaded), and then introducing all that new vessel traffic into the Gulf (to re-load and forwarded) would be an environmental nightmare. Not to mention all the new overland truck and train traffic. The region would be forever changed, and not for the better (certainly not for tourism). Assuming any maritime freight carriers would even want to undertake the additional logistics, complexity and cost (of off-loading, overland forwarding, re-loading) just to save 2 to 5 days of travel time through the Malacca Straits. Given the massive construction cost, environmental concerns, almost certain bottlenecks and delays (seeing as it will be Thai managed) and uncertainty about volumes (who would really use the land bridge), it should be scrapped.

[bradiston]

3 hours ago, WhatMeWorry said:

Thailand will sell its soul to China for money. Its all about money with the Thais, nothing else matters to them.

I see this proclaimed on every topic on this forum. What do people expect? They're trying to earn a living. You aren't. All about money? What else is there? Charity? Everything free today? Anywhere you go, it's all about money. Timbuctoo, Fulham Broadway, it doesn't matter. Money does.

[madmitch]

Thailand Pushes ‘Land Bridge’ to Speed Trade  Increase many bank balances

[HaoleBoy]

On 12/23/2023 at 3:34 PM, 007 RED said:

It must also be remembered that the order in which the containers were originally loaded onto the vessel has been determined by their eventual destination

Not quite the full picture.  Different containers can not be located together due to hazardous material contained inside.  Fire hazards are taken into account and containers with most fire hazards are loaded on the outer of the ships.

Loading ships with various containers is a complex proprietary software (as well as storing on land as in Port of Singapore).

Overall I don't see Thailand buying this kind of software or inventing it again.  Port of SG are using big machines from HP (formerly Tandem Computers) at each port (4 overall) with NonStop databases (formerly Oracle database but these went down to often) to store the info and the proprietary software running on top.  The machines can not go down thus many small Linux boxes won't work to date.  I

 

really doubt the Thai Gov has thought through the entire process completely.

[HaoleBoy]

14 hours ago, bradiston said:

I see this proclaimed on every topic on this forum. What do people expect? They're trying to earn a living. You aren't. All about money? What else is there? Charity? Everything free today? Anywhere you go, it's all about money. Timbuctoo, Fulham Broadway, it doesn't matter. Money does.

It's more than money.  Look at what is happening with Chinese companies running the ports in Nigeria.  The Chinese are importing Chinese prisoners to work in these companies thus a further hazard.

[bradiston]

1 hour ago, HaoleBoy said:

It's more than money.  Look at what is happening with Chinese companies running the ports in Nigeria.  The Chinese are importing Chinese prisoners to work in these companies thus a further hazard.

Any sources for this latter statement? I couldn't find any.