DP World Bids on Thailand’s Major Land Bridge Project

[webfact]

 

Dubai-based logistics behemoth DP World has shown keen interest in Thailand’s colossal 1-trillion-baht Land Bridge project, per the Ministry of Transport's announcement.

 

Sultan Ahmed Bin Sulayem, the group chairman and CEO of DP World, is scheduled to meet Prime Minister Srettha Thavisin tomorrow to explore potential investment avenues in this grand initiative. As the world’s third-largest container port operator, DP World’s involvement could inject significant economic vitality into the project.

 

The Transport Minister, Suriya Jungrungreangkit, disclosed that the discussions would centre around a joint venture for the Land Bridge project, which intends to forge a logistics network linking Chumphon on the Gulf of Thailand to Ranong on the Andaman Sea.

 

Minister Suriya remarked, “It is a delight that a global company like DP World has shown interest in the project.”

DP World, established in 2005, boasts an extensive global network featuring logistics, cargo transport, port operations, maritime services, and free trade zones.

 

Handling 70 million container units annually, DP World services about 70,000 ships, representing 10% of the global container traffic, and operates across 82 ports in 40 countries.

 

Suriya emphasised that the forthcoming dialogue underscores the Land Bridge project's substantial investment allure. He expressed optimism that the project would advance under the current administration.

 

If realised, the Land Bridge project could significantly boost the Thai economy, potentially generating up to 1 trillion baht (approximately US$ 27 billion). 

 

Furthermore, the Ministry of Transport has recently conducted investor roadshows locally and globally to stir additional interest, as reported by the Bangkok Post.

 

Moreover, the government is pushing forward a bill related to the southern economic corridor, sponsored by the Office of Transport and Traffic Policy and Planning. The Ministry has received the draft and expects it to reach the Cabinet by September.

 

In related developments, Thailand’s land bridge project, aiming to connect the Pacific and Indian Oceans, edges closer to reality, with bidding expected to commence by late next year.

 

Picture courtesy: Facebook สรยุทธ สุทัศนะจินดา กรรมกรข่าว

 

-- 2024-06-20

 

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[dinsdale]

31 minutes ago, webfact said:

Dubai-based logistics behemoth DP World has shown keen interest in Thailand’s colossal 1-trillion-baht Land Bridge project, per the Ministry of Transport's announcement.

Means nothing. This is a long term now, pie in the sky project and this is just more propaganda from a failing government.

[JoePai]

This for once is a good idea but I am surprised China has not made the first move as they will benefit the most 

[MalcolmB]

1 hour ago, webfact said:

DP World

I thought it was going to be about something else.

[redwood1]

24 minutes ago, JoePai said:

This for once is a good idea but I am surprised China has not made the first move as they will benefit the most 

 

Good idea?......What?.......It would take  5 minutes to figure out it would be WAY WAY WAY cheaper and faster just to sail around Singapore and travel north than all this unloading and re loading nonsense..

[JoePai]

4 minutes ago, redwood1 said:

 

Good idea?......What?.......It would take a 5 minutes to figure out it would be WAY WAY WAY cheaper and faster just to sail around Singapore and travel north than all this unloading and re loading nonsense..

For China it's not about money - look at a map, the Malacca Strait is a pinch point - that is why it would be so important to China

[Purdey]

I am still betting that Singapore and perhaps Malaysia will kill this project at some point. Meanwhile, let the Prime Minister make some cash.

[hotchilli]

4 hours ago, JoePai said:

This for once is a good idea but I am surprised China has not made the first move as they will benefit the most 

China is smarter, let someone else fund it then they use it.

[PETERTHEEATER]

DP has not 'bid' for the project since it is only at the 'dream' stage and not open to contractor bidding. 🙄

[Dr B]

8 hours ago, JoePai said:

This for once is a good idea but I am surprised China has not made the first move as they will benefit the most 

To build a Land Bridge will require a massive investment, such as the $1 trillion that has been quoted in the OP. Investors will seek to get a return on their investment, which will presumably be in fees used to transit the Land Bridge, as with the Suez and Panama Canals. Those fees will need to be paid, not by Governments or investors, but by the companies shipping containers between China, Japan and South Korea, and countries to the West of Singapore.

Now try to do some simple maths, using data which I believe can be found on-line, on typical ship sizes, numbers of containers, times to unload ships, times to load onto trains, times for trains to transit from coast to coast, times to unload from trains, times to load onto ships, daily cost of ship transport, number of days saved by not sailing via the Straits of Malacca, and the cost of using the Land Bridge. If that still seems like "a good idea" then maybe there will be some investors, but I doubt it. Remember that Thai politicians do not take their cut from the ongoing proceeds, they want it all up front, so when the Land Bridge is built but noone is using it they have taken their money and run.

[JoePai]

15 hours ago, Dr B said:

To build a Land Bridge will require a massive investment, such as the $1 trillion that has been quoted in the OP. Investors will seek to get a return on their investment, which will presumably be in fees used to transit the Land Bridge, as with the Suez and Panama Canals. Those fees will need to be paid, not by Governments or investors, but by the companies shipping containers between China, Japan and South Korea, and countries to the West of Singapore.

Now try to do some simple maths, using data which I believe can be found on-line, on typical ship sizes, numbers of containers, times to unload ships, times to load onto trains, times for trains to transit from coast to coast, times to unload from trains, times to load onto ships, daily cost of ship transport, number of days saved by not sailing via the Straits of Malacca, and the cost of using the Land Bridge. If that still seems like "a good idea" then maybe there will be some investors, but I doubt it. Remember that Thai politicians do not take their cut from the ongoing proceeds, they want it all up front, so when the Land Bridge is built but noone is using it they have taken their money and run.

As I posted yesterday :

 

For China it's not about money - look at a map, the Malacca Strait is a pinch point - that is why it would be so important to China

[Hunz Kittisak]

On 6/20/2024 at 10:12 AM, redwood1 said:

 

Good idea?......What?.......It would take  5 minutes to figure out it would be WAY WAY WAY cheaper and faster just to sail around Singapore and travel north than all this unloading and re loading nonsense..

Just dig the canal and be done with it!

This topic been discussed to death for decades