Thailand’s US$30 billion Land Bridge project, aiming to create a coast-to-coast logistics corridor linking Chumphon on the Gulf of Thailand with Ranong on the Andaman Sea. The project is intended to provide shippers with an alternative route to the congested Strait of Malacca, one of the world’s busiest maritime trade passages.

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The plan has regained momentum under Prime Minister Anutin Charnvirakul’s government following the war in Iran and disruption around the Strait of Hormuz, events that highlighted the vulnerability of global trade routes to strategic maritime chokepoints. The proposed 1-trillion-baht corridor would connect two new deep-sea ports through rail, highway and logistics infrastructure across southern Thailand.

According to a government presentation, the project could reduce logistics costs by nearly 30% and cut transit times by up to 14 days for cargo travelling between southern China and ports in the Indian Ocean serving South Asia and the Middle East. A 90-kilometre standard-gauge railway between the ports would form the core of the project, with capacity to handle up to 20 million TEUs (twenty-foot equivalent unit)annually. A separate metre-gauge railway would link the corridor to Thailand’s existing rail network.

Thai officials have stressed that the Land Bridge is not intended to replace the Strait of Malacca but to capture part of the regional trans-shipment and feeder cargo market. Jiraroth Sukolrat, director-general of the Office of Transport and Traffic Policy and Planning, said Thailand was targeting feeder vessels with capacities of 12,000 TEUs or less. Government estimates indicate feeder-to-feeder cargo movements could be around 10% cheaper and six days faster than comparable routes through Singapore.

Analysts remain cautious about the project’s long-term viability. Eugene Mark of Singapore’s ISEAS-Yusof Ishak Institute said the scheme may ultimately prove more valuable as a strategic national transport corridor than as a direct competitor to Malacca. Independent researcher Wipawadee Panyangnoi noted that while the project has been repackaged to focus on ports, railways and light industry, its core concept remains largely unchanged from earlier proposals.

Investor interest has been restrained by the project’s high cost, evolving policy framework and geopolitical sensitivities. Thai authorities have stated that the government would primarily act as regulator and facilitator, with funding expected to come from private-sector consortiums involving shipping lines, port operators, financiers and land developers.

Local communities have also voiced concerns about potential impacts on livelihoods, marine ecosystems and agricultural land. Reuters reported that fishing and farming groups along the proposed corridor fear disruption to established industries. In Ranong, fisherman Chaiyaporn Arunrasamee expressed concern about development in areas where residents depend on fishing, while coffee entrepreneur Chalermchart Seekhiao questioned the need for large-scale industrialisation in Chumphon’s productive Phato district.

The Nation reported that the project recently faced another obstacle after regulators ordered a new Environmental and Health Impact Assessment due to significant differences between government and private-sector estimates of marine life density near the proposed ports. A government-appointed panel is reviewing the project and previous impact assessment reports, with findings expected before the end of July. The results will be closely watched by investors, local communities and neighbouring countries as Thailand considers whether the Land Bridge can become a major logistics asset.

Picture courtesy of The Nation

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Adapted by ASEAN Now Nation 21 June 2026

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"Highway 44 is part of land bridge project running across the Kra Isthmus. It starts at intersection with Phetkasem highway (Highway 4) in Krabi Province, running northeast, and ends at intersection with Highway 401 in Surat Thani Province. It roughly follows the route that a centuries-discussed Thai Canal might follow, if ever built."