Land Bridge Concept Floated Again

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LOGISTICS NETWORK

Southern study approved

By Watcharapong Thongrung

The Nation

Published on May 21, 2008

Dubai World keen on huge infrastructure spending

The Cabinet yesterday endorsed a Transport Ministry proposal to conduct a joint feasibility study with Dubai World into the development of a logistics network in southern Thailand.

Dubai World chairman Sultan Ahmed bin Sulayem will meet with Prime Minister Samak Sundaravej on Saturday after giving a speech at the Thaicom Foundation.

Despite the joint study, Dubai World will be afforded no special privileges if the government opens bids for the land-bridge project, Deputy Government Spokesman Natthawut Saikua said. The study, which will take a year to complete, will cover both old and new routes.

Transport Inspector-General Maitree Srinarawat had said earlier when director-general of the Transport and Traffic Policy and Planning Office that Dubai World would shoulder all of the costs of the feasibility study, a gesture that showed its seriousness in investing in Thailand. Dubai World's commitment is indicated by the sending of its second-highest-ranking executive to Thailand to sign a memorandum of understanding (MoU) upon Cabinet approval.

"Thailand will come closer to its goal of becoming a regional trade and investment hub with the presence of Dubai World," he said.

The Transport Ministry has asked for Cabinet approval to sign the MoU between the office and the Dubai-based company. Maitree said Cabinet approval was necessary given that this was a joint private-public study on a project that would have a significant effect on trade and investment. He said Dubai World was attracted to this project due to Thailand's geographical link with China. Moreover, investment in Thailand would complement its business in Dubai.

The study will investigate the viability of the development of the long-delayed land bridge. To link the Gulf of Thailand and the Andaman Coast, the bridge would involve the development of a deep-sea port at Pakbara in Satun province and the development of an industrial zone along the land bridge. The seaport, with a potential to cater to ships of 70,000 tonnes, would be a gateway to Europe, the Middle East and Africa.

Dubai World businesses cover transport and logistics, free zones, property development, maritime services, commodities, aviation, financial services, hospitality and leisure, healthcare and retail operations.

A ministry source said Dubai World wanted the land-bridge project to take shape as soon as possible. With oil prices remaining at high levels, Dubai would have an advantage over others if it had the facilities to release more oil to the Far East.

"In the event Thailand faces investment constraints, Dubai World is ready to shoulder all of the investment costs, be they for the refinery, an oil depot, a power plant, a port or related businesses," the source said.

Source: The Nation