20-year dream — Thailand’s Land Bridge shifts to Ranong-Chumphon

Thailand’s long-debated Land Bridge project has returned to the political spotlight, revived once again as a mega-project pitched as an alternative route for global shipping at a time of rising geopolitical uncertainty.

The idea has moved in parallel with the proposed Kra Canal for more than two decades. Under the government of Prime Minister Anutin Charnvirakul, the Land Bridge is being pushed again against the backdrop of Middle East tensions, disruption in the Strait of Hormuz and growing attention on the Strait of Malacca, one of the world’s most important shipping routes.

Concerns over the Malacca Strait have also been sharpened by past comments from Indonesia about the possibility of collecting fees from ships using the route, similar to Iran’s collection of fees linked to the Strait of Hormuz. Although Singapore and Malaysia did not support the idea, the issue has fed wider debate over the risks of relying too heavily on the Malacca route.

From Pak Bara-Songkhla to Laem Chabang

The first major push came in 2001, when the government of Thaksin Shinawatra approved a study into the Kra Canal. The idea made little progress, but in 2005 the Cabinet agreed in principle to a Land Bridge project.

Thaksin argued at the time that shipping through the increasingly crowded Malacca Strait was becoming more costly and problematic. Thailand, he said, could offer an alternative if it developed transport links connecting deep-sea ports on the Andaman Sea and the Gulf of Thailand.

The original plan selected two main port sites: Pak Bara in Langu district of Satun on the Andaman coast, and the mouth of Songkhla Lake in Singhanakhon district of Songkhla on the Gulf coast. The plan was also framed as a way to support development in the five southern border provinces, connecting Thailand with Langkawi, Penang, South Asia, the Middle East and Europe.

In June 2005, Suriya Jungrungreangkit, then transport minister, proposed a plan to the Cabinet to link the two deep-sea ports with Laem Chabang Port through a Land Bridge system of roads and railways.

The Pak Bara deep-sea port was planned to include a container terminal, tourism port and fishing port, with an estimated budget of 5.5 billion baht. Songkhla already had a port, but it was underused, and officials expected cargo volumes to increase if the Land Bridge went ahead.

Dubai World enters the picture

In 2008, under the government of Samak Sundaravej, the Cabinet approved a proposal for Dubai Port World, now widely known as DP World, to study the Land Bridge. The move followed Thaksin’s continued push for the project after he had used Dubai as an overseas business base following the coup.

On May 20, 2008, the Cabinet approved a Transport Ministry proposal for a memorandum of understanding on a grant-funded feasibility study into the development of an Andaman port and an economic bridge linking it with the Gulf coast.

The MoU was signed on May 22, 2008, between the Office of Transport and Traffic Policy and Planning (OTP) and Dubai Port World, while Santi Promphat was transport minister. Sultan Ahmed bin Sulayem, chairman and chief executive of Dubai World, signed the agreement in person.

The study, worth 200 million baht, covered the feasibility of developing two international ports on Thailand’s Andaman and Gulf coasts. The government at the time also sought to use the Land Bridge route as a special economic zone, offering tax privileges to companies operating in the area and developing road, rail and pipeline transport along the corridor.

DP World was seen as a major global port investor and operator, with experience in port management and logistics. The company later returned to discussions with Thailand during the Srettha Thavisin government, with Thai officials saying it had shown interest in the newer southern Land Bridge plan.

Route shifts to Ranong-Chumphon

The Land Bridge then faded from the agenda for about a decade. It returned in 2018, when the government of Gen Prayut Chan-o-cha approved another study into the Thai Canal, assigning the National Economic and Social Development Council and the National Security Council to assess the proposal. That study did not reach a final conclusion.

The Land Bridge was later reconsidered during Prayut’s second government, when Saksayam Chidchob of the Bhumjaithai Party served as transport minister. The proposed route shifted from Satun-Songkhla to Ranong-Chumphon.

The Transport Ministry assigned OTP to study the new route. The two proposed port sites were Laem Ao Ang in Ranong on the Andaman side and Laem Riw in Chumphon on the Gulf side.

The investment model was set as a public-private partnership covering deep-sea ports, motorway, railway, oil pipeline systems and commercial development areas behind the ports.

Pheu Thai revives DP World talks

The Srettha Thavisin government later approved the Land Bridge in principle, with Suriya returning as transport minister and presenting the project to the Cabinet in October 2023. The plan included drafting a Southern Economic Corridor (SEC) bill.

Srettha said the idea was not new to him as prime minister, but something he had long believed Thailand should pursue through infrastructure investment in rail systems, high-speed trains and deep-sea ports to strengthen the country’s potential.

DP World returned to talks with Thailand in 2024, when Srettha met Sultan Ahmed bin Sulayem, the group chairman and chief executive. DP World was described as a major logistics and supply-chain operator and an operator at Laem Chabang Port.

However, the Srettha government’s push was interrupted despite roadshows in several countries after he left office.

Bhumjaithai-led government keeps project alive

The Anutin Charnvirakul government has again placed the Land Bridge on the agenda, now framed around geopolitical tension in the Middle East and the closure of the Strait of Hormuz, which has put the Malacca Strait under closer scrutiny.

Anutin appointed a committee to study how to move the Land Bridge forward, chaired by Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister. The panel has been given 90 days to study the issue before the government makes a decision.

The committee is expected to review OTP’s previous studies as well as newer reports prepared by private-sector consultants. One key issue is that earlier debate often focused on rail links, while less attention was paid to oil and gas pipelines, which officials say could significantly shorten transport times. At present, pipeline transport for oil and gas is concentrated on the eastern side of the country; the Land Bridge could create similar infrastructure on the western side.

Anutin has also said a new committee would reassess the project in light of public opposition in the South, where concerns include land expropriation, environmental impacts, local livelihoods and the risk of turning southern provinces into a large industrial corridor.

Ranong port seen as possible first phase

A Government House source said the prime minister had asked all agencies involved in the Land Bridge to wait for the committee’s findings, as earlier studies did not fully account for the latest geopolitical dimension.

The closure of the Strait of Hormuz has increased uncertainty over shipping routes, creating both risks and opportunities for Thailand if it chooses to invest in the Land Bridge.

Because the project is extremely large and requires massive investment, even if it does not rely on the state budget, private-sector investment may need to be divided into smaller phases. One possible first step is investment in critical infrastructure, particularly a deep-sea port in Ranong.

Such a port would support Thailand’s goal of strengthening western seaboard logistics, giving the country an Andaman deep-sea gateway connected to India, Sri Lanka, the Middle East and Europe. It could also serve logistics operators moving goods from southern China to Myanmar, Bangladesh, India and Sri Lanka.

EEC law could offer another route

Legal issues remain a challenge because the South has not yet been declared a special economic development zone, while the draft SEC bill has not yet entered Cabinet consideration.

One option under discussion is to use the Eastern Economic Corridor (EEC) Act to declare special development zones in provinces opened for investment. This would allow infrastructure investment to proceed without waiting for a new SEC law to take effect.

OTP study puts investment at 990 billion baht

After the project scale was adjusted, OTP estimated total investment at 990 billion baht, down from the previous estimate of 1 trillion baht. The plan is divided into phases:

• Phase 1/1, from 2030 to 2031, worth 617 billion baht
• Phase 1/2, from 2032 to 2034, worth 174 billion baht
• Phase 1/3, from 2035 to 2053, worth 205 billion baht
• Phase 2, from 2054 to 2079, with investment still unassessed pending completion of the first-phase plan

The current feasibility study proposes a PPP Net Cost model with a 50-year concession. The bidding structure would follow a “One Port Two Sides” approach, under which construction and management of the entire project would be handled under a single contract.

Potential investors would need experience in port management and shipping-line operations to attract cargo to the ports, as well as strong financial capacity to fund the project.