Land bridge project gets the nod from Parliament despite concerns

The four-hour House debate concluded with 269 lawmakers voting in favour and 147 opposing the mega-project, citing the report conducted by a special House committee chaired by Pheu Thai MP Wisut Chaiyarun.

The study concluded that the purpose of the land bridge project was to develop logistics infrastructure along the Southern Economic Corridor (SEC). Connecting deep-sea ports in Chumphon and Ranong provinces will attract investment to industries in the region, the study says.

Providing the SEC with a logistics backbone through the landbridge would facilitate southern agricultural exports.

Commodities like fruits, palm or rubber are commonly grown in the Southern region and are among Thailand's top exports to major trade partners like China or the EU.

Thailand is currently the top producer of rubber and the third-largest producer of palm oil in the world, as measured by production volume. The land bridge, straddling the Malay Peninsula, is seen as geographically advantageous for trade between Cambodia, Myanmar, Laos and Vietnam and member countries of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.

The mega-project would also develop parallel industries to shipping and bring modern industries to the Southern region, the report added. Nonetheless, concerns have been raised about the land bridge’s environmental impact and profitability.

Currently, studies estimate the net present value (NPV) of the project at 257 billion baht, with an economic internal rate of return of 17.4%. The study expects profitability in the 24th year. It also estimates the creation of 130,000 jobs in Chumphon and 150,000 jobs in Ranong.

The government would require extensive use of eminent domain to clear land for the project. The Water Resources Department added in the study that a water table needs to be drawn up to manage irrigation in areas affected by land bridge construction.

Meanwhile, the report was criticised by several opposition parties, including Move Forward's former party leader Pita Limjaroenrat.

He said that as many as six world heritage sites sit in the area designated for the mega-project and they risk being harmed by possible land expropriation and oil leaks if the land bridge gets implemented, adding that the report also fails to ensure the well-being of residents, especially those who do fishery.

Pita, said that Thailand could lose around 3.5 trillion baht in exchange for its ambition to be the regional transportation hub. He warned that such a status could affect the country’s tourism industry in the southern part that generates revenue of 700 billion baht annually.

Meanwhile, Bhumjaithai MP Natchanon Srikokuea said that the government needs to ensure fair compensation for those whose lands get expropriated, and appropriate electricity and waterways management.

Natchanon, who represents Songkhla province, said that the recruitment procedure must be fair to the local people.