The one-trillion baht land bridge project, intended to open a major logistics route between the Gulf of Thailand and the Andaman Sea by train and motorway, has finally been shelved due to its lack of economic feasibility, risk of financial loss and environmental impacts.
After 90 days, the committee tasked with studying the feasibility of the project has concluded that it is not worth implementing, said Finance Minister Ekniti Nitithanprapas on Friday.
He said that the study covered the project’s economic feasibility of the project, environmental impacts and public feedback, adding that the subcommittees have all come to the conclusion that the mega project is not worth the huge investment and carries huge risks.
They pointed out that the prolonged conflicts in the Middle East are affecting global trade to the extent that the earlier prediction of profitability may turn negative with only a slim chance that the shipping lines will shift from using the Strait of Malacca to this new route, said the finance minister.
He also said that there is also risk in the management of the unloading and loading of cargo containers at the deep-sea ports on the eastern and western coasts.
Ekniti said the panel has found out that there is a high risk of negative environmental and ecological impacts, about which most stakeholders, including the private sector and local communities, are concerned, with many potential investors remaining undecided on whether to invest in the Southern Economic Corridor.
Instead of the land bridge, the committee has opted for an alternative ‘Missing Link’, project which is to upgrade the existing Ranong deep-sea port and to build a rail link from Ranong port to the east coast seaport and the main line that runs north towards China, said Ekniti.
