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Thailand scales back $30 billion 'land bridge' on commercial viability concerns
An updated study found the project would lose money, with expected financial returns falling to 4.8% and cargo volumes 16% lower, officials said.
- On Friday, a government committee recommended terminating Thailand's $30 billion Southern Land Bridge project after a review found it would lose money overall, casting doubt on its commercial viability.
- Finance Minister Ekniti Nitithanprapas reported the project's net present value fell from 637.7 billion baht to negative 10.3 billion baht, while expected financial returns dropped to 4.8 per cent from 8 per cent.
- Environmental risks to Ranong's biosphere reserve, mangrove forests and marine tourism prompted concerns, while nine of the world's 10 largest shipping lines have already invested in competing alternatives.
- Instead of the land bridge, the government plans to upgrade Ranong Port and develop rail links connecting the Andaman coast with Thailand's existing network; Finance Minister Ekniti said no losses were incurred since construction never began.
- Originally designed to cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait, Thailand now prioritizes integrating freight demand with the Thailand-Laos-China railway as a regional infrastructure priority.
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Thailand to Scrap $29.7 Billion Landbridge Project After Study
Thailand plans to scrap its proposed landbridge megaproject that would link the Gulf of Thailand and the Andaman Sea after a government study found it was no longer economically viable and poses significant environmental risks.
·New York, United States
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Thailand scales back $30 billion 'land bridge' on commercial viability concerns
Thailand's government said on Friday it will revise and scale down an ambitious $30 billion plan to build a coast-to-coast "land bridge" after a review cast doubt on the megaproject's commercial viability.
·London, United Kingdom
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Coverage Details
Total News Sources11
Leaning Left1Leaning Right4Center2Last UpdatedBias Distribution57% Right
Bias Distribution
- 57% of the sources lean Right
57% Right
14%
C 29%
R 57%
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