The prime minister has taken the opportunity of his visit to Japan for the ASEAN-Japan summit to also partake in a “Thailand Landbridge Roadshow”. The event was meant to attract Japanese investors to take part in Thailand’s Land Bridge megaproject which will become a regional trade and shipping hub in the future.
Prime Minister Srettha Thavisin inaugurated the roadshow involving seminars on the land bridge project and the associated business opportunities, attended by representatives from almost 30 major Japanese firms.
The land bridge project was initiated based on Thailand’s potential to become a regional trade and shipping center and the prospects of becoming another global hub for trade and shipping in the future. Currently, the primary shipping route between Asia and Europe passes through the Malacca Strait. Some 90,000 cargo ships carrying about 70.4 million sea containers pass through the strait each year, resulting in congestion on the route and lengthy cargo handling time that have been pushing up shipping costs. More goods are expected to be shipped through the Malacca Strait by 2030.
Thailand sees an opportunity to develop a shipping route that would help to mitigate these issues, using the country’s strategic location at the center of the Indochinese Peninsula to foster connectivity between the Pacific and Indian oceans. The land bridge will become a crucial option enabling shippers to accommodate more cargo and take advantage of cost savings, speedier transit times, and a safer route.
4 phases have been assigned to the project’s implementation, spanning 2025 – 2040. The investors and operators of the project will be acquired through international bidding for a concession of 50 years. Investors who will participate in the project will need to have been deemed as possessing adequate capacities. Thailand will be issuing new laws to develop the land bridge and surrounding areas, especially laws that would facilitate convenience for foreign investors and attract them. (NNT)
