Thailand scales back US$30 billion ‘land bridge’ on commercial viability concerns
Thailand will instead pursue the expansion of a port in southern Ranong province and related rail links.
A general view of Phato district in Chumphon province, Thailand, where part of Thailand’s proposed Southern Land Bridge project is planned, on May 20, 2026. (Photo: REUTERS/Chalinee Thirasupa)
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BANGKOK: Thailand’s government said on Friday (Jul 24) it will revise and scale down an ambitious US$30 billion plan to build a coast-to-coast “land bridge” after a review cast doubt on the megaproject’s commercial viability.
It will instead pursue the expansion of a port in southern Ranong province and related rail links, the government said in a statement.
The original land bridge proposal envisioned a 1 trillion baht (US$30.45 billion) logistics corridor offering an alternative route to the congested Strait of Malacca.
The proposal involved the connection of two new deep-sea ports: Chumphon, on the Gulf of Thailand in the east, and Ranong, along the country’s western Andaman coast.
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The updated review said the project could create future fiscal burdens and contingent liabilities for the government.
It found the project’s net present value had fallen from 637.7 billion baht to negative 10.3 billion baht.
The project is highly sensitive to changes in global economic conditions, trade volumes and shipping demand, it said.
The project panel also raised concerns over the environmental impact of the project, including risks to Ranong’s mangrove forests, marine ecosystems, fisheries, tourism and coastal communities.
The panel recommended upgrading the existing Ranong port and improving rail links to strengthen logistics connections.
There is no immediate need for a new Gulf of Thailand port due to limited commercial justification, and existing port capacity.
Environmental concerns remain unresolved and existing environmental impact assessments are outdated, the review said, adding that public consultation also needs to be strengthened, with more comprehensive engagement.
Thailand still needs to improve transport infrastructure, including increasing freight demand linked to the Thailand-Laos-China railway, it said.
Source: Reuters/ec
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