Thailand Guts Its $30 Billion 'Land Bridge' After Review Finds It Would Lose Money
A government review found the coast-to-coast megaproject's value had fallen into the negative, so Bangkok will upgrade an existing Ranong port and rail links instead.
BANGKOK, July 24 (Reuters) - 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.
It will instead pursue the expansion of a port in southern Ranong province and related rail links, the government said in a statement.
Here are some more details:
• The original land bridge proposal envisioned a 1 trillion baht ($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.
• 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• Environmental concerns remain unresolved and existing environmental impact assessments are outdated, the review said, adding that public consultation also needs to be strengthened, with more comprehensive engagement.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.
(Reporting by Panu Wongcha-um and Kitiphong Thaicharoen; Writing by Martin Petty; Editing by David Stanway)
