Thailand shelves US$31 billion Land Bridge project after review finds weak economic case and environmental risks

BANGKOK: Thailand has effectively shelved its long-discussed Land Bridge megaproject after a government review found the proposed transport corridor would offer limited economic benefits, face major commercial challenges and pose significant environmental risks.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced that a government-appointed committee had completed its assessment 90 days ahead of schedule. The review concluded that the project, which was intended to link the Gulf of Thailand with the Andaman Sea, carried substantial financial risks and was unlikely to generate the returns that had been anticipated.

When asked whether the government’s decision meant the Land Bridge had effectively been abandoned, the DPM responded: “You could say that.”

Rather than moving ahead with the multibillion-dollar proposal, the government now intends to prioritise improvements to existing transport infrastructure. These plans include upgrading Ranong Port and strengthening rail links connecting southern Thailand with ports on the country’s eastern seaboard, while also enhancing connections to China through the regional rail network.

The committee’s assessment covered three main areas: the project’s economic and investment prospects, its environmental implications, and feedback gathered through public consultation.

According to the findings, changing global trade conditions have significantly weakened the case for the Land Bridge. The report noted that slower international trade, compounded by instability in the Middle East, had reduced the potential economic gains the project was originally expected to deliver.

The review also found that securing business from major international shipping companies would be difficult. Officials said many of the world’s largest shipping lines had already formed strategic alliances and established operational networks elsewhere, making it unlikely they would relocate their activities to Thailand.

Beyond the changing market environment, the committee identified operational issues that would further undermine the project’s competitiveness. Challenges related to cargo transfers and overall management of the transport corridor were highlighted as factors that would restrict efficiency and reduce the project’s long-term commercial viability.

Environmental considerations were another major factor behind the government’s decision. The study warned that construction and operation of the Land Bridge could have far-reaching consequences for coastal ecosystems and nearby communities.

Among the areas identified as being at risk were sensitive marine habitats, forests, wildlife and local food security. The committee also pointed to the potential impact on Thailand’s largest mangrove forest in Ranong, internationally recognised wetlands, coral reefs, renowned diving sites and underwater archaeological resources.

Public opinion gathered during the consultation process was mixed. Businesses and manufacturers generally backed the proposal, seeing potential economic opportunities from improved transport links.

However, many local communities and conservation groups voiced strong reservations, raising concerns about environmental degradation, the transparency of the planning process and whether the project could be sustained over the long term.

After weighing the economic outlook, operational feasibility, environmental consequences and public feedback, the committee concluded that the Land Bridge was unlikely to provide sufficient value to justify proceeding, prompting the government to redirect its attention towards upgrading existing ports and rail infrastructure instead.

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