Thailand wants SG to invest in $31 billion ‘Land Bridge’ proposal as Hormuz deadlock persists

SINGAPORE: Thailand is moving to revive a long-standing plan to create a logistics link between the Indian and Pacific oceans, given the recent disruptions in the Strait of Hormuz that highlight the vulnerability of key global shipping routes.

The government said it is pushing forward with its “Land Bridge” project across the country’s narrow southern peninsula, an idea that had previously stalled amid political turbulence, incomplete public hearings and environmental and health impact assessments, as well as resistance from some local communities.

Renewed interest in the project comes as concerns grow over chokepoints such as the Strait of Hormuz and the nearby Malacca Strait, both critical arteries for global trade.

Reuters reports that Transport Minister Phiphat Ratchakitprakarn said over the weekend that a proposal is expected to be submitted to the cabinet between June and July. The government would then begin seeking investors for the project, estimated to cost around 1 trillion baht (US$30.97 billion), potentially starting in the third quarter.

The Land Bridge concept, which has been discussed for decades, involves the construction of two deep-sea ports, one in Ranong on the Andaman Sea and another in Chumphon on the Gulf of Thailand. These would be linked by about 90 kilometres of road and rail infrastructure, along with energy systems such as pipelines.

If realised, the route would offer an alternative to the Malacca Strait, a 900-kilometre channel bordered by Indonesia, Malaysia, Thailand and Singapore. It is the shortest maritime route between East Asia, the Middle East and Europe, with more than 100,000 ships, mostly commercial vessels, passing through it last year.

Thailand has begun reaching out to potential investors, including Singapore. Prime Minister Anutin Charnvirakul discussed the plan on Monday during a meeting with Singapore’s Defence Minister Chan Chun Sing.

Government spokesperson Rachada Dhanadirek claimed that Mr Chan viewed the project as an economic opportunity for both Thailand and foreign investors, and expressed interest in the proposal if it progresses.

The renewed focus on alternative trade routes comes amid broader regional debate. Indonesia’s finance minister recently sparked discussion by suggesting that countries could consider imposing tolls on ships using the Malacca Strait, before later clarifying that such a move would not be feasible.

Within Thailand, the Land Bridge is generally seen as a more viable option than the long-proposed Kra Canal, which would involve cutting a shipping passage across the peninsula. That idea has historically faced opposition due to environmental, financial and security concerns.