Thailand Proposes Shipping Route to Bypass Malacca Strait: More Cost-Effective, Quicker, and Safer

January 14 ------ Thailand is proposing an ambitious multibillion-dollar project, titled the “Landbridge,” aimed at significantly reducing shipping times between the Indian and Pacific Oceans while alleviating pressure on the busy Malacca Strait, one of the world’s key maritime routes. Prime Minister Srettha Thavisin unveiled this initiative to investors in San Francisco, highlighting that the project could reduce shipping times by an average of four days and lower shipping costs by approximately 15%.

The Malacca Strait, which runs between Malaysia and Singapore, plays a critical role in global trade, with about a quarter of the world’s traded goods passing through it. However, traffic volumes in this area are expected to exceed its capacity by 2030, raising concerns about both efficiency and safety, as the strait experiences over 60 maritime accidents annually. The Landbridge project aims to provide an alternative route that enhances the seamless flow of goods between Asia, India, and the Middle East.

Costing around 1 trillion baht (approximately US$28 billion), the Landbridge will feature new seaports on either side of Thailand’s southern peninsula, interconnected by advanced highway and rail networks. Spanning 100 kilometers (62 miles), this strategic initiative is set to replace an earlier proposal to dredge a canal through the Kra Isthmus, which has faced various logistical and environmental challenges.

Srettha emphasized that the Landbridge will not only cut costs and transit times but also serve as a safer alternative to the congested Malacca Strait. “This will be a cheaper, faster, and safer route,” he stated, underlining the project’s importance in supporting transportation and addressing the challenges posed by the Malacca Strait.

Overall, the Landbridge initiative represents Thailand’s commitment to enhancing its logistics and transportation infrastructure, positioning the country as a vital hub in global trade. The project is designed to accommodate rising shipping demands while improving safety and efficiency, thus appealing to both investors and stakeholders in the shipping industry.

Source: maritimefairtrade.org