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Land Bridge: Commercial Viability or Immense Risk?

Land Bridge: Commercial Viability or Immense Risk?

Prachachat•General•17d ago

Reader Briefing

Expert questions the commercial viability of the Land Bridge project, citing high risks and reliance on foreign transshipment cargo.

  • •Assoc. Prof. Dr. Somphong Sirisoponasilp, a transportation and logistics expert, has raised concerns about the "Land Bridge" project.
  • •The project's design is largely based on attracting foreign transshipment cargo (80%), with Thai goods comprising only 18-20%.
  • •He highlights an "Information Gap" and disputes the project's commercial viability, suggesting immense risks.
  • •The expert proposed an alternative Gateway Port model for Thai goods, which would significantly reduce project scale.

Overview

  • •Assoc. Prof. Dr. Somphong Sirisoponasilp pointed out an "Information Gap" in the Land Bridge project, potentially leading to misunderstandings.
  • •The project's proposed design by the Office of Transport and Traffic Policy and Planning (OTP) emphasizes commercial viability versus immense risk.
  • •Assoc. Prof. Dr. Somphong Sirisoponasilp, an expert in transportation and logistics, presented insights from continuous project monitoring.
  • •The expert stated that current discussions are based on unequal data, necessitating a common data foundation before policy debates.
  • •Assoc. Prof. Dr. Somphong Sirisoponasilp explained international shipping routes through the Strait of Malacca, including parallel routes like the Sunda and Lombok Straits for ULCC tankers.
  • •Analysis of ship statistics from about 90,000 ships per year reveals container ships form 50% of cross-ocean traffic, with others serving regional trade.
  • •Assoc. Prof. Dr. Somphong Sirisoponasilp referred to a complete OTP report published in late 2025, detailing project engineering and components.
  • •The project is designed to accommodate 20 million TEUs, but Thai goods only represent 18-20% of this capacity, raising concerns about reliance on foreign transshipment cargo.
  • •Assoc. Prof. Dr. Somphong Sirisoponasilp noted that positioning the Land Bridge as an oil hub would require new studies, including an EIA due to the distinct environmental risks associated with oil transport.
  • •Assoc. Prof. Dr. Somphong Sirisoponasilp proposed an alternative "Gateway Port" model for the Andaman coast, focusing on Thai goods, which would reduce project scale by 80%.
  • •The expert concluded that the project's feasibility hinges on sufficient foreign transshipment cargo to justify its large scale, given the low proportion of Thai goods.

Full article content is available on the original source.

Read on Prachachat (Thai Version)View in Google Translate

Source: Prachachat (Original)

Key Quotes

Assoc. Prof. Dr. Somphong Sirisoponasilp
"This project is not primarily designed for Thai goods but is designed as a large area to await 80% foreign transshipment cargo."
โครงการนี้ไม่ได้ถูกออกแบบมาเพื่อสินค้าไทยเป็นหลัก แต่เป็นการออกแบบพื้นที่ขนาดใหญ่เพื่อรอรับสินค้าถ่ายลำต่างชาติถึง 80%
Assoc. Prof. Dr. Somphong Sirisoponasilp
"it will be based on the question of whether there will be enough foreign transshipment cargo to make such a massive project worthwhile."
จะถูกตั้งอยู่บนคำถามที่ว่า จะมีสินค้าถ่ายลำจากต่างประเทศมาใช้บริการมากพอที่จะทำให้โครงการที่มีขนาดใหญ่โตเช่นนี้คุ้มค่าหรือไม่

Key Entities

Person

Assoc. Prof. Dr. Somphong(รศ.ดร.สมพงษ์)
Expert in transportation and logistics who analyzed the Land Bridge project, highlighting information gaps and commercial risks.

Organization

Office of Transport and Traffic Policy and Planning(สนข.)
Organization that developed the proposed model for the Land Bridge project.

Place

Strait of Malacca(ช่องแคบมะละกา)ℹ️
Key international shipping lane discussed in the context of alternative routes like the Land Bridge project.
Sunda Strait(ช่องแคบซุนดา)ℹ️
One of the alternative straits to the Strait of Malacca, relevant for large vessels navigating the region.
Lombok Strait(ช่องแคบลอมบอก)ℹ️
An alternative strait to the Strait of Malacca, used by very large crude carriers (ULCC) that cannot pass through Malacca.
Port of Colombo(ท่าเรือโคลัมโบ)ℹ️
A major shipping hub in Sri Lanka, mentioned as a destination for ships coming from East Asia via the Strait of Malacca.
Port of Singapore(ท่าเรือสิงคโปร์)ℹ️
A significant port contrasted with Malaysian ports, highlighting the importance of management in port success.
Malaysian Ports(ท่าเรือมาเลเซีย)
Ports in Malaysia, compared to the Port of Singapore to illustrate that geographical location is not the only determinant of success.

Law

Environmental Impact Assessment(EIA)ℹ️
Environmental regulation that would be required for a new oil hub component of the Land Bridge project.