Siripong: Transport Ministry Ready to Study Land Bridge, Govt Not Sole Investor

Thansettakij•Economy•9d ago

Reader Briefing

Thailand's Ministry of Transport is prepared to study the 'Land Bridge' project, emphasizing that the government will opt for public-private partnerships and not solely fund the initiative.

•The Ministry of Transport is set to study the 'Land Bridge' project, incorporating reports from the Office of Transport and Traffic Policy and Planning (OTP).
•The government will pursue a public-private partnership (PPP) model for the project, welcoming investment from both Thai and foreign private entities.
•A comparison with the 'Thai Canal' project indicates the Land Bridge is more cost-effective, with an estimated investment of 900,000 million baht compared to the canal's 2,000,000 million baht.
•The project aims to enhance logistics by connecting eastern and western ports, including oil and gas pipeline transport, reducing transit times.
•Private sector groups in 14 southern provinces support the Land Bridge project for economic growth, already seeing a 20% rise in land prices in Ranong and Chumphon.

Overview

•Siripong Angkasakulkiat, Deputy Minister of Transport, stated that the Land Bridge project study will consider reports from the Office of Transport and Traffic Policy and Planning (OTP).
•The Land Bridge project aims to improve logistics by connecting eastern and western coasts, potentially including oil and gas pipelines, thereby significantly reducing transport times.
•Siripong Angkasakulkiat confirmed that the government will not be the sole investor, opting for a Public-Private Partnership (PPP) model for the Land Bridge project.
•Investment for the Land Bridge project is open to any private entity, whether Thai or foreign, with interest in the initiative.
•The estimated investment for the Land Bridge project is 900,000 million baht, significantly less than the 2,000,000 million baht estimated for the 'Thai Canal' project.
•A comparison of economic returns shows the Land Bridge project offers a better Financial Internal Rate of Return (FIRR) than the Thai Canal project.
•Siripong Angkasakulkiat indicated that the Thai Canal project would be a last resort due to its lower economic feasibility compared to the Land Bridge.
•Private sector entities in 14 southern provinces have expressed support for the Land Bridge project, anticipating economic growth and already observing a 20% increase in land prices in Ranong and Chumphon.

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Key Quotes

Siripong Angkasakulkiat

"What will be the investment format? The government will not decide alone; there must be consultants and interested investors to study this matter together, and we will listen to all proposals."

การลงทุนจะเป็นรูปแบบไหน รัฐบาลไม่ได้ตัดสินใจโดยลำพัง จะต้องมีทั้งบริษัทที่ปรึกษา ผู้ที่สนใจลงทุน มาดำเนินการศึกษาเรื่องนี้ร่วมกัน ซึ่งเราก็ฟังข้อเสนอของทุกฝ่าย

Key Entities

Person

Siripong Angkasakulkiat(สิริพงศ์ อังคสกุลเกียรติ)

Deputy Minister of Transport who confirmed the ministry's readiness to study the 'Land Bridge' project and discussed investment models.

Ekniti Nitithanprapas(เอกนิติ นิติทัณฑ์ประภาศ)

Deputy Prime Minister and Minister of Finance, chairing the committee studying the 'Land Bridge' project.

Pipat(พิพัฒน์)

Mentioned in relation to the Prime Minister ordering the study of the 'Land Bridge' project.

Anutin(อนุทิน)

Mentioned as signing the establishment of the committee to study the 'Land Bridge' project.

Organization

Ministry of Transport(กระทรวงคมนาคม)

The government ministry responsible for overseeing the study of the 'Land Bridge' project.

Office of Transport and Traffic Policy and Planning (OTP)(สำนักงานนโยบายและแผนการขนส่งและจราจร)

An agency whose reports and studies are being considered for the 'Land Bridge' project evaluation.

Law

Public-Private Partnership (PPP)(การลงทุนแบบ PPP)

The investment framework that the government intends to use for the 'Land Bridge' project, involving collaboration between the public and private sectors.

Place

Ranong-Chumphon(ระนอง-ชุมพร)

Provinces in Southern Thailand where land prices have reportedly increased by 20% due to interest in the 'Land Bridge' project.