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21 Jul 2024
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Tan Kin Lian - Perspectives
Land bridge proposed by Thailand
The transport minister described the proposed Thailand land bridge as unloading, transport by land (i.e. rail or road), and loading the cargo.
Here is his speech in Parliament.
https://www.youtube.com/watch?v=an4KqV5WoXc
I suspect that the minister is mistaken. What will probably happen is that the cargo will be unloaded in Ranong Port and transported by land to send to the Chumphon port, which will act as a transhipment hub, similar to Singapore.
This will certainly be less costly than using Singapore as a transhipment hub.
This land bridge will also work in the reverse direction. The cargos will be unloaded at Chumphon port and sent by the land bridge to Ranong port, which will serve as a transhipment hub. This will also be more competitive than Singapore.
The Ranong and Chumphon port will be new high tech ports, probably built by China, and will be as efficient as Tuas port.
Singapore has an excellent network of banking and insurance services. This may give Singapore an advantage, but this could also be replicated in Thailand.
I expect that the Thailand land bridge will be a major competitor to Singapore for the countries north of Singapore. Singapore will continue to serve as a transshipment hub for the countries south of Singapore.
Tan Kin Lian
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