Thailand proposed to build a land bridge to connect the Ranong and Chumphon Ports and cut down the travel time for shipping by several days. Initially, I thought that this project was not viable.

Later, I realized that it could be feasible as both ports could act as transhipment hubs. This is similar to what the transhipment services that is now provided by Singapore.

This project is still far off. It requires two high tech ports to be build at Ranong and Chumphon, in addition to the rail link. It could take a long time and cost a large budget.

There is, however, another development that many people are not aware of.
Malaysia already has a successful port in Klang. It is building the East Coast Rail Link (ECRL) to connect Klang to the east coast towns.

I read a report that Chinese investors are financing the further upgrading of the terminals at Port Klang.
I just learned that Kuantan has a deep water port and that port is already being upgraded. A Chinese company is involved in this upgrading to handle large vessels.

The rail link may actually happen in Malaysia, rather than in Thailand, and may be ready within the next few years. The upgrading of the ports in Klang and Kuantan are already in progress and the ECRL will be ready by end 2026.

It could pose a big challenge to the transshipment business that is now being handled by Singapore. Apart from reducing the travel time by a few days, these ports are likely to offer lower charges to the shipping companies. This challenge can happen as early 2027.

It does not mean that Singapore will collapse. Singapore will have to reduce the port charges to remain competitive. Many ships will still prefer to call into Singapore for various reasons. But some ships will divert the traffic to Klang and Kuantan ports.

There is also a strategic reason. The Chinese shipping companies will want the Malaysian land bridge to succeed, so that it will offer an alternative to bypass the busy Straits of Malacca.

Tan Kin Lian