Thailand transport industry doubts Land Bridge Project, but maybe on false premise

Private sector points out that Land Bridge does not meet the needs of shipping lines and Thai trade, causing additional costs.
08 Dec. 2023
https://www.bangkokbiznews.com/business/economic/1102740
The National Shipping Council of Thailand (STN) in collaboration with the College of Logistics and Supply Chain Sripatum University organized the 176th SPU Supply Chain Roundtable, a discussion under the topic “Opening the challenge of the big project of the year “Land Bridge”.
Assoc.Prof.Dr.Sompong Sirisoponsin, Logistics and Supply Chain Management Program, Chulalongkorn University, presented the results of the study.
Feasibility of connecting sea transport routes in the Gulf of Thailand. and Andaman of Thailand is studied by Chulalongkorn University Under the Office of the National Economic and Social Development Council (NESDB), which compares 4 development approaches:

1. Development of production and trade areas along the Gulf of Thailand coast and Andaman under the plan for sustainable development of the Southern Economic Corridor (SEC) without construction of transportation links between the two coasts.
2. Development of a new land economic bridge (Landbridge).
3. Kra canal project.
4. Development of a land economic bridge along the GMS Southern Economic Corridor – a road route linking transportation between Kanchanaburi and the Tanintharyi District of Myanmar with the Andaman Sea through Dawei Port.

The conclusion from the study found that Option 2 or the Landbridge project was ranked 3rd with a score of 19.3% because when evaluating the demand for goods (Demand Side) from the shipping patterns in the Malacca Strait, it has been found that the target group that may come to use the Land Bridge project will include only container ships.
In this regard, there are suggestions that
1. Development of infrastructure to support foreign goods that will be transshipped through the project “Not worth investing both economically and financially”
2. The Business Model should be adjusted by reducing the size of the project to only one goal: support Thai production and trade Under the development of the Southern Economic Corridor (SEC), which will result in reducing the size of infrastructure.

Mr. Piset Ritthaphirom, president of the Bangkok Ship Owners and Agents Association, said that most of the container ships used on the project’s target routes are between 7,500-25,000 TEU with lengths between 300 and 400 meters. There is only one transport route. Between Asia with the destination is India-Middle East-Europe Only large ships may come to use the Landbridge service. However, using the Landbridge by large ships will involve additional costs, time, and the use of more ships. This will directly affect the cost of transporting goods.
It is estimated that the ship’s travel time savings will be 2-5 days, according to Land Bridge project consultants of the Office of Transport and Traffic Policy and Planning. It won’t cover substantial additional handling and transportation costs, while keeping in mind doubts, whether seamless operations of the Land Bridge project can actually be achieved.

Study found that the volume of containers transported by large ships will cause problems in managing container yards in both ports. As a result, the ship may dock and take approximately 7-10 days for loading and unloading on each side for lifting all containers ashore. and lift the container onto the boat for return transportation. This will require the shipping line to add additional ships, comparing to number of ships required by Malacca Strait route.
It will lead also, to serious increase in road traffic between ports, with predictable negative consequences.

Comment:
Frankly, I was kind of surprised after I’ve read this material – it didn’t even come to my mind, that the Land Bridge Project might be anything else except the support of industrial development along both coasts, and ensuring the safety of nation’s logistics chains.
I don’t understand this infatuation with becoming Malacca Strait rival. Why don’t transport industry leaders and scholars take into consideration most obvious and decisive factor of volumes of the Asia-Europe cargo traffic via Malacca, with global economy submerging into a recess, and probably, full-scale crisis? It just can’t be otherwise, considering the unfolding “fighting climate change” agenda. Trade volumes are decreasing worldwide, and they will keep decreasing until common sense and survival instincts prevail.
What did COP28 President Al Jaber say recently? He said it loud and clear: “Please help me, show me the roadmap for a phase-out of fossil fuel that will allow for sustainable socioeconomic development, unless you want to take the world back into caves.”, adding that the whole “man-made climate change theory” is unscientific.
Instead of rivaling a shadow of its’ former glory, Malacca Strait Route, Thailand should, I believe brace its’ transportation for hard times of world economy crisis.
Voytenko Mikhail
December 10 2023