Land bridge project would be a boost to shipbuilding industry
While Thailand has some 30 shipyards, a lack of skilled workers means they are unable to meet a growing demand for yachts and speedboats
Progress on the Southern Economic Project, known as the land bridge connecting the Gulf of Thailand and the Andaman Sea, has garnered significant international interest, according to Suriya Jungrungreangkit, Deputy Prime Minister and Minister of Transport. Affirming that the project is set to materialise under the current government, he added that the investment in the land bridge is expected to inject up to 1 trillion baht into the economy.
The private sector has expressed optimism about the land bridge project, indicating that if it materialises, it will significantly impact the marine tourism and shipbuilding industries.
Lertsak Ponklin, president of the Phang Nga Tourism Business Association and regular advisor to the House of Representatives Tourism Committee, said that the future value of the marine tourism industry will be substantial.
The project, if realised, will spur related industries such as marine tourism and shipbuilding, which currently face high demand but suffer from a shortage of skilled workers, such as ship repairmen, painters, and other specialists. This shortfall necessitates reliance on foreign companies. In the future, if Thailand can develop a skilled workforce, the prospects for the shipbuilding industry to support the land bridge and marine tourism will be much brighter.
Currently, the demand for yachts and superyachts in the private sector is around 80-90%. Thai shipyards build vessels for both domestic use and export, yet even these production levels are insufficient due to the high difficulty and competition in the markets, such as in China and Indonesia, which also have established shipbuilding industries.
Lertsak noted that Thai shipyards specialising in speedboats, particularly the popular twin-hull models made from either fibreglass or aluminium, are experiencing increased demand. But here again, there are no skilled workers available for aluminium speedboats, and the demand for them is particularly high. Unlike fibreglass boats, which have simpler production processes, aluminium boats require skilled labour. The shipbuilding industry in Thailand currently needs approximately 3,000 workers nationwide to meet the demand. Notable shipbuilding hubs include Map Ta Phut, Pattaya, Krabi, and Phuket.
"I ordered a four-engine speedboat and had to wait for a year due to high demand from various companies. Marine tourism in Thailand is booming thanks to the country's beautiful seas, making boats essential for contemporary tourism. The designs of speedboats are also evolving to be larger, more luxurious, and modern. This trend has revitalised the boat industry, leading to a 200% increase in bookings. Almost all companies need to order new boats, whether aluminium or fibreglass, resulting in year-long waiting lists," Lertsak said.
Lertsak added that Thailand has numerous shipyards, primarily building small, medium and, to a lesser degree, large vessels. However, there are fewer large shipyards for building bigger ships. Smaller shipyards, like those building speedboats, number around 20-30 nationwide, yet the demand still surpasses supply due to challenges related to three factors: labour, government financial support, and technology. Unlike international shipyards that utilise innovative block-building techniques and technology to speed up production while maintaining quality, Thai shipyards often rely on traditional methods.
If they are to improve, Thai shipyards need to adopt more modern and innovative methods. While Thailand does have internationally recognised shipyards, the industry needs further development in terms of labour skills, technology, and innovation to tap into the vast market potential.
Moreover, the shipbuilding industry involves three key aspects: building, repairing, and painting ships. For example, ships need painting annually, costing hundreds of thousands of baht each time. There is a significant labour shortage in this area, and the hope is that the Ministry of Labour will support the shipbuilding industry by developing skills for building, repairing, and painting ships. These skills will be in high demand in the future.
