Land bridge project to attract foreign investors: Transport Ministry
Permanent Secretary to the Transport Ministry, Chayatham Phromsorn, believes that foreigners are interested in Thailand’s land bridge project and says that the government is ready to enact special laws to attract investors.
Chayatham was speaking during the participation of Prime Minister Srettha Thavisin in the APEC Economic Leaders’ Meeting 2023 in San Francisco. He discussed the preparation for showcasing the land nridge project, emphasising that it is not a newly conceived project, but has been under discussion for the past 20-30 years. The previous government also studied the Land Bridge project, he pointed out, taking full account of Thailand’s advantageous location between the South China Sea and the Andaman Sea.
The project involves transporting oil from the Middle East to manufacturing facilities in China, Japan, Korea, and Taiwan. Once the products are manufactured, they will be shipped across the Pacific Ocean. Chayatham mentioned that another part of the route would loop back through the Malacca Strait towards Europe, Central Asia, and South Asia. Thailand’s central location positions it advantageously, and a land bridge could significantly reduce transportation time, benefiting the country.
Chayatham stressed the benefits that would accrue if Thailand were to attract global shipping traffic through its territory. The land bridge could shorten the transportation route by 5-10 days, making Thailand an attractive investment destination. He urged showcasing the project to attract investments and emphasised the need for legal frameworks similar to the Eastern Economic Corridor (EEC) for the project’s development.
Chayatham suggested discussing the intentions of potential visitors prior to committing to tax incentives, noting that besides bringing cargo ships to Thailand, the project aims to attract investments for export, reducing costs and transportation time.
When asked about the percentage of foreign investors, Chayatham stressed the importance of creating infrastructure that people will use. The focus should be on attracting investors already engaged in the business rather than setting a specific foreign investment target.
Regarding the timeline for the project, Chayatham noted that a legal framework would first need to be established. This will involve creating agencies and committees responsible for the project, with clear progress expected within two years. The land bridge project is of interest to various ministries, and a direct report to the Prime Minister is planned. The targeted countries for investment include those in the Asia-Pacific region, China, Europe and the US.
