PM to sell the land bridge project to Dubai Port World
Prime Minister and Finance Minister Srettha Thavisin has scheduled talks with executives of Dubai Port World (DP World) during the World Economic Forum 2024 (WEF) to discuss investment opportunities in the government’s land bridge project, PM advisor Pichai Naripthaphan said on Monday.
World leaders and global business chiefs of various industries are currently in Davos, Switzerland to attend WEF 2024, which wraps on Friday. Thailand will hold a session titled "Thailand Land Bridge: Connecting ASEAN with the World”, Pichai added.
The project involves constructing deep-sea ports in Chumphon and Ranong provinces and transforming transport routes between the two to link the ports at an estimated cost of 1 trillion baht.
Pichai expressed confidence that the land bridge project will attract DP World to join the investment thanks to the several benefits it would offer the global transport sector. These include establishing a link between the Pacific and Indian oceans and relieving shipping congestion in the Malacca Straits, currently the main regional trade route for cargo.
DP World is a subsidiary of Dubai World, a global holding company based in the United Arab Emirates engaged in industrial investment and service sectors. DP World focuses on logistics, transport, deep sea ports, and marine shipping, operating 82 ports in 40 countries, with over 70,000 cargo ships per year transporting more than 70 million containers, accounting for 10% of global container transport.
Pichai added that the land bridge project will also give birth to more industries in the Southern region of Thailand thanks to the improved transport network. He quoted an Energy Ministry study that indicated that land near the land bridge project has the potential for oil refinery factories with a capacity of 500,000 to 900,000 barrels per day.
“These factories will generate income for local communities and contribute to the country’s economy, just like in Singapore, whose economy has been driven by oil refineries that produce over 16 million barrels per day,” he said.
Pichai added that in 2008, Dubai World granted 200 million baht to the Thai government to conduct a feasibility study on port development on the coast of Andaman Sea as well as the bridge linking it to the Gulf of Thailand.
“Although the study was conducted more than a decade ago, I believe the land bridge project is still attractive and has the potential to generate exceptional returns for investors,” he said.
UAE companies are the latest group of foreign investors that the government is inviting to join the project. Srettha has previously talked with several foreign investors regarding the project, including Japan’s MUFG Bank, China Harbor Engineering, China Railway Rolling Stock Corporation, and the manager of Saudi Arabia’s Public Investment Fund.
