Srettha launches Land Bridge roadshow in Tokyo to woo Japanese investors

The “Thailand Land Bridge Roadshow” was held at the Imperial Tokyo Hotel at 9am on Monday.

In his speech, Srettha highlighted the project’s profitability, emphasising that it would allow cargo ships to significantly reduce travel time compared to current routes through the Strait of Malacca.

He added that the Land Bridge was necessary, given the ever-growing congestion at the Strait of Malacca.

Srettha pointed out that Asia accounts for approximately 40% of global cargo, with containers passing through the Strait of Malacca constituting 25% of global shipments and oil transport representing 60% of global oil shipments.

He added that some 90,000 ships accounting for 70.4 million containers passed through the strait each year.

Acknowledging that congestion will surpass the strait’s capacity by 2030, Srettha underscored the Land Bridge’s significance.

The project will link a deep seaport in Ranong on the Andaman Sea to a deep seaport in Chumphon on the coast of the Gulf of Thailand. This would provide an alternative marine route for cargo ships between the Indian Ocean and the Pacific Ocean.

The Land Bridge, which will feature a double-track railway and motorway, will benefit feeder ships, reducing cost and transit times.

Currently, goods shipped from Japan, China and South Korea to Southeast and Central Asia as well as the Middle East are transported via mainline ships before the containers are transferred to feeder boats at the Strait of Malacca.

Once the Land Bridge is operational, three days can be saved in shipping time and 4% in costs, he said. This would particularly benefit exporters in the South China Sea, eastern China, Taiwan Vietnam and the Philippines, he added.

Similarly, exporters in Laos, Cambodia, Myanmar and southern China can utilise the land bridge to transport their goods to the Philippines, Indonesia, Central Asia and the Middle East. This will help reduce transportation costs by 35% and shipping time by 14 days, the premier said.

The shipping of oil via the land bridge would also reduce the cost by 6%, he said.

Srettha believes that with the land connection, the western port will see approximately 19.4 million containers and the eastern port 13.8 million containers per year.

He said this was the lowest estimate and based on the feeder-to-feeder link, without taking into account the use of mainline ships in the future.

Expressing confidence in the project’s impact on Thailand’s new S-curve industries, Srettha invited Japanese investors to seize this opportunity. He believes this project would create 280,000 jobs and a 5.5% annual GDP growth.

“I have full confidence in this project and would invite Japanese investors to make the most of this unprecedented investment opportunity in a regional mega project linking the Pacific and Indian oceans for joint economic growth,” the premier said.

Suriya, meanwhile, told the roadshow that Thailand had the advantage of being located in the centre of Southeast Asia and could serve as a hub linking other nations in the region. He said the construction of the Land Bridge is expected to commence in 2025 and be completed by 2040.

The bidding process for the project will be held internationally, and the winner will be granted a 50-year concession covering shipping lines,

logistics, port management, property development and managing industrial investments.

Suriya said the Thai government will enact supportive laws, with investors to start making returns within 24 years.