- Photo: The Nation/ANN
BANGKOK: The government’s ambitious land bridge project, with an investment value of up to 1 trillion baht, is set to take concrete shape in 2025, Minister of Transport Suriya Jungrungreangkit has said.
The first stage would involve drafting the Southern Economic Corridor Act (SEC Act) to establish clear legal frameworks.
Simultaneously, the ministry will prepare Request for Proposal (RFP) documents to invite investors, ensuring readiness for project bidding as soon as the necessary legislation is approved.
This follows roadshows throughout 2024 by the ministry, inviting investors from around the globe. Major maritime operators, such as Dubai Port World (DP World), have conducted on-site assessments to evaluate the project's potential, Suriya said.
The land bridge project is expected to attract strong global investor interest and active participation in the bidding process. During the roadshow, many investors expressed enthusiasm by seeking additional information and conducting on-site evaluations of the project’s potential, including key stakeholders from Dubai, China, and Japan, he revealed.
The SEC Act and the establishment of the SEC office are expected to be finalised by the second quarter of 2025. The design of the railway and motorway systems, as well as the Environmental Impact Assessment (EIA), will also be prepared.
The Office of Natural Resources and Environmental Policy and Planning is expected to complete its review of the EIA by 2025. This timeline aligns with the port design and the Environmental and Health Impact Assessment, which are anticipated to be completed within 2024, Suriya said.
The draft RFP document is expected to be completed within 2025, with investor selection slated for the third quarter of 2025. The project will then be submitted for Cabinet approval in the same year.
It is anticipated that the contract with the selected bidder will be signed in early 2026, he said.
The construction phase of the land bridge project will be divided into three stages:
Phase 1: Construction begins in 2026, to be completed and operational by the end of 2030.
Phase 2: Construction starts in 2031 and is scheduled for completion by the end of 2034.
Phase 3: Construction commences in 2035 and concludes by the end of 2036.
The land bridge project involves a total estimated investment of around 1.001 trillion baht. This will be allocated as follows:
Ranong Port: 330.81 billion baht
Chumphon Port: 305.67 billion baht
Connecting infrastructure (motorways and railways): 358.52 billion baht
The financial internal rate of return (FIRR) for investors is preliminarily estimated at 8.62%, with a payback period of 24 years.
According to a report by the Office of Transport and Traffic Policy and Planning, the project is expected to boost Thailand’s GDP growth from 4% per year as projected by the National Economic and Social Development Council to 5.5% per year.
Additionally, it will create around 280,000 jobs, with 130,000 positions in Ranong province and 150,000 in Chumphon province. - The Nation/ANN
