KUALA LUMPUR – Transport Minister Anthony Loke said that the proposed land bridge project in Thailand is not a zero-sum game for Malaysia, as it presents opportunities for cooperation and mutual benefit between the two countries.
In response to Senator Dr Lingeshwaran Arunasalam’s question in the Dewan Negara about the status of the multibillion-dollar land bridge project connecting the Andaman Sea and the Gulf of Thailand, Loke highlighted the potential for collaborative endeavours between the neighbouring nations.
“The good relations between the two countries and the shared political and economic challenges provide us with an opportunity to work together to pursue new initiatives that have a high impact for our mutual benefit,” Loke said in a written response.
Loke outlined the details of the project, which were approved by the Thai Parliament on February 16, 2024, and which discussed and approved the proposal for the Chumphon-Ranong land bridge megaproject with a vote of 269 in favour and 147 against.
However, he acknowledged concerns raised about the project’s feasibility and environmental impact.
“Based on media reports, the proposed project was not approved by many parties due to concerns about its feasibility in terms of cost and environmental impact.”
In terms of infrastructure development, Loke said that the concept of developing the land bridge in southern Thailand involves the construction of new deep-sea ports in Chumphon and Ranong, located in the Gulf of Thailand and the Andaman Sea.
He added that the investment required for this development is substantial, amounting to approximately 1 trillion baht or RM129 billion.
Loke cautioned about the potential challenges associated with the project, particularly concerning cargo transportation.
“The handling costs through the land bridge and the associated risks are expected to be higher compared to the current situation through the Malacca Strait.
“The business cost of using the land bridge may exceed the operating costs and ship rentals by an additional 2.5 days of transit time compared to the Malacca Strait,” he said.
In discussing the impact on Malaysian ports, Loke said the impact of this project is expected to be limited to containers from southern Thailand handled by Malaysian ports.
He highlighted the potential implications for the Port of Penang, which heavily engages in trade with southern Thailand.
However, Loke expressed confidence in Malaysia’s ability to adapt and strengthen its ports.
“For Port Klang and the Port of Tanjung Pelepas, which are the country’s main ports, the government has formulated short-term and long-term strategies to strengthen the competitiveness of both ports,” he said.
The minister also emphasised the broader collaborative opportunities between Malaysia and Thailand, including initiatives such as the East Coast Rail Link project and improving railway connectivity.
“Instead of a zero-sum game competition, the Transport Ministry believes that Malaysia and Thailand can explore closer cooperation in transportation and national development for our long-term mutual benefit,” he said. – March 27, 2024