Thailand has revived its long-delayed Land Bridge megaproject, a 1 trillion baht ($30 billion) logistics corridor designed to connect the Gulf of Thailand with the Andaman Sea, as Bangkok seeks to capitalize on growing concerns over vulnerabilities in some of the world’s busiest maritime chokepoints.
The administration of Prime Minister Anutin Charnvirakul has renewed momentum behind the proposal after the conflict involving Iran and the temporary disruption of shipping through the Strait of Hormuz highlighted the risks of relying on a handful of strategic sea lanes for global trade.
If completed, the project would establish an overland transport corridor across southern Thailand, offering shipping companies an alternative to the congested Strait of Malacca while reducing transit times and transportation costs, according to government officials and project documents reviewed by Reuters.
The Land Bridge would stretch roughly 90 kilometers (56 miles), linking a new deep-sea port in Chumphon on the Gulf of Thailand with another in Ranong on the Andaman Sea. Together, the ports would form a logistics gateway connecting the Pacific and Indian oceans through Thailand rather than the traditional route around the Malay Peninsula.
At the center of the proposal is a standard-gauge freight railway connecting the two ports, designed to handle as many as 20 million twenty-foot equivalent unit (TEU) containers annually. The railway would be integrated with Thailand’s existing meter-gauge rail network and supported by an expanded highway system to facilitate cargo movement across the peninsula.
Thai officials argue that the project could cut logistics costs by nearly 30% while reducing shipping times by as much as 14 days for cargo traveling between southern China and the Indian Ocean.
Government planners estimate that approximately 80% of container traffic passing through major ports along the Strait of Malacca, including Singapore, consists of transshipment cargo that is transferred between vessels rather than destined for local markets.
“We want to capture part of this 80% market, particularly the feeder shipping segment,” said Jiraroth Sukolrat, director-general of Thailand’s Office of Transport and Traffic Policy and Planning.
According to Jiraroth, transferring cargo between smaller feeder vessels via Thailand’s land corridor could be about 10% less expensive and six days faster than routing through Singapore because of lower congestion.
“We are not targeting the largest mainline container ships,” he said.
While the economic rationale has gained renewed attention, the proposal continues to face strong opposition from communities located along the planned corridor.
The route cuts through fishing villages, farmland and agricultural communities whose residents fear losing both livelihoods and environmental resources.
Among them is Chaiyaporn Arunrasamee, a 50-year-old fisherman from the Andaman coast who has spent his life working in waters that would be transformed by the project.
“Personally, I don’t want this to happen at all,” Chaiyaporn told Reuters while standing beside his fishing nets in the small mangrove-surrounded community of Baan Hat Sai Dam.
“This is where we make our living. Where are we supposed to go?” he said.
Similar concerns have emerged in Phato district, an agricultural region known for producing durian and coffee.
Coffee entrepreneur Chalermchart Seekhiao argued that the existing local economy already generates substantial revenue without requiring a massive infrastructure project.
“The durian industry in my hometown alone generates about 10 billion baht every year without building anything new,” he said.
“People need to understand this isn’t empty land.”
The project also encountered a regulatory setback this month after authorities ordered a new Environmental and Health Impact Assessment.
The review was mandated following significant discrepancies between government data and independent research regarding marine biodiversity near the proposed port sites.
Although the Land Bridge concept first emerged in 2020, previous versions struggled to gain traction amid shifting political priorities.
The latest proposal differs from earlier plans by focusing exclusively on transportation infrastructure rather than including large petrochemical complexes and oil refineries.
“The concept hasn’t really changed. What has changed is how it is presented,” said independent researcher Wipawadee Panyangnoi, whose doctoral dissertation examined the project.
“Previously they openly discussed industrial zones and petrochemical facilities, which faced strong opposition. Today it is framed primarily as a transportation and logistics project because that language is more acceptable to the public,” she said.
Financing remains another major challenge.
Thai officials have emphasized that the government intends to serve primarily as regulator and facilitator, leaving construction financing to private investors.
Jiraroth said the project would require a consortium bringing together shipping companies, port operators, infrastructure developers and financial institutions.
However, analysts say investor appetite remains uncertain.
Eugene Mark of Singapore’s ISEAS-Yusof Ishak Institute said no major investor has yet made firm commitments, partly because of the enormous capital requirements and concerns about policy continuity.
He also questioned whether shipping companies would be willing to accept the additional expense of unloading cargo, transporting it across land and loading it onto another vessel instead of remaining on a continuous sea voyage through the Strait of Malacca.
“Demonstrating that this double-handling model can genuinely compete with seamless transit through the Strait of Malacca remains a significant hurdle,” Mark said.
The project also carries geopolitical implications.
Regional governments are closely monitoring Thailand’s ambitions, while substantial foreign investment could trigger domestic political sensitivities.
Mark noted that Chinese state-owned enterprises would likely seek significant operational influence in exchange for major investments, a prospect that could generate political resistance within Thailand.
“Thailand will need to perform careful diplomatic balancing to prevent the corridor from becoming a geopolitical flashpoint,” he said.
Despite the obstacles, Mark believes the project could still serve an important strategic purpose even if it never replaces the Strait of Malacca as a major global shipping route.
He said the Land Bridge could eventually become a modular national security asset capable of strengthening Thailand’s own export infrastructure and improving the country’s energy supply resilience.
Even so, Bangkok must still overcome widespread local opposition before construction can begin.
“Local resistance rarely stops top-down megaprojects entirely in Thailand,” Mark said. “But it can create significant regulatory obstacles that increase investment risks and delay implementation.”
For now, the Thai government continues promoting the Land Bridge as one of Southeast Asia’s most ambitious infrastructure projects, betting that recent disruptions to global shipping will persuade investors and trading partners that an alternative logistics corridor across southern Thailand is worth the enormous cost.
