BANGKOK: The Office of Transport and Traffic Policy and Planning (OTP) has given the go-ahead for a landmark "Land Bridge" project, a critical infrastructure initiative connecting the Gulf of Thailand and the Andaman Sea.
The project is expected to create a new economic corridor with massive financial benefits, leading to a planned public bidding process in 2026.
According to a comprehensive study by the OTP, the project's Economic Internal Rate of Return (EIRR) is a high 17.38%, a figure that "reflects the potential for long-term economic growth," said Panya Chupanich, the OTP's director.
This return is based on the ports and their connecting infrastructure alone.
The Land Bridge will consist of two deep-sea ports—one in Laem Riow, Chumphon, and another in Laem Ao Ang, Ranong—connected by an 89.35-kilometre modern transport network.
The network will feature a six-lane motorway and both standard-gauge and meter-gauge railways.
The ports will operate using cutting-edge "smart port" technology, including automated container handling, and adhere to "green port" principles for environmental sustainability.
The project is poised to drastically improve regional logistics, potentially reducing container shipping times by four days and cutting costs by 15%. This would cement Thailand's role as a major trading gateway for the entire Asean region.
Beyond the economic returns, the OTP stated that the project will also focus on improving the quality of life for local residents.
It is expected to generate up to 280,000 jobs and create new business opportunities in industries such as food processing, pharmaceuticals, and tourism.
In addition, existing infrastructure will be upgraded, and a new "Career Development Centre" will be set up to equip locals with the skills needed for new jobs.
During a recent seminar in Ranong and Chumphon, community members raised concerns about the environmental impact on coastlines, local fishing, and livelihoods.
In response, the OTP has compiled these concerns and will implement clear mitigation and compensation measures.
A fund, supported by contributions from businesses operating in the area, will be established to provide direct relief to those affected and support community-led initiatives.
With the study now complete, the OTP is preparing tender documents to invite both domestic and international investors to develop and construct the project. - The Nation/ANN
