Thailand Scraps Land Bridge Project Due to Unprofitability and Environmental Concerns

DEPUTY Prime Minister-cum-Finance Minister Ekniti Nitithanprapas said today (July 24) that the Land Bridge megaproject linking Gulf of Thailand and the Andaman Sea is being dropped after three working groups had found it to be unprofitable, the investment redundant and having environmental impact, PPTVHD36 said. Ekniti, as chairperson of the Land Bridge project committee, was joined by chairpersons of three working groups – the Secretary-General of the National Economic and Social Development Council (NESDC), a representative of the Permanent Secretary of Natural Resources and Environment Ministry, and a representative of the Permanent Secretary of the Transport Ministry, in announcing the result of a study of this ambitious scheme. The committee was able to conclude its study before the 90-day deadline set by Prime Minister Anutin Charnvirakul after finding that the megascheme had low profitability due to budgetary and other risks. The committee therefore resolved to compile a report and submit it to Anutin and the cabinet to approve the megaproject’s termination with there being no damage in terms of land investment and construction occurring because work had not yet commenced, Ekniti said. Mr. Danucha Pichayanant, secretary-general of NESDC and chairperson of the first working group, explained the financial risks with the new study having made adjustments based on global economic conditions in 2025 and this showed a decrease in the rate of return from 8% to only 4.8%. The net present value (NPV) is negative, sliding to minus 10.287 billion baht, from the previous projected positive return of over 600 billion baht. Furthermore, it is also not cost-effective because of a 15-16 percent decrease in container volume, resulting in a 38 percent reduction in returns. In addition, nine out of ten major global shipping lines have already invested in similar projects, leaving only one with a small market share not having done so. Regarding operational risks, the cargo handling process (ship-truck-rail) involves many connections and while calculated to take only a little over three days, without considering on-site risks, in practice, this is considered to be very high. Meanwhile, the Natural Resources and Environment Ministry’s representative, the chairperson of the second working group, identified nine major environmental impacts, including the project crossing a vulnerable area with extensive forests and high mountains, impacting ecosystems and wildlife. Ranong province has the largest mangrove forest in the country, a global biosphere reserve and wetland area, and the project could affect its World Heritage status. Furthermore, it could damage tourism due to construction sites overlapping important coral reefs and diving locations, as well as unexplored underwater archaeological sites. The Transport Ministry’s representative pointed to some groups opposing the megaproject having voiced concern about the environment impact and transparency. This indicates that in future any undertaking of large-scale projects should be unified, transparent and information communicated in easily understandable language, with technical jargon reduced, and all stakeholders comprehensive analysed, including vulnerable groups and local communities.