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Bangkok Post
Bangkok Post
Business

Why missing links are the smarter choice

Ranong Port requires further upgrades to reach its full potential.

Academics support the development of "missing links" in the country's transport network, as these projects can deliver quick results and clearly address economic needs.

Sumet Ongkittikul, vice-president for internal systems and research director for transport and logistics policy at Thailand Development Research Institute, said the proposed Land Bridge project faces several constraints, particularly uncertainty over whether international shipping lines would actually use the route.

Mr Sumet said transport infrastructure is only one factor in attracting investment. A well-defined investment strategy for southern Thailand, including the development of industries suited to each area, is far more important in drawing investment capital, he noted.

In particular, developing missing links in transport infrastructure, such as transport networks or port facilities, must begin with a clear plan for how areas inland behind the ports will be developed. For example, Ranong Port still faces numerous limitations that need to be addressed, he noted.

"A transport project alone cannot attract investment," Mr Sumet said.

A missing link project that should be pursued is the completion of the high-speed railway connecting China, Laos and Thailand through Nong Khai, with an extension southward to Ranong Port, he said. Only the Bangkok-Nakhon Ratchasima section is under construction, while the remainder of the route has yet to commence.

Another route that could strengthen the transport network, enabling trains travelling to the South to run faster and help reduce traffic congestion in Bangkok, is a railway line from the North to Ban Phachi in Ayutthaya province, said Mr Sumet. Instead of heading directly into Bangkok, the route would bypass the capital by passing through Suphan Buri and continuing to Nakhon Pathom before heading down to the South.

Thailand already has a double-track railway extending to Hua Hin, which makes travel more convenient, and a relatively short extension could reach Ranong, he noted.

Even if the government approves the Land Bridge project today, no one could say when it would be completed. The Bangkok-Nakhon Ratchasima high-speed railway has been under development for more than a decade and remains unfinished, while the proposed high-speed rail link connecting three airports has still not begun construction despite the contract being signed roughly five years ago, said Mr Sumet.

Given this scenario, he questioned whether a massive Land Bridge project could realistically be completed within 10 years.

Investing in missing link infrastructure would require less time and strengthen the transport network much more quickly, Mr Sumet noted.

REGIONAL COMPETITION

Aat Pisanwanich, an independent international trade analyst, said investment in the Land Bridge project would not be worthwhile. Thailand would face direct competition from a similar land bridge-style development project in Malaysia, which is expected to be completed next year, with China investing in the development of Kelantan Port.

Malaysia has developed what it describes as a central port with a higher handling capacity than Laem Chabang Port, he noted. It is capable of handling up to 1.5 million containers per year, compared with around 1 million at Laem Chabang.

International shipping routes currently focus primarily on Singapore and Malaysia, while both countries have plans to further develop ports along the Strait of Malacca.

"If the current government wishes to stimulate economic growth through mega-projects, it should prioritise completing projects that have already been planned but remain unfinished. These include upgrading the Eastern Economic Corridor and advancing regional economic corridor developments across the country," Mr Aat said.

He also urged the government to complete the Thailand-China high-speed railway. Although construction has so far progressed only from Bangkok to Nakhon Ratchasima, once the line is connected to China's high-speed rail network at Nong Khai, it would create a freight corridor linking Kunming to Singapore. Thai exporters would benefit significantly, while the route could also serve as a transport corridor connecting to India and Europe.

Chinese investors have already studied opportunities to invest in warehouses and cold-storage facilities to support future trade along the route, Mr Aat noted. Thailand could benefit from such investment, provided the government establishes conditions that maximise national benefits, such as requiring the use of locally sourced materials.

NATIONAL LOGISTICS

According to government spokeswoman Rachada Dhnadirek, the Chumphon–Ranong Port railway, one of the country's key missing links, would significantly enhance Thailand's logistics capabilities and support the country's ambition to become a regional logistics hub in Southeast Asia.

The project is expected to stimulate economic growth nationwide, particularly in southern Thailand, while complementing broader regional development in line with Thailand's National Economic and Social Development Plan, she noted.

"The government plans to complete missing transport links through integrated investment in railways, roads and ports, making maximum use of existing infrastructure. This includes upgrading Ranong Port, dredging navigation channels, developing the port's hinterland, improving road connections, and constructing the Chumphon–Ranong Port railway to connect the proposed Ranong Gateway with Thailand's main railway network, including routes linking Thailand, Laos and China, as well as Malaysia and Singapore," Ms Rachada pointed out.

Following the upgrades, she said Ranong Port would provide two major benefits. First, it would open Thailand's Andaman coast as a gateway for trade with Bimstec member states, namely Bangladesh, India, Myanmar and Sri Lanka, while also improving connectivity with the Middle East, Africa and Europe. This would significantly facilitate exports, particularly from Southern Thailand.

Second, once the transport network is fully connected, logistics costs and transport times would be reduced, exporters would gain an additional route via the Andaman coast, and Thailand's logistics competitiveness would be strengthened, reinforcing its role as a regional transport hub.

She said the Chumphon-Ranong railway has already completed its feasibility study and detailed design. The remaining step is the preparation of the Environmental Impact Assessment before submission to the Cabinet. If approved, construction is expected to take about three years, demonstrating that the project is already well advanced and can proceed without restarting the planning process.

Beyond logistics infrastructure, the government is also continuing broader development initiatives in southern Thailand, including tourism, agricultural processing, natural resource management, border economic development and stronger economic integration with neighbouring regions, in line with the Southern Regional Development Framework prepared by the NESDC.

Prime Minister Anutin Charnvirakul recently announced that the government would replace the Land Bridge proposal with a narrower Missing Link transport strategy after a formal review found low financial viability, increased budget risks and environmental concerns.

Mr Anutin said the revised approach would allow infrastructure development to proceed more quickly by upgrading ports on both the Gulf of Thailand and the Andaman Sea while improving transport links between them.

The Land Bridge proposal could be revived in the future if circumstances changed and geopolitical conditions became more favourable, Mr Anutin noted.

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