16-12-2024 (BANGKOK) In a major development for Thailand’s infrastructure sector, the government’s ambitious 1 trillion baht land bridge project is poised to commence in 2025, marking a significant milestone in the nation’s transport infrastructure development.
Transport Minister Suriya Jungrungreangkit has unveiled comprehensive plans for the groundbreaking initiative, which economists predict could elevate Thailand’s annual GDP growth to 5.5%, up from the currently projected 4%.
The initial phase will focus on establishing the Southern Economic Corridor Act (SEC Act), creating a robust legal framework for the massive infrastructure project. The Ministry of Transport is simultaneously preparing investor documentation, with Request for Proposal (RFP) papers being drafted to facilitate immediate bidding once legislative approval is secured.
Following successful international roadshows throughout 2024, the project has already garnered substantial interest from global maritime giants. Notable among these is Dubai Port World (DP World), which has conducted thorough site evaluations. Investors from China and Japan have also shown keen interest in the venture.
The project’s timeline reveals a methodical approach to implementation. The SEC Act and corresponding office establishment are scheduled for completion by mid-2025, alongside crucial railway and motorway system designs. Environmental impact assessments are expected to conclude by 2025, while port designs and health impact studies are due for completion in 2024.
The ambitious construction schedule is structured in three distinct phases, spanning from 2026 to 2036. The initial phase is set to conclude by 2030, followed by a second phase ending in 2034, and a final phase completing in 2036.
Financial projections indicate a total investment requirement of 1.001 trillion baht, distributed across three major components: 330.81 billion baht for Ranong Port, 305.67 billion baht for Chumphon Port, and 358.52 billion baht for connecting infrastructure. The project offers investors an estimated financial internal rate of return of 8.62%, with a 24-year payback period.
Beyond the economic growth prospects, the initiative promises significant employment opportunities, with projections indicating the creation of 280,000 new jobs across Ranong and Chumphon provinces, potentially transforming these regions into major economic hubs.
The project represents one of Thailand’s most significant infrastructure investments in recent history, aimed at enhancing the nation’s position as a key player in regional logistics and trade. Minister Suriya anticipates finalising the contractor selection by late 2025, with construction contracts expected to be signed in early 2026.
