Prime Minister opens seminar on Land Bridge project and business opportunities. Increase confidence, highlight good points, welcome the expansion of world consumption. Increase transportation options Reduce costs and time. “Suriya” opens a plan to build a project in 4 phases 2025 – 2045, giving a concession for 50 years, paying back the investment in 24 years.
At 9:00 a.m. (Tokyo local time Japan which is 2 hours faster than Bangkok) at the Sakura Room, Imperial Hotel, Tokyo, Mr. Settha Thavisin, Prime Minister and Minister of Finance Chaired the opening seminar on the overview of the Land Bridge project and business opportunities. There were nearly 30 leading Japanese companies interested in attending. with Mr. Panpree Phitthanukorn, Deputy Prime Minister and Minister of Foreign Affairs, Mr. Suriya Juangroongruangkit Minister of Transport Dr. Phrommin Lertsuridet Secretary to the Prime Minister also attended.
The Prime Minister thanked everyone who attended the “Thailand Landbridge Roadshow” today, emphasizing that the Landbridge project is a project initiated by the Thai government. From the opportunities and potential of Thailand to be a center for trade and transportation in the region. And in the future it may be another center of trade and transportation in the world.
The Prime Minister presented information about the project. Ready to listen to opinions and suggestions from Japanese investors The Asian continent has the highest export and import value at approximately 40%, followed by Europe with an export and import value of approximately 38%, with most trade relying heavily on shipping. Because it can be transported in large quantities and is the most economical. And shipping goods between Asia and Europe mostly take the route through the Malacca Strait. The Malacca Strait is therefore considered to be the main maritime shipping route in the region. Containers passing through the Strait of Malacca account for 25 percent of the total number of containers transported worldwide, and oil shipments through the Malacca Strait account for more than 60 percent of global oil shipments. Therefore, it can be considered that the Malacca Strait has a congested shipping volume. and one of the most crowded places in the world
As for the volume of container loading and unloading, or containers that occur in various ports There are approximately 70.4 million containers per year in the Malacca Strait, and the number of ships passing through the Malacca Strait is approximately 90,000 per year. It is expected that by 2030, the number of ships will exceed the Malacca Strait’s capacity. And there will be a problem with cargo containers having to wait at the port. To wait for the ship to come in to unload the container. cause opportunity costs and the increase in costs from delays
The Prime Minister said Thailand saw an opportunity to develop a route that would help alleviate the impact. Using a location that is an important strategic point in the heart of the Indochina Peninsula. that can develop a connection between the Pacific Ocean and the Indian Ocean Thailand therefore believes that the Land Bridge project It is an important alternative route. that will support the increased transportation of goods It has the advantage of a more economical, faster and safer route.
The Prime Minister also said that when comparing the cost and time for transporting containers through the Land Bridge with those through the Malacca Strait, it was found that the main target group of container ships that will use the Land Bridge are medium-sized container ships or feeders. that transports containers between the Pacific Ocean and the Indian Ocean.
‘Currently, shipping containers from producing countries in East Asia such as Japan, China and South Korea to consumer countries in Southeast Asia, Central Asia and the Middle East. Most containers are transported by large ships or Mainline and then transferred to feeder ships at ports in the Malacca Strait. for transport to consumer countries In the future when there is a Land Bridge project Those containers will be transported from the country of origin using feeder ships and then transferred to another feeder ship at Land Bridge. This will save at least 4% on transportation costs and save 5 days of time,’ Mr. Seratha said.
The Prime Minister said that for products produced from producing countries in the South China Sea, such as eastern China, Taiwan, Vietnam, the Philippines, to consumer countries in Southeast Asia, Central Asia and the Middle East. Most are transported by feeder ships, then transfer at the port in the Malacca Strait to another feeder ship to transport the containers to consumer countries. When there is a Land Bridge project Those containers will be transshipped at Land Bridge. This can save at least 4% on transportation costs and save 3 days of time.
The Prime Minister also said that in another product group Produced in Thailand, Laos, Cambodia, Myanmar and southern China. Containers can be transported through Thailand’s land transportation network. Go out to Land Bridge on Feeder boats to various consumer countries such as the Philippines, Indonesia, Central Asian countries. and countries in the Middle East Land Bridge Project It will save up to 35% of the original cost and save up to 14 days of time. Therefore, on average, shipping containers on all these routes Via Landbridge will reduce travel time by 4 days and reduce costs by 15%. It is estimated that the total volume of containers passing through Landbridge’s western port will be approximately 19.4 million containers and through the eastern port will be It is approximately 13.8 million containers if compared in proportion to the total number of containers passing through various ports. in the Straits of Malacca will account for only 23%
This figure is a minimum estimate. (Conservative) and consider the connection of goods from feeder ships to feeder ships only, excluding the possibility of large ships or mainlines coming to dock in the Land Bridge project in the future.
‘In terms of transporting crude oil from the Middle East region It was found that at present crude oil is transported at approximately 19 million barrels per day, of which 56% or approximately 10.7 million barrels per day. will be transported through the Malacca Strait If the land bridge is used as a distribution point for crude oil in the region Will save at least 6% on transportation costs.
In addition, in investing in this project Investors will benefit from the development of other projects. Also related Especially businesses in the service sector Transportation and logistics business Real estate development business Including businesses related to the financial and banking sectors. The benefits will accrue to businesses in the agricultural sector. and businesses in the industrial sector, especially those in the New S-curves group, will receive additional benefits,’ Mr. Settha said.
The Prime Minister said that Land Bridge will help drive Thailand’s economy as a whole. It is expected that no less than 280,000 jobs will be created in the area and Thailand’s GDP is expected to grow up to 5.5% per year, or approximately 670 billion US dollars. When the project is fully developed
‘I believe in and invite Japan to join us in this unprecedented opportunity to invest in large-scale regional projects. both commercially and strategic linking the Pacific Ocean and the Indian Ocean. for shared economic growth,’ Mr. Settha said.
While Mr. Suriya mentioned 2 important reasons: 1. The advantage of Landbridge Thailand’s geographic location. Located in the heart of Southeast Asia. And the transportation network in Thailand has been developed and linked with the transportation networks of other countries in the region, making Thailand a gateway for imports and exports of countries in the region. 2. Land Bridge Project It solves the problem of congestion in the Malacca Strait. This is caused by the number of container ships continuously increasing every year. and due to capacity limitations of the straits Ships therefore had to queue for a long time before they could pass through the strait. and continue traveling to the destination, therefore, the Land Bridge Project It will help reduce distance, reduce time, and reduce transportation costs.
Mr. Suriya discussed the project plan. The development of the entire project has been planned in 4 phases, starting from 2010. 2025 to 2040, the format for finding investors and operating will be an international bid (International Bidding) with a concession period of 50 years as a single contract. As for the group of investors who come to operate the project Must be a group of potential investors consisting of shipping lines. Logistics service provider Port operators and management Real estate developer and industrial investors Thailand will issue new laws. To develop the project and surrounding area specifically Facilitating incentives for foreign investors to invest and from studying the investment worthiness of the project, investors will pay back their investment in 24 years, based on the income from transporting goods through the port only. Not including returns that will come from other areas. Whether it is an industrial estate or a real estate development including other related businesses
As many Japanese investors are familiar with Thailand, this project will make them more attractive for investment. and reducing the show this time To present Thailand’s potential to be a regional center for maritime container transportation. and may be one of the centers of the world.-316.
Source: Trend News Agency
