The alternative shorter sea routes via Isthmus of Kra : the land bridge approach

The Kra Canal was originally proposed due to the geographic indication that a shorter Sea route might be achieved between the Far East and the Bay of Bengal area and the Persian Gulf. Of course, in Thailand the Kra project has recently (1981-1983) been discussed a great deal and commands wide interest among policy-makers and the informed public. The Kra project involves not only the construction of a new waterway capable of greatly easing ocean-going traffic between the Pacific and the Indian Oceans basins but also the projected industrial development zones and transshipment facilities associated with the canal project are of major significance for the entire Thai and broader regional economies. So far there is no evidence that the Kra Canal will become reality. This research is a preliminary attempt to analyse the Kra project but base on the concept that the land bridge would be introduced in conjunction with two container ports, one on the Eastern coast along the Gulf of Thailard, and the other on the Western coast along the Andaman Sea. If a railway network will link the two ports, thus intermodalism should provide the alternative possible service to the shippers. In the first part, the infrastructures between the two proposed ports - Port of Songkhla and Port of Satun, the strategy for port development, the justification for the route are surveyed. Then, an analysis of the two ports investment project and the Songkhla-Satun Kra Land Bridge project are carried out by using benefit-cost study and present value methods. The results Obtained show that port projects and the land, bridge project are apparently viable when using discout rates under 9% and 8% respectively. Finally, the study concentrated on the economic impact of the Kra Land Bridge and the establishment of regional marketing depots; and major specific rationales are all found to have a significant effect on port development and the land bridge.