Higher costs likely for shippers that use proposed Thai land bridge project: Chee Hong Tat
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Singapore’s ports handled 37.3 million twenty-foot equivalent units in 2022 - the second-highest container throughput on record for the country.
ST PHOTO: LIM YAOHUI
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SINGAPORE – While a proposed land bridge project cutting across the south of Thailand could shorten travelling time for some vessels, shippers will likely incur higher costs than sailing through the Malacca and Singapore straits, said Acting Transport Minister Chee Hong Tat.
“The exact time saving will depend on many factors,” Mr Chee told Parliament on Tuesday.
“So (shipping firms) need to consider the overall costs versus the benefits.”
Mr Chee was answering questions from three MPs about the Thai government’s plans to build a 90km road and rail system that will link two new deep sea ports on the country’s eastern and western coasts. It will bypass the Strait of Malacca, where a quarter of the world’s traded goods pass through.
Thai Prime Minister Srettha Thavisin had touted a reduction in shipping time of six to nine days with the proposed project.
Mr Chee said on Monday this would depend on factors such as the time needed to unload cargo, transport it across the land bridge and load it onto waiting ships at the other end.
He said the key for the Port of Singapore, which is among the busiest in the world, is to focus on staying competitive and relevant.
“We can’t prevent other people from enhancing their port facilities, their infrastructure… as well as building new capabilities,” he added.
In 2021, the government of former Thai prime minister Prayut Chan-o-cha initiated the ambitious project linking the Gulf of Thailand to the Andaman Sea.
The project gained momentum after Mr Srettha, who came into power in August,
The land bridge project is estimated to cost at least 1 trillion baht (S$38 billion).
It has been reported that construction would start in 2025, and the first of four phases will be completed in 2030.
Asked about its potential impact on Singapore’s status as a global seaport, Mr Chee noted that the Republic’s key advantages are its connectivity and “network effect”, which need to be protected.
“The more people call at a particular hub, the more value there is to others in a network,” he added.
Heavy technological investments are being made to raise the productivity of port operations here, Mr Chee said.
The development of Tuas Port, which opened officially in 2022,
When completed in the 2040s, Tuas Port will be the world’s largest fully automated port, with a capacity of 65 million twenty-foot equivalent units (TEUs). In comparison, Singapore’s ports handled 37.3 million TEUs in 2022 - the second-highest container throughput on record for the country.
