Thailand turns to South Korea for major projects

The Star

07-05-2025

Suksit Srichomkwan, deputy secretary-general to the Thai prime minister. — The Korea Herald
SEOUL: As Thailand advances a sweeping plan to transform Asia's logistics landscape, it is inviting South Korean firms to participate in its one trillion baht or about US$30.5bil infrastructure initiative: the Land Bridge.
The massive plan, spearheaded by the Thai government, aims to connect Chumphon on the Gulf of Thailand with Ranong on the Andaman coast via a 90km overland corridor of highways, railways and two deep-sea ports.
Designed to bypass the congested Malacca Strait, the project is expected to reduce transport times by up to four days and lower logistics costs by approximately 15%.
'More than 85,000 ships pass through the Strait of Malacca annually, and that number is rising by 2% each year, raising the risk of congestion, accidents and delays,' said Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, in an interview with The Korea Herald on the sidelines of the Ignite Thailand-Korea Business Forum on April 22.
With projections showing the strait nearing full capacity by 2030, Srichomkwan said that the Land Bridge is not merely an alternative but a necessity.
'The Landbridge complements – not competes with – Singapore and Malacca by diverting congestion and supporting feeder systems and smaller vessels.
'Beyond easing maritime traffic, the project could serve as a key driver of Thailand's long-term economic growth.
'The project could attract up to US$100bil in investment and boost Thailand's gross domestic product by between 1% and 2%, depending on the type of partnerships formed,' Srichomkwan said.
In Thailand, the project could spur development in the southern provinces by expanding export routes for agricultural and seafood products, while also enhancing trade flows through the Eastern Economic Corridor – an economic zone spanning three eastern provinces.
Cross-border cooperation is central to Thailand's bid to attract public and private investment, with positive talks ongoing with both China and Malaysia.
One example is the project's reliance on goods from China to support its initial operations.
In this regard, Srichomkwan expressed hopes of evolving the South Korea–Thailand relationship, traditionally strong in the travel sector, into deeper business and investment ties.
He alluded to South Korean business models with the potential to scale in Thailand: 'We favour investors who bring the entire supply chain, not just final assembly.'
Srichomkwan highlighted South Korea's strengths in shipbuilding, logistics, port operations and civil engineering, which make its companies particularly well-suited to seize the opportunity.
'Compared to past issues with Chinese contractors, Thailand has more trust in South Korean companies for reliable infrastructure development,' he said.
'Thailand is also very open to South Korean financial institutions supporting South Korean-led projects.'
He noted that South Korean financial institutions and property developers could benefit from ground-floor investment opportunities, given that much of the project area is still undeveloped. — The Korea Herald/ANN