Thailand’s $28BN Mega Canal

Thailand’s BN Mega Canal

The Strait of Malacca and the Proposed Thai Canal

The Strait of Malacca, a narrow waterway between the Malay Peninsula and Sumatra, is a vital gateway between the Indian and Pacific Oceans. It is the shortest sea route for ships transiting in and out of East Asia, carrying 30% of globally traded goods worth $3-4 trillion annually.

Strategic Importance

The surrounding region is home to 9 of the world’s 10 busiest shipping ports, making it crucial for global trade. The US maintains a military presence in the area and conducts regular exercises with neighboring countries, highlighting the strait’s immense value to the world.

Contested Region

The Strait of Malacca is a highly contested and strategically important region, with over 2/3 of China’s maritime trade volume passing through it. China has made significant efforts to establish its presence in the area, claiming islands and building military installations, including artificial islands.

Risks and Challenges

The Strait’s narrow corridor can become congested, increasing the risk of maritime collisions and disruptions to the global supply chain. In response, Thailand is planning to create a new trade route that would bypass the Strait of Malacca entirely, utilizing the Isthmus of Kra.

The Proposed Thai Canal

The idea of building a canal across the Isthmus of Thailand dates back to the 17th century, but it never progressed beyond the conceptual stage due to lack of engineering capabilities. Various proposals were made by French and British engineers in the 17th and 18th centuries, but none materialized.

Recent Developments

In 2005, China expressed interest in funding and managing the canal, leading to a memorandum of understanding in 2015. The proposed canal would span 128 km, be 400m wide and 25m deep, and cost an estimated $28 billion, taking several years to complete.

Benefits and Concerns

The proposed Thai Canal would offer several benefits, including shortening the distance and travel time between the South China Sea and the Andaman Sea, resulting in significant cost savings for vessels. However, the project’s construction would come with significant social and environmental costs, including the displacement of around 60,000 people and potential impacts on local fishermen and farmers.

Current Status

The Thai Canal project has lost support over the years due to various concerns, including tension with neighboring countries and potential risks to the environment and local communities. In 2020, the Thai government ultimately decided against the project, citing other pressing issues in the area that need to be addressed first.

The Landbridge Mega Project

Instead, Thailand is moving forward with a new mega project, dubbed the “Landbridge Mega Project”, which aims to connect Thailand’s east and west coast through infrastructure developments, including two new deep-water ports and a 90km stretch of highways, railroads, and pipelines.

Project Details

The project is estimated to cost $28 billion, the same price tag as the scrapped canal project, and is expected to boost connectivity and efficiency in transporting goods between the two sides of the country. The project aims to attract significant investments and establish a vital logistics infrastructure for the country’s southern provinces.

Timeline

The government is currently conducting roadshows to attract investors, with interest already shown by Chinese and Japanese firms. Official bids for the project are expected to begin in 2026, with construction starting later that year and partial functionality expected by 2030 and full completion by 2039.

Term Definition Example Usage
Strait of Malacca A narrow waterway between the Malay Peninsula and Sumatra, a vital gateway between the Indian and Pacific Oceans. “The Strait of Malacca is a crucial passage for global trade, carrying 30% of globally traded goods annually.”
Isthmus of Kra A narrow strip of land connecting the Malay Peninsula and the Thai mainland, where a proposed canal would be built. “Thailand is planning to create a new trade route that would bypass the Strait of Malacca entirely, utilizing the Isthmus of Kra.”
Proposed Thai Canal A planned canal across the Isthmus of Kra, aimed at reducing the distance and travel time between the South China Sea and the Andaman Sea. “The proposed Thai Canal would offer several benefits, including shortening the distance and travel time between the South China Sea and the Andaman Sea, resulting in significant cost savings for vessels.”
Landbridge Mega Project A new infrastructure project connecting Thailand’s east and west coast, including two new deep-water ports and a 90km stretch of highways, railroads, and pipelines. “Instead, Thailand is moving forward with a new mega project, dubbed the ‘Landbridge Mega Project’, which aims to connect Thailand’s east and west coast through infrastructure developments.”
Maritime Trade Volume The total volume of goods transported by sea, including cargo and passengers. “Over 2/3 of China’s maritime trade volume passes through the Strait of Malacca.”
Global Supply Chain The network of producers, distributors, and consumers involved in the production and delivery of goods. “The Strait’s narrow corridor can become congested, increasing the risk of maritime collisions and disruptions to the global supply chain.”
Artificial Islands Man-made structures created in the ocean, often used for military or commercial purposes. “China has made significant efforts to establish its presence in the area, claiming islands and building military installations, including artificial islands.”
Deep-Water Ports Ports designed to accommodate large vessels and cargo, often with deeper waterways and more advanced infrastructure. “The Landbridge Mega Project includes the development of two new deep-water ports, aimed at boosting connectivity and efficiency in transporting goods.”
Logistics Infrastructure The systems and networks used to manage and coordinate the movement of goods, including transportation, storage, and delivery. “The project aims to establish a vital logistics infrastructure for the country’s southern provinces, attracting significant investments and boosting connectivity.”
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Vocabulary Quiz: The Strait of Malacca and the Proposed Thai Canal


Vocabulary Quiz: The Strait of Malacca and the Proposed Thai Canal

What does the term “contested” mean in the context of the Strait of Malacca?

Disputed or claimed by multiple parties
Peacefully resolved
Of little importance
Environmentally protected

What is the main benefit of the proposed Thai Canal?

Reducing the risk of maritime collisions
Shortening the distance and travel time between the South China Sea and the Andaman Sea
Increasing the cost of vessel transportation
Enhancing environmental protection

What is the estimated cost of the Landbridge Mega Project?

$10 billion
$20 billion
$28 billion
$40 billion

What is the term for a narrow strip of land connecting two larger land areas?

Peninsula
Isthmus
Strait
Canal

What is the expected outcome of the Landbridge Mega Project?

Reduced connectivity and efficiency
Boosted connectivity and efficiency
Increased environmental risks
Decreased investments

Answer Key

1. a) Disputed or claimed by multiple parties

2. b) Shortening the distance and travel time between the South China Sea and the Andaman Sea

3. c) $28 billion

4. b) Isthmus

5. b) Boosted connectivity and efficiency



Grammar Explanation: Using the Passive Voice

In the provided text, the passive voice is used to convey information about the Strait of Malacca and the proposed Thai Canal. The passive voice is a grammatical construction in which the subject of the sentence receives the action described by the verb. It is often used to emphasize the action rather than the doer of the action.

In the text, the passive voice is used in sentences such as:

  • The Strait of Malacca is a vital gateway between the Indian and Pacific Oceans.
  • The surrounding region is home to 9 of the world’s 10 busiest shipping ports.
  • The Strait’s narrow corridor can become congested, increasing the risk of maritime collisions and disruptions to the global supply chain.
  • The proposed canal would span 128 km, be 400m wide and 25m deep, and cost an estimated $28 billion.

The passive voice is also used to describe actions that are planned or proposed, such as:

  • The Thai government ultimately decided against the project, citing other pressing issues in the area that need to be addressed first.
  • The government is currently conducting roadshows to attract investors, with interest already shown by Chinese and Japanese firms.

Quiz: Using the Passive Voice

Choose the correct passive form of the verb in each sentence:

  1. The Strait of Malacca ____________________ by over 50,000 vessels annually.
    • is used
    • uses
    • is being used
    • has been used
  2. The proposed Thai Canal ____________________ by China in 2005.
    • was funded
    • funds
    • is funding
    • funded
  3. The new deep-water ports ____________________ as part of the Landbridge Mega Project.
    • are being built
    • are built
    • were built
    • build
  4. The environmental impact of the canal ____________________ by local communities and environmental groups.
    • is being assessed
    • assesses
    • has been assessed
    • was assessed
  5. The project’s construction ____________________ by 2026, with partial functionality expected by 2030.
    • will be started
    • starts
    • is started
    • has been started

Answer Key

  1. is used
  2. was funded
  3. are being built
  4. is being assessed
  5. will be started