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    Thailand’s Perennial Kra Canal Project: Pros, Cons and Potential Game Changers

    Storey, Ian | September 2019
    Abstract
    Few mega construction projects have been on the drawing board for as long as Thailand’s Kra canal. The idea of cutting a waterway across the Isthmus of Kra in the Upper South of the country that would link the Gulf of Thailand with the Andaman Sea—and hence the Pacific and Indian Oceans—was first proposed more than 300 years ago. Since then the project has been repeatedly revived, resulting in a series of expensive engineering surveys and feasibility studies, before being quietly dropped. The arguments for and against a Kra canal are longstanding and well-rehearsed. Proponents of the canal point to the economic and strategic benefits that Thailand would accrue. They argue that the construction of the 100-kilometre canal, and related industrial infrastructure such as ports, manufacturing plants and oil refineries, would create jobs for tens of thousands of Thai workers, stimulate the economy (especially during periods of economic downturn) and, over the long-term, generate a lucrative revenue stream from the collection of shipping tolls. Militarily, the canal would enable the Thai navy to move ships quickly from one coast to the other during times of crisis. In addition, a Kra canal would also provide a faster and thus cheaper route between the Indian Ocean and the South China Sea, thus providing a viable alternative to the increasingly congested and “pirate infested” Straits of Malacca. Detractors of the canal remain unconvinced. Their main argument is that a Kra canal is commercially unviable: that the massive construction costs could not be clawed back from toll fees as shipping companies would be reluctant to bear additional costs just to save two or three days sailing time (especially at a time when the price of oil is low)—a situation quite unlike the Suez and Panama Canals which save vessels weeks of extra time at sea. With regard to the strategic benefits, critics argue that Thailand faces no threats from its neighbours, a canal would cleave the country into two halves and thus embolden separatists in the Far South, and the ownership and operation of the waterway would inevitably become entangled in Great Power rivalry.
    Citation
    Storey, Ian. 2019. Thailand’s Perennial Kra Canal Project: Pros, Cons and Potential Game Changers. © ISEAS Yusof Ishak Institute. http://hdl.handle.net/11540/11321.
    ISSN
    2335-6677
    Keywords
    Bus Transportation Costs
    Demand For Transport
    Means Of Transport
    National Transport
    Passenger Transport
    Railways
    Road & Highway Transport
    Road Transportation Systems
    Sea Transport
    Transport Costs
    Transport Efficiency
    Transport Infrastructure
    Transport Planning
    Transport Policy
    Transport Services
    Transport Systems
    Transport Tax
    Transportation
    Aid And Development
    Asian Development Bank
    Comprehensive Development Framework
    Development Cooperation
    Development Management
    Development Planning
    Development Strategies
    Development In East Asia
    Development Planning
    Development Research
    Green revolution
    Modes of transport
    Airports
    Ports
    Shipping
    Taxis
    Vehicle
    Automobile industry
    Road traffic
    Railways
    Inland transport
    International transport
    Public transport
    Urban transport
    Transport projects
    Transport workers
    Transport statistics
    Transport networks
    Urban traffic
    Rural planning
    Aid coordination
    Industrial projects
    Infrastructure projects
    Natural resources policy
    Educational development
    Development strategy
    Development models
    Economic development
    Communication and traffic
    Navigation
    Transport planes
    Air transportation industry
    Air transportation system
    Intra-airport transportation
    Inland water transportation
    Intercoastal shipping
    Marine transportation
    Local transit
    Highway transportation
    Motor transportation
    Student transportation
    Choice of transportation
    Public transportation
    Transportation industry
    Mass transit
    Municipal transit
    Communication in rural development
    Communication in community development
    Economic development projects
    Development banks
    Economic forecasting
    Environmental auditing
    Cumulative effects assessment
    Human rights and globalization
    Railroads
    High-speed rail
    Canals
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/11321
    Metadata
    Show full item record
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    ISEAS_Perspective_2019_76.pdf (221.6Kb)
    Author
    Storey, Ian
    Theme
    Transport
    Development

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    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise