Wednesday, September 6, 2023

China plans to help build a Canal that will cut across Thailand and bypass the Malacca Strait

The planned "Thai Canal"
The planned "Thai Canal"

China and Thailand are planning to build a Canal that will cut across the Country of Thailand, connecting the Gulf of Thailand to the Andaman Sea and thus allowing Vessels to bypass the Malacca and Singapore Straits

The Project is expected to cost around Usd 28 billion, and is important for both Countries as such a Canal will allow Trade to bypass the natural Choke Point that is the Malacca Strait which is at its narrowest Point is only 2.5 km across and where the United States (US) could block Ships going to China. 

On the Part of Thailand, it will improve even more their already strong Economy. However, such a Canal would have a Negative Effect on Singapore, which is estimated to lose around 30% of their Shipping Trade. Unless of course they find other Ways to send their Goods to China, such as the planned Pan-Asian Railway that will connect most of South East Asia (SEA) to China. 

The so-called “Thai Canal” would also significantly lessen the cost of Transportation as it is basically a Shortcut, allowing Vessels to save on Costs in Terms of Fuel. The two-way Distance saved by such a Canal is estimated to be around a total of 1,200 km 

SOURCES: 

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