The Ministry of Transport has unveiled draft legislation to create a special Southern Economic Zone that would pave the way for a multibillion-dollar Land Bridge transport project linking the Andaman Sea and the Gulf of Thailand.
The bill would establish a commission to speed up development of the Southern Economic Corridor (SEC) in the provinces of Chumphon, Ranong, Surat Thani and Nakhon Si Thammarat, according to a statement from the ministry.
Transport Minister Suriya Jungrungreangkit said earlier that he hoped the new SEC Act could take effect by September this year.
The Pheu Thai-led government has been promoting the Land Bridge project, at a cost of about 1 trillion baht ($29 billion), to link two proposed seaports in Ranong and Chumphon provinces with a new highway and rail line.
The 100-kilometre connection would cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait — a narrow sea lane between Malaysia and Singapore that is one of the world’s busiest ocean routes.
The new SEC commission, chaired by the prime minister, would be responsible for the development of logistics, infrastructure, information technology and other facilities in the specified areas, according to the draft bill. It will also be in charge of finding the money to fund the project.
The draft bill is being presented for public hearings before proceeding to the cabinet and parliament.
Former prime minister Srettha Thavisin previously pitched the Land Bridge project to overseas investors during visits to the United States and China last year. He received many expressions of interest but there has not been much follow-up since then.
The ministry aims to complete the Land Bridge project by 2030. Foreign investors will be allowed to own more than 50% of joint ventures with local companies to build the infrastructure, authorities have said.
The deep sea ports in Ranong on the Andaman Sea and Chumphon on the Gulf of Thailand would cost about 630 billion baht, according to the Office of Transport and Traffic Policy and Planning.
The Land Bridge project will also have to overcome opposition from environmentalists and some communities in the southern provinces.
Protesters last year said the proposed SEC committee could turn into an “independent state” for investors with certain rights deemed above the law, including the ability to relax labour and land use regulations and exemption from any proceedings aimed at safeguarding and preserving the environment and natural resources.