Thailand Unveils Draft Legislation for Southern Economic Zone and Landbridge Project

By Anuchit Nguyen

Mar 22, 2025 (Bloomberg) – Thailand has revealed plans to establish a special economic zone in the southern region of the country, aiming to kickstart a major transport project that would connect the Indian and Pacific Oceans.

The proposed bill outlines the creation of a commission to oversee the development of the Southern Economic Corridor in provinces such as Chumphon, Ranong, Suratthani, and Nakhon Si Thammarat, as per a statement from the Transport Ministry.

Prime Minister Paetongtarn Shinawatra’s Pheu Thai party is advocating for the Landbridge project, estimated to cost around 1 trillion baht ($29 billion). The initiative aims to establish a new highway and rail line spanning 100 kilometers (62 miles) to link two seaports on opposite sides of Thailand’s southern peninsula, bypassing the congested Malacca Strait.

The newly proposed commission, headed by the prime minister, will be tasked with advancing logistics, infrastructure, information technology, and other necessary facilities in the designated areas. Additionally, it will be responsible for securing funding for the ambitious project.

The draft legislation is set for public consultation before advancing to the Cabinet and parliament for further deliberation.

Former Prime Minister Srettha Thavisin, also affiliated with the Pheu Thai party, had previously promoted the Landbridge project to potential investors in the US and China.

Thailand’s target timeline for project completion is 2030, with provisions allowing foreign investors to hold more than 50% ownership in joint ventures with local firms for infrastructure development. The construction of deep-sea ports in Ranong and Chumphon is estimated to cost 630 billion baht, according to the Office of Transport and Traffic Policy and Planning.

© 2025 Bloomberg L.P.