Asia's 'Panama Canal: A Distant Prospect

July 2006 | Market Strategy

Centuries old plans to build a canal connecting the Indian Ocean and South China Sea oceans across Thailand's Kra Isthmus look unlikely to be realised for a long time, if ever. While the planned waterway would reduce traffic in the overcrowded Malacca Strait and reduce shipping fees by cutting journey times, a combination of high construction costs, questionable cost effectiveness, lack of political will and opposition from Thailand's neighbours will likely prevent the project from being built. Instead, the region could benefit from an oil 'land bridge' across Thailand.

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