SEC Bill to be proposed to Cabinet in September, Landbridge auction in 2025
Manager Daily 360 - Deputy Prime Minister and Minister of Transport, Suriya Jungrungreangkit, is pushing for the SEC Bill to be considered by the Cabinet in September. The bill is expected to pass three readings in the House of Representatives by April 2025. Meanwhile, the Landbridge project is expected to finalize the RFP and open for bidding in mid-2025, with the goal of signing contracts by the end of 2025 and commencing service in 2030. It is believed that this project will boost GDP and create more jobs.
Yesterday (June 30), Mr. Suriya revealed the progress of the Landbridge project, stating that after roadshows and gathering feedback from investors in various countries, the project is currently being adjusted to maximize its potential and meet the needs of both investors and local communities. This adjustment is expected to be completed by the third quarter of 2024, before proceeding to the next steps.
Regarding the progress of the Southern Economic Corridor Bill (SEC Bill) to drive the Landbridge project, the Office of Transport and Traffic Policy and Planning (OTP) has submitted a draft to the Ministry of Transport for consideration. The draft will then be presented to the Special Economic Zone Development Policy Committee (SEZDC), who will assign OTP to draft the bill. It is expected that the SEC Bill will be submitted to the Cabinet for approval in the first week of September 2024, before being presented to the Council of State and the House of Representatives for three readings. The bill is expected to pass the House in April 2025 and be published in the Royal Gazette for enforcement.
Mr. Suriya mentioned that the SEC Bill and the establishment of the SEC Office will be carried out in parallel, with completion expected by the second quarter of 2025. The design of the railway and motorway is underway, while the Environmental Impact Assessment (EIA) is expected to be completed in 2025, aligning with the completion of port designs and the Environmental and Health Impact Assessment (EHIA) in 2024, which will be submitted to the Office of Natural Resources and Environmental Policy and Planning (ONEP) in 2025.
The process of selecting private partners is expected to finalize the Request for Proposal (RFP) in 2025, followed by the selection of investors in the third quarter of 2025. The project will then be submitted to the Cabinet for approval in the same year. The signing of contracts with the winning bidders is expected in early 2026.
The construction will be divided into three phases: Phase 1 will start in 2026 and be completed by the end of 2030, Phase 2 will start in 2031 and be completed by the end of 2034, and Phase 3 will start in 2035 and be completed by the end of 2036.
The estimated investment for Phase 1 is 522,844.08 million baht, including deep-sea ports in Chumphon and Ranong, a connecting route between the two ports (railway and motorway), construction of cargo transfer areas, and land expropriation and ownership costs of 6,212.00 million baht.
According to a study by OTP, the Landbridge project is expected to increase Thailand's GDP growth rate from the estimated 4.0% per year by the National Economic and Social Development Council (NESDC) to 5.5% per year. Additionally, it is expected to create 280,000 jobs in the area, with 130,000 jobs in Ranong and 150,000 jobs in Chumphon.
"Dubai Ports World" Advances "Land Bridge" Development Plan, Establishes Joint Working Group with Thailand to Study Feasibility
Source - Manager Online
Friday, July 05, 2024, 08:42
"Prime Minister-Suriya" Discuss with "Dubai Ports World" on Interest in Developing "Land Bridge", Set Up Joint Working Group of 4 Members Each to Study Feasibility for Joint Investment, Expected to Take 4 Months. Confirms It's Just a Cooperation, Steps Awaiting Consolidated Investor Opinions.
A source from the Ministry of Transport revealed that after Prime Minister Srettha Thavisin welcomed Sultan Ahmed Bin Sulayem, Chairman of the Group and Executive of the world's leading logistics and supply chain business, "Dubai Ports World (DP World)" to discuss investment opportunities in Thailand and transforming the country into a regional transportation hub. The discussion was joined by Deputy Prime Minister and Minister of Transport Suriya Juangroongruangkit on July 3, 2024.
DP World has shown significant interest in the transport infrastructure development project for the Southern Economic Corridor (Land Bridge). Initially, both sides agreed to form a joint working group consisting of 4 members from each side to study the feasibility of the joint investment, with an expected study period of about 4 months.
This feasibility study does not mean that Thailand will hand over the Land Bridge project to DP World; it is merely a feasibility study. Other countries, such as China, Japan, and France, are also interested in this project," the source from the Ministry of Transport said.
Previously, Deputy Prime Minister and Minister of Transport Suriya Juangroongruangkit mentioned after a roadshow for the Land Bridge project that he had gathered feedback from foreign investors. The project is currently being adjusted to be most suitable and highly potential to meet the needs of investors and local people. It is expected to be completed by the third quarter of 2024 before proceeding with other processes.
As for the progress of drafting the Southern Economic Corridor Act (SEC Act) to drive the Land Bridge project, the Office of Transport and Traffic Policy and Planning (OTP) has submitted the draft Act to the Ministry of Transport for consideration and proposed it to the Special Economic Zone Development Policy Committee (SEZDC). The OTP is expected to present the SEC Act draft to the Cabinet for approval in the first week of September 2024, for consideration by the House of Representatives. It is expected to pass the House's consideration by April 2025.
Minister Suriya stated that the SEC Act and the establishment of the SEC Office are planned to be completed by the second quarter of 2025. The design of the railway and motorways, including the Environmental Impact Assessment (EIA) report, is expected to be reviewed by the Office of Natural Resources and Environmental Policy and Planning (ONEP) by 2025. This aligns with the design of the ports and the completion of the Environmental and Health Impact Assessment (EHIA) by 2024, which will be submitted to ONEP for review by 2025.
Regarding the private sector selection process, the drafting of the Request for Proposal (RFP) documents for inviting investors to join the project is expected to be completed by 2025, before selecting investors in the third quarter of 2025. The project is expected to be approved by the Cabinet in 2025, with contracts signed with the winning bidder in early 2026. The construction will be divided into three phases: Phase 1 begins in 2026 and is completed by late 2030, Phase 2 begins in 2031 and is completed by late 2034, and Phase 3 begins in 2035 and is completed by late 2036.
'Land Bridge' Is Certain: 'Dubai Port-China-America' Intensively Advancing, Office of Transport and Traffic Policy and Planning Points Out Issues with the Strait of Malacca and Power Conflicts as Supporting Factors
Manager Online
August 5, 2024, 05:49
The Office of Transport and Traffic Policy and Planning (OTP) is confident that the 'Land Bridge' project will happen due to supporting factors like the congested Strait of Malacca and global power conflicts, creating opportunities for new transport routes. Major players like Dubai Port, China, and America have begun their initiatives, with an initial investment phase of 500 billion baht. The project also aims to develop four southern provinces into special economic zones to boost domestic transport capacity. The SEC bill is expected to be submitted to the Cabinet in October, with consultants hired for the RFP process by early 2026.
Panya Chuphanich, Director of the OTP, updated on the progress of the infrastructure development project aimed at connecting the Gulf of Thailand and the Andaman Sea (Chumphon-Ranong) or the Land Bridge project. The OTP has studied the overall data and investment plans and has received significant interest from investors globally, including Dubai Port World (DP World), a global logistics and supply chain giant, whose top executives have visited the site themselves, as well as investors from China and the United States. Recently, on August 1, 2024, Robert F. Godec, the U.S. Ambassador to Thailand, visited the Land Bridge site for the second time, demonstrating significant interest from the United States. Therefore, the OTP is confident that the Land Bridge project will proceed.
Another supporting reason is the necessity of having a port on the Andaman side due to global power conflicts, whereas transportation through the Strait of Malacca, managed by Singapore with American involvement, requires confidence for countries to continue their shipping and business amidst these conflicts.
Moreover, the analysis indicates that two major groups, Dubai Port World and Chinese investors, show great interest. Dubai Port World, having a large fleet but no port of its own in the Strait of Malacca, relies on other ports like Thailand's Laem Chabang Port. Thus, Dubai Port World's interest in the Land Bridge project stems from the need to have its own port to manage its shipping and business. Recently, after Sultan Ahmed Bin Sulayem, Chairman of DP World, discussed with Prime Minister Srettha Thavisin on July 3, 2024, a joint working group was established to explore the feasibility of the investment, with the first meeting being prepared.
For Chinese investors, the Land Bridge will be beneficial as it provides transport routes for imports and exports to the south, complementing their existing rail investments. Additionally, there are major investors from the U.S., Japan, and France, and smaller companies might collaborate to invest.
@In 10 years, the Strait of Malacca will be full, presenting the Land Bridge as an alternative shipping route
When asked if the port developments in Singapore and Malaysia would make the Land Bridge less competitive, Panya stated that port development is not the issue. Currently, Singapore and Malaysia's ports have no problems expanding to accommodate growth. The problem lies with the Strait of Malacca, which, according to studies, will be congested in 10 years, leading to long wait times and increased costs for shipping lines.
"I want to emphasize that Thailand's Land Bridge development is not competing with Singapore and Malaysia's ports but addressing the issue of the congested Strait of Malacca and the reliability concerns of shipping lines passing through amid power conflicts. If conflicts intensify and restrictions are imposed on passing ships, it will impact businesses, and shipping lines will need alternatives, hence the interest in the Land Bridge. The investment will be divided into three phases based on demand, with the first phase costing 500 billion baht, including ports, motorways, railways, and hinterland areas. Major investors see this figure as reasonable, and developing special economic zones in four surrounding provinces will provide opportunities for investors to benefit from the project," Panya said.
@SEC Bill to be proposed in October, 69 articles of law
The OTP is pushing forward the draft Special Economic Zone Development Act (SEC) to drive the Land Bridge project, designating Surat Thani, Nakhon Si Thammarat, Chumphon, and Ranong as special economic zones like the Eastern Economic Corridor (EEC). The draft has been submitted to the Special Economic Zone Development Policy Committee, chaired by Deputy Prime Minister and Finance Minister Pichai Chunhavichir, to authorize the OTP to draft the SEC bill. The committee will meet at the end of August 2024. Once authorized, the OTP will gather public feedback for about a month, adjust the draft accordingly, and present it to the Cabinet by October-November 2024 for legislative processing. The SEC bill is expected to pass both the House of Representatives and the Senate by April 2025.
@Detailed design of 'motorway-railway' to be completed by September 2025
The OTP has completed the conceptual study, confirming the project includes ports on both sides, motorways, and railways connecting the ports. The OTP is conducting environmental and health impact assessments (EHIA) for the ports. The Department of Highways is responsible for the motorway design and environmental impact assessment (EIA), with allocated funds. The State Railway of Thailand (SRT) will design the railway and conduct its EIA. Both motorway and railway designs are expected to be completed by September 2025, aligning with the project's timeline, with tenders expected by the end of 2025 or early 2026.
@Consultant hiring for RFP in September 2024, tender by early 2026
The OTP is hiring consultants for the project to prepare documents and advise on the private sector selection process for the Land Bridge project (RFP). This includes drafting the proposal invitation, selection criteria, and investment contract, along with other necessary documents, with a budget of 45.959 million baht for an 840-day study. The contract signing is expected in September 2024.
Accelerate SEC Law to Push Forward Land Bridge Project
Source - Thai Post
Monday, September 02, 2024 06:19
Expected to be Enacted in 2028
Suriya Confident it will Happen in this Government
Suriya is confident that the Land Bridge project will definitely happen during this government's term. He is preparing to propose the draft SEC Act to the Cabinet for approval within this year, expecting it to be enacted in 2028. He asserts that the construction of Phase 1 will proceed in 2029 and be completed by the end of 2033. He assures that all processes are transparent and auditable.
Mr. Suriya Juangroongruangkit, Deputy Prime Minister and Minister of Transport, revealed that the government, led by the Pheu Thai Party, will definitely push forward the Land Bridge project (Chumphon-Ranong), an economic bridge connecting the Gulf of Thailand and the Andaman Sea, to materialize in this era. This is to ensure maximum benefit for the people and the nation, as well as to drive sustainable growth for the Thai economy. He is confident that the construction will commence in the third quarter of 2029 and be completed, ready for service, by the end of 2033, as planned.
Currently, the Office of Transport and Traffic Policy and Planning (OTP) is preparing a letter to include the agenda for drafting the Southern Economic Corridor Act B.E.... or the SEC Act in the meeting of the Special Economic Zone Development Policy Committee (SEZDC) for consideration and resolution to assign OTP to draft the SEC Act before proceeding to other processes. The draft SEC Act will then be submitted to the Cabinet meeting for approval before entering the consideration process of the House of Representatives. It is expected to be enforced by September 2028.
Mr. Suriya continued that once the SEC Act is in effect, the SEC Office will be established, and other plans will follow according to the schedule. The design of railways and motorways, along with the preparation of the Environmental Impact Assessment (EIA) report, is underway. It is expected that the Office of Natural Resources and Environmental Policy and Planning (ONEP) will complete the EIA review in 2028, aligning with the port design and the preparation of the Environmental and Health Impact Assessment (EHIA) report, which will also be submitted to ONEP for review and completion in 2028.
"I am confident that the Land Bridge project will commence construction in the third quarter of 2029 and be completed, ready for service, by the end of 2033, as planned. I assure that the implementation process is transparent, has good governance, and is auditable," said Mr. Suriya.
Caption:
Suriya Juangroongruangkit
Source: Thai Post Newspaper, September 2, 2024 issue.
Keep an eye on 'Dubai Port World' as they're actively seeking to invest in the 'Land Bridge' project. 'Suriya' assures that the collaboration is open and the joint working group is for study purposes only, with no binding commitments.
Manager Online 2nd September 2023 06:27 08:48
'Suriya' confirms the establishment of a joint working group with 'Dubai Port World' to study the 'Land Bridge' project without any binding commitments, opening opportunities for China, Japan, and investors worldwide.
He reveals that the draft SEC Act is ready to be proposed to the Cabinet for approval this year. Meanwhile, SRT and DoH are expediting the design of railways and motorways, with a timeline for 2025 to establish the SEC office and open bidding for the first phase of construction, aiming for completion by the end of 2030, supporting Thailand's sustainable economic growth.
Mr. Suriya Juangroongruangkit, Deputy Prime Minister and Minister of Transport, revealed the progress of the infrastructure development project for the Southern Economic Corridor and the connection of transportation between the Gulf of Thailand and the Andaman Sea (Chumphon-Ranong), or the Land Bridge project. The Ministry of Transport, under the Pheu Thai government, will continue to push forward the Land Bridge project to make it a reality, maximizing benefits for the people and the nation, and driving Thailand's economy towards sustainable growth.
@ Ready to propose the SEC Act to the new Cabinet
Currently, the Office of Transport and Traffic Policy and Planning (OTP) is in the process of submitting the details of the draft Southern Economic Corridor Act B.E.... or the SEC Act, awaiting inclusion in the agenda of the Special Economic Zone Development Policy Committee (SEZDC) for consideration and resolution to assign OTP as the drafter of the SEC Act before proceeding to other processes and submitting the draft SEC Act to the Cabinet meeting for approval. It is expected to be enforced by September 2025. Once the SEC Act is in effect, the SEC Office will be established as the agency driving the Land Bridge project.
In 2023, the State Railway of Thailand (SRT) hired consultants to design the details and conduct an Environmental Impact Assessment (EIA) for the 1-meter gauge double-track railway, which will be completed by the end of 2024 and proceed to the Office of Natural Resources and Environmental Policy and Planning (ONEP) for EIA consideration. The 1.435-meter gauge double-track railway will be designed in detail in the first quarter of 2025. The Department of Highways (DoH) will hire a study to design and prepare the EIA report in the fourth quarter of 2024, to be completed in the fourth quarter of 2025, in line with OTP's hiring of detailed design and preparation of the Environmental and Health Impact Assessment (EHIA) report in the third quarter of 2024, to be completed in the fourth quarter of 2025 and submitted to ONEP for consideration, also to be completed in 2025.
Regarding the private sector selection process, the drafting of the Request for Proposal (RFP) will begin in the second quarter of 2025, expected to be completed within the first quarter of 2026. The investor selection will be finalized in the second quarter of 2026. Then, the Royal Decree for land expropriation will be issued in the third quarter of 2026 before submitting the project to the Cabinet for approval within the second quarter of 2026. It is expected that the contract can be signed with the winning bidder, and construction can commence. The first phase of construction will start in the third quarter of 2026 and be completed, ready for service, by the end of 2030, as planned.
@ Confirms the establishment of a joint working group with 'Dubai Port World' for study purposes only, opening opportunities for China and Japan.
News reports revealed that on July 3rd, 2024, during Mr. Srettha Thavisin's tenure as Prime Minister, he welcomed Sultan Ahmed Bin Sulayem, Chairman of the group of companies and CEO of the world's leading logistics and supply chain giant 'Dubai Port World (DP World),' to discuss investment opportunities in Thailand and the country's transformation into a regional transportation hub. DP World expressed strong interest in the Land Bridge project, and both parties agreed to establish a joint working group to study the feasibility of joint investment, with a study period of approximately 4 months.
@ 'Permanent Secretary of Transport' leads the Thai working group
Recent news reports indicate that the Ministry of Transport has finalized the four members of the working group to be proposed to Mr. Suriya Juangroongruangkit, Deputy Prime Minister and Minister of Transport, for consideration by early September. The members include 1. Mr. Chaiyatham Phromsorn, Permanent Secretary of the Ministry of Transport, as the Chairman of the Thai working group 2. Mr. Panya Chupanit, Director of the Office of Transport and Traffic Policy and Planning (OTP) 3. Mr. Jiroj Sukolrat, Deputy Director of OTP 4. Director of the International Affairs Division, Office of the Permanent Secretary, Ministry of Transport
According to the timeline, within September, the Thai side will submit the list of working group members to DP World for their acknowledgement and approval of the joint working group establishment, and then proceed with the working group meetings.
Sources indicate that the establishment of this joint working group with DP World does not mean handing over the project to Dubai. It is merely a joint feasibility study. DP World has previously had an MOU to study this project with the Thai government since the Yingluck Shinawatra administration.
Mr. Suriya Juangroongruangkit, Deputy Prime Minister and Minister of Transport, clarified that the establishment of the joint working group with Dubai Port World (DP World) does not bind or exclude any particular party. However, as DP World is a large company with a substantial fleet and modern ports, they are considered a well-prepared investor who has expressed interest in participating in Thailand's Land Bridge project. If other private operators from China, Japan, or anywhere else in the world wish to establish a joint working group with Thailand, they can express their interest immediately. He assured that the Ministry of Transport and the Thai government welcome investors from all corners of the globe and affirmed that the bidding process for the Land Bridge project will be transparent, ethical, and auditable.
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