Asia/Pacific News
Canal to Bypass Straits of Malacca and Singapore "Hard to Justify"
The construction of the Kra Canal, which would enable shipping to bypass the Straits of Malacca and Singapore, is economically, politically, and geographically difficult to justify, according to Seatrade Global editor Marcus Hand.
Hand says that while a canal in Kra Isthmus would offer greater security over Thailand's supply chain and divert some traffic from the busy Malacca Strait, further analysis shows that the benefit of the Kra Canal may not be worth the cost.
Travel around the peninsula of Malaysia and Singapore is only a 1,200 km distance, taking three days to transit.
"It is highly questionable as to why shipowners would want to pay what would no doubt be a hefty toll just to avoid three days sailing, or less," said Hand.
How much traffic in the Malacca Strait would be eased by the presence of nearby canal was also questioned by Hand, offering the observation that in 2014 over 79,000 vessels transited the Straits of Malacca, while only an estimated 14,000 vessels transit the Panama Canal in a year, one of the world's major ocean shipping canals.
Finally, in addition to a difficult terrain that the canal's construction would have to cut through, Hand points out that the southern region of Thailand where the canal has been proposed to be built is politically unstable.
"One would have to also question why the Thai government, which has been fighting a separatist movement in the south for many years, would want to physical separate the region with a canal," he asked.
On Wednesday, both Thai and Chinese governments denied Chinese media reports that the two governments were working on a deal to build the canal.
