Land Bridge 'unaffected' by dubai |debt crisis

The Office of Transport and Traffic Policy and Planning (OTP) says Dubai World's debt moratorium will not affect the Southern Land Bridge project.

Deputy director Chula Sukmanop yesterday said the finished study, which was conducted by Dubai World, showed the project remained commercially viable in terms of both financial and economic returns.

The OTP signed a memorandum of understanding with Dubai World in May that saw the company financing a Bt200-million feasibility study of the project without any binding conditions or a commitment that Thailand would favour Dubai World if it were decided to launch the project.

The Southern Land Bridge will cost Bt300 billion, and the area along it will be a gateway for trade from China, India and Asean members. Development will include construction of both Pak Bara Port in Satun province and a land bridge linking it with Songkhla Port on the Gulf of Thailand.

Also included will be installation of oil pipelines, roads and railway lines between the Andaman Sea and the gulf, plus development of refinery and industrial zones.

Dubai World has yet to submit its full report on the feasibility study to the OTP. The report was originally due this past Monday.

The OTP has urged Dubai World to submit the report as soon as possible.

Chula said he expected it within the next two weeks, after which it would be forwarded for consideration by the relevant committee, which is chaired by Transport Ministry permanent secretary Suphoth Sublom.

The OTP will then submit it next month for Cabinet approval.

Once the Cabinet approves the project, the Transport Ministry will invite foreign investors, including Dubai World, to participate.

The OTP will decide whether investment should be in the form of a public-private joint venture or a concession.

Suphoth said it would cost Bt12 billion to develop Pak Bara Port alone and that the ministry had asked for Thai Khemkhaeng funds to finance it.

Thailand has been spared from the Dubai World crisis, due to the low trade volume. But Thai labourers in Dubai could feel the effects via job cuts.

The Thai government is already looking at measures to address any possible effects on Thai workers in the emirate.