The idea of development Kra Channelotherwise generally known as Thai channel or Kra Isthmus Canalthrough the narrow southern tip of Thailand, was actually proposed over 200 years ago
However, as a consequence of unclear economic, political, investment or capital reasons at the moment, the proposed project was rejected and all further discussions and activities were discontinued.
There have been recent reports that China and Thailand plan to pursue the project for practical reasons, including economic, security and trade issues.
Although the canal issue has been widely debated by maritime stakeholders similar to policy makers, regulators, port and shipping operators, the concept of expanding the Kra Canal appears to be essentially the most desirable one as a consequence of the numerous cost savings, higher level of safety and shorter distance in comparison with travelling through the Straits of Malacca.
Seasia is eagerly awaiting the development of this latest development, which is believed to be will definitely change the landscape of maritime transport within the region, if not the worldBelow we present the knowledge we have now collected for our readers.
According to the newest study conducted by Journal of Shipping and TradeBelow are 10 global impacts of the proposed Kra Canal:
1. The canal will provide another path to the congested Strait of Malacca.
2. The travel distance might be shortened by 1,200 km and the travel time by 2 to five days, allowing for higher utilization of the vessel.
3. Estimated bunker fuel savings for a 100,000-ton tanker are $350,000 per voyage.
4. The biggest advantages will accrue to bulk shipments (e.g. tankers) chartered for direct shore-to-shore sailings.
5. Large container ships that must make frequent stops may not profit as much – the ship’s capability will not be fully utilized in the event that they avoid ports in Southeast Asia.
6. Thailand can profit greatly from canal tolls, port service fees and development of surrounding areas.
7. Eighty percent of China’s crude oil flows through the Strait of Malacca; the Kra Canal could reduce shipping costs and dependence on the Strait, and minimize the specter of a blockade of the Strait.
8. Singapore’s status as a maritime transshipment hub could suffer if ships begin to avoid the Strait of Malacca altogether.
9. Ports in Hong Kong and China will profit from traffic being diverted from Singapore. The key factor shall be the price of using the canal.
10. The key factor shall be the price of using the channel.
Despite quite a few concerns raised by the shipping industry and environmentalists, including the capability of the Strait of Malacca, which cannot handle greater than 122,600 vessels per yr, security concerns (piracy) within the Strait of Malacca, and dredging and development activities in the world surrounding the canal, there are numerous other aspects justifying support for the event of the Kra Canal.
The implementation of this gigantic infrastructure project can also be generally known as China’s future Panama Canal.
As stated in ShippingExchangelisted below are the explanation why:
1. The Kra Canal has been developed since 1677!
Like the Panama Canal, the Kra Canal has a protracted history and is of great importance to importers and exporters from the South China Sea region and elsewhere.
The idea first appeared in 1677, when King Narai of Thailand asked French engineer de Lamar to analyze the opportunity of constructing a canal connecting Songkhla with Marid, also generally known as Myanmar, to shorten travel times for merchants.
2. Geographically, it’s probably the most difficult areas for constructing a canal.
More affectionately generally known as the Kra Isthmus, the land bridge is shared by the countries of Thailand to the east and Myanmar to the west. To the west of the Isthmus lies the Andaman Sea, while the Gulf of Thailand is on the eastern side of the river.
The Isthmus of Panama can also be very strategically positioned, connecting the continents of North and South America.
3. A watershed moment for Southeast Asia
A canal near Thailand could allow larger carriers to move cargo through India, China and Japan as an alternative of using the Strait of Malacca, boosting the economies of Thailand and China.
Currently, 94,000 ships go through the Strait of Malacca annually, accounting for a few quarter of all goods traded globally.
An estimated 15.2 million barrels of crude oil were transported through the Strait in 2011, most of which is controlled by Western countries.
The Panama Canal now has much greater strategic value to the United States, with an estimated 15,000 ships passing through it annually. By 2009, 333.7 million tons had been transported through it.
4. It could possibly be one in all the best engineering achievements of the twenty first centurysaint Age
The stakes are very high, and while infrastructure is well supported by China’s growing economy, there are numerous technological, environmental and political issues that must be addressed.
The estimated cost is a staggering $28-30 billion, and the whole project will take 10-12 years to finish. It is estimated that around 5,000 people will must be employed within the initial stages.
The Panama Canal also had to beat an enormous variety of obstacles before it could possibly be built. From French ownership, to U.S. development of the Canal, to unstable political climates.
From the above points, it is obvious that the event of the Kra Canal is each an economic and strategic decision. It may tip the balance of power within the hands of nations like India and China.
However, given the increasing pressure on Thailand from other interest groups, the canal’s construction should still take a while.
There is currently no estimate of when the project is perhaps accomplished.
Source: Journal of Shipping Trade | ShippingExchange | Kra Canal Official Website
