The Kra Canal

[richwang]

http://finance.sina.com.cn/world/20150515/164722191625.shtml

[richwang]

Google translate:

Memorandum of Cooperation signed by Thailand carat canal project in Guangzhou

Sina Financial News May 15, according to the Ningbo Maritime Safety Administration official microblogging news, a memorandum of cooperation signed by Thailand carat canal project in Guangzhou. This means carat canal dug progressive. The proposed canal carat total length of 102 kilometers, 400 meters wide and 25 meters depth, two-way channel Canal across the Isthmus of Kra in southern Thailand. After the canal is completed, the vessel into the Pacific Ocean does not have to pass through the Straits of Malacca, Malaysia and Singapore detour can enter directly from the Andaman Sea of the Indian Ocean, about 1,200 km shorter range at least.

[richwang]

The impact of routes.

[MrTan]

Thought they have been talking about that for years. Finally some actions taken. First tanjung pelepas. Now this. We'll see how it goes lah.

[proud owner]

was talking to a friend in shipping many years back ...

he believes that ...this is one reason why Singapore is moving away from shipping to Port management ...

[MrTan]

Port management is only part of the answer. The holistic view is to move towards integrated logistics solution, via air, sea and land, be it freight, warehousing and distribution.

[MrTan]

http://www.channelnewsasia.com/news/asiapacific/thailand-denies-kra-canal/1856758.html

ASIA PACIFIC
Thailand denies Kra Canal deal
Thai government officials deny media reports that Bangkok has signed an agreement with Beijing to construct a shipping canal through the Kra Isthmus, that could allow ships to bypass the Straits of Malacca.

By Panu Wongcha-um, Channel NewsAsia
POSTED: 19 May 2015 16:39

BANGKOK: Senior Thai officials on Tuesday (May 19) denied reports that Thailand has signed an agreement with China to develop a shipping canal through the Kra Isthmus, south of Thailand.

Media reports emanating from China suggest the Thai and Chinese governments have made an agreement in Guangzhou on a canal through the narrowest part of the Malay Peninsula in southern Thailand.

If realised, the project would allow ships from the Indian Ocean to access the Gulf of Thailand, bypassing the congested Straits of Malacca.

According to the news reports, the Kra Canal project will take a decade to complete and will incur the cost of US$28 billion. However, a Thai Transport Ministry official said the project is not in the pipeline. The Ministry of Foreign Affairs also stated there has been no agreement between the Thai and Chinese governments on this matter.

According to Dr Panitan Wattanayagorn, security advisor to Deputy Prime Minister Prawit Wongsuwan, the reports from China might have been a result of a misunderstanding.

The Kra Canal Committee in Thailand comprises businessmen and former officials who conduct studies on the feasibility of the project. However, none of the governments have officially initiated the scheme.

Although several Thai leaders since the 1930s have suggested the Kra Canal project as an alternative shipping lane to the Straits of Malacca, linking the Indian Ocean with the Gulf of Thailand, the plan has never been materialised due to its enormous cost and possible damage to the communities as well as environment in southern Thailand.

- CNA/pp

[Arcachon]

https://www.youtube.com/watch?v=GlyZmlQYuoY

[Arcachon]

https://www.youtube.com/watch?v=ItsSD3P8xbc

[MrTan]

http://news.asiaone.com/news/asia/china-not-involved-kra-canal-work

HOME NEWS ASIA
China not involved in Kra canal work
Teo Cheng WeeThe Straits TimesWednesday, May 20, 2015

China has denied it is involved in work on the Kra canal, defusing hype over a project that purportedly lets ships bypass the Strait of Malacca and Singapore's port.

There are no plans by the Chinese government to participate, Foreign Ministry spokesman Hong Lei told a regular press briefing yesterday.

This echoed a statement on the same day by the Chinese embassy in Thailand, which said that China has not taken part in any study or co-operation on the matter.

This comes after Chinese media recently reported that China and Thailand had signed a memorandum of understanding (MOU) in Guangzhou to build a US$28 billion (S$37 billion) canal that cuts through the narrow Isthmus of Kra in southern Thailand.

Experts told The Straits Times that China would not embark on such a project lightly, given the political and bilateral implications.

"China will have to consider the feedback from countries such as Singapore, which it has friendly ties with, given the impact that the Kra canal might have," said Dr Zhao Hong, an expert on China-ASEAN relations from the Institute of Southeast Asian Studies.

Proponents of the Kra canal had been hopeful that China would lend its economic heft to the project. They believe it can be made part of China's Maritime Silk Road, which aims to facilitate maritime trade across South-east Asia, South Asia and beyond.

Last year, the Kra canal project briefly made news in China when several major Chinese state-owned construction firms, such as Xugong and Liugong, were linked to it. The companies, however, denied involvement.

Dr Zhao feels China might be open to private companies studying the feasibility of such a project, but will not directly back it for now.

Prior to the official denials, reports had said the proposed two-way Kra canal will be 102km long, 400m wide and 25m deep and take 10 years to construct.

Likened to other man-made channels such as the Suez canal, it would allow ships to bypass the congested Malacca Strait and is estimated to cut shipping distance by 1,200km. It is also likely to reduce the number of ships travelling through Singapore, one of the busiest ports in the world.

Little information is available on the China-Thailand Kra Infrastructure Investment and Development, and Asia Union Group, the two organisations involved in the MOU signing. Reports said the Asia Union Group's chairman is former Thai premier Chavalit Yongchaiyudh, a long-time supporter of the Kra canal.

Yesterday, the Chinese embassy in Thailand clarified that the organisations have no links to the Chinese government. Separately, Xinhua news agency traced the announcement of the canal project to another Chinese firm Longhao, which declined comment when contacted.

Dr Li Zhenfu from Dalian Maritime University feels that even if the canal is built, the impact on Singapore might be limited.

"Distance is important but ships have to consider services and facilities as well," he told The Straits Times. "The foundation and reputation that Singapore's port has built up cannot be replicated immediately."

This article was first published on May 20, 2015.
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