Banker urges building up seaports

Thailand's infrastructure strategy is gaining fresh momentum, with new voices from the banking sector weighing in on the country's long-term connectivity plans.

A senior executive at Bangkok Bank, Kobsak Pootrakool, has suggested that a revised transport network connecting China to western Thailand via a new deep-sea port in Ranong could be a more viable alternative to the full-scale Land Bridge project. Speaking after a government visit to China, Mr Kobsak said the Land Bridge project faces feasibility challenges, and that prioritising western seaport development and connecting infrastructure would offer a greater chance of success.

Prime Minister Anutin Charnvirakul recently announced the government would review the Land Bridge project to ensure it represents good value for investment, with an initial focus on connecting missing links between ports on the Andaman coast and the Gulf of Thailand.

Mr Kobsak highlighted Chongqing as a key potential market, noting that cargo from the region could be routed through Thailand's western ports for onward shipment to India, the Middle East and Europe, offering a more convenient route than via Shanghai. He also recommended constructing a new deep-sea port at a more strategically suitable site rather than upgrading the existing Ranong port, which faces access difficulties due to its river location.

On the investment front, Mr Kobsak noted that over the past three years, the majority of foreign direct investment into Thailand has come from China, driven by the China Plus One strategy and geopolitical factors. Thailand is increasingly serving as a regional hub for Chinese businesses across Southeast Asia, with many Chinese cities using the country as a distribution centre.

When setting up operations in Thailand, Chinese companies primarily require working capital, trade finance and local banking services, with domestic financing expected to become more significant in later phases. Bangkok Bank stated it aims to strengthen local supply chains, pointing out that several Thai companies have already begun producing vehicle bodies and components for Chinese electric vehicle manufacturers.

Mr Kobsak noted that Thailand must capitalise on China's expanding strengths in information technology, electric vehicles, solar energy and artificial intelligence, as Japanese technology becomes less dominant in the region.

For business owners and investors in Thailand, these infrastructure and investment developments signal meaningful shifts in trade routes and commercial opportunity that are worth monitoring closely.