New imperatives reinforce arguments for getting a start on Thailand's Kra Canal
 WITH China's Belt and Road initiative gaining traction in the intra-Asian world, there is renewed talk among Kra Canal proponents for getting an early start the projected 130 kilometre stretch of the Malay Peninsula in Thailand.
But critics say a Kra Isthmus canal would only save 1,200 kilometres of voyaging, and the benefits would be too small to warrant the expenditure of US$30 billion to $50 billion (depending on its width) to build it.
But from changing times spring new imperatives. A study by the Maritime Institute of Malaysia (MIMA) points out that the Malacca Straits, which today transits 20 per cent of world trade, has only “several more years” before reaching saturation. The straits can only accommodate 122,000 ships a year while the World Bank projects that there will be 122,640 ships needing transit by 2020 - less than two years away.
Proponents say a Kra Canal would divert much of the current congestion in the straits and minimise the risk of ship collisions such as the one between the United States destroyer USS John S McCain and the Liberia-flagged tanker that killed 10 US navy personnel last August.
For more than 300 years, the question of whether to build the Kra Canal has been considered in Thailand without any firm decision on the controversial multi-billion dollar project.
During the "International Conference on Technology for Sustainable Paths to Thailand's Future" last September that focused on the Kra Canal, Chinese experts were most enthusiastic that the Thai government give its blessings to the proposed canal as it fits into Beijing's Belt and Road initiative so well.
They argued that the Kra Canal, or Thai Canal as it is also known, would save shipping cost and valuable time as the canal linking the Indian and Pacific Oceans would cut two to three days sailing bypassing the Malacca Straits.
Chinese experts wanted Bangkok’s government “to stop wasting time” and to immediately start a feasibility study on the canal, as the first step into fulfilling more than 300 years of a long-awaited dream.
“After China proposed the initiative, many Thai believe that the opportunity to build the canal is coming. With the Belt and Road initiative, they feel China will provide the impetus and financial assistance to get the job started if not done.
“As the development of the Kra Canal is of great significance to Thailand, it is recommended that the relevant departments in Thailand start the feasibility study as soon as possible,” said Zhou Dawei, a professor from Peking University, when tabling a paper titled, “The Kra Canal under the Belt and Road Initiative”.
Another expert, Jingsong Zhao, in calling for the construction of Kra Canal, said the canal would bring immense benefit to the country and turn it into the new international shipping hub by clustering transport, trade and financial services in Thailand.
The Kra Canal project was a “great century project” he said, and would have an enormous impact on Thai fortunes, not only in the economy, politics, science and technology, but would also be strategic as it connects the Indian Ocean to the Pacific.
Meanwhile, Kra Canal Study Team head Pakdee Tanapura has discounted doubts about the possible negative impacts of the canal on regional countries, especially Singapore which depend heavily on maritime trade.
Instead Mr Tanapura saw more than benefits accruing to Thailand from the Kra Canal. He said the combined effect would be an enormous benefit to the whole Southeast Asian economy. “Southeast Asia will become the economic hub of the world,” he said.
The canal, which would take 10 years to build at an estimated US$28 billion would reduce sailing time between European and Far East ports such as Hong Kong, Shanghai, Tokyo and Busan, enthused Harry Valentine writing in Fort Lauderdale's Maritime Executive magazine.
"Major Asian transshipment ports such as Colombo and Singapore are geographically closer to Europe and east coast North American sailing via the Suez Canal, than via the proposed Nicaragua Canal," he writes.
The Kra Canal's immense value to Europe and east coast North America would be its ability to slash costs to both through truncated voyages, mega ships and what is increasingly likely to be the new normal of low oil prices, he said.
Problems notwithstanding, the canal from the Gulf of Thailand to the Andaman Sea, now appears on China's Belt and Road to-do list. As Belt and Road's very existence has put new life into the scheme, which has been little more than an occasional talking point since 1677 when the King of Siam thought it was a good idea.
Various potentates since, including Suez Canal builders in the 19th century, found too many obstacles in the way to proceed. Siam's fear of the colonial powers gaining undue influence was a factor. Also, the British Empire was not keen on having Fortress Singapore so easily bypassed in an age when there was clear sailing through the Malacca Straits.
In 2005 an internal report prepared for US Secretary of Defense Donald Rumsfeld was leaked to The Washington Times, spelling out China's strategy of underwriting construction of the canal across the Kra Isthmus, Chinese port facilities and refineries, as part of its "string of pearls" strategy of forward bases and energy security.
The Chinese plan called for construction over 10 years employing roughly 30,000 workers and at a cost of between $20.5 billion.
China already has oil and gas pipelines from Kyaukphyu, across Myanmar to China’s Yunnan province, bypassing the Malacca Strait chokepoint.
Chinese consortia led by the China International Trust and Investment Corporation (CITIC) conglomerate, includes China Harbour Engineering Company, China Merchants Holdings, TEDA Investment Holding and Yunnan Construction Engineering Group, as well as Thailand’s Charoen Pokphand Group, report Xinhua news agency.
Calls for yet another feasibility study of the canal have been put forward, a leading proponent being the Thai-Chinese Culture and Economic Association of Thailand (TCCEAT).
Supporters of the canal believe that it would end Thailand's economic slump and make it a "global shipping and economic hub, rivalling the Panama Canal". A memorandum of understanding was signed by the China-Thailand Kra Infrastructure Investment and Development Company in Guangzhou to advance the project.
While there are upsides and downsides to the project, it is certain that such a waterway would greatly facilitate the flow of goods to and from the Far East not to mention oil and gas. Of course, Singapore and Port Klang would have much to worry about.
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