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Ports: Malaysia continues to live in denial
KUALA LUMPUR, Jan 24, 2024: Both federal and state governments continue to live in a state of denial on the reality of potential drastic changes in the international shipping industry.
Port authorities continue to say that the shipping industry would not be affected by Thailand’s Isthmus of Kra land bridge project.
In any business, time is previous, and time is money.
When international shippers can save five hours of travel time in their delivery, don’t you think they would reschedule their routes and delivery plans?
Isn’t that just common sense?
Singapore had, more than a decade ago, started preparations to counter the negative effects of the landbridge on the international shipping industry and port services with investments (read No News Is Bad News previous postings reproduced below).
For Malaysia it continues to live in denial to the realities that the shipping industry would change dramatically when the Isthmus of Kra land bridge is completed and operational.
Perhaps, only the Penang Port and if a port is developed in Perlis, would benefit from the land bridge.
Shippers would save time and costs (including fuel) by bypassing the Straits of Malacca - meaning they would prefer to dock their cargo at the land bridge, Perlis and Penang.
It is then left to importers and exporters to deliver their goods via road or rail down south. No?
No News Is Bad News reproduces below the latest news on the landbridge and past articles:
Thai minister releases 18 FAQs on southern land bridge project and its benefits
Tuesday, 23 Jan 2024
8:33 PM MYT
BANGKOK: Deputy Transport Minister Manaporn Charoensri released 18 FAQs related to the government’s ambitious southern land bridge project on Tuesday (Jan 23) to show it will benefit the country.
The 18 FAQs on the project are as follows:
1. Will gas separation and oil refinery plants be built?
Oil, gas or petroleum industries are not part of the project. Ships and other vessels will have to refuel and the concession winner will take charge of bunkering services by building oil storages for them.
2. What kind of industries will be available?
Industries that will benefit local people, such as those making products from rubber, oil palm, fruit, seafood, halal food and high-tech industry.
3. How much will be needed for the land bridge project and what is its length?
The land bridge will save shippers about five days compared to sailing through the Malacca Strait. The project will require an investment of 1 trillion baht, and the funding will be done via a public partnership scheme.
4. How will oil slicks be prevented?
Guidelines will be set up and operation teams will be on hand to deal with oil slicks. The relevant government will also coordinate and send immediate help when oil leaks take place.
5. What kinds of goods will be transported using the land bridge and where will they originate from?
Export and import goods from across the country, such as the Eastern Economic Corridor, can benefit from the Ranong and Chumphon deep-sea ports. These include rubber products, oil palm, processed food, fruits and vegetables. Halal food products, AI items and smart electronic products, which will be developed near the ports, will also benefit. Transit and transhipment products will also benefit.
6. Will the land bridge aggravate flooding?
The land bridge will be designed in line with the physical characteristics of the areas. For instance, roads will not be blocking waterways.
7. Will the daily life of local communities and fishermen be affected?
Fishermen can continue travelling on the original waterways unaffected as there will be bridges above the waterways, but areas around the ports will be off-limits to fishermen.
8. How will affected people be compensated?
A committee will be set up to determine affected people and calculate how much should be paid in compensation. The committee will have representatives from the government, the project concessionaire and the public.
9. Why are different government agencies providing different information that is confusing people about the project?
The Office of Transport and Traffic Policy and Planning (OTTPP) will be in charge overall, from the development to the linking of ports. The roads will be built by the Highways Department and the State Railway of Thailand (SRT) will be in charge of the double-track railway.
10. Has OTTPP conducted a sea environment assessment?
The sea environment assessment was conducted by OTTPP in 2016 for carrying out mega projects along the coasts in the South.
11. Will the project cause the spread of sea sediment, coastal erosion and change of tides?
Officials will carry out a study on the possibility of sea sediment spreading due to the ports’ construction. The study will identify affected areas for drafting measures to mitigate the impact and to compensate local people.
12. Will locals be informed before a survey on land expropriation is conducted?
The SRT will inform people before it surveys areas for expropriation for building a double-track railway.
13. What are the criteria for land expropriation?
Land with title deeds will be expropriated under the Property Appropriation Act of 2019. Prices will depend on various factors but will be above the state evaluation.
Land without deeds and plots in agricultural land reform areas will be appropriated through negotiations on the cost of farm products and the cost of relocation. New farm plots will be provided to affected farmers.
14. What will be the criteria for compensation for affected trees?
The government will compensate farmers for trees felled based on prices and value in the list of 412 trees and 154 farm crops.
Minister releases 18 FAQs on southern land bridge project and its benefits
15. How will the government conduct a public awareness campaign?
Government officials will explain the project to local people via several activities, such as small group meetings.
16. How will national parks, mangroves and the coastal ecosystem be affected?
An environmental impact study on four issues – physical environment, biological environment, usefulness of the project and quality of life – will be conducted. The compensation rate will be determined based on the environmental impact.
17. How will local water resources be protected from industries?
Surveys will be conducted on new water resources to plan how they can be shared without local people being affected by industries.
18. Will the project damage natural resources and local people’s way of life?
The project will be based on sustainable development principles, so it can live side by side with local communities without hurting the environment. The concession winner will support the careers of local people via CSR programmes. - The Nation/ANN
"Thai landbridge plan poses critical challenge for Malaysian ports"
By S. BIRRUNTHA - November 22, 2023 @ 8:31am
Thai landbridge plan: Malaysia can use opportunity to upgrade port infrastructurePreviousNext
KUALA LUMPUR: Malaysian ports are at risk of shipping disruptions if Thailand's US$28 billion plan to bypass the Straits of Malacca to the US, materialises.
But this is not a doomsday scenario as it also offers opportunities for strategic upgrades in Malaysia's port infrastructure and operational efficiency, analysts said.
Malaysian Institute of Economic Research economist Dr Shankaran Nambiar said the plans poses a critical challenge to Malaysian ports, with uncertainties about which vessels will opt for the new Thai shipping line and which will continue to use Malaysian ports.
While the specifics regarding the vessels are unclear, it is evident that there will be a reduction in traffic through the straits, he added.
"This calls into question the competitiveness of our ports and what we can do to upgrade them," Nambiar told Business Times.
As the global shipping landscape undergoes potential transformations, he stressed the need for strategic upgrades in Malaysia's port infrastructure and operational efficiency.
He said there is an urgency for Malaysian ports to implement robust trade facilitation measures and streamline customs procedures to retain attractiveness.
It is also imperative to focus on improving supporting services and fostering a more business-friendly regulatory environment.
Thought Partners Group group managing partner Abi Sofian Abdul Hamid said Malaysia will potentially have two new ports to compete with - one on the east coast and the other on the west coast of Thailand.
Abi Sofian, who was chief executive officer of Northport (Malaysia) Bhd, emphasised that Malaysian ports must create a highly attractive proposition for customers in terms of both products and services.
He pointed out that, to start with, they need to retain existing customers and focus on their growth market.
"There will be some impact and the ports must be proactive to come up with the right strategy in advance. Ports will also have to intensify their improvement works on performance that are relevant to their customers.
"Another dimension is for Malaysian ports to work together and collaborate not only among ports but also with all the industry players and stakeholders in the logistics and supply chain so that they could offer a wholesome value to all customers.
"This means that movements from ports to the end user utilising land and rails especially will be seamless," he added.
Abi Sofian said this is also in addition to the National Single Window ecosystem to be implemented at major ports soon.
Making Malaysia the logistics and supply chain hub especially for Asean would be the real game-changer.
Nevertheless, Abi Sofian said while there are perceived benefits, he has not seen any significant numbers regarding savings.
"It will not be a zero-sum gain because there will be additional handling activities at the two ports if you are talking about the transit market. The main benefits would be for goods coming out and going into Thailand for their consumption and neighbouring countries.
"There will still be those goods going to other parts of intra-Asia and Far East. A more detailed study on the current and future trends would be a good start for ports in Malaysia," he said.
Sunway University professor of economics Dr Yeah Kim Leng highlighted the downside risks, including the potential loss of logistics, refueling, and supply services at Malaysian ports due to shifts in shipping patterns as ships bypass the Straits of Malacca
He pointed out that despite these challenges, Malaysian ports will continue to play a crucial role in serving the country's maritime cargo trade, including transshipments.
"In short, it's not a doomsday scenario, as the canal will help decongest the Straits of Malacca. It will also lead to a more efficient, faster and lower shipping cost for transporting cargo between the Indian and Pacific Oceans.
"Asean countries such as Vietnam and the Philippines, along with Far East countries like Japan, Korea, Taiwan and China, will benefit from the shorter route," he said.
Echoing similar views as other analysts, Yeah emphasised that Malaysian ports should continue to focus on increasing cargo handling, logistics efficiency, and competitiveness in line with the country's goal to be among the world's top 15 trading nations.
He added that an efficient port sector will help raise the competitiveness of the country's manufacturing sector, leading to higher seaborne cargo volume and increased trade with the rest of the world.
Thailand is proposing a multibillion-dollar project to reduce shipping times between the Indian and Pacific oceans by avoiding the crowded Melaka Strait, a major sea route.
Thai Prime Minister Srettha Thavisin had told investors in San Francisco that the project can cut shorten travel time by around four days and decrease shipping expenses by 15 per cent.
He said with traffic volumes projected to exceed the Straits of Malacca's capacity by 2030, the new project will ensure seamless flow of goods.
The ambitious Landbridge project is estimated to cost around one trillion baht (US$28 billion). It involves constructing seaports on either side of Thailand's southern peninsula, connected by a comprehensive network of highways and railways.
The 100km connection will serve as an alternative to a decades-old proposal to dredge a canal through the Kra Isthmus.
The Straits of Malacca, situated between Malaysia and Singapore, currently acts as the shortest sea route linking the Asia-Pacific region to India and the Middle East.
About 25 per cent of the world's traded goods pass through this strait, and the increasing traffic is expected to elevate shipping costs. - Business Times
Monday 27 November 2023
Thailand’s US$28b Isthmus of Kra land bridge will (also) benefit Malaysia, says Anwar
No News Is Bad News
Thailand’s US$28b Isthmus of Kra land bridge will (also) benefit Malaysia, says Anwar
KUALA LUMPUR, Nov 27, 2023: Malaysia’s 10th Prime Minister (PMX) Anwar Ibrahim says Thailand’s US$28 billion land bridge project will (also) benefit Malaysia.
Does that make any financial or economic sense when the construction of two Thai ports - Ranong in the west and Chumphon in the east - will be connected by road or rail is aimed at shippers to save costs and time by bypassing the Straits of Malacca.
Won’t that reduce traffic to Malaysian ports?
No News Is Bad News reproduces below a news report on what Anwar says about the Isthmus of Kra ports’ development:
Thailand’s land bridge project will benefit Malaysia, says Anwar
The US$28 billion project will see the construction of two Thai ports — Ranong in the west and Chumphon in the east — that will be connected by road or rail.
FMT Reporters - 27 Nov 2023, 8:03pm
Prime Minister Anwar Ibrahim with Thailand’s prime minister Srettha Thavisin during a working visit to Sadao, Songkhla, in Thailand. (Bernama pic)
PETALING JAYA: Prime Minister Anwar Ibrahim is confident that Thailand’s plan to build a land bridge between the Indian and Pacific Oceans as an alternative to the Straits of Melaka will benefit Malaysia.
The US$28 billion (RM131.31 billion) project will see the construction of two Thai ports – Ranong in the west and Chumphon in the east – that will be connected by road or rail, thus giving vessels a way to bypass Malaysian ports.
Thailand’s prime minister Srettha Thavisin previously said the land route could reduce travel time for ships by up to four days and cut costs by up to 15%.
In a Bernama report, Anwar today said Srettha had assured him of Malaysia’s involvement in the project.
“The land bridge is still in the initial stage but in the discussions (with Srettha), (I was told) it will involve Malaysia – especially the northern peninsula,” he told the media after a one-day working visit to Sadao, Songkhla, in Thailand.
“We (will) have benefits (from the project), whether in terms of facilities there or equity… (It’s) still too early for discussions (on that).
“But the spirit displayed by the Thai prime minister was clear when he told me that they will make sure Malaysia will benefit and be involved in the project.”
Anwar’s working visit to Sadao was aimed at discussing issues related to Malaysia-Thailand bilateral cooperation with Srettha.
The visit, at Srettha’s invitation, is to monitor the progress of the road alignment project connecting the Bukit Kayu Hitam immigration, customs, quarantine and security (ICQS) checkpoint in Malaysia and the customs, immigration and quarantine (CIQ) complex in Sadao.
Tuesday 14 November 2023
‘Death knell’ for Malaysia’s ports and trading coming true?
No News Is Bad News
‘Death knell’ for Malaysia’s ports and trading coming true?
KUALA LUMPUR, Nov 14, 2023: No News Is bad News had on Oct 5, 2016 (some seven years ago) posted a warning to the then Barisan Nasional Government to be prepared for Thailand’s proposal to cut the narrow Kra Isthmus to shorten shipping routes.
Of course the now disgraced and shameless former prime minister Najib Razak ignored the warning and is now languishing in prison for the 1Malaysia Development Berhad (1MDB) financial scandal.
We, again, posted another warning on Oct 25, 2018, on Thailand’s threat to Malaysia’s shipping and trade.
Today, Thailand is pitching a multibillion-dollar project that will significantly cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait – one of the world’s busiest sea lanes.
Prime Minister Srettha Thavisin told investors in San Francisco, California that the project would cut travel time by an average of four days and lower shipping costs by 15 per cent.
With traffic volumes projected to exceed the Malacca Strait’s capacity by 2030, the new project would ensure seamless flow of goods, he said.
The so-called Landbridge project will cost about 1 trillion baht (US$28 billion), with seaports to be built on either side of the country’s southern peninsula and linked by highway and rail networks, according to the government. The 100km (62-mile) connection would replace a decades-old Thai proposal to dredge a canal through the Kra Isthmus.
It would not surpeise anyone if American investors support the project, give the US condemnation of Prime Minister Anwar Ibrahim and his Madani Unity Government’s support for international terrorists Hamas and Palestine Jihadist.
This could not come as a worst time when the the global economy is struggling for growth.
The humongous stress on Malaysia’s more than RM1.5 trillion national debt economy and the weak Ringgit would most certaininly become an economic-nightmare for Malaysians and the country.
No News Is Bad News reproduces below a Bloomberg report on the project and our two previous postings in 2016 and 2018:
Thailand pitches US$28 billion shipping lane that bypasses Malacca Strait: ‘cheaper, faster, safer’
· The proposal aims to cut travel time by four days on average and lower shipping costs by 15 per cent
· PM Srettha Thavisin says when completed, the shipping lane would help create 280,000 jobs and push Thailand’s annual GDP growth to 5.5 per cent
Published: 6:09pm, 14 Nov, 2023
Thailand is pitching a multibillion-dollar project that will significantly cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait – one of the world’s busiest sea lanes.
Prime Minister Srettha Thavisin told investors in San Francisco, California, on Monday that the project can cut travel time by an average of four days and lower shipping costs by 15 per cent.
With traffic volumes projected to exceed the Malacca Strait’s capacity by 2030, the new project will ensure seamless flow of goods, he said.
The so-called Landbridge project will cost about 1 trillion baht (US$28 billion), with seaports to be built on either side of the country’s southern peninsula and linked by highway and rail networks, according to the government. The 100km (62-mile) connection would replace a decades-old Thai proposal to dredge a canal through the Kra Isthmus.
The Malacca Strait – a narrow sea lane between Malaysia and Singapore – is the shortest sea route linking the Asia-Pacific region to India and the Middle East. About a quarter of the world’s traded goods pass through the strait, and it will only become busier, pushing up shipping costs, Srettha said, noting that there are more than 60 maritime accidents a year on average in the passage.
“The Landbridge will be an additional important route to support transportation and an important option for resolving the problems of the Malacca Strait,” Srettha said. “This will be a cheaper, faster and safer route.”
The port on the west will have the capacity to handle 19.4 million tonne equivalent units (TEUs), while the eastern one is designed for 13.8 million TEUs, together accounting for about 23 per cent of the Port of Malacca’s total cargo, he said.
The proposed Landbridge bridge is to replace a decades-old Thai plan to dredge a canal through the Kra Isthmus. Photo: SCMP
Srettha said the project, which he had also pitched to investors in China and Saudi Arabia in recent weeks, would help create 280,000 jobs and propel Thailand’s annual economic growth rate to 5.5 per cent when it is fully implemented. Southeast Asia’s second-largest economy grew 2.6 per cent last year and is forecast to expand 2.5 to 3 per cent in 2023.
The Landbridge “presents an unprecedented opportunity to invest in this commercially and strategically important project that connects the Pacific Ocean and the Indian Ocean, connecting people in the East with the West”, he said.
Thailand had for decades discussed an idea for a canal that would traverse the nation’s narrowest point and trim the travel distance by 1,200km, but that proposal was dismissed several times over environmental concerns.
Wednesday, 24 October 2018
Death knell for Malaysia’s ports and trading?
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| Tengku Abdullah (left) inspecting a guard of honour at the opening of the state assembly sitting. - Bernama Nod for review of ECRL cost METRO NEWS Wednesday, 25 Jul 2018 by ong han sean KUANTAN: The Regent of Pahang has expressed his approval for the Federal Government’s move to review the cost of the East Coast Rail Link (ECRL) project. Tengku Mahkota Tengku Abdullah Sultan Ahmad Shah welcomed the decision but hoped the railway line would still be built to create more economic growth areas. “The construction of the ECRL will increase connectivity of economic and industrial areas from Kuantan Port to Tumpat in Kelantan and Port Klang in the west coast,” he said at the opening of the state assembly sitting here - for more, go to https://www.thestar.com.my/metro/metro-news/2018/07/25/nod-for-review-of-ecrl-cost-tengku-abdullah-we-welcome-decision-but-hope-railway-line-will-be-built/ Malaysia at BRI-global economic crossroads July 25, 2018 KUALA LUMPUR (July 2018): After all the post 14th General Election (GE14) hoo-haa over China-related mega projects in Malaysia, it is time to face reality or get real. The new Pakatan Harapan (PH) federal government will have to eventually make a decision, whether it likes it or not. Stalling is no solution. China has US$34 billion (RM138 billion) worth of infrastructure projects underway in Malaysia and the most crucial of all is the Belt Road Initiative (BRI)-linked East Coast Rail Link (ECRL) … for more, go to https://ilovemalaysiachinasilkroad.blogspot.com/2018/07/malaysia-at-bri-global-economic.html |
As Malaysia continues to annoy China with regards to trade and investments, especially on the multi-trillion-dollar Belt Road Initiative (BRI), China had started focusing on bypassing Malaysia.
In fact, as early as last April, before the 14th General Election (GE14), China had started official talks with Thailand on the 200-year dream of the Kra Canal link to complement BRI.
Obviously China is fed up with Malaysia’s flip-flop decisions, and with the cancellation of the East Coast Rail Link (ECRL) as BRI’s rail hub for Southeast Asia, it is likely to bypass Malaysia and focus its BRI on Thailand.
Should the Kra Canal become a reality for BRI, the only port in Malaysia that may still be viable is Penang. That too is questionable.
Malaysia, Indonesia, Singapore and Brunei may all need to switch their trading activities to the Kra Canal.
Many still believe the Kra Canal can never be realised but many projects by China had become reality in the past.
So, Malaysia’s trading and future may be bleak with Thailand becoming the true “Tiger Economy”.
Now, that’s much for the Malaysian federal government to think about fast! No?
Read on for more:
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| Thai Prime Minister Prayut Chan-o-cha, fourth from left, meets with Chinese President Xi Jinping, fourth from right, during a meeting at the Great Hall of the People in Beijing (Dec. 23, 2014). Image Credit: AP Photo/Wang Zhao, Pool |
A 200-year-old dream might finally become a reality under China’s Belt and Road.
By Rhea Menon
April 06, 2018
The establishment of a Kra Canal in Thailand may soon become a reality as part of China’s Belt and Road Initiative (BRI). The canal would permit ships to bypass the Malacca Strait, a crucial maritime chokepoint, amplifying the strategic significance of the project.
Throughout history, there have been multiple attempts by the Thai monarchy and European colonists to capitalize on the commercial and strategic importance of the region by constructing a canal across the narrow isthmus that connects Thailand to the Malay peninsula. In recent times, China’s global vision of a new Maritime Silk Road has renewed the attention on the possibility of developing the Kra Canal. The modern Kra or Thai Canal project would be connected to the various Chinese infrastructure and connectivity projects in the region.
The maritime portion of the BRI is an ambitious connectivity project that aims at linking Southeast Asia to Europe through the Indian Ocean. In the last two decades, the construction of new ports and maritime facilities has contributed to the increasing competition among nations in the Indian Ocean region. As China continues to expand its presence across the maritime domain, the establishment of infrastructure projects, like the Kra Canal, is likely to influence the new emerging security architecture in the Indo-Pacific.
Most recently, the Thai-Chinese Cultural and Economic Association and the European Association for Business and Commerce participated in a conference on the Kra Canal in Bangkok on September 2017 and a follow-up event on February 1, 2018, signaling a greater interest in executing the project.
Historical Significance
The strategic purpose of the canal was initially recognized in the 19th century under King Rama I and King Rama IV as a quick way to send Thai troops to counter Burmese invaders to the north of Thailand. Under King Rama V, the French sent Ferdinand de Lesseps, the engineer credited with building the Suez Canal, to raise the possibility of constructing the Kra Canal again. But, in an effort to appease the British who already had a strong foothold in the Malacca Strait, especially Singapore, the Thai King declined the offer.
After World War II, Thailand was forced to sign Article 7 of the Anglo-Thai treaty of 1946, which prevented them from constructing the canal in an effort to ensure international political stability. It wasn’t widely discussed again until the 1980s, when the potential of the project was highlighted by the American-led Executive Intelligence Review (EIR) and the Fusion Energy Foundation as a major economic advantage to an increasingly industrialized and globalized world. The report included the long-term advantage of the canal to Thailand and its neighbors.
The onset of the Asian Financial Crisis in the late 1990s provided a major setback for the Kra project and it wasn’t until Yingluck Shinawatra’s prime ministerial term that the canal came back to the limelight. Yingluck Shinawatra’s commitment to infrastructure and development projects to boost the country’s economy reinstated the country’s positive approach to the possibility of the Kra Canal.
The Canal as a Part of BRI
The possibility of the Kra Canal becoming a reality has been greatly increased by China’s Maritime Silk Road initiative and the Thai Canal Association (TCA), a group of influential former top brass soldiers advocating for the project. Based on reports, the canal will cost approximately $28 billion and take a decade to complete. China is reportedly willing to supply the financial and technological support to Thailand in hopes that the Thai canal reaches fruition.
The new Thai Canal project comprises two portions. The first portion is seen as a counter to the “Malacca Dilemma.” The canal will link the South China Sea to the Andaman Sea, connecting the Pacific Ocean to the Indian Ocean respectively, drastically diminishing transit time across the busiest maritime shipping route. Chinese companies are extremely interested in speeding up the project as over 80 percent of Chinese oilimports flow pass through the Malacca Strait. The second portion is the establishment of a Special Economic Zone (SEZ). The new zone includes the addition of cities and artificial islands, which will enhance new industries and infrastructure in the region. This would make Thailand into a “logistic hub” and link Thailand to countries from all over the world.
While the Chinese government has refrained from making any official claims, reports state that China and Thailand signed a Memorandum of Understanding (MoU) on the canal project in Guangzhou in 2015. The MoU was signed by the China-Thailand Kra Infrastructure Investment and Development company and Asia Union Group. Apart from the Chinese interests in the region, however, the Thai government is trying to attract other international funding from Japan, South Korea, India, and ASEAN countries.
Challenges
While the construction of the canal is a lucrative idea with significant strategic implications, it is not without challenges. The major concerns associated with the construction of the project are environmental effects and Thai national security. The division of the isthmus has considerable environmental implications on the flora and fauna of the region. Chinese counterparts expect the Kra Canal to be similar to other Chinese megaprojectslike the Three Gorges Dam in China.
A serious concern associated with the construction of the canal is its possible impact on Thai sovereignty and security. The southern portion of the country (south of the proposed canal) has seen an increasing divide between Thai Buddhists and Thailand’s Malay Muslims. The historical animosity between the two groups stems from 1902, when Thailand first annexed the independent state of Patani. In the last few decades, due to the mismanagement of the government, the southern part of the country has seen an increase in insurgency attacks. The construction of the Kra Canal would further exacerbate the volatile region, creating further divisions within the country.
Rhea Menon is a researcher at Carnegie India."
Xi-led China goes for the above, while the Trump-led US goes for this:
The proposed construction of Thailand’s Kra Canal is nothing new.
Obviously, if it is constructed, all the ports in Malaysia and Singapore will be rendered almost obsolete because the majority of shipping vessels will by-pass Singapore port and the Straits of Malacca to save time and cost.
The Independent’s Oct 2, 2016, article titled “The real threat to S’pore – construction of Thai’s Kra Canal financed by China” is thus surprising.
There is nothing new in the article which was obviously written by an anti-Singaporean.
And to answer the writer’s question: Yes, it is a real threat to Singapore’s port but Singapore is well prepared.
Singapore has reportedly invested heavily in Burma’s development of ports and in Thailand in preparation for the eventuality that the Kra Kanal is constructed.
And this issue had been highlighted by the media as far back as 2014.
The question should be: Is 1Malaysia Development Berhad (1MDB) Prime Minister Najib Razak’s Umno-led Barisan Nasional federal government prepared if the Kra Canal is constructed? We leave the answer to our learned Malaysians who should know better.
"
The real threat to S’pore – construction of Thai’s Kra Canal financed by China
By The Independent -
October 2, 2016
By: 永久浪客/Forever Vagabond
The Kra Canal or the Thai Canal refers to a proposal for a canal to cut through the southern isthmus of Thailand, connecting the Gulf of Thailand with the Andaman Sea. It would provide an alternative to transit through the Strait of Malacca and shorten transit for shipments of oil to East Asian countries like Japan and China by 1,200 km, saving much time. China refers to it as part of its 21st century maritime Silk Road.
China is keen on the Kra Canal project partly for strategic reasons. Presently, 80% of China’s oil from the Middle East and Africa passes through the Straits of Malacca. China has long recognized that in a potential conflict with other rivals, particularly with the US, the Strait of Malacca could easily be blockaded, cutting-off its oil lifeline. Former Chinese President Hu Jintao even coined a term for this, calling it China’s “Malacca Dilemma”.
History of Kra Canal
The idea to shorten shipping time and distance through the proposed Kra Canal is not new. It was proposed as early as in 1677 when Thai King Narai asked the French engineer de Lamar to survey the possibility of building a waterway to connect Songkhla with Marid (now Myanmar), but the idea was discarded as impractical with the technology of that time.
In 1793, the idea resurfaced. The younger brother of King Chakri suggested it would make it easier to protect the west coast with military ships. In the early 19th century, the British East India Company became interested in a canal. After Burma became a British colony in 1863, an exploration was undertaken with Victoria Point (Kawthaung) opposite the Kra estuary as its southernmost point, again with negative result. In 1882, the constructor of the Suez canal, Ferdinand de Lesseps, visited the area, but the Thai king did not allow him to investigate in detail.
In 1897, Thailand and the British empire agreed not to build a canal so as to maintain the importance of Singapore as a shipping hub, since by that time, Singapore was already prospering as an international hub with great importance to the British.
In the 20th century the idea resurfaced with various proposals to build the canal but did not go far due to various constraints including technology and cost constraints as well as indecisive political leadership of Thailand.
China shows Thailand the money
In the last decade, China has now become the potential game changer who can possibly turn Kra Canal proposal into reality in the 21st century. It has the money, technology and strong political leadership and will to support the project if it wants to.
Last year, news emerged that China and Thailand have signed an MOU to advance the Kra Canal project. On 15 May 2015, the MOU was signed by the China-Thailand Kra Infrastructure Investment and Development company (中泰克拉基礎設施投資開發有限公司) and Asia Union Group in Guangzhou. According to the news reports, the Kra Canal project will take a decade to complete and incur a cost of US$28 billion.
But 4 days later on 19 May, it was reported that both Chinese and Thai governments denied there was any official agreement between the 2 governments to build the canal.
A statement by the Chinese embassy in Thailand said that China has not taken part in any study or cooperation on the matter. It later clarified that the organisations who signed the MOU 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 Zhao Hong, an expert on China-Asean relations from the Institute of Southeast Asian Studies, told the media 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,” he said at the time when news of the MOU emerged. But Dr Zhao added that China might be open to private companies studying the feasibility of such a project, but will not directly back it for now.
It was said that the the chairman of Asia Union Group, the Thai party which signed the MOU, is former Thai premier Chavalit Yongchaiyudh, a long-time supporter of the Kra Canal.
Thai PM: Kra Canal project should be looked into by future democratic governments
In Jan this year, the Thai PM reiterated again that the Kra Canal project is not on his government agenda. His announcement came after a member of the King’s Privy Council, Thanin Kraivichien, wrote an open letter to the government advocating for the canal’s construction.Thanin was the 14th PM of Thailand between October 1976 and October 1977. His call is part of a growing chorus of Kra Canal proponents in Thailand’s political and business communities that started talking openly last year after several Chinese firms expressed interest in funding and constructing the canal.
Responding to Thanin’s call for the project, the Thai PM said the Kra Canal project should be looked into by democratic governments in the future, meaning to say Thailand has not ruled out the construction of Kra Canal completely. And in the case of Thailand, changes to its government occur frequently like the changing of clothes.
China getting angry with Singapore
In the last couple of months, China is increasingly angered by PM Lee’s move to side with the US over the South China Seas issue, even though Singapore has no claims over any of the territories there.
It all started 2 months ago when PM Lee was invited to the White House and was hosted to a rare White House state dinner on 2 Aug(http://theindependent.sg/pm-lees-speech-at-white-house-state-dinner-angers-china). During his toast, PM Lee welcomed the US to adopt a strategy to “rebalance” the Asia Pacific and went on to call President Obama as the “America’s first Pacific President”.
China immediately responded through their Global Times. “Lee Hsien Loong addressed Obama as the American ‘first Pacific President’. Such flattery (‘戴高帽’) given to Obama directly does not concern us (‘倒也没啥’),” the Global Times’ article said. “The key is he praised the American strategy to ‘re-balance Asia-Pacific’ and publicised that all Southeast Asian countries welcome such American ‘balancing’. Because the ‘rebalance Asia-Pacific’ strategy is pointed at China to a large extent, Lee Hsien Loong is clearly taking side already.”
“If Singapore completely becomes an American ‘pawn’ (‘马前卒’) and loses any of its resilience to move between US and China, its influence will be considerably reduced. Its value to the US will also be greatly discounted,” it added.
The article went on to say that China has its limit in tolerance. It said, “Singapore should not push it (‘新加坡不能太过分’). It cannot play the role of taking the initiative to help US and South East Asian countries to go against China over South China Sea matters. It cannot help American ‘rebalancing Asia-Pacific’ strategy, which is directed at China’s internal affairs, by ‘adding oil and vinegar’ (‘添油加醋’), thereby enabling US to provide an excuse to suppress China’s strategic space as well as providing support to US.”
“Singapore can go and please the Americans, but it needs to do their utmost to avoid harming China’s interests. It needs to be clear and open about its latter attitude,” it cautioned. Singapore’s balancing act should be to help China and US to avoid confrontation as its main objective, and not taking side so as to increase the mistrust between China and US, it said..
The article gave the example of Singapore allowing US to deploy its P-8 reconnaissance aircraft to Singapore, which from the view of the Chinese, increases the tension in South China Sea, and thereby, increasing the mistrust between the 2 big countries.
“Singapore needs more wisdom (‘新加坡需要更多的智慧’),” the article concluded.
PLA General: We must strike back at Singapore
And yesterday, SCMP reported that a PLA General had called for Beijing to impose sanctions and to retaliate against Singapore so as to “pay the price for seriously damaging China’s interests” (http://theindependent.sg/pla-general-we-must-strike-back-at-singapore).
The General’s remarks came after a recent spat between Global Times and Singapore Ambassador Loh. On 21 Sep, Global Times carried an article saying that Singapore had raised the issue of the disputed South China Sea at the Non-Aligned Movement (NAM) Summit held in Venezuela on 18 Sep. It added that Singapore had “insisted” to include an international tribunal’s ruling on the waterway, which was in favour of the Philippines, in the summit’s final document.
Singapore’s ambassador to China, Stanley Loh, rejected this and wrote an open letter stating that the news report was “false and unfounded”. Mr Loh said the move to include the international ruling in NAM’s final document was a collective act by the members of the ASEAN. But the editor-in-chief of Global Times came out to stand by his paper’s report.
Then, the Chinese government also came out in support of Global Times, not buying Ambassador Loh’s arguments. When a Chinese foreign ministry spokesman was asked about the tiff between Global Times and Singapore, he blamed an unspecified “individual nation” for insisting on including South China Sea issues in the NAM document.
Xu Liping, senior researcher on Southeast Asia studies at the Chinese Academy of Social Sciences, said China expected Singapore to be a neutral mediator between China and the countries of Asean, and did not want to see disputes over the South China Sea raised in a multilateral platform like the NAM Summit. And that was why China was so angry over Singapore’s active moves in broaching such a sensitive topic, he said.
“If Singapore does not adjust its policies, I am afraid the bilateral relations will deteriorate,” Xu added. “Singapore should think twice about its security cooperation especially with the United States, and strike a better balance between China and US.”
“2-headed snake”
On Thursday, the overseas edition of People’s Daily also published an online commentary, saying Singapore “has obviously taken sides over South China Sea issues, while emphasising it does not”. In other words, China is accusing the Singapore government of saying one thing but doing another – a hypocrite.
Online, the Chinese netizens condemned Singapore as a “2-headed snake”. One of themwrote:
(Translation: China should quickly embark on the Kra Canal project and turn Singapore back into a third world country. This is the best present to give to a “2-headed snake”.)
If the Kra Canal truly becomes a reality, ships would certainly consider by-passing the Strait of Malacca and Singapore altogether, making the Singapore’s all-important geographical location redundant. We may truly become a third world country after all.”
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Russia-China vs the US, is Malaysia prepared?
Last updated on 16/04/2014 - 12:12
Posted on 16/04/2014 - 12:00
QUICK TAKE: Is 2014 going down in history as the year the mighty United States of America begins its fall as a supreme world power?
It sure looks like Russia and China have ganged up against the US, in line with the analysis-comment that Malaysia is caught in the US-China “Cold War” over the MH370 saga.
Russia has dropped a bombshell, announcing not only the de-coupling of its trade from the Greenback, but also that its hydrocarbon trade will in the future be carried out in rubles and local currencies of its trading partners - no longer in US dollars, reported Voice of Russia.
scott.net had on April 8 carried a damning report titled “Russia and China announce decoupling trade from Dollar - The End for the USA is nigh” authored by Peter Koenig.
Koenig is an economist and former World Bank staff. He worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, the Voice of Russia and other internet sites. He is the author of Implosion - fiction based on facts and on 30 years of experience around the globe.
Koenig penned:
Russia’s trade in hydrocarbons amounts to about a trillion dollars per year. Other countries, especially the BRICS and BRCIS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the “petro-dollar” as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year (US GDP about 17 trillion dollars - December 2013) - leaving an important dent in the US economy would be an understatement.
Added to this is the declaration by Russia’s Press TV - China will re-open the old Silk Road as a new trading route linking Germany, Russia and China, allowing to connect and develop new markets along the road, especially in Central Asia, where this new project will bring economic and political stability, and in Western China provinces, where “New Areas” of development will be created. The first one will be the Lanzhou New Area in China’s Northwestern Gansu Province, one of China's poorest regions.
“During his visit to Duisburg, Chinese President Xi Jinping made a master stroke of economic diplomacy that runs directly counter to the Washington neo-conservative faction’s effort to bring a new confrontation between NATO and Russia.
“Using the role of Duisburg as the world’s largest inland harbor, an historic transportation hub of Europe and of Germany’s Ruhr steel industry centre, he proposed that Germany and China cooperate on building a new ‘economic Silk Road’ linking China and Europe. The implications for economic growth across Eurasia are staggering.”
Curiously, western media have so far been oblivious to both events. It seems like a desire to extending the falsehood of our western illusion and arrogance - as long as the silence will bear.
Germany, the economic driver of Europe - the world's fourth largest economy (US$3.6 trillion GDP) - on the western end of the new trading axis, will be like a giant magnet, attracting other European trading partners of Germany’s to the New Silk Road. What looks like a future gain for Russia and China, also bringing about security and stability, would be a lethal loss for Washington.
In addition, the BRICS are preparing to launch a new currency - composed by a basket of their local currencies - to be used for international trading, as well as for a new reserve currency, replacing the rather worthless debt ridden dollar - a welcome feat for the world.
Along with the new BRICS(A) currency will come a new international payment settlement system, replacing the SWIFT and IBAN exchanges, thereby breaking the hegemony of the infamous privately owned currency and gold manipulator, the Bank for International Settlement (BIS) in Basle, Switzerland - also called the central bank of all central banks.
To be sure - the BIS is a privately owned for profit institution, was created in the early 1930’s, in the midst of the big economic melt-down of the 20th Century. The BIS was formed precisely for that purpose - to control the world’s monetary system, along with the also privately owned FED and the Wall Street Banksters - the epitome of private unregulated ownership.
The BIS is known to hold at least half a dozen secret meetings per year, attended by the world’s elite, deciding the fate of countries and entire populations. Their demise would be another welcome new development.
As the new trading road and monetary system will take hold, other countries and nations, so far in the claws of US dependence, will flock to the “new system”, gradually isolating Washington’s military industrial economy (sic) and its NATO killing machine.
This Economic Sea Change may bring the empire to its knees, without spilling a drop of blood. An area of new hope for justice and more equality, a rebirth of sovereign states, may dawn and turn the spiral of darkness into a spiral of light.
With the China-Burma regional deep sea ports development, and linking to the possible opening of the decades-old proposal to build a canal Kra Isthmus, Thailand, thereby bypassing the Straits of Malacca, Malaysian and Singaporean ports, won’t the US socio-economic and political presence and influence in Asia and Southeast Asia diminish significantly?
What then is Malaysia’s preparations, if any, to face such a massive regional change that alienates and pisses off the US? - theantdaily"
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