Impacts on East Asian Shipping and Trade of the Opening of the Kra Canal and Special Economic Zone

I will be presenting (on behalf of co-author Fuangfa Ampornstira) the above named paper at the 12th International Conference of Asian Shipping and Logistics (ICASL) that will be held at our Ho Chi Minh City campus in a couple of months (https://www.rmit.edu.vn/12th-international-conference-asian-shipping-and-logistics-icasl-2019).

Abstract:

For centuries, engineers have speculated about the possibility of opening a canal at the Kra isthmus, which is the narrowest part of Southern Thailand and which would join the Gulf of Thailand with the Andaman Sea. Such a canal, if it could ever be really built, would significantly reduce shipping lanes that currently involve the Straits of Malacca and would short-circuit to some extent the geopolitical advantage that the USA has by its ability to regulate movements there. In recent years, a resurgence of interest in the canal, which had been more or less abandoned because of the sheer scale of the work involved and the costs it would involve, has been brought about as a result of increased Chinese influence in the region. Further, while the previous monarch was thought to be opposed to the project, the current incumbent s said to be more open to large-scale infrastructure projects that might characterise his reign. Opening the canal would have enormous social, political and environmental impacts on Thailand and the neighbouring region but would also have serious disruptive impacts upon current and future shipping patterns. This paper assesses the issue surrounding the building of the canal and the options for its ultimate configuration, if it does come to pass. It then attempts to identify the impacts of the canal and its attendant special economic zone, given the timescale likely to be required before it can be opened. Special focus is placed on the possible impacts upon existing shipping patterns in the region and the possibility that trade will be created or diverted.

Keywords: infrastructure, Kra Canal, political impacts, shipping, Thailand

John Walsh, Lecturer, International Business, RMIT Vietnam (Hanoi campus) and

Fuangfa Ampornstira, School of Management, Shinawatra University, Thailand

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