A group of influential Thai officials is promoting the construction of a long-envisioned megaproject, known as the Thai Canal. If built, it would transform the regional maritime dynamics and give Thailand a substantial stake in global trade. Yet, as ambitious as the project it, there are equally credible drawbacks that could reshape the geo-economic fortunes of Southeast Asia.

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The Straits of Malacca is an incredibly busy waterway.  Around 20% of global trade and 30% of the world’s crude oil travel through this tiny choke point.  At its narrowest, the Straits of Malacca is less than 2 miles wide and as Asian economies grow, alternative shipping lanes are becoming more attractive.  China is looking to bankroll a canal that would bisect the Malay Peninsula and reduce their dependency on the Straits of Malacca.  This is still uncertain, but would represent a major geo-engineering project that

 

Perspectives: What are the positives and negatives of this plan for Thailand?  China?  The United States? 

 

Tags: Thailand, Southeast Asia, transportation, globalization, diffusion, industry, economic.

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