Dubai group signs southern mou

Dubai World signed a memorandum of understanding with the Thai government yesterday to conduct a feasibility study on the mega-infrastructure scheme.

The sultan said the project has a good chance of success because it will connect the Middle East, India and other Asian subcontinent economies with those in the Far East, especially China, Japan, Korea, and land-locked countries via a shorter transport route.

The Thai Cabinet granted approval for the feasibility study, which includes the land bridge linking the Gulf of Thailand and the Andaman Sea and a deep-sea port at Pakbara in the southern province of Satun. An industrial zone will also be built in the land-bridge area.

The port will have the capacity to serve ocean-going vessels, opening a new gateway from North and Northeast Asia to Europe, the Middle East and Africa.

Transport Minister Santi Prompat said that Dubai World would shoulder the entire Bt200 million cost of the one-year feasibility study and with no binding conditions.

"The study results will be disclosed publicly and interested parties worldwide can join the bidding," he added.

Sultan Ahmed Bin Sulayem said the project should benefit Thailand and other parties concerned since a large number of jobs will be created, especially in southern Thailand, where there has been unrest for years.

The sultan believed that economic prosperity could help solve the problem in southern Thailand since poverty often breeds unrest and terrorism.

In the case of Dubai, a small sultanate in the United Arab Emirates, economic prosperity has proved to be a key driver of social stability, even though Dubai itself has no oil reserves.

Dubai has prospered as a service centre for the oil-rich Middle East, while the state-owned Dubai World is currently in transport and logistics, property development, maritime transport, commodities, financial services and other businesses.