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Plan to revitalise southern seaboards long overdue

Ministers attending a Cabinet meeting this past Tuesday agreed to set up a committee to mobilise investment along the southern seaboards - both on the Andaman Sea and Gulf of Thailand sides - which is a crucial step for the country's further development.



This initiative will not only help open the area up for big investment projects, but also involves the construction of deep seaports, which is the type of infrastructure that major industries require and could lead to development similar to that of the Eastern Seaboard over the past 20 years.

The mobilisation of investment in these areas would naturally include industries already operating in the South such as iron and steel, seafood, tourist industries etc. More importantly, this is also a good opportunity to open an industrial site for large and medium-sized industries that will be, in the not too distant future, banned from the Eastern Seaboard, once that area reaches its saturation point in terms of allowable levels of pollution.

The ideal location for the new industrial site depends on where the deep seaports are located and the route taken to transport oil and other merchandise between the two seaports. Currently the possibility of constructing a land bridge connecting the two seaports is being discussed. This idea was first put forward by the National Economic and Social Development Board during the administration of former prime minister Chartchai Choonhavan. This would consist of a deep seaport on the Andaman Sea side, a deep seaport on the Gulf side, an industrial estate in the area adjacent to the deep seaport on the Gulf side, and a transport link between the two seaports, comprising road, railway and oil pipeline.

The deep seaport on the Andaman Sea side would receive crude oil from tankers from the Middle East. Crude oil would be sent through the pipeline to an oil refinery to be established in the industrial site on the Gulf side. Refined oil, besides serving domestic demand, could also be exported to oil-importing countries like Japan and Korea and eastern cities in China. The by-products could serve as good raw material for upstream petrochemical companies, which would attract many more midstream and downstream industries.

Aside from being an ideal location for oil refineries, the industrial site attached to the deep seaport on the Gulf side would also be a good location for big and mid-sized industries unable to find space on the Eastern Seaboard. I have learned that there is a very big plot of land, tens of thousands of rai in size, that belongs to a certain government agency and has been left vacant. If the land can be leased on a long-term basis for industrial estate use, the landowner could earn a sizeable income and industrial development in the South could get started for the benefit of the country.

The land-bridge concept would also enable the Andaman seaport to host the import and export of merchandise to and from Europe, the Middle East and Africa. The seaport could also act as a gateway for landlocked countries within the Greater Mekong Subregion if we were able to link our transportation networks with those in the region.

What I have written so far is not unrealistic. Should the plan be implemented carefully, it would benefit the country a great deal. We definitely need a new industrial site for big projects. We would gain a lot from additional refineries: refining margins and export income as well as a by-product for petrochemical industries. The Andaman seaport would reduce logistical costs for our exports as well as imports to and from Western destinations. With strong determination, the plan is achievable. I am glad that the Cabinet has set up this committee to mobilise investment along the southern seaboards with the prime minister as the chairman of the committee. Appointing a person with such a high position as chairman shows a strong commitment to the project.

When pushing for the development of the Eastern Seaboard, the government also established a powerful committee to oversee its development with the prime minister at that time acting as chairman of the committee. Being prime minister, the chairman naturally attracts cooperation and commitment from various concerned ministries as well as from the private sector, which has contributed to the successful industrial development of the Eastern Seaboard for over 20 years. I hope that this new committee set up to mobilise investment along the Southern Seaboard will get the ball rolling soon and become a focal point in activating the long-awaited development of the area.

"How long will this government last?" is beyond my imagination. I simply hope that it will be in power long enough to help bring the land bridge project to the point at which it would be very difficult to reverse, and that it secures enough of a commitment from the bureaucrats involved.

First of all, it is necessary to identify the exact site for both deep seaports, together with the site for the industrial estate. On the Andaman Sea side, many choices are available: Pakbala in Satun, Krabi, Phang Nga, Ranong or even Puck Tian in Burma. On the Gulf of Thailand seashore, possible sites include Sichon or Khanom in Nakhon Si Thammarat, Surat Thani or even at Prachuap Khiri Khan. There are pros and cons for each site.

I do not have enough information to indicate which one is best. Information on each of the site is available at concerned government offices, including numerous studies. With this readily available information on various sites, the committee could choose the proper site without too much difficulty. No single site would be perfect in all respects. But if we do not make any choice, industrial development cannot proceed further. Time is of the essence.

The site must be chosen impartially, without being intended for personal benefit or to enrich cronies. Much more has to be done. Most importantly, it is impossible to move forward until the sites are determined. I would urge the committee to get the ball rolling as soon as possible in order to make this long-awaited plan irreversible.

Until next Monday.


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