19 January 2024 (Lloyd's List) - DP WORLD continues to take bold steps into underdeveloped regions, with a possible investment in Thailand's long-mooted Land Bridge project, as well as working with the Pakistan government to improve infrastructure and develop an economic zone at Port Qasim.
Local Thai media reported that the Dubai-based global port operator had expressed interest to invest in the Baht1trn ($28bn) megaproject at a meeting between Thai Prime Minister Srettha Thavisin and DP World chairman and chief executive Sultan Ahmed bin Sulayem on the sidelines of the World Economic Forum in Davos, Switzerland.
In response to queries, a DP World spokesman said: "As a global end-to-end supply chain solutions provider, DP World is constantly looking for opportunities to improve the flow of trade."
The idea of building a land link across Thailand's narrow Kra Isthmus is at least 300 years old and has been promoted in one form or another by several previous administrations.
The potential to cut voyage time and bypass the Straits of Malacca are the same arguments repeated over many years.
The plan, in its current iteration, is to build a 90 km land link and associated deepwater ports in Ranong on the west coast or Andaman Sea side and Chumphon on the east coast or Gulf of Thailand side of the country, has so far been hawked to the US, China and Japan and is one of the new premier's flagship projects.
With the slowdown in global trade, the prospects for big ticket investments are dim. However, with the impact of the Houthi attacks on shipping in the Red Sea playing out just round the corner from its flagship port of Jebel Ali, DP World may well be convinced of the value of creating alternatives to shipping chokepoints.
DP World is familiar with the region, where it operates terminals at Laem Chabang in Thailand and Ho Chi Minh City in Vietnam.
Meanwhile, DP World said in a press release that following the signing of inter-governmental framework agreements between Dubai and Pakistan, it will act on behalf of the government to dredge the approach channel at Port Qasim as well as potentially develop a dedicated freight corridor and economic zone, aimed at attracting more than $3bn in foreign direct investment.
Sultan Ahmed bin Sulayem said: "Pakistan is a growing market, and an important trade corridor to Central Asia."
Pakistan's maritime affairs minister Shahid Ashraf Tarar said: "The signing of Investment Framework Agreements highlight the importance of Pakistan as a gateway to Asia and commercial dividends associated with its strategic location."
