Thailand's Kra Isthmus Canal - will it be a reality?
The canal would take an estimated ten years to complete at a cost of US$28 billion.
Thailand would benefit from toll collection, port fees and a range of developments surrounding the canal.
If the Kra Canal is built, it will cut the journey between the Indian Ocean and South China Sea by up to 1,200 km
Shipping and logistics companies would definitely welcome the lowered costs of moving goods between East Asia and Europe. A shorter trip without going through the Straits of Malacca would also reduce the risk of running into pirates.
On 15 May 2015, a memorandum of understanding was signed by the China-Thailand Kra Infrastructure Investment and Development company (中泰克拉基础设施投资开发有限公司) in
Guangzhou to advance the Kra canal project. On 19 May 2015 the Thai government denied reports that an agreement had been signed with China to construct the canal.