On June 18 recently, Chinese Premier, Li Qiang made a three day official visit to Malaysia. The visit coincided with the 50th anniversary of the diplomatic relation between Malaysia and China which started between the Dato Najib's father, the late Tun Abdul Razak and Mao Tze Tong in 1974.
There was a slew of deals signed and durians are now allowed to be exported to China to mark the renewal of a five year economic cooperation pact. Though not as much as the US in terms of FDI, China is the most important trading partner of Malaysia. Trade is the heart of the half century of economic ties.
There was whispers and speculation that the reception from China side was not as warm. It was not Xi Jin Peng but instead his Prime Minister. Perhaps, Malaysia is not in China's BRI grandplan with the US vehicle GIP making inroad into the airport sector.
The speculation can be put to rest. China's involvement in the development of Malaysia's rail system will continue beyond the ECRL.
Media today reported on the launch of the Asean Express.
Star Online below:KTMB launches Asean Express
By BENJAMIN LEE
NATION Friday, 28 Jun 2024
PETALING JAYA: The Asean Express, a new international freight train service connecting Malaysia, Thailand, Laos and China, has been launched by Keretapi Tanah Melayu Bhd (KTMB) to improve trade connectivity between the nations.
The service will connect new trade routes and multiple inland ports across the region, including the Kontena Nasional Inland Clearance Depot (KNICD) in Selangor, Perlis Inland Port, Thailand’s Latkrabang Inland Port and the Thanaleng Dry Port in Laos, all of which are pivotal trade hubs.
It can reduce the transit time of goods between the nations, with the transit time from KNICD to Chongqing, China, expected to take only nine days compared with 14 to 21 days by sea.
Transport Minister Anthony Loke said the new service will improve regional logistics and rail connectivity, as well as open up new regional markets and reduce costs for local businesses.
“This new service will provide a smoother and more efficient flow of goods throughout the region, as well as enhance rail cargo transport capacity while reducing logistic costs for businesses by at least 20%.
“The quicker transport time is also expected to open up new markets in the agricultural sector, in particular by allowing for previously perishable produce to be transported quicker by rail.
“Rail transportation also boasts a significantly lower carbon footprint compared with road haulage, promoting a more sustainable future for all.
“Let us continue to work together in fostering innovation and strengthening trade ties to build a sustainable and competitive regional rail transport network that will benefit businesses and citizens across South-East Asia,” he said after flagging off Asean Express’s first shipment to Chongqing from KNICD here yesterday.
The new service will also see the deployment of KTMB’s first Malaysian-made “pay-as-use” leased locomotives.
A total of six locomotives and 204 wagons, built with local expertise at homegrown rail equipment manufacturer SMH Rail in Selangor, had been leased by KTMB for the service, which projects up to two round-trip train runs per week for its initial run.
KTMB group chief executive officer Datuk Mohd Rani Hisham Samsudin expressed his pride in the new service for showcasing both Asean and Malaysia’s competitiveness in the global market.
Also present were Lao People’s Democratic Republic Deputy Head of Mission to Malaysia Phetwilaychanh Souvannarath, Thailand Ambassador to Malaysia Lada Phumas, and China Ambassador to Malaysia Ouyang Yujing.
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During his official visit, Li Qiang expressed China's desire to undertake a study the plan to link the US$10 billion ECRL to other China backed rail project in Thailand and Laos.
Visualise the transformation of the Asian geopolitics and business network towards 2040:
Kra Canal?
The Trans-Asian Railway will be a gamechanger for Malaysia and Asean. Thailand have been toying for centuries with the idea of a Kra waterway that could bypass the Straits of Malacca. It went back as early as 1677.
The idea has been dismissed by the government in 2020. In March 2021, the Thai government began undertaking a Bt44 billion study for a land bridge instead. The project is to expand the logistic network and connectivity with the southern provinces. There will be an airport built for the Northeastern and Southern provinces.
Seatrade Maritime News reported:
Thailand revives the Kra Canal but this time as a landbridge
Thai Prime Minister Srettha Thavisin presenting landbridge in lunch meeting with Transport Minister - posted on X
Thailand is seeking investors for a $28 billion landbridge across the Isthmus of Kra which would allow shipping bypass the busy sea route of Malacca Straits, reviving the centuries old Kra Canal project.
Marcus Hand | Nov 15, 2023
Thai Prime Minister Srettha Thavisin is expected to pitch the 90 km landbridge at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco this week.
Two weeks ago the Thai Prime Minister posted on social media platform X (formerly Twitter) pictures a lunch meeting with country’s Transport Minister to prepare information on the landbridge for the APCE summit. PM Srettha said in the post he believed the project would be able to attract investors and elevate the economic development of Thailand to another level.
Related: The proposed Kra Canal: Maritime highway of the future
The 90 km landbridge would connect the ports of Ranong and Chumphon, with major deepsea terminals built in both locations.
The landbridge would have the capacity to transport 20 million teu of containers across the country bypassing the Malacca Strait and major ports in Singapore and Malaysia. Singapore is the world’s largest transhipment port connecting east and west, while Malaysia also has major transhipment terminals in the Port of Tanjung Pelepas and Port Klang.
Photo from CNA
Unlike previous iterations of the proposed link, it does not involve digging a canal but rather an overland connection, details of which remain sparse although would likely include motorways, railroad, and pipelines.
The Kra Canal was first envisaged nearly 400 years ago and its construction has been proposed on a number of occasions in recent decades, most recently in 2015 when agreement was reportedly signed between Thailand and China. Although both governments later denied this was the case.
According to Mahanakorn Partners Group (MPG) the landbridge received a significant milestone of Thai cabinet approval on 16 October this year.
The Thai PM has already sought interest in the project from China welcoming investors from the country.
“This will be a global mega-project, which will shorten the duration of goods transport via the channel of the Malacca Strait by six to nine days,” he said during the Thailand-China Investment Forum in Beijing on 19 October, Channel News Asia reported.
The largest portion of the investment, some $18 billion would be for the two deepsea ports in Ranong and Chumphon.
While the Thai PM estimated a six to nine days-time saving by vessels for bypassing the Malacca Strait it has been previously estimated as being just three - four days. While the inter-oceanic Panama and the Suez Canals - enable ships avoid having to sail round entire continents, South America and Africa respectively, by contrast the landbridge would save a transit approximately 1,200 km.
The Malacca Strait sees around 70,000 to 80,000 vessel transits annually and there have been warnings of it reaching capacity by the end of the decade. A hypothetical closure of the Singapore and Malacca Straits is estimated as costing shipping $65 million a week as result of diverting via the Sunda Strait.
Meanwhile the proposed landbridge in southern Thailand cuts across a politically unstable region of the Southeast Asian nation.
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JS-SEZ
Singapore, whose port business will be significantly affected, responded in a CNA October 2023 article to cast doubt on its viability. A snippet from the report below:
BANGKOK: Thailand's plan to build a 90km land bridge across its southern region, which could see shipping trade bypass Malaysia and Singapore, is on paper easier than the long-touted Kra Canal, although it still faces steep challenges, say analysts.
These include the multi-billion dollar construction cost, security concerns in Thailand’s conflict-ridden south and the mountainous terrain where the project would prospectively be located.
Given the long-established shipping facilities and operations in the Straits of Malacca, analysts also warned that the Thai land bridge initiative could end in failure if not carefully planned.
Read on HERE.
Malaysian ports in the middle and south of Peninsular Malaysia such as Port Klang and near Johor Baru will be severely affected too. However, the northern ports are within vicinity to benefit from servicing the landbridge.
In fact, the idea of the landbridge was mooted by Malaysia in the 1990s as part of the northern triangle regional development plan involving Malaysia-Thailand-Indonesia, but Thailand intended to carry it on their own.
CNA reported the cost for the land bridge could be within US$35.6 billion. Thailand is hoping on China to invest since their immediate interest is the rail link.
Singapore too will likely be more comfortable with the rail link than Thailand's Kra Canal. They have expressed reservation with Malaysia's and Thailand's geopolitical positioning to join BRICS.
On Wednesday, there was a simple but significant ceremony to mark a historic 100 year anniversary of the Johor-Singapore Causeway. It is one of the busiest border crossings in the world and the Trans-Asian Railway will open up the causeway to a hive of new activities.
Mahathir have lately been yelping over RTS, Forest City, Johor-Singapore Special Zone and Johor Sultanate with the end-of-life aspiration to end the monarchy system. Knowing him, it is either he is envious for not having his beak wet or disgusted nobody listen to him anymore.
Johor cannot be a victim of his past and probably experience as a medical student in Singapore. It has to move out of his past prejudice.
Star Online reported:
‘Causeway a symbol of close M’sia-S’pore ties’
NATION
Tuesday, 25 Jun 2024
JOHOR BARU: The Causeway is more than a bridge linking Singapore and Malaysia, but a symbol of the close relationship between both countries, says state exco member Mohamad Fazli Mohamad Salleh.
“With the Causeway coming to its 100th year soon, the anniversary celebration is a sign of the good relationship which exist between the governments of Johor and Singapore,” he said when contacted here yesterday.
Mohamad Fazli, who is also the Bukit Pasir assemblyman, said the Causeway will remain as an important channel to ferry goods and people between both countries.
Asked on whether there are plans to upgrade the Causeway, including widening the 2.4km-long route, Mohamad Fazli said there are no plans to do so for now.
“It depends on both Malaysia and Singapore governments if there is a need to upgrade the Causeway.
“At present, we are waiting for the Johor-Singapore Special Economic Zone (JS-SEZ) agreement to be signed in September,” said Mohamad Fazli, who is state works, transportation, infrastructure and communication committee chairman.
Under the leadership of Johor Mentri Besar Datuk Onn Hafiz Ghazi, the state government has been proactive in solving congestion issues at both land checkpoints here, especially at the Causeway.
Frequent trips to Bangunan Sultan Iskandar Customs, Immigration and Quarantine made by Onn Hafiz and his state executive councillors have help ease the congestion.
Johor, Malaysia and Singapore should move ahead. Pointless to cater to those in a time warp and stuck in romantic past. Life is getting more challenging and the nation is at a critical juncture. The past and its perceived but false glory will drag it from progress and offering the people a better life.
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