Thailand’s Kra Canal: economic feasibility and expert perspectives on its complexity

Abstract

PurposeAsia is one of the most important economic regions of the world. The Kra Canal is considered as a potential maritime transportation node in global trade. Indeed, for centuries, a canal across the Kra isthmus in Thailand has been proposed as holding significant economic and logistical benefits through goods transfer and exchange, yet it remains unconstructed. Common tools in feasibility studies are PESTELE and SWOT analyses, which incorporate cost-benefit and value analyses. The purpose of this paper is to assess the feasibility of the Kra Canal using approaches to complement existing studies.Design/methodology/approachIn this paper, we combine quantitative and qualitative methodologies to holistically assess the feasibility of the Kra Canal. Quantitatively, we consider the economic feasibility of the canal using Net Present Value to evaluate its potential financial benefits. Qualitatively, we then present expert perspectives gathered from in-depth interviews with field experts (n = 20) to identify key aspects of complexity related to the economic, political and overall feasibility of the canal.FindingsWe discuss the possibility of the canal’s construction and describe possible future impacts the canal could have on the region geopolitically, for example, in its role in China’s One Belt One Road initiative and also in how Singapore and Tanjung Pelapas in Malaysia might react. Ultimately, we find significant complexities with the Kra Canal project, ones which anyone contemplating its construction would, we argue, be wise to consider.Originality/valueThis paper combined qualitative and quantitative methods to explore the economic, political and overall feasibility of the Kra Canal. The methodologies and findings supplement past relevant studies and help evaluate the economic, political and overall feasibility of the Kra Canal’s investment project. This is particularly timely considering its potential ability as a route given recent geopolitical events and, for example, as part of China’s Belt and Road initiative and its ability to reduce carbon and sulphur emissions.