Songkhla: The Ministry of Transport is gearing up to transform Songkhla Port into a logistics hub in the lower Gulf of Thailand. Minister of Transport, Sanphet, announced plans to enhance the port's infrastructure, including a request for an additional 133 million baht for dredging operations in fiscal year 2027, with the goal of channeling at least 50% of rubber exports through Songkhla Port.
According to Thai News Agency, Mr. Sanphet Bunyamanee, Deputy Minister of Transport, recently visited the Songkhla Deep Sea Port in Songkhla Province to assess the progress of the project aimed at improving Songkhla Port. The project is designed to enhance water transport infrastructure and foster logistics connectivity in the lower southern region. Mr. Sanphet emphasized the strategic economic importance of Songkhla Port, which serves as a key channel for international exports and imports, thus playing a significant role in driving the economy of Songkhla province and the southern region.
During his visit, Mr. Sanphet reviewed the development and improvement project, a public-private partnership, focused on expanding the port's capacity to accommodate large cargo ships and increased container volumes. This initiative also addresses the challenges posed by the current shallow waterway. For fiscal year 2027, the Ministry of Transport, through the Marine Department, has allocated 120 million baht for dredging and maintaining the port's waterway, which will involve removing 1.3 million cubic meters of accumulated sediment. This effort is expected to facilitate safer and quicker access for cargo ships entering and exiting the port.
Historically, Songkhla Port faced limitations with container handling equipment and channel depth, resulting in approximately 2 million tons of rubber, representing 70% of Southern Thailand's annual production, being exported via Penang, Malaysia. This bypassed Songkhla Port due to the necessity of transiting through Singapore. Presently, Songkhla accounts for only 5% of Southern Thailand's rubber exports. The ongoing development, featuring the installation of two Ship-to-Shore Cranes (STS) and other enhancements, aims to enable direct shipping routes to China, Korea, and Japan. This is anticipated to cut logistics costs for businesses and is expected to redirect at least 50% of rubber exports currently going through Penang back to Songkhla Port. Consequently, this upgrade is projected to boost Songkhla Port's cargo volume from 2 million tons per year to 4 million tons per year, and its container capacity from 150,000 TEU per year to 450,000 TEU per year within the next 5-6 years.
The private sector has proposed that the Ministry of Transport seek an additional budget of 133 million baht for the 2027 fiscal year to dredge 1.4 million cubic meters of sediment from the channel, which has not been dredged before. This would increase the total dredging budget to 253 million baht, with a total of 2.7 million cubic meters of sediment to be removed. The dredging is aimed at maintaining a channel depth of at least -9 meters at low tide throughout the year, in compliance with the Cabinet resolution of January 10, 2023.
Mr. Sanphet also announced that the development and improvement project is slated to be operational by October 2026, positioning Songkhla Port as a key international trade gateway in the South. This initiative is expected to foster economic growth, develop industries, increase employment, reduce logistics costs, and boost exports of rubber and other agricultural products.
Regarding the proposal for additional dredging, the Marine Department has been tasked with preparing a budget request for the 2027 fiscal year to ensure maximum benefit for all stakeholders. Mr. Sanphet reiterated the Ministry of Transport's commitment to enhancing waterway transportation systems in the southern region, which aims to elevate it as a trade gateway in the lower Gulf of Thailand, thereby increasing container handling capacity, reducing logistics costs, enhancing Thai export competitiveness, and creating jobs and income for the local population.