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STRATEGIC ALTERNATIVE ROUTE TO THE WEST THROUGH KRA ISTHMUS CANAL IN THAILAND

A memorandum of cooperation among various enterprises on the construction of Kra Canal in Thailand has been signed in Guangzhou China.
The canal, located at Kra Isthmus, will enable ships to bypass the Malacca Strait so as to shorten their voyage by 1,200 km.
The canal will be 102 km long, 400 meters wide and 25 meters deep.
China says it will provide great economic gains for the countries that have to go through the Malacca Strait for their trade with the Middle East and Europe.
Due to close trade relations between China and ASEAN for years, their bilateral trade rose from $54.8 billion in 2002 to $443.6 billion in 2013.
In the same period, mutual investment grew four times to an accumulated total of $100 billion.
The close relations and accumulated wealth due to economic and trade growth make people believe that the construction of Kra Isthmus is affordable now.
China’s huge state-owned LiuGong Machinery Co. Ltd and XCMG, and private Sany Heavy Industry Co Ltd have taken the lead to set up a preparations group for the construction of Kra Isthmus Canal.
The 100 km artificial link to the Indian Ocean will benefit not only China and ASEAN, but also Japan and other countries’ world trade.

Source: China Daily Mail
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