IMPACT OF THE KRA CANAL ON CONTAINER SHIPS’ SHIPPING TREND AND PORT ACTIVITIES IN THE STRAITS OF MALACCA

Abstract

The Straits of Malacca is one of the busiest straits and the shortest route connecting Asia and Europe. The congestion and the geographical condition of the Straits of Malacca have created concern to user states especially China that suggested a canal and ready to finance the construction of the canal which will be located somewhere across the southern part of Thailand. According to China, this canal is able to solve the congested situation in the Straits of Malacca and also poses a more rational option to reduce travelling time and costs. The plan to construct Kra Canal will pose several impacts to Malaysia’s ports, which have been analysed using PESTEL analysis.