A new port will be constructed in Chiang Saen district of Chiang Rai province in the North. The Cabinet, during its meeting on October 16, approved the construction project, which will contribute greatly to Thailand’s logistics development.

The project, which will be the second port in Chiang Saen, involves a budget of 1.5 billion baht and construction work will begin in 2009. The Ministry of Transport reported that the first Chiang Saen port had become too small to accommodate the rapid growth of trade and transportation between Thailand and China. The expansion of the first port is not allowed, since it is located in a designated historical site and deserves being preserved as part of the national heritage. Moreover, the Treasury Department is developing this district to be registered as a World Cultural Heritage Site. This historical site will also be promoted as a major tourist destination in northern Thailand.

The Marine Department under the Ministry of Transport has conducted a survey of the site and designed the second Chiang Saen port. The objective is to develop the transport network for the country’s economic activities. This development project will promote Thailand as the center for trade, investment, and transport in the upper Mekong subregion, linking with southern China.

The Ministry of Transport told the Cabinet that the second Chiang Saen port project should receive support in accordance with the country’s financial and economic status. The project is also in line with the Government’s policy, the current 10th National Economic and Social Development Plan, and Thailand’s logistics development strategy, 2007 to 2011. The Office of the National Economic and Social Development Board is taking urgent steps to make Thailand a logistics center in this region. The steps are in line with the country’s effort to reduce energy use. Water transport can save energy and money to a great extent.

The construction of the second Chiang Saen port will be done in conjunction with another bridge across the Mekong River, which is being planned in Chiang Khong district of Chiang Rai. The bridge will facilitate trade and transport between China, Laos, and Thailand.

The new port of Chiang Saen will also help develop Chiang Rai into a major trade gateway between Thailand and southern China. The gateway will serve as a factor to bring about development on a continual basis. With railway development to this gateway and port development in the Andaman Sea, Thailand will be able to provide a multimodal transport corridor and open up a new trade lane, linking with southern China, India, the Middle East, Africa, and Europe.

The second port in Chiang Saen is cited as important for Thailand’s future growth.