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.
It is an important project of China’s 21st century maritime Silk Road.
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.
Canal planners say that, strategically, it is very important for China to get an alternative route for its energy and trade security, as India has control of the Malacca Strait.
China is also planning a road and rail route through Pakistan, also as an alternative for Middle East trade passing through the Malacca Strait.