Situation

Global maritime trade remains heavily concentrated around a limited number of dominant transshipment hubs, particularly in Southeast Asia, such as Singapore and Port Klang. These hubs benefit from strategic positioning along the Malacca Strait, allowing them to capture a disproportionate share of container throughput, value-added logistics services, and regional trade control.

Thailand, despite its strong export base, lacks a deep-sea port on the Andaman Coast capable of handling large-scale transshipment operations. Existing port infrastructure is primarily oriented toward domestic or regional cargo, with limited draft depth, capacity, and global connectivity.

As a result, Thai exports to Europe, the Middle East, and Africa are largely dependent on foreign transshipment hubs, leading to:

• Higher logistics costs

• Longer transit times

• Reduced strategic control over outbound trade flows

Furthermore, the absence of a western maritime gateway prevents Thailand from participating in the rapidly expanding Indian Ocean trade network.

Shift

The global port ecosystem is transitioning from isolated port competition toward integrated port-network dominance, where leading hubs function as central nodes within vast logistics ecosystems.

At the same time, shipping lines are increasingly consolidating routes and forming alliances, prioritizing fewer but more efficient mega-hubs capable of handling ultra-large container vessels (ULCVs) and high-volume transshipment flows.

There is also a growing demand for alternative transshipment locations outside the Malacca Strait due to:

• Congestion risks

• Geopolitical uncertainties

• The need for route diversification

Emerging trade routes linking South Asia, the Middle East, and East Africa are further increasing the strategic importance of ports along the Andaman Sea and the broader Indian Ocean rim.

Advantage

Thailand’s Andaman Coast is geographically positioned along the western edge of mainland Southeast Asia, directly facing major Indian Ocean shipping routes.

This allows for the development of a deep-sea port that can function as:

• A direct interface with westbound global trade

• A regional transshipment hub for ASEAN and mainland Southeast Asia

• A consolidation point for cargo from Thailand, CLMV, and Southern China

Unlike existing hubs that are heavily congested, a newly developed Andaman port can be designed from the ground up to accommodate:

• Ultra-large container vessels (ULCVs)

• Automated port operations

• High-efficiency cargo handling systems

This provides a “late-mover advantage” in adopting next-generation port technologies.

Additional Structural Advantage

Thailand can integrate the Andaman deep-sea port with inland logistics corridors, industrial zones, and the Eastern Economic Corridor (EEC), creating a seamless end-to-end supply chain ecosystem.

This enables a hybrid model where the port is not only a transshipment hub but also:

• A gateway for industrial exports

• A node for value-added logistics (e.g., packaging, assembly, distribution)

• A strategic energy import terminal (e.g., LNG, crude oil)

Additionally, Thailand’s relatively large domestic economy provides baseline cargo volume, reducing dependency on pure transshipment traffic in early stages.

This reduces risk compared to ports that rely solely on capturing international flows.

Implication

Without the development of a competitive deep-sea port on the Andaman Coast, Thailand will remain structurally dependent on external maritime hubs, limiting its ability to capture logistics value and influence regional trade flows.

The country risks being locked into a subordinate position within global shipping networks, especially as neighboring countries continue to expand port capacity and capabilities.

However, if successfully developed, an Andaman transshipment hub would:

• Enable Thailand to capture a significant share of westbound cargo flows

• Reduce reliance on Malacca-centric hubs

• Strengthen national logistics resilience

• Enhance Thailand’s bargaining power within global shipping alliances

This would mark a structural shift from “port user” to “port controller” within the regional maritime system.

Action Layer