Big blow to China as Thailand scraps KRA canal project

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News: Thailand has announced that it has decided to scrap a Chinese led-KRA canal project.

Facts:

  • Kra Canal also known as Thai Canal or Kra Isthmus Canal refers to a proposed canal project that aims to connect the Gulf of Thailand with the Andaman Sea across the Kra Isthmus in southern Thailand. 
  • Significance: The canal would provide an alternative to transit through the Straits of Malacca and shorten transit for shipments of oil to Japan and China by 1,200 km.

Additional Facts:

  • Strait of Malacca: It is a narrow, 890 km (550 mi) stretch of water between the Malay Peninsula (Peninsular Malaysia) and the Indonesian island of Sumatra.
    • It serves as the main shipping channel between the Indian Ocean and the Pacific Ocean and is one of the most important shipping lanes in the world.