Monday, May 7, 2007

Pipeline PipeDream?

I have just heard on Channel News Asia (07May2007) that the Prime Minister of Malaysia, Ahmad Badawi has just announced that Malaysia will be building a couple of billion Ringgit worth pipeline to channel crude oil carried on ships from the Middle East at a point on the western side of northern Peninsular Malaysia to another point on the north eastern side to be processed into refined petroleum for export to the Far East (China, Japan, Indo-China, Taiwan etc).

News had it that this is in response to the increasing unease about security in the Straits of Malacca, ranging from piracy, terrorism and treats to the environment in the event of an accidental of man made oil spillage.

If and when the project materialises, the implications are major for member ASEAN countries bordering the Straits of Malacca, chiefly Singapore, who in one way of another benefit from ships transiting at en route to the Far East.

We may recall that way back in the late 1800's, there was already a plan proposed by one English gentleman R.W. Duff to build a canal ala the Suez and Panama to cut shipping time by omitting the Straits of Malacca: the Isthmus of Kra Canal.

Three years back, while searching on the Internet for information about the Isthmus of Kra, I was pleasantly surprised that the idea of a canal is not new, it even predates that of Duff's.

It was in fact promulgated by a King of Siam (King Narai the Great, 1677) long before King Mongkut. (see http://en.wikipedia.org/wiki/Kra_Isthmus)

The Kra Canal never got off the ground because the British were dead against it, for it will spell the death of Singapore, their revenue center at the tip of Asia where all sea traffic sailing West to East and vice-versa has to pass through it and pay toll.

The death of the Kra Canal was sealed when the British got the Siamese to sign a treaty in 1897, agreeing never to build a canal that could threathen the survival of Singapore.

Once in a while, the idea of a Kra Canal will pop up but somehow, the Thais show no passion about it though it was first mooted by a Thai King long ago.

The Isthmus of Kra is actually a very narrow strip of land, no more than 50km at its widest and given the technology we have today, building a canal to handle even the biggest of the super tankers will take no more than 1 year.

Of course cutting the Kra is like cutting the umbilical cord that connects Bangkok to the restive south, not a good idea when Bangkok is at wits ends on how to win back the breaking away southern territories.

But on the other hand, making a cut is also tantamount to containment, sending a message that Bangkok is containing the south so that it can be better controlled.

Rationally, the Kra Canal is better idea, economically, logistically, strategically etc as not only oil tankers can use it, but all kinds of sea going vessels.

With an area less than 50km long, it is also easier to secure.

It will be interesting what will conspire these coming weeks.

Will Singapore gang up with Thailand to build the Kra Canal with US blessings, since if you are going to lose business, you may as well mitigate potential losses by sharing future profits?

From the point of conservation, sustainable and renewable development, the Kra Canal is long overdue. Everyday, needless travel have to be done by thousands of ships sailing from the West to the East or to the South by passing through the narrow and pirate infested Straits of Malacca and if traffic continues to increase, it is a matter of when, not if a major oil spill will occur, impacting on the environment and life here in at least three countries: Indonesia, Malaysia and Singapore.

Well, for all we know, the PipeLine Project could well be just a PipeDream Project but we can be certain that Singapore will not be sitting pretty...something is in the pipeline...and will be happening soon.

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