A statement on Thailand’s government website confirmed: “Another important milestone was the signing of MOC between Thailand, Japan, and Myanmar on Dawei Special Economic Zone Development which would be a new economic gateway linking the Indian and the Pacific Oceans.”

Japan’s involvement has long been mooted but this is the first high-level official signing by the government of Japan for the project and is a significant step up of Tokyo’s role.

Likely to be built first as part of the related infrastructure supporting the port development is a 138-kilometre road from Dawei to Kanchanaburi province, 119 kilometers northwest of Bangkok.

Dawei will allow cargo to bypass the narrow and congested Strait of Malacca thereby creating a shorter trade route to Japan. Another reason for Japan’s support is to counter China’s growing presence in South East Asia.