The 30-year-old saga of Thailand's Kra Isthmus Canal, an alternative shipping route through southern Thailand linking Europe and the Far East, has been resurrected yet again.

Thai defence minister Chavalit Yongchaiyudh says he is to press the national government to reconsider the project, describing it as crucial in the stimulation of Thailand's slowing economy.

"The Kra Canal project would create a huge number of jobs, stimulate domestic demand to revive the country's industrial sectors like cement and steel, which would in turn enable the country to stage a strong rebound," Chavalit was quoted by the Bangkok Post daily as saying.

Chavalit