VIENTIANE: The Laos-China high speed railway is likely to fulfil Laos’ aspiration of becoming a major regional land link offering greater connectivity plus better access to trade opportunities.
Also known as the Vientiane-Boten railway, the 422km electrified railway is certainly part of China’s Belt and Road Effort. It runs between Lao capital of Vientiane and Boten town in northern Laos bordering The far east.
The particular railway forms an area of the Kunming–Singapore train project which connects Kunming, the capital associated with China’s Yunnan province, with Singapore, via Laos, Thailand, and Malaysia.
Opened on December 3 last year, the Laos-China railway provides a cheap, faster and more efficient travel mode and helps reduce travel time to only one day compared to 3-5 days by road.
Additionally, it offers visitors, especially from Thailand, the opportunity to visit Luang Prabang which is listed as being an Unesco World Heritage site and is one of the stations along the line.
Between May 9 plus July 31, when Laos reopened the nation, some 250, 500 tourists from the Thai side of the boundary visited the adjoining country. A similar amount of visitors from Laos also crossed the particular border into Asia, say immigration authorities at the Thai-Lao Friendship Bridge in Nong Khai.
Cross-border tourism during this time period generated about eight hundred million baht, authorities said.
Land link aspirations
The particular Laos-China railway also links with the Thanaleng Dry Port and Vientiane Logistics Park (VLP), Laos’ first-ever integrated logistics recreation area situated on the outskirts of Vientiane.
The logistics park and dried out port opened upon Dec 4, 2021, the day after the starting of the railway.
Tee Chee Seng, vice-president associated with Vientiane Logistics Recreation area Co, which was granted a concession by the Laos government to develop and operate the project, told the particular Bangkok Post the logistics recreation area and the dry slot have facilitated cross-border logistics and shipping shipments from Asean via Thailand to Vientiane.
From Vientiane, freight containers will be transferred on cargo trains along the Laos-China train to its northern end bordering Tiongkok within three days, he said.
“This service is beneficial especially for farming produce as the quality of the goods is usually retained when they reach consumers in Tiongkok which is a major market for this kind of item, ” Mr Tee said.
“Fresh products retrieve good prices. Those who benefit from quick transport are consumers and maqui berry farmers. ”
The Lao government has offered bonuses to attract international investment in farming, processed food and halal food industries, medication and pharmaceutical industries, he said.
Covering about 2, 000 rai, the US$727-million (26. 5-billion-baht) logistics recreation area and dry slot project has 4 phases expected to end up being finished in 2027. The first phase is nearly complete, Mr First tee said.
When the fourth stage is finished, the task is expected to improve trade and expense and create more than twenty, 000 jobs, he or she said.
The logistics recreation area and the dry port are located in a particular economic zone within Vientiane.
Apart from the dry interface, the VLP also offers the infrastructure designed for cross-border logistics, using a customs clearance system, a transit yard for freight containers, warehouses, a place and facilities pertaining to cross-border shipments.
In the future, a factory will be created to make goods regarding domestic consumption along with export them. It will help scale down Laos’ dependence on imports and enhance its economic growth, Mr Tee said.
“The Thanaleng Dry Slot project is based on research by the Japan Worldwide Cooperation Agency. It really is intended to accommodate freight containers from Thailand at a rate of about eight hundred containers per day, ” Mr Tee said.
“The project was developed even before the Laos-China railway. The opening of the railway offers underscored the dry port’s strategic significance in terms of the economy and trade, ” he or she said.
During the first half of this year, the value of cross-border trade between Thailand and Laos was estimated at more than 120 billion baht.
This is expected to increase to 200 billion baht in the latter half when more edge passes are expected to reopen for cross-border trade.
Mr Tee said China is not the ultimate destination for all the products transported via the dry port in Laos, as they can be carried further along the China-Europe rail line in order to European markets.
Freight through China will also be carried via the dry interface to Thai clients along the Laos-Thailand railway — a project under construction, he additional.
In the future, further rail hyperlinks will also be forged to deliver goods further right down to customers in Malaysia, Singapore and Indonesia, he said.
A railway project connecting Vientiane to the Vung Ang sea port within Vietnam is also in the pipeline, which would allow the shipment of goods to Japan, Hk and the US, he or she said.
Mr Tee declared that early this month, authorities from Malaysia signed a memorandum of understanding upon good shipments with the dry port with the company.
“This bodes properly for the future of better connectivity among Asean countries as well as enhanced links with Cina, Europe and other locations through cost-effective, convenient, fast and safe railway networks, which in turn will boost trade plus growth, ” he or she said.
No rivalry
Asked whether Laos’ ambition to turn into a regional land hyperlink with the dry interface project will spark rivalry with neighbouring countries, particularly Thailand, Mr Tee stated: “We don’t observe ourselves as anybody’s rival.
“We only want to establish a link to help move goods through producers to customers faster. This will benefit everyone — customers, sellers and maqui berry farmers. All sides is going to be happy. ”
On Aug 16, Chayatan Phromsorn, permanent secretary meant for transport, met Datuk Isham Ishak, secretary-general of Malaysia’s Transport Ministry, for talks on forging transportation links between the nations.
The particular Malaysian delegation mentioned the country wanted to set up a rail link with Thailand’s high-speed train system to connect to Laos and China.
It offers also backed a proposal by Thailand for a joint -panel to work on high-speed rail links connecting China, Laos, Asia Malaysia and Singapore.