USEFUL ARTICLES

China-Laos Railway Freight Transport Increases by 95%

February, 1 2024

The China-Laos railway project is a major initiative connecting Kunming, China, with Vientiane, Laos. Launched on December 3, 2021, it serves as a flagship project under China’s Belt and Road Initiative (BRI), aligning with Laos’ strategy to transform from a landlocked country into a regional transport hub.

The China-Laos railway has significantly improved cargo transport efficiency, allowing key products such as iron ore, cassava, and rubber to be imported into China for the first time. These goods are also exported to Europe and Central Asia via the China-Europe freight railway. Additionally, China exports mechanical and high-tech products to ASEAN countries through this route.

Covering over 1,035 kilometers with a speed of 160 km/h, the railway network connects more than 30 cities in China's Bohai Sea region, the Yangtze River Delta, and the Pearl River Delta. It also facilitates trade and investment between China and 12 BRI countries, including Laos and Thailand. The railway is part of the larger Kunming-Singapore railway, which runs through Laos, Thailand, and Malaysia before reaching Singapore.

Thailand-Malaysia Railway Cooperation: Plans to Reopen Cross-Border Services

The Thai Department of Rail Transport (DRT) is working to enhance seamless cross-border freight transport and has initiated discussions to revive the Sungai Kolok–Rantau Panjang railway line, which has been inactive for over 20 years. The project also includes exploring the potential for a high-speed rail connection between Thailand and Malaysia.

On January 17, 2024, DRT Director-General Pichet Kunathammarak and Mohd Shahriman Bin Shafein, Director-General of the Federal Railway of Malaysia, co-chaired the 2nd Thailand-Malaysia Railway Joint Working Committee (RJWC) meeting. Key stakeholders, including Thailand’s Customs Department, Immigration Bureau, and the National Economic and Social Development Council (NESDC), participated in the discussions.

Key Areas of Cooperation in Thailand-Malaysia Railway Development

1. Seamless Cross-Border Rail Transport

   • Both countries discussed regulatory harmonization and improving cross-border freight operations.
   • The 1922 Siam-Malaya Government Agreement was reviewed to facilitate smoother railway operations between Thailand and Malaysia.
   • Efforts will focus on reducing transportation time and costs, customs coordination, and security measures for railway operations, particularly in Narathiwat and Tak Bai districts.
   • The potential integration of the Sungai Kolok-Pasir Mas railway with Malaysia’s East Coast Rail Link (ECRL) was also explored.

2. Reviving the Sungai Kolok–Rantau Panjang Route

   • Thailand has completed railway bridge renovations at the Thai-Malaysia border.
   • The Sungai Kolok–Rantau Panjang railway, a vital passenger and cargo transport route in the past, was halted due to security concerns in Thailand’s southern border provinces.
   • Both governments are working towards reopening this route, which could restore trade and travel in the region.

3. Railway Infrastructure and High-Speed Rail Connectivity

   • The meeting explored the feasibility of connecting high-speed rail services between Thailand and Malaysia.
   • Future discussions will take place at the 3rd RJWC meeting in August 2024, hosted by Malaysia.

Future Outlook

With the expansion of cross-border railway connectivity, Thailand and Malaysia aim to enhance regional logistics, boost economic cooperation, and strengthen ASEAN’s position as a key trade and transport hub. The revival of the Thailand-Malaysia railway will play a crucial role in promoting investment, trade, and tourism between the two nations.