Thailand, China-Laos Railway Connection Gains Momentum

China-Laos Railway, a core project of China's Belt and Road Initiative
[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Thailand has embarked on connecting with the China-Laos Railway, a key project of the Belt and Road Initiative (BRI) ? the overland and maritime Silk Road. In 2019, Thailand signed a trilateral agreement to connect the railway network through Laos to China.

According to the Bangkok Post on the 18th, the Thai cabinet last week instructed the State Railway of Thailand (SRT) to swiftly construct a second railway bridge between Nong Khai Province in northeastern Thailand and Laos to connect with the China-Laos Railway.

Anutin Charnvirakul, Deputy Prime Minister and Minister of Public Health, said, "Once the China-Laos Railway is connected to Thailand, it will bring economic development to western China, Laos, and Thailand."

Deputy Prime Minister Anutin expects transportation costs from Thailand to China to decrease by up to 50% compared to existing transport methods after the railway connection.

He added, "The opening of the China-Laos Railway has already shortened freight transport time from Thailand to China by one day, and costs have decreased by about 25%."

Saksayam Chidchob, Minister of Transport, also stated in parliament the previous day that "the opportunities arising from the railway connection for Thailand’s industrial sector will be enormous."

Currently, 90% of exports and imports between Thailand and China are conducted via maritime routes, with the remainder transported overland through Laos. The trade volume between the two countries has steadily increased from 2012 to 2020, with exports tripling and imports also rising significantly between 2017 and 2020.

Minister Saksayam announced, "Thailand and Laos have already agreed to study measures to shorten customs clearance procedures for cross-border freight transport starting from April."

He also revealed that an agreement was reached to connect the China-Laos Railway with Thailand’s Nakhon Ratchasima?Nong Khai high-speed rail section. The China-Laos Railway, which opened in early December last year, connects Kunming in China to Vientiane, the capital of Laos, spanning 1,035 km and operating at an average speed of 160 km/h.