New Laos-China high-speed rail offers Thailand excellent freight opportunities

[webfact]

File photo

After just one month the new Laos to China high-speed train is not only proving a success with passengers, but is also providing a reliable and fast route for freight as well.

The first cargo train of the China-Laos Railway bound for China began on December 3rd, 2021, with a cargo of potash products manufactured by a China-Lao joint venture named Sino-Agri International Potash Company.

 

The 1,035-kilometer electrified passenger and cargo railway, connecting Kunming in southwest China's Yunnan Province with the Lao capital Vientiane, fully adopts Chinese technical standards and consists of two sections.

 

Construction of the section in Laos from the border town of Boten to Vientiane started in December 2016, and construction of the section in China from city of Yuxi to the border town of Mohan started in December 2015.

Thailand Fruit Exports

Thailand is now keen to negotiate with the Lao and Chinese governments for closer logistic and freight transport cooperation, through the Laos-China high-speed train project, in the aim of increasing fresh fruit exports.

Speaking after visiting the customs checkpoint at the Thai-Laos Friendship Bridge in Nong Khai province and meeting with the northeastern private sectors and representatives of the Thai Chamber of Commerce on Monday, Commerce Minister Jurin Laksanawisit said the coordination and freight transportation cooperation, if achieved, would also help raise overall cross-border trade between Thailand and Laos, as well as China.

In 2021 the Thailand-Laos border trade volume totaled THB200 billion, an increase of 12.58% from a year before. 

Of the total, exports from Thailand accounted for 112.437 billion baht, up 20.13% from 2020, resulting in a trade surplus worth thirty-one billion baht.

Mr Jurin also pledged to make the best use of the Laos-China high-speed railway to transport more products.
Apparently, China currently only allows the transportation of only goods related to ore, rubber, and cassava through the high-speed railway.

"We would like to negotiate with the Chinese government to allow the transport of Thai fruits in the coming harvesting season between March and May this year," said Mr Jurin.

The Thai government has formed a working panel, proposed by the Transport Ministry, to coordinate with transport authorities in Laos on plans to build a railway linking the two neighbours.

This is part of a high-speed railway project linking Thailand's rail system with the Laos-China Railway, which connects Kunming in China's Yunnan province with Vientiane, the capital of Laos.

Eventually, it is planned to connect the high-speed rail from China down to Singapore.

 

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[Geoffggi]

21 minutes ago, webfact said:

Apparently, China currently only allows the transportation of only goods related to ore, rubber, and cassava through the high-speed railway.

Of course this service is mainly for the benefit of China ..................LOL

[tomazbodner]

42 minutes ago, Geoffggi said:

Of course this service is mainly for the benefit of China ..................LOL

Obviously. That's why they paid for it.

[trainman34014]

Ah; they've formed a 'Panel', so next thing it will be a 'Committee' or two and by the time they've finished all the free food, wine and had all the fully expenses paid trip to China and Laos everything will be settled....in China's favour !

[JoePai]

18 minutes ago, tomazbodner said:

Obviously. That's why they paid for it.

I think you will find it was a loan to the Laos Gov

[mtls2005]

How does all this freight between thailand and Kunming travel now?

[realfunster]

New Laos-China high-speed rail offers Thailand excellent freight opportunities…to buy Chinese goods.

 

Be careful what you wish for Thailand…

[spidermike007]

Thailand is the laggard in the region, when it comes to transportation of goods. They are so far behind the curve. Nothing has been done to improve the situation on the highways that are overly clogged up with trucks of every size. It is an abomination and a stunning lack of vision. 

[ehs818]

If Thai officials believe that China lent them the money for this train line without expecting to gain from it themselves, then those people are foolish. Be forewarned, the Chinese don't care about Thais or any other country that their Belt and Road program is in. AND please remember that while Thailand may want to send fruit and agriculture products to China, China will be in a position to send Chinese troops to enforce their goals. Don't trust China! It's dangerous for your country, any country, this country.

[rct99q]

3 hours ago, mtls2005 said:

How does all this freight between thailand and Kunming travel now?

Come to Nong Khai on a Sunday night, and wait to see what happens on Monday morning. Absolute nightmare most days, Mondays! Sheesh.

 

By vehicle. Hundreds and hundreds of trucks. Many stop in Laos, others continue to various points in Laos, and the Chinese border town of Mohan. A time consuming journey with, at times, difficult road conditions. 

 

Unfortunately Thailand has had nearly 7 years to prepare gof this. Issues with rail tracks, the bridge being too small etc. A missed opportunity in my opinion. Tourism and freight. Up to 3 trains daily. Read the trains can carry upwards of 1,200 passengers, twice a day, plus at least one cargo dedicated only service.

 

Probably take 5 years to get the Thai side operational. Or more.

[ourmanflint]

I remember being very excited by all this back in 2010. 

[Isaan sailor]

“Come into my parlor said the spider to the fly…”

Belt & Road debt trap.

Edited January 11, 2022 by Isaan sailor

[bangon04]

[Srikcir]

Laos' debt to China for financing Laos HSR is about 60% of its GDP. That offers China a virtual lock on Laos' economy.

China demanded and got from Thailand a SHR loan interest rated higher than Thailand's sovereign (ie., T-Bill) interest rate, higher than China's infrastructure loans to Indoneasia.

Likely because of potential default by Thailand after Prayut allegedly suspended (Article 44) any government economic study for economic viability. 

[Srikcir]

45 minutes ago, Srikcir said:

Laos' debt to China for financing Laos HSR is about 60% of its GDP. That offers China a virtual lock on Laos' economy.

China demanded and got from Thailand a SHR loan interest rated higher than Thailand's sovereign (ie., T-Bill) interest rate, higher than China's infrastructure loans to Indoneasia.

Likely because of potential default by Thailand after Prayut allegedly suspended (Article 44) any government economic study for economic viability. 

Correction: 45% GDP