China-Laos Railway freight volumes note immense growth in Q1 2023

Published on 13-04-2023 at 05:30

Image: Flickr Don Glover

In the first quarter of 2023, the China-Laos Railway’s import and export freight volumes increased by 274,4 per cent year-on-year. According to customs data from the Chinese city of Kunming, goods transported along the route in the first four months of 2023 amount to 1,033 million tons.

Increased volumes also correspond to more trains. Data from Laotian authorities show that 954 freight trains transited on the Laos section of the China-Laos Railway, a year-on-year increase of 112,47 per cent. According to CCTV News, there are more than 2,000 different types of goods transiting along the corridor.

From China to Laos, it’s primarily mechanical equipment, household appliances, vegetables, flowers, and machinery parts, while the goods transported from Laos to China are mainly metal ore, cassava, and barley. It has only been 16 months since the opening of the China-Laos Railway in December 2021, and the corridor is constantly growing.

Laos connects to Vietnam

On 1 March, Vietnamese infrastructure investor DEOCA Group signed a joint venture agreement with Laos oil trading company PTL to research the construction of the Vietnam-Laos railway. According to the agreement, the railway will link the Laotian capital Vientiane with the Vietnamese port of Vinh An. The total length of the railway will be 554,7 kilometres, with a standard gauge and an operational speed of up to 150 km/h. The total investment will reach 4,38 billion Chinese Yuan (roughly 582 million euros).

Most importantly, the planned new railway line will connect to the China-Laos Railway and reap the maritime advantages of Vinh An, where goods will arrive by rail and then be shipped directly to markets such as Thailand, China, South Korea and Japan through a changeover. Although the agreement is still at the feasibility stage, it gives a new blueprint for the future of rail-sea transport between China and Laos.

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