China-Laos Railway celebrates third anniversary, strengthening trade, bilateral ties

Chongqing - December 3 marked the third anniversary of the China-Laos Railway, which connects Kunming, China, to Vientiane, Laos. Over the past three years, its capacity has grown, enhancing regional connectivity across Southeast Asia and becoming a key "golden channel" for mutual benefits, safety, and efficiency.

Passengers bound for Laos are aboard a China-Laos Railway train at Kunming South Railway Station in Kunming, southwest China's Yunnan Province, February 14, 2024. (Photo/Xinhua)

According to official data, as of October 14, 322 trains had departed from Chongqing to Laos, transporting 16,088 TEUs of goods. Meanwhile, 169 trains had arrived from Vientiane to Chongqing, carrying 8,444 TEUs.

About 15 kilometers east of Vientiane and 7 kilometers from the Lao-Thai border along the Mekong River, Huxin Luo, a Bridging News reporter, observed containers marked with "China Railway" lined up beside the tracks.

Two trains from Chongqing, via the China-Laos Railway and the New International Land-Sea Trade Corridor (ILSTC), deliver goods to Laos every week, while Lao agricultural products are regularly transported back to Chongqing.

Chongqing, Laos, and Southeast Asia share strong industrial complementarities

Convenient logistics have greatly enhanced economic and trade ties between Chongqing and Laos. According to Chongqing Customs District, trade between the two reached 620 million yuan (approx. USD 85.28 million) in Q1-Q3 2024, a 64.5% year-on-year increase. Exports totaled 580 million yuan, rising by 105.1%.

"Chongqing and Laos, along with other Southeast Asian nations, enjoy strong industrial complementarities," said Xaybandith Rasphone, Vice-President of the Lao National Chamber of Commerce and Industry (LNCCI).

"Agricultural products from Laos and Southeast Asia are highly sought after in the Chongqing market, while Chongqing's industrial products, including motorcycles, agricultural machinery, mobile phones, and computers, are equally in demand in Laos and other Southeast Asian countries," Xaybandith added.

The success of the China-Laos Railway has not only facilitated growing trade between Chongqing and Laos but also played a crucial role in strengthening overall China-Laos economic ties.

According to China State Railway Group Co., Ltd., by the end of August, the railway had transported 44 million tons of goods, including nearly 10 million tons of cross-border cargo.

The range of cross-border goods has grown significantly, expanding from just over 1tencategories—such as rubber, fertilizers, and general merchandise—at the start to more than 2,900 items.

This includes China's machinery and electronics, photovoltaic products, natural rubber, and tropical fruits from Laos and Thailand, all of which move seamlessly in both directions via the China-Laos Railway.

The Laos section of the China-Laos Railway. (Photo/Chen Zhan)

China-Laos Railway boosts Trans-Asian Railway in Southeast Asia

The success of the China-Laos Railway has influenced the construction of the Southeast Asia section of the Trans-Asian Railway (TAR) across the Indochina Peninsula.

In 1995, Malaysia's then-Prime Minister Mahathir Mohamad proposed an international railway connecting Yunnan, China, to Singapore via Laos, Thailand, and Malaysia. In 2006, 18 Economic Commission for Asia and the Far East member states signed an agreement to develop and link key rail corridors across Asia, formally launching the Trans-Asian Railway Network.

A glimpse of the busy operations at the Vientiane warehouse. (Photo/Hong Huang)

"Due to challenges such as funding, technology, and the international political climate, the TAR made little headway for many years," said Zhu Ting, Executive Vice President of the Lao Sichuan & Chongqing Commercial Chamber.

Laos plays a key role in the Southeast Asian segment of the Trans-Asian Railway. Strategically located at the heart of the Indochinese Peninsula, it connects several Southeast Asian nations. With the opening of the China-Laos Railway, the country added 422.44 kilometers of new track, making it the leader in rail infrastructure per capita among ASEAN countries.

Building on the success of the China-Laos Railway, construction has begun on Thailand's first high-speed rail, the China-Thailand Railway. Once the second phase is completed, it will connect directly to the China-Laos Railway and reach Kunming.

Meanwhile, Malaysia is advancing the East Coast Railway, a key "land bridge" linking the east and west coasts. Once completed, it will connect Kota Bharu to Kuala Lumpur and provide access to the Pacific and Indian Oceans.

More news has been released recently. On August 20, China and Vietnam issued a joint statement to accelerate cooperation in railway and infrastructure projects, pledging mutual support for related initiatives.

China has agreed to provide support for the planning of the standard-gauge railway projects between Lao Cai-Hanoi, Mong Cai-Ha Long-Hai Phong, and the feasibility study report for the Lao Cai-Hanoi-Hai Phong standard-gauge railway project in Vietnam.

Additionally, Indonesia is exploring the possibility of extending the Jakarta-Bandung High-Speed Railway to Surabaya, the country’s second-largest city, while the Malaysia-Singapore High-Speed Railway continues to progress.

Efficient transportation networks are enhancing the flow of people, goods, and capital. With over 300 million people across the Indochina Peninsula, this will accelerate regional economic integration and fuel sustained economic growth.