Thailand, Laos, China tie up to revolutionise cross-border logistics

Thailand, Laos and China are collaborating to develop a seamless rail freight network aimed at boosting regional trade and economic integration. Central to this initiative is the Bangkok-Nong Khai high-speed railway, which will connect Thailand to Laos, and subsequently to China’s extensive rail system. 

The project is being implemented in two phases:

Phase 1: A 253-kilometre segment from Bangkok to Nakhon Ratchasima, currently under construction with a budget of 179.4 billion baht and expected to commence operations in 2027.

Phase 2: A 357km extension from Nakhon Ratchasima to Nong Khai, approved by the Cabinet in February with an investment of approximately 340 billion baht, projected to be operational by 2030. 
 

Veeris Ammarapala

Key officials, including State Railway of Thailand (SRT) governor Veeris Ammarapala, Lao National Railway Enterprise (LCR) governor Daochinda Siharath, and Lao-China Railway Company general manager Liu Hong, met in January to discuss strategies for optimising freight transport efficiency. Their discussions focused on infrastructure improvements, technological integration, route connectivity and streamlining cross-border procedures. 

“This collaboration is a vital step towards creating a robust logistics network that will benefit all three nations,” Veeris said. “By enhancing rail freight capabilities, we aim to significantly reduce transport times and costs, thereby boosting the competitiveness of our industries.”

This enhanced rail network is expected to significantly benefit Thailand’s agricultural exports by reducing transport times and costs, thereby increasing competitiveness in markets like China. For instance, the China-Laos Railway has already facilitated the transport of goods like Thai durians to China, reducing travel time to approximately 15 hours. 

The growing freight volume between Thailand and Laos underscores the increasing importance of this rail link. The SRT’s plan to add 17 freight trains on the northeastern route further highlights the commitment to enhancing transport efficiency and regional connectivity.