China-Laos Cross-border Railway: Goods Handled for Over 8 Million Tonnes

The main goods transported along the railway include fruits, grains, frozen seafood, electronic and mechanical components, as well as minerals and new energy vehicles. The China-Laos cross-border railway has so far ensured the movement of over 8 million tons of goods. This is indicated by customs data from Kunming, the capital of the southern Chinese province of Yunnan. The main goods transported along the railway include fruits, grains, frozen seafood, electronic and mechanical components, as well as minerals and new energy vehicles. The railway, 1.035 kilometers long, is the subject of a bilateral cooperation agreement signed in 2015. It was built with Chinese investments and Chinese standards, being directly connected to China's railway network. Management is joint.For Laos this is a link of great importance for its economic development. The country, the "roof of the Indochina peninsula", is the only landlocked member of the Association of Southeast Asian Nations (ASEAN) and 80 percent of its surface area is covered by mountains and plateaus. The geological situation is also complex on the Chinese side; in fact, the construction of over 200 bridges and tunnels was necessary. The project, part of the major connectivity initiative of the New Silk Road or Belt and Road Initiative (BRI), is also relevant for China: it is the first stage of a South-East Asian corridor that heads towards Singapore.

The cost is 5,9 billion dollars, 30 percent borne by Laos. The Laos-China Railway Co. was created, a joint venture between the China Railway (Cr) group and two other Chinese public companies, which together hold a 70 percent share in the project, and a Lao state company, which holds the remaining 30 percent. For participation, the Laotian government signed a loan agreement with the Export-Import Bank of China (Exim). Over 1.100 operations management and maintenance personnel were selected, including approximately 500 Chinese and 600 Laotian employees, all trained by China Railway.