China-Laos Railway sees rapid growth

chinadaily.com.cn|Updated: November 16, 2022

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Freight volume transported by the China-Laos Railway had surpassed 10 million metric tons as of Monday, about one month before its one-year anniversary since opening.

The number of categories of goods has increased from about 100 when it opened to about 1,200 now, the China Railway Kunming Bureau said. Major exported cargo includes cloth, electronics and chemical fertilizers, while major imported goods include rubber and fruit

Freight transportation volume has seen steady growth monthly, with October breaking the monthly record with 1.35 million tons, it said. Trade through the railway reaches countries such as Laos, Thailand, Malaysia, Vietnam, Cambodia and Singapore.

"The railway is fast and safe, with a large transport capacity, which is why it's favored by traders from home and abroad," said Xu Jiefeng, director of the marketing department at Kunming East Railway Station.

Xu said the railway is a convenient and efficient international logistics "golden channel" between China and the Association of Southeast Asian Nations. It boosts economic cooperation between the Chinese market and southern Asia, and "saves transport time and cost".

Twenty-five provincial-level regions in China have operated international freight on the railway. The number of cross-border freight train trips increased from two to 12 per day on average. Cross-border cargo transportation volume has reached 1.8 million tons, with a value of more than 12 billion yuan ($1.65 billion).

The Kunming branch of Shanghai Rencheng SCM Co mainly exports cloth and textiles to Southeast Asian markets such as Laos, Myanmar and Thailand via the expressway.

Yang Jie, manager of the company, said that in the past they mainly relied on highway transportation, which would be affected by COVID-19 outbreaks.

"The China-Laos Railway, owing to its quick customs clearance and low damage to cargos, not only improves transport efficiency but also decreases cost by about 30 percent," she said.

She added that the epidemic has affected many cross-border enterprises, and the railway works as a "stable bridge" to link clients worldwide. She said the company's export volume was much larger than before the epidemic emerged, thanks to the railway's fast speed and controllable delivery time.

Asia-Potash International Investment (Guangzhou) Co in Guangzhou, Guangdong province, invested 3.2 billion yuan to build a potash fertilizer production base in Laos whose production is expected to reach 3 million tons in 2024.

Liu Bingyan, deputy general manager of the company, said so far it has transported about 10,000 tons of potash fertilizer back to China through the railway, to serve agriculture in southwestern regions.

She said it will enlarge volume and is planning more collaboration.

The China-Laos Railway started operating in December. It stretches 1,035 kilometers, linking Kunming, Yunnan province, with the Laotian capital, Vientiane. It takes 26 hours to travel between the two cities.