Laos hosts Asean-China rail link meeting

2012-12-10 09:52:55
Summary:Asean transport officials are seeking common ground on how to link their rail networks with that of China, the world’s second largest economy.

Asean transport officials are seeking common ground on how to link their rail networks with that of China, the world’s second largest economy.

Minister of Public Works and Transport Mr Sommad Pholsena yesterday opened the 14th Special Working Group Meeting in Vientiane on the Singapore-Kunming rail link to discuss the proposed Asean-China connection.


At present, most Asean member countries have their own rail systems so the region as a whole must seek common ground on developing a rail network that will dovetail with the Chinese railway system. By outlining the specifics of a regional rail network, Asean nations will be better placed to source funding for the scheme.

Asean and China believe such a rail link will not only boost trade, investment, and tourism but also enable the people of the two regions to enjoy closer ties and understanding.

A senior Lao official who attended the meeting said Laos is expected to benefit because the country is planning to build a high speed railway that will serve as a section of the Singapore-Kunming Rail Link.

He said that even though Asean member countries have different sized railway tracks, he believes it won’t be a problem for each nation to connect up their individual tracks.

The Singapore-Kunming Rail Link project was initiated by Malaysia. A Special Working Group on the project was formed in 1996 to undertake a feasibility study of the link both from the technical and financial point of view.

At the Seventh Summit of the Association of Southeast Asian Nations held in Brunei in 2001, regional leaders reaffirmed their endorsement of the project, calling for it to be considered a priority and urging all the governments directly concerned to include the construction of missing links and the upgrade of existing railroads in their national infrastructure development pro grammes.

Mr Sommad told Lao media earlier this week that construction of the Laos-China high speed railway, which will be incorporated into the Singapore-Kunming rail link, would begin in the near future. The parties involved are finalising their discussions and negotiations so the project can go ahead.

The Lao government announced in 2010 that the US$7 billion railway, which would run from the Chinese border to Vientiane, was one of several large scale investment projects that were central to the National Socio-Economic Development Plan for 2011 to 2015. In the same year, Laos and China reached an agreement on the development of the railway and planned to set up a joint venture, in which China would hold a 70 percent investment share and the rest would belong to Laos.

The government intended that construction would begin in 2011 and be finished within five years. But the project was delayed because the sectors involved were unable to finalise the concession agreement.

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