Lao President visits Kazakhstan, China-Laos railway becomes the focus of common attention

On September 3, Lao President Thongloun Sisoulith visited Kazakhstan. During the meeting with President Tokayev of Kazakhstan, the two sides exchanged in-depth views on key areas such as cross-regional railway connectivity and cross-border supply chain coordination. The China-Laos railway has become a "common concern" for both parties.

China-Laos Railway: Kazakhstan’s new gateway to Southeast Asia

An article published by Kazakhstan's "Central Asia Times" on September 4 stated that the China-Laos Railway will be fully operational in December 2021. The line starts from Kunming, China, in the north, and reaches Vientiane, Laos in the south. The section in Laos is 414 kilometers long. It is a core support project for Laos to promote its transformation strategy from a "land-locked country" to a "land-linked country".

Before the line was opened, the World Bank's special assessment report showed that the China-Laos Railway will significantly reduce the overall cost of cross-border transportation by systematically improving regional logistics conditions and simplifying border clearance procedures, and promote Laos' deeper integration into the regional production division and supply chain system. Up to now, the China-Laos railway freight radiation has covered Laos, Thailand, Vietnam, Malaysia, Singapore and other Southeast Asian countries and regions, becoming a safe and stable land freight trunk channel between China and Southeast Asia.

The report said that Kazakhstan is currently actively evaluating the feasibility of developing its own southbound land trade network through the China-Laos Railway, which is full of capacity and vitality, to open up land trade channels between Central Asia and Southeast Asia.

The importance of cross-regional connectivity

The article said that the China-Laos Railway allows Laos to directly access China’s huge railway network and is deeply close to the core consumer markets in East Asia. If the China Railway Materials Network is used as a hub to connect the China-Laos Railway and the China-Kazakhstan cross-border railway network, an ultra-long-distance land logistics channel running through Southeast Asia, East Asia, Central Asia and Europe will be formed, bringing new trade growth opportunities to all participating countries along the route.

At present, Kazakhstan and Laos have initially sorted out the first batch of two-way potential trade categories: Laos has demand for imported grains, oilseeds, animal feed and meat products from Kazakhstan; Laos’ coffee, rubber and other specialty products are also expected to enter the Kazakhstan market through this new channel.

The article said that if the channel is completed, more specialty commodities from Southeast Asian countries will be able to smoothly enter the markets of Central Asia and the hinterland of Asia and Europe in the future, benefiting the people of the countries along the route.

Source: Headquarters Global Information Broadcasting

Compiler: Gong Chen