China-Laos Railway carries over one million travellers

KUNMING/VIENTIANE – The China-Laos Railway has transported over one million passengers and 500,000 tonnes of cargo since it was launched in December 2021, while business operators from Thailand, Vietnam, Cambodia and Myanmar are now using the same facility to import and export goods to and from China and beyond, according to a Lao official.

The cargo transported by the railway includes 100,000 tonnes of cross-border goods, according to the China Railway Kunming Group Co., Ltd.

Local daily Vientiane Times on Tuesday quoted Vice President of the Lao National Chamber of Commerce and Industry, Daovone Phachanthavong, as saying that more goods are being shipped between China and Association of Southeast Asian Nations member countries through the railway.

“I think Laos’ economy will improve this year now that the Laos-China Railway is in use. Businesses in Laos, Vietnam, Thailand, Cambodia and Myanmar are increasingly engaged in trade with China using the railway,” he said.

“I have been hired to transport goods between China and these four Asean countries. In addition, many people in Asean countries, particularly Thailand, want to travel on the railway and visit Vang Vieng and Luang Prabang once the Covid-19 outbreak has subsided.”

“I am sure that when the pandemic wanes and travel restrictions are lifted, many Chinese people will also visit Laos and other Asean countries, and will use the railway, which will directly benefit hotels, restaurants and other businesses in the hospitality sector,” Daovone said. Opening for service in December 2021, the China-Laos Railway has opened up the possibility of extending export routes to Central Asia, the Middle East, Russia and Europe.

“Many companies are considering investing in Laos because goods from Asean countries can now be sent to Europe through the Laos-China Railway,” Daovone said. “Rice and coffee from Laos have been shipped to Europe by rail, which saves a lot of time compared to sea transport.”

The China-Laos Railway is a docking project between the China-proposed Belt and Road Initiative and Laos’ strategy to convert itself from a landlocked country to a land-linked hub. The 1,035-km railway, a landmark project of high-quality Belt and Road cooperation, started operation on Dec. 3, 2021.

“Currently, the cargo category of the railway keeps expanding, ranging from feed and fertilizer products to communications, photovoltaic, automobile and textile products. The transportation volume of rice, beer and other food and articles of daily use are also growing,” said Xu Jiefeng, an official of the company.

Laos builds 58 solar power plants

A total of 58 solar power plants have been completed or under construction across Laos with a total installed capacity of 7,656 MW, reported Vientiane Times.

Eight of these plants have been completed and 50 are under construction, said the report.

The Ministry of Energy and Mines reported the progresses made in this area of development at a recent meeting to discuss the direction of solar power development with authorities at the central and local levels.

The meeting mulled policies and measures for the development of solar power, with the aim of reducing the amount of electricity purchased from other countries. Speaking at the meeting, Minister of Energy and Mines Daovong Phonekeo said solar power was an important strategy towards sustainable energy development.

Such diversification and cost-effective electricity generation would create a stable and strong source of energy for both export and domestic consumption, he added.

Laos is undergoing rapid socio-economic changes and the provision of sufficient energy is an important factor in the response to continuing development.

In 2021, the Lao government vowed to diversify sources of energy by building solar, wind and coal-fired power plants to address the electricity shortage during the dry season, when reservoir levels drop and less hydropower can be produced.

These developments will support government efforts to increase the amount of energy exported and minimise the amount of electricity re-imported from neighbouring countries in the dry season.

By 2030, it is planned that Laos will produce another 5,559 MW of electricity. Of this amount, 77.59 per cent will come from hydropower and the rest will come from solar, wind and coal-fired power plants, said the report.

Laos’ capacity for solar power is expected to range from 10,000 MW to 15,000 MW, while wind power potential is estimated at about 100,000 MW, according to the report.

Courtesy China Daily and input from Xinhua