Wednesday, August 21, 2024 Laos, a landlocked country often overlooked for high-speed rail travel, has now had a bullet train linking it to China in operation for over two years. Despite facing significant economic challenges, including severe currency depreciation and a growing trend of workforce migration to Thailand, Laos is navigating a difficult economic landscape. The nation is hopeful that a boost in tourism, facilitated by the new railway, could pave the way for an economic turnaround, reports Cristian Gherasim from Vientiane, Laos.
In 2016, China emerged as the largest foreign investor in Laos, with investments totaling approximately US$5.395 billion since 1989, as reported by the Laos Ministry of Planning and Investment. This deep financial involvement underscores China’s significant influence in the Laotian economy, particularly through large-scale infrastructure projects.
One of the most notable of these projects is the construction of the high-speed Boten–Vientiane railway, which officially opened in December 2021. This ambitious endeavor, which ultimately cost over US$6 billion, reflects China’s strategic interest in enhancing connectivity between Laos and its neighboring countries. The construction of the Boten–Vientiane railway was not without its challenges, particularly in relation to the legacy of the Vietnam War.
The route had to be meticulously cleared of unexploded bombs dropped during the war, a dangerous and complex task that added to the project’s overall difficulty. Despite these obstacles, the completion of the railway marks a significant milestone for Laos, offering new opportunities for economic growth and regional integration. The railway is not just a feat of engineering; it also symbolizes a major step forward in addressing the country’s infrastructure needs.
The high-speed railway is expected to play a pivotal role in boosting tourism in Laos, with passenger traffic anticipated to form the bulk of the railway’s usage. As one of the most significant construction projects in the country’s history, the Boten–Vientiane railway is a crucial component of the broader Kunming–Singapore railway, which aims to connect China with Southeast Asian nations. The railway terminates at the Vientiane South cargo station, positioning Laos as a key transit point in the region and potentially transforming its economic landscape by facilitating increased trade and tourism.
The newly established railway has significantly cut down travel time between Vientiane, the capital of Laos, and Luang Prabang, a UNESCO World Heritage Site renowned for its rich cultural and historical significance. Luang Prabang is often regarded as the crown jewel of Laos, and with its listing in 1995 for its “remarkably” well-preserved architectural, religious, and cultural heritage, there is strong optimism that the new railway will greatly enhance tourism. This heritage site uniquely blends rural and urban developments spanning several centuries, including notable French colonial influences from the 19th and 20th centuries, making it a must-visit destination.
Since the railway’s inception, there has been a noticeable increase in the number of tourists from China, especially on weekends, traveling to Laos. Southeast Asia, with its diverse attractions ranging from ancient temples in Laos to pristine beaches in Thailand and lush rainforests in Malaysia, has always been a popular destination for Chinese travelers. The ease of access provided by the new railway is expected to further strengthen this trend, positioning Laos as a more accessible and appealing destination for international visitors.
According to data from the Laos-China Railway Company, the Laos-China Railway has seen a substantial uptick in usage, recording over 10,000 trains and transporting 8.7 million passengers between January and May, marking a 17.5% increase compared to the previous year.
Originally designed to include 32 stations, the railway currently operates with 10 passenger stations and 10 freight stations, with plans for further expansion underway. This growth underscores the railway’s role not just in tourism, but also in enhancing regional connectivity and economic development. The Vientiane-Bangkok railway link, which began operations in July, marks a significant step toward enhancing regional connectivity by linking Thailand to China.
This new rail link is part of a broader vision to create a seamless high-speed rail network across Southeast Asia, with the Laos-China Railway serving as a central artery. However, the ambitious second phase of this project, aimed at connecting the Laos-China Railway directly with Bangkok, is encountering challenges. The ongoing construction has been plagued by delays and escalating costs, complicating the Thai government’s efforts to expedite its completion.
Despite these setbacks, the Thai government remains committed to the project, planning to launch it in phases. The current timeline anticipates that the full high-speed line will be operational by 2028. Once completed, this railway will not only facilitate faster travel between major cities in the region but also bolster trade, tourism, and economic ties between Thailand, Laos, and China.
The project’s eventual success is poised to transform Southeast Asia’s transportation landscape, further integrating these nations into a more connected and economically dynamic region..
