**New Developments Along the China-Laos Railway: A Growing Trade Corridor**
On October 27, during a visit to the Kunming Logistics Center of China Railway, I witnessed a bustling scene where trucks moved swiftly, loading containers onto trains. Over 1,000 kilometers away in Vientiane, Laos, trains were filled to capacity with an array of Southeast Asian fruits.
As the China-Laos Railway marks nearly three years of operation, the vibrancy at both the Kunming center and the Vientiane depot reflects significant changes in trade dynamics along this vital route.
Launched on December 3, 2021, the China-Laos Railway spans 1,035 kilometers from Kunming to Vientiane. In its short history, it has facilitated the transport of over 45 million tons of goods, with the variety of products increasing to over 2,900. It’s become a crucial link in the region’s economic development.
During my conversation with Lin Yunchao, the owner of a specialty foreign craft beer store in Beijing, he shared an interesting perspective: “In June 2023, I decided to stock a Laotian beer called ‘Beerlao’ for the first time. While I usually prefer beers from Japan, the U.S., Belgium, and Germany, I was surprised by the positive feedback from customers. It has a refreshing taste with fruity notes, and more importantly, it’s affordable.”
The China-Laos Railway connects seamlessly with China’s extensive rail network, reaching major logistics hubs like Shanghai, Guangzhou, Wuhan, Xi’an, Chengdu, and Chongqing. Furthermore, it links to Thailand’s railway system, extending trade routes to Cambodia, Malaysia, and Singapore.
Zhao Yan Feng, Director of the Freight Department at the China Railway Kunming Bureau Group, emphasized the benefits: “Thanks to the China-Laos Railway, specialty products from Laos and other Southeast Asian countries, such as mangosteen, cassava, mangoes, and beer, are increasingly appearing on Chinese dining tables, while Chinese industrial goods flow steadily into Southeast Asia.”
In July 2022, the completion of a transfer station at Vientiane South marked a significant achievement in connecting the railways of China, Laos, and Thailand, allowing for a new export route for Thai durians to China. “Transit time from Thailand to Kunming has reduced drastically,” noted Pan Jiaoling, Operations Director at Thailand’s Shibida International Logistics Company. “Previously, it took seven days by sea and five days by road. Now, rail transport takes only two days.”
As Thailand is a leading exporter of fresh durians and China its largest market, the cost of transporting a container of durians has plummeted from about 70,000–80,000 yuan to around 20,000 yuan. This has led to a notable drop in domestic durian prices in China, ranging from 20% to 50%.
Currently, the cargo services on the China-Laos Railway cover 12 countries, including Laos, Thailand, Vietnam, Malaysia, and Singapore, while also serving 25 provinces across China. This network provides robust transport support for trade among countries along the route.
Another significant development is the “Lanmei Express,” which launched its inaugural international cargo train in January 2022, carrying fresh flowers and vegetables from Yunnan. This service, known for its speed and efficiency, takes only 26 hours to travel from Kunming to Vientiane.
Zhao highlighted the growing popularity of the “Lanmei Express,” stating, “In the past three years, we’ve operated over 1,400 of these trains and have begun to explore new international transport models, such as ‘Lanmei Express + Cross-Border E-Commerce’ and ‘China-Laos Railway + China-Europe Railway Express.’”
Additionally, the China-Laos Railway has initiated various specialized services, including international freight trains connecting Shanghai, Guangdong, and other regions, while reducing transit times to Europe for products from Laos and Thailand to just 15 days.
