The railway between China and Laos has moved 8 million tonnes of goods since the start of operations on the route, according to Chinese data. The route, a joint project by the two countries, has been in operation since 2015 and is of vital importance for the Laotian economy.
According to Agenzia Nova, the 8 million tonnes of transported goods primarily consist of fruits, grains, frozen seafood, electronic and mechanical components, as well as minerals and electric vehicles. For Laos, the route is of vital economic importance. It is the only landlocked country in South-East Asia, and approximately 80 per cent of the country’s territory is covered by mountain ranges, making logistics a difficult affair.
Belt and Road Initiative
While the geography on the Chinese side is not much better, necessitating over 200 bridges and tunnels, the role of the route as the first section of a rail link to Singapore makes it important for China as well. The joint project by Laos and China is part of the latter’s Belt and Road Initiative. China funded 70 per cent of the route, Laos funded the remaining 30 per cent through a Chinese loan. The two countries established a joint venture for the construction and operation of the railway.
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