New railway project links Laos and China

Construction of a railway linking Laos and China, destined to stretch to ASEAN neighbours, Thailand, Malaysia and Singapore, should begin in November this year.
Vientiane Times quoted Minister of Public Works and Transport Bounchanh saying if things go as planned construction of the railway could start as early as November and take about five years to complete.
The project will connect the Lao capital of Vientiane with the Chinese border, near Luang Namtha, at a distance of 417 km. It will pass through Luang Prabang and through mountain ranges providing the Chinese construction teams with a formidable challenge.
The planned single 1.435-metre standard-gauge track, covering a distance of 417 km, will have 31 stations, including five main stations. It will require 76 tunnels of an overall distance of 195 km and 154 bridges covering a distance of 67.15 km.
Passenger trains will travel at a maximum speed of 160 km per hour and freight trains at 120 km per hour. The main use of the railway line will be to transport cargo between China, through Laos to connect with an upgraded rail line to Thailand’s eastern seaboard ports on the Gulf of Thailand. It will be ultimately extended to Malaysia and Singapore.

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The first phase in Laos was initially estimated to cost USD6.8 billion.
The two governments agreed to directly contribute 40% of the total investment for the project with the Lao government responsible for 30%, amounting to USD840 million and the Chinese government contributing 70%.
In the event the Lao government struggles to make its contribution of USD840 million, the Chinese side has agreed to provide a low-interest loan of USD500 million to Laos while the rest will have to be sourced by Laos, the report said.
Revenue to be generated from a bauxite mine and three potash mines in Laos are to be used to secure the Chinese loan. The 20-year loan period will carry an annual interest rate of 3% with an interest-only period, i.e. no repayment of principle, for the first five years.
The remaining 60% will come from private investors.
The Lao National Assembly approved the project in 2012 as part of plans to turn Laos from a landlocked country into a land-linked nation.
The planned rail project will be part of a regional rail link known as the Kunming-Singapore rail line covering a distance of 3,000 km.
The high-speed line will link Kunming, the capital of Yunnan province all the way to Singapore, passing through Laos, Thailand and Malaysia.
Thailand Prime Minister Prayut Chan-o-cha confirmed earlier that the government is speeding up implementation of Thai-Chinese joint venture railway projects with assurance that construction of the first dual-track rail project linking Nong Khai province in the Northeast and Rayong province in the East will begin in October.
The two countries signed a memorandum of understanding on the project in December last year.
The planned China-Thailand Railway is 867-km long, with an agreed operational top speed of 180 km per hour, down from the previous 250 km per hour.
Picture: cdn.wonderfulengineering