Chongqing- Two freight trains departed simultaneously from Chengdu and Chongqing in southwestern China Saturday morning, heading for Vientiane, the Laotian capital.
It will take three to four days for the China-Laos Railway (Chengdu & Chongqing-Vientiane) trains, one loaded with light commercial vehicles produced by Sinotruk Chengdu Wangpai Commercial Vehicle and the other with nuts, motorcycle parts, chemicals and other goods produced in Chongqing, to arrive at the destination in Laos via China’s Yunnan Province.
The freight train departs from Chongqing Municipality in southwestern China on December 4, 2021, heading for Vientiane, the Laotian capital. (iChongqing/ Chen Yuling)
It’s the first international freight train respectively from Chengdu International Railway Port and Chongqing International Logistics Hub Park in the Chengdu-Chongqing region after the completion of the China-Laos Railway.
A total of 58 twenty-foot equivalent units of cargoes, worth over RMB 4 million (about USD 628,000), were exported from Chongqing this time. Before the operation of the China-Laos Railway, it would take seven to eight days to transport goods from Chongqing to Laos by land, and about 30 days to transfer from land to sea. The current three-day operation greatly reduces the transportation cost of enterprises and improves the efficiency of freight transportation.
Hu Hongbing, deputy director of Port and Logistics Office of Chongqing Municipal People’s Government, said, "As a landmark project for the high-level joint construction of the Belt and Road, the China-Laos Railway will help Chongqing enrich the new route of the New International Land-Sea Trade Corridor, improve the efficiency of logistics and operation, and speed up the city’s integration into the Indochina Peninsula."
Tangible benefits for companies
Melon seed products of Chongqing Qiaqia Foods, a local Chongqing company, enjoy popularity in Laos and have become daily snacks comparable to dark beer there. In order to improve the competitiveness in domestic and foreign markets, the company has proactively participated in the construction of the New International Land-Sea Trade Corridor. It has received good feedback from customers in Southeast Asian countries such as Laos and Thailand.
According to a director from Chongqing Dalong Yufeng Motorcycle Manufacturing based in Dazu District, it required a transfer via Vietnam when exporting products to Laos as the company’s traditional overseas market, which was time-consuming and costly. The operation of the direct train to Laos facilitates enterprises, a benefit brought by the Belt and Road Initiative.
China-Laos Railway
The China-Laos Railway, part of the Trans-Asian railway network, will inject new impetus into the economic development of Southeast Asia and provide new opportunities for cooperation and development in the Asian region.
China Daily reported that the first train bound for China left on December 3 after the railway was put into operation. 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.
This year marks the 30th anniversary of China-ASEAN dialogue relations. Since 2019, the Association of Southeast Asian Nations (ASEAN) has become Chongqing's largest foreign trade partner for two consecutive years. In the first three quarters of 2021, Chongqing’s imports and exports to ASEAN were 93.02 billion yuan, increased by 13.6% year on year.
Three transportation modes of the New International Land-Sea Trade Corridor. (Data source: National Development and Reform Commission)
According to the implementation plan for a high-quality construction of the New International Land-Sea Trade Corridor (ILSTC) in western China, the overall goal will be achieved by 2025 that three corridors in the eastern, central and western regions will be continuously strengthened, the operation of corridors, ports and logistics hubs will be more efficient, as well as the driving force of economic and industrial development along the ILSTC will be significantly enhanced. Moreover, the ILSTC will further promote the economic and trade exchanges between China and ASEAN and beyond, and will play a more important role in regional development. Relying on the railway, China and Laos will coordinate interconnectivity and cooperation in production capacity and investment, promote the construction of the China-Laos Economic Corridor, as well as jointly help the high-quality construction of the Belt and Road.