Saksayam defends rail link plan

Saksayam defends rail link plan

The Transport Ministry says it has told parliament that it wants to connect the kingdom with the China-Laos railway to create a seamless inter-border transport link.

Transport Minister Saksayam Chidchob, representing Prime Minister Prayut Chan-o-cha, took to the floor in parliament to respond to a motion raised by Sen Suradet Jiratticharoen regarding issues surrounding the link.

The senator had put forth a number of questions to the government, including how Thailand would benefit from the China-Laos railway link, which was inaugurated last month.

Mr Saksayam said there is a vast opportunity to be had from the railway link as Thailand currently operates passenger and cargo train services to Thanalaeng station in the Lao capital of Vientiane.

Currently, 90% of imports and exports between Thailand and China are transported by sea, while the rest is via roads in Laos.

The trade volume between Thailand and China consistently expanded from 2012 to 2020. In particular, exports to China from 2017 to 2020 had tripled while imports were also on the increase.

The opening of the China-Laos railway line is expected to increase cross-border freight transport between Thailand and Laos by 50% when the line is connected to the kingdom.

Nong Khai station, which connects with Lao's Thanalaeng station, is capable of handling up to 728 freight containers daily although the actual volume passing through the station is estimated at 364 containers per day.

Mr Saksayam said the railway link gives Thai businesses the option to send and receive goods from China by train, a mode of transport considered to be cheaper and more convenient.

Goods destined for China by boat must load and unload at the Chiang Saen inland commercial port and the freight must also be delivered overland to the final destinations.

The minister said Thailand and Laos agreed to study the possibility of shortening customs procedures for trans-border freight transport in April.

Both countries also agreed to complete the missing link between the China-Laos railway stretch and Thailand's high-speed train route from Nakhon Ratchasima to Nong Khai, the gateway to Vientiane. The State Railway of Thailand operates multiple daily round trips between Nong Khai and Thanalaeng in Laos.

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