Since the opening of the China-Laos Railway, there have been significant changes in the logistics industry between China and Laos. Previously, cargo transportation mainly relied on land or water routes, which were not only time-consuming but also relatively expensive. With the opening of the China-Laos Railway, goods can now be transported quickly by rail, significantly shortening transportation times and reducing logistics costs.
Specifically, the opening of the China-Laos Railway has greatly improved the efficiency of cross-border logistics, with reductions in both transportation time and cost. For example, after the railway’s opening, the transportation time for durians from Thailand to China was reduced from the previous sea shipping time of 7-10 days to about 4 days, with freight rates dropping by approximately 30%. This means that the transportation time for cross-border logistics has been cut by more than half, which is a significant advantage for perishable goods like fresh fruits.
It is understood that the preferential freight rates of the China-Laos Railway have supported the initial operations of cross-border cargo transportation. The Yunnan provincial government has provided subsidies for the aggregation and distribution of cross-border cargo transportation, and China Railway Kunming Group Co., Ltd. has also offered discounted freight rates to enhance the cost-effectiveness of the entire logistics process of the China-Laos international trains.
In terms of freight rates, according to the trial ticket prices for the Laos section of the China-Laos Railway, the fare for ordinary passengers from Vientiane Station to Mohan Station is 132 RMB, while the first-class passenger fare is 294 RMB. In contrast, previous road transportation methods in Laos were hindered by low road standards and limited transport capacity, leading to high transportation costs. Railway transportation, on the other hand, has significantly reduced the unit transportation cost of goods due to its economies of scale and efficient operation.
Moreover, the opening of the China-Laos Railway has also facilitated trade cooperation between China and other Southeast Asian countries, such as Thailand. The railway not only connects China with Laos but also further links markets in Thailand, Malaysia, and other areas, forming a cross-border logistics network. This allows goods from Malaysia and Thailand to be centralized in Vientiane, Laos, facilitating efficient matching of goods across different value levels.
The opening of the China-Laos Railway has greatly improved the logistics situation between China and Laos, not only shortening transportation times and reducing costs but also promoting economic cooperation and development within the region. For cross-border logistics companies, this presents a new development opportunity and provides valuable experience for future international logistics corridor construction.