THE Lao National Assembly has approved in principle the first phase of a 562km standard-gauge railway linking the capital of Laos, Vientiane, with Vung Ang deep water port on the coast of Vietnam.
The project is seen as an important step towards transforming Laos from a landlocked country into one better connected to regional and global markets, and is a key pillar of the government’s 2026-2030 National Socio-Economic Development Plan.
The railway will be constructed in three phases. Phase 1A will be 147km long and will run from Thakhaek on the Mekong River and the Thai border east to Mu Gia on the Laos-Vietnam border. The two other phases, which are still being studied, comprise Phase 1B from the Laos-Vietnam border to Vung Ang Port in Vietnam, and Phase 2 which would head north from Thakhaek and then west following the Mekong River to reach Vientiane, where it would connect with the existing Laos - China railway.
The railway would be designed for 150km/h operation by passenger trains and 80km/h for freight trains.
The Laos section of the new railway will be built by the Petroleum Trading Lao Public Company under a build-operate-transfer model and a 50-year concession at an estimated cost of $US 1.3bn. According to a feasibility study, the project has an internal rate of return of 7.1% and is expected to recoup the investment cost within 14 years.
Daily freight traffic is estimated at 5079 tonnes initially, rising to 47,133 tonnes a day.
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