The Upcoming Opportunities of RailTransportation Development in Southeast Asia

PRESENTED BY MR. S U W I T R ATA N A C H I N D A

MANAGING DIRECTOR OF PROFREIGHT GROUP

Outline- Introduction

- Current rail network

- Key rail development projects in Southeast Asia

- Future rail network

- Opportunities and Challenges

- Conclusion

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Current Rail Network in Southeast Asia

Current Rail Network in SoutheastAsia

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The China-Indochina PeninsulaEconomic Corridor – One Belt OneRoad’s Policy This program aims to strengthen cooperation

among states of the Greater Mekong sub-region, in particular by developing transport(motorways, railways and air connections). This initiative will support trade betweenChina and ASEAN members that are alreadybound by a free trade agreement since 2010.In China, the provinces of Yunnan andGuangxi are the most involved in thiscooperation.SOURCE: OBOR Europe

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Rail Development Projects and InvestmentsThe Asian Development Bank (ADB) estimates that Asia must spend $8 trillion oninfrastructure before 2020 to maintain its economic growth and living standards. It's a massivedemand that China and Japan are eager to help fill, and one that can bolster their own slowingeconomies.

Singapore – Kunming Rail Link Project (SKRL)

● China – Laos Railway

● China – Myanmar Railway

● Laos/Thailand borders to Bangkok

● Thailand to Malaysia

● Malaysia to Singapore

Major Funds for Development ProjectsName Size (billion

dollars)Intended Recipients Focus Funding Source

AIIB

100 All regional membercountries

Infrastructure Member countries

Silk Road Fund 40 Countries alongOBOR routes

Infrastructureresource

development,industrial cooperation

Mostly Chinesecapital

Source: China-Britain Business Councils

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China – Laos Railway●The planned single track with a 1.435-metre standard- gaugerail network would have 33 stations, of which 21 would beoperational initially, according to the Ministry of Public Worksand Transport.

● There will be 72 tunnels with a total length of 183.9 km,representing 43 percent of the project’s total length. The linewill also have 170 bridges of 69.2 km, accounting for 15.8percent.

● Passenger trains will travel at a speed of 160 km per hour,while the speed of rail freight will be 120 km per hour.

● The railway in Laos will link with the track in Thailand toform part of the regional rail link known as the Kunming-Singapore railway, covering a total distance of some 3,000km.

source: The Laotian Times (2016)

China – Laos Railway

China – Myanmar RailwayMyanmar - China Railway Project, 1,193 miles (1,920 km)long, will link Kunming, capital city of China's YunnanProvince with Yangon, Myanmar's largest city. The toppermitted speed will be 87 mph (140km/h). Up till now, thesection in China has been under construction sinceDecember, 2015 and it is expected to be completed by 2020,while the section in Myanmar is still under negotiation.

Kunming to Yangon train will start from Kunming, runsouthwestward to Ruili at Chinese - Myanmar border, and thensouthward through Mynmar to Yangon. The Kunming -Yangon railway is scheduled to be constructed in two phases.

1. Kunming - Ruili Railway

2. Ruili (Namhkam) - Yangon

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Thailand’s Rail Network- The Thai government has approved plans for a long-awaited high-speed railway to China, meaning that itmight actually fulfill its promise of beginningconstruction on the much-anticipated line before theend of this year.

- Thailand gives the green light to the first stage of theambitious Southeast Asia railway project. - Thisphase will see the construction of a 256km high-speed rail line between Bangkok and NakhonRatchasima. The project is estimated to take fouryears and cost $5.2 billion. Thailand willbe providing the money, while China provides theexpertise.

-However, even after the completion, the line will stillbe around 600km away from the Laos border. Thesecond phase of the project, a rail line from NakhonRatchasima to Nong Khai on the border has not yetbeen approved.

Malaysia: Rail network

Future Rail Network

Future Rail Network

Existing rail line

Future expansion

Bangkok to Duisburg via Central RouteRoute Transit time

(Estimated)

Bangkok toKunming

3-4 day(Forecasted)

Kunming toChongqing

19 hours

Chongqing toDuisburg,Germany

16 days (besttransit time)

Bangkok toDuisburg

21 days

By Sea: LamChabang toHamburg

28 days

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OPPORTUNITIES AND CHALLENGESOpportunities Challenges

1. Boosting trade and investment in countries along theroutes.

1. . Some rail transport regulations and operations in eachcountry need to be reviewed in order to compete with othermodes of transport (e.g. customs regulation, locomotive andwagon).

2. A completed route, rail infrastructure andconnectivity in the region.

2. The difference of gauge systems in each country (standardgauge vs metre gauge)

3. Promoting rail freight transport activities in SoutheastAsia

3.The readiness of local logistics service providers in termsof capital, capability and competency.

4. Creating an integrated rail network from SoutheastAsia to Central Asia and Europe.

4. Other affecting factors such as finance and politics.

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