7-billion-dollar Lao-China railway project runs into delays - Monsters and Critics

7-billion-dollar Lao-China railway project runs into delays - Monsters and Critics: "Vientiane - Laos' ambitious plan build a 7-billion-dollar high-speed railway track linking its border with China to Vientiane has stalled on Chinese politics and social-environmental concerns.

A ground breaking ceremony planned on April 25 for the Laos-China Railway project didn't happen.

Lao Deputy Prime Minister Somsavat Lengsavat, the minister overseeing the project, blamed the missed deadline in part on the February 25 sacking of Chinese Minister of Railways Liu Zhijun for 'severe violations of discipline.'

'Frankly speaking, the ministerial reshuffle has slowed down the project a little bit because they had to conduct an internal adjustment,' Somsavat told the German Press Agency dpa.

Liu signed a memorandum of understanding on the project with the Civil and Transport Works of Laos on April 7, last year.

Over the past ten months the two sides conducted feasibility and social/environmental impact studies on the 421-kilometre rail route, which would run from Boten, Luang Namtha province to Vientiane, the capital.

The studies proved insufficient in details, particularly on the social impact of the route which will displace hundreds of families and run through important tourist destinations such as the ancient capital of Luang Prabang, a World Heritage Site.

'The on-site survey didn't meet our expectations,' Somsavat said. 'But the two sides have decided to pursue their (impact-study) efforts so we can launch this project within the year,' he added.

The Laos-China rail route would provide a 120-kilometres-per-hour freight and 200-kilometres-per-hour passenger train link from Kunming, the capital of China's Yunnan province to the China-Lao border and then on to Vientiane and Thailand, where another high-speed track is planned between Nong Khai, just across the border from Vientiane, and Bangkok.

Laos' current rail network consists of a 3.5-kilometre link over the Thai-Laos Friendship Bridge between Nong Khai and Vientiane. It is popular mainly among foreign tourists.

The giant railway expansion plan is not without its detractors.

'This is a landmark project for the government, but how much poverty will be reduced by a train link between China and Thailand,' asked one international aid official. 'The real benefits of the project go to China and Thailand; Laos is just a transit point.'

Laos is one of the world's poorest countries, with few export industries other than minerals and hydro-electricity, neither of which require high-speed train transport.

Another question is how Laos will pay for the project.

Under the MOU signed last year, China and Laos will set up a joint venture state enterprise in which China will hold 70 per cent and Laos 30 per cent.

China will provide the finance, construct the rail link with 50,000 labourers (presumably Chinese), and provide the trains, equipment and technology.

Laos' contribution, other than the land on which the track is built, remains unclear.

Somsavat discounted reports that Laos would provide China with land concessions extending 10 kilometres on both sides of the rail link.

'The Lao government has decided to use one of our mineral resources to pay back the money we have borrowed from the Chinese,' Somsavat said.

That will require a lot of minerals. Laos' gross domestic product is estimated at 6.5 billion dollars, just shy of the 7 billion that the rail link would cost.

Total mineral exports, mainly copper and gold, over the past six months amounted to about 800 million dollars, all from foreign-run mines.

There have been reports in the state-run local press, usually not known for its criticisms of the government, of people whose properties will be affected by the project openly objecting to it.

'I think if you took an opinion poll, some 60 to 70 per cent of the Lao people would be against the project,' said one professor at the National University of Laos, who asked to remain anonymous.

But in Laos, the final decision on such landmark projects lies with the communist party chiefs.

'This a decision taken by the politburo, and whatever decision the politburo takes the entire communist party and Lao people would follow suite,' Somsavat said.

'If Laos is the first country in South-East Asia to have a high-speed train it would be a great source of pride for the Lao nation,' he added.



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India worrying too much about China railway network

Playing down the strategic significance of China expanding its railway network in Tibet, a Chinese analyst today said India is ''worrying too much'' by looking at economic and development issues from the security perspective.

Reacting to reports from India raising concerns over China's development of railway network in Tibet from Lhasa to Xigaze, close to Indian border, Fu Xiaoqiang, an expert on Indian issues at the China Institutes of Contemporary International Relations, said concerns were due to mixing up of economic and security issues. "India always approaches economic issues from a security perspective," he told state-run Global Times, adding all engagements and interactions between China and other counties in South Asia are viewed as strategic threats. Fu said China's construction of railways in Tibet is aimed at improving the lives of local people and at promoting local economic development. Whether the railway will be extended to Nepal is not to be decided solely by China, but by the mutual demands of the two countries. If the railway is finally connected with the network of South Asia, it will do more good than harm in terms of trade and security, he said. He said Rail India Technical and Economic Services has proposed to build six rail links with Nepal and three with Bhutan as a priority, which will help improve their social economic conditions. China's decision to extend its railway network from Lhasa to Xigaze had caused concern in India, as the network is likely to reduce Nepal's dependence on India.

TRANS-ASIAN RAILWAY NETWORK LINKING 28 COUNTRIES ENTERS INTO FORCE

BANGKOK, June 12 (NNN-TNA):The Intergovernmental Agreement on the Trans-Asian Railway Network (TAR) came into force on Thursday, allowing countries throughout Asia to coordinate the development and operation of international rail routes linking 28 countries in the region.

The agreement took effect on Thursday, the ninetieth day after the governments of at least eight member states consented to be bound by its terms. The eight countries which already ratified the agreement with the UN Secretary-General are China, Cambodia, India, Mongolia, South Korea, Russia, Tajikistan and Thailand. The Republic of Georgia has also agreed to the terms of the pact, but its membership will take effect after 90 days.

Dr. Noeleen Heyzer, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) Executive-Secretary, said that the Trans-Asian Railway (TAR) network spans 114,000 kilometres linking 28 countries, providing regional connectivity and linkages to Europe via Russia and the Middle East via Iran.

Dr. Heyzer said, however, 8,300-kilometres of necessary linkages are still missing and an estimated budget of US$25 billion is required to complete construction. Many routes are being built, such as the rail lines linking Iran to Azerbaijan, Turkey to Georgia and Iran to Armenia.

Some routes have only recently been inaugurated, such as those connecting Thailand’s Nong Khai province to the Lao PDR’s Thanaleng district, adjacent to the its capital Vientiane.

The agreement is the second treaty which has been developed under ESCAP, beginning ain the 1960s, following the Intergovernmental Agreement on the Asian Highway Network, comprising of 141,000- kilometre of roadways, which entered into force on July 4, 2005.

Dr. Heyzer added that the TAR network, together with the Asian Highway, will help stimulate the economic recovery of member countries and create new economies of scale while reducing transportation costs. Trade will also be more distributed across the region, including landlocked countries and remote hinterland areas to create the so-called ‘dry ports’.

While many governments plan to invest in road construction to facilitate their growing cities and populations, Dr. Heyzer said that the Asian Railways network will be a better mode of transportation which can help reduce the negative environmental impact and concern over energy-dependency during periods of oil price fluctuations.

As many parts of the missing lines are in Southeast Asian region, Thailand’s Minister of Transport Sophon Zaram revealed the agreement is in accord with the policy of the Thai government to increase the role of the railway transport to reduce energy consumption and enhance the efficiency of the national logistics system.

Sophon said that the cross-border rail services between Thailand and Malaysia are already in place for passengers and freight. Thailand has also completed the railway tracks on the Thai border to connect with that of Cambodia’s rail network, with only a 48-kilometre line section between Poipet and Sisophon missing and under restoration.

Meanwhile, Sophon said that, regarding rail services to Myanmar, a feasibility study has been undertaken with the assistance of the South Korean government.

Barry Cable, director of the UNESCAP Transport Division, said with the entry into force of the agreement, a working group has been set up to consider challenges of the Asian Railway network such as the efficiency of cross-border rail services which depend on smooth border operations, as well as social and security issues which may occur following the operations.

Vietnam Railway tracks ahead

Vietnam Railway is to build an express railway to cut travel times between Saigon and Hanoi to only 6 hours. Officials hope to realize the project by 2035. The big dream of Vietnam railway Opened October 1936, the North-South Railway has seen various changes over its lifetime. It was damaged extensively by bombs from the two wars brought by France and America. Innumerous railway employees risked their lives to repair the damage. The moment the country was reunited and regained independence finally meant peace for the railway. Employees have continuously upgraded the railway and trains to reduce travel times between Saigon and Hanoi from 42 hours to 40, 36 and now to 29. However, the dream of rail officials does not stop there. A railway transport development strategy for 2020 with a vision to 2050, approved by the Prime Minister on November 20, is expected to develop a modern, rapid and sustainable railway transport system. It will have ten stops over 1,630km: Ngoc Hoi, Thanh Hoa, Vinh, Dong Hoi, Hue, Da Nang, Dieu Tri, Nha Trang, Phan Thiet and An Binh. The project will cost $33 billion, of which $23.1 billion will come from the government to build infrastructure and $9.9 billion from Vietnam Railways to purchase land and set up facilities. The North-South Express Railway will be built alongside the current track and will be open to the public. $2 billion initial funding Vietnam-Japan Consulting Joint Venture (VJC) estimates $2 billion will be needed to clear the ground for installing the railway. The express railway will require 4,261 hectares of land, about 70 percent is agricultural and forests, 20 percent is rural and 10 percent urban. The project will require the removal of 10,000 houses and relocation of 7,000 farmers. VJC reports that if the plan stays on schedule travel times in 2020 will be Hanoi – Vinh (1 hour and 24 minutes) and Saigon – Nha Trang (90 mminutes). By 2030 these will include Hanoi – Da Nang (3 hours) and Hanoi – Saigon (5 hours 30 minutes to 6 hours and 30 minutes). The train fare is expected to equal that of air fares.

S China region, Vietnam to start regular rail service in January

Photo:Chuck Kuhn
-- Passenger trains between south China's Guangxi Zhuang Autonomous Region and Vietnam will have regular daily service starting on Jan. 1, China's railway authorities said on Thursday.

The train will leave Nanning, Guangxi's capital, at 6:15 p.m. and arrive in Hanoi, capital of Vietnam, at 7 a.m. the next day. There will also be a train departing Hanoi at 8:30 p.m.. It reaches Nanning at 10:05 a.m. the next day.

The trains, which run daily, are operated by the Nanning Railway Bureau, said Chen Boshi, the bureau's director.

Chen said a regular passenger route would alleviate high demand from Vietnam's businessmen, laborers and students in Guangxi.

Currently, temporary passenger rail service from Nanning to Hanoi only runs on Tuesday and Saturday.
ed note: Great news here and I will surely check this out on my next trip. Travel time is somewhat longer than overnight train from Hanoi to Sapa (Lao Cali)

Cambodia and Vietnam agree rail link: Foreign Minister

Cambodia and Vietnam have signed a deal to link their railways, Cambodia's foreign minister said Saturday, helping revive long-running plans to link Asia by rail.
Foreign Minister Hor Namhong said China would help Cambodia with the railroad link to Vietnam, which will cost more than 500 million dollars.
"China has promised to build the railroad from Phnom Penh to Vietnam as part of the project to create a link from Singapore to Kunming in China," Hor Namhong said on his return from regional meetings in Hanoi, Vietnam.
"The railroads are very important for Cambodia's economy because we can then export goods to other southeast Asian countries at low cost," he told reporters at Phnom Penh International airport.
Cross-border trade between Cambodia and Vietnam totalled 1.7 billion dollars in the first eight months of this year, Hor Namhong added.
Cambodia is linked to its western neighbour Thailand by a track that is no longer in use.
Cambodia's civil war only ended in the 1990s, and trains throughout the impoverished nation crawl along dilapidated tracks.
It has long been a dream to connect Asia by rail, and many of the gaps in the railway are in Southeast Asia, with only Singapore, Malaysia and Thailand operating cross-border links.
The Asian Development Bank has stepped in with funds to help overhaul Cambodia's railways, a project many hope will be finished within the next few years.