Railways Help Landlocked Laos Embark a Journey Beyond Borders

Lao PDR is transforming. The country took a giant step toward becoming a regional transportation hub when the Laos-China Railway became operational on December 3, 2021.

One might wonder how the only landlocked country in the Association of Southeast Asian Nations could play such a pivotal role in regional transportation. Well, let us guide you through Lao PDR’s exciting transformation, based on our experience and observation while traveling on the railway.

The Laos-China Railway is the first railway system in Lao PDR, covering a distance of about 400 kilometers between the Laotian capital of Vientiane and Boten, a city in northern Laos bordering China. Connected to the railway network in China, the $5.9 billion mega-infrastructure project was built in cooperation with China as part of the Belt and Road Initiative and is operated by the Laos-China Railway Company.

Until trains started running, roads used to play the most crucial role in transporting cargo and people in the country. In 2019, before the COVID-19 pandemic drastically reduced transportation in Lao PDR, highways, expressways and roads in general accounted for about 90 percent of the freight traffic and 63 percent of passenger traffic while the rest was conducted through waterways and airways.

However, poor road quality has been a long-standing challenge for Lao PDR. As of 2020, only 23 percent of Lao PDR’s roads were paved. Plus, they are still vulnerable to seasonal closures due to floods, landslides and poor drainage systems. In the 2018 Logistics Performance Index, Lao PDR was ranked 82 among 160 countries for its performance in logistics. Across the ASEAN, this was the third-lowest position, followed by Cambodia and Myanmar.
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