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Laos Says China to Finance $7 billion Rail Link

I read that all ASEAN countries uses metre gauge while China has Standard Gauge and India has Indian Broad Gauge.

Railway Hanoi - Lang Son in Vietnam has standard rail gauge 1435mm (and 1000mm - 3 rails). So Hanoi can connect to China.
Hanoi - HCMC railway has rail gauge 1000mm. We will upgrade to standard rail gauge 1435mm in the future.
All China railways used rails 1435mm standard.
 
how about vietnam-japan highspeed railway game?
win win situations for vietnam, lose lose situation for japan?

We continue, but instead of doing all at the same time, we divided into several stages.
You can view the summary from Wikipedia:

North–South Express Railway (Vietnam)
Overview
Status under study
Locale Vietnam
Operator(s) Vietnam Railway Corporation
Technical
Line length 1,570 km (980 mi)
Track gauge 1,435 mm (4 ft 8 1⁄2 in) Standard gauge
Operating speed 350 km/h (220 mph)

With preliminary topographical and geological surveillance already carried out by a joint Japanese-Vietnamese team, two sections of the railway—the 295-kilometre (183 mi) Hanoi–Vinh section and the 362-kilometre (225 mi) Ho Chi Minh City–Nha Trang section—were initially slated for implementation in stages between 2011 and 2015, with the implementation of the remaining Vinh–Nha Trang section starting in 2020. Japanese Shinkansen bullet train technology was proposed for use on this line; its technology—and its actual geographical track—would be completely independent of the existing North–South Railway line. The express line would be built as a double-track standard gauge (1,435 mm (4 ft 8 1⁄2 in)) line, with a design speed of 300 km/h (compared to an average of 50 kilometres per hour (31 mph) on the existing North–South Railway line). Once completed, passengers travelling between Hanoi and Ho Chi Minh City would see transit times reduced from 32 hours to around 7 hours.[3][4]
The Japanese government has, following the visit of Prime Minister Nguyễn Tấn Dũng to Japan in 2006, pledged to offer official development assistance for the project. The memorandum of understanding for the project (along with a related project, the North-South Expressway) was mutually signed by the two governments at that time.[5]
 
Railway Hanoi - Lang Son in Vietnam has standard rail gauge 1435mm (and 1000mm - 3 rails). So Hanoi can connect to China.
Hanoi - HCMC railway has rail gauge 1000mm. We will upgrade to standard rail gauge 1435mm in the future.
All China railways used rails 1435mm standard.

A country having two different gauges gives lots of problem. We too have two different gauges and right now we are replacing all metre gauge line with Indian broad gauge, although its a huge task for India.

What is the status of HSR in Vietnam.
 
October 24, 2012, 7:32 a.m. ET

By JACOB GRONHOLT-PEDERSEN

A Laotian official said China has agreed to finance a $7 billion railway link in Laos that will ship raw materials to the Chinese border.

There was no confirmation of the agreement from Chinese officials. The two countries have failed to reach a deal on the railway link for several years.


AI-BW617_LAOSRA_D_20121024115703.jpg

A 2011 photo shows trucks transporting timber toward the Chinese border on a road at Bopiat village in the Northern province of Louang Namtha where Chinese workers are carrying out drilling works for soil analyses in preparation of building a railway linking China to Laos.


Laos's Energy and Mining Minister Soulivong Dalavong said in an interview that under the new agreement, which is expected to be signed within days, Chinese banks will provide financing to build a 418-kilometer rail link from the capital Vientiane to the Chinese border.

Beijing is seeking to secure raw materials from neighboring countries to feed massive infrastructure investment and its manufacturing industry. Other projects already built, under construction or planned include twin oil and gas pipelines from nearby Myanmar, a crude pipeline from eastern Siberia and a railway project to bring in coal from Mongolia.

A revival of the railway link would come amid uncertainty over a $15 billion bid by China's state-owned energy giant Cnooc Ltd. 0883.HK +1.37%to take over Nexen Inc., NXY.T +0.17%one of Canada's largest independent energy producers, prompted by the Canadian government's ruling last week against Malaysian national oil company Petroliam Nasional Bhd.'s acquisition of Progress Energy Resources Corp., PRQ.T -1.74%and worries in some Western countries about the scale of Chinese investments globally in energy and mining assets.

In return for financing the project, China will secure supply of around 5 million tons a year of mineral resources, mainly potash, by 2020, along with other raw materials such as timber and agricultural products that may be shipped to China, Mr. Dalavong said.

The link, which will be built mainly by Chinese contractors, is also expected to serve as a passenger route, Mr. Dalavong said. The minister said the railway will run north through the towns of Phonhong, Vangvieng, Luang Prabang Oudomxay and Luang Namtha before reaching the Chinese border.

It is unclear which Chinese banks will provide the financing. An article by the Vientiane Times posted on the Laos government's website quoted Laotian Deputy Prime Minister Somsavat Lengsavad as saying the credit line will be provided by state-owned Export-Import Bank of China. Exim Bank did not respond to requests for comment.


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The move to more closely tie Laos to China comes as neighboring Myanmar is moving in the opposite direction—cutting some economic links with China and opening itself to investment from Western countries by instituting a series of political reforms.

"Everyone is selling to China, so why shouldn't we do the same," Mr. Dalavong said, saying the country has limited opportunities for exports due to its land-locked geography and infrastructure. "I think we have to sell to China," he said.

Laos—a small Southeast Asian country locked between China, Vietnam, Myanmar, Cambodia and Thailand—has gained some attention in recent years due to its significant untapped mineral resources. Although now mainly a producer of copper and gold, it has 10 mines under development that will produce potash, a key ingredient in fertilizer production, along with other minerals like iron ore, zinc and lead. Total production is expected to reach close to 7 million tons a year, with most of this destined for China via the planned railway.

The long-discussed project, which was approved by the Laotian parliament last week, was originally presented as being jointly owned with the Chinese government. But according to the Vientiane Times, the Laotian government has now assumed sole ownership of the project, which it considers central to the future development of the nation.

Initial plans envisaged a high-speed railway, but due to the mountainous terrain extending through about two-thirds of the route, the link will carry passenger trains at a speed of up to 160 kilometers per hour and freight trains at 120 kilometers per hour, the energy and mining minister said.

The link is expected to be complete in 2017, with the ground-breaking ceremony scheduled to take place during the 9th Asia-Europe Meeting, or ASEM, that will gather top officials from Europe and Asia in Laos the first week of November.

Construction of the rail link was due to have started in early 2011 with completion in 2014, but the project was bogged down in disagreements over land rights along the line and other issues, according to people familiar with the matter.

While the railway will provide a much-needed link to the outside world, Mr. Dalavong cautions that current market conditions aren't favorable.

"Of course, we have to be competitive. If our potash cannot compete on price, then the Chinese will buy from Canada," he said. "But since we are borrowing from Chinese banks to build the railroad, I think there is a good reason for the Chinese to buy our potash."

—Kersten Zhang contributed to this article.

China to Finance Laos Railroad in Push for More Natural Resources - WSJ.com


Kudos to China and its GOV....Inspite of being a rival with you and competing with you...I really admire and follow the way China invests and moves ahead with the infrastructure development every where....
I really wish...one day if China and India can cooperate with each other....the biggest Investment China could make is to invest in Indian infrastructure....
 
Bold this 7bil Chinese get most of it $$ back when the project completed, leaving Loas with the big 7bil IOU. this project are not helping Loas economy. Loas have to sell it raws material to China to replay the loan, that Same raws material go through that same rail they just build. so it come to Loas trade it raws material for rail road. China can use that same rail to invade ASEAN at it most convenience, win win situations for China, lose lose situation for Loas.
If Laos can make good product, we are very happy to buy them. We buy a lot of things from West, why not buy from Laos. Win or not, it is decided by Laos.
 
A country having two different gauges gives lots of problem. We too have two different gauges and right now we are replacing all metre gauge line with Indian broad gauge, although its a huge task for India.

What is the status of HSR in Vietnam.

Having rejected by VN Parliament in 2010, the project is to re-study.
Currently in the status of under study.
I would like to introduce an article on a Vietnam online paper:



US$21.4 billion to build North-South high-speed railway
Updated : 12:27 PM, 18/09/2012

(VOV) - Vietnam should early complete the feasibility study into the North-South high-speed railway construction project and submit it to the National Assembly for approval in 2013.

The Japan International Cooperation Agency (JICA) made the proposal at a meeting with the Vietnam Railway Corporation (VRC) in Ho Chi Minh City on September 17.

JICA said Vietnam would rather start building the high-speed railway line, first on two sessions between Hanoi and Vinh (around 300km) and between HCM City and Nha Trang (around 370km) with an average speed of 300km/h at cost of US$21.4 billion.

Judging by the current railway system in Vietnam, JICA proposed increasing the number of trains from 32 to 50 and reducing traveling time from 28 hours to 25.4 hours. Cost for this sub-project is around US$1.8 billion.

US$21.4 billion to build North-South high-speed railway - US$21.4 billion to build North-South high-speed railway - VOVNEWS.VN
 
Another route (Highway- road) is also very important for Laos, which is the road connecting Vientiane to Vietnam's Vung Ang seaport located on East Sea (SCS).

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Laos and Vietnam last Friday signed a joint-venture agreement in Vientiane to establish the Vung Ang Lao-Viet Seaport Joint Stock Company.

The agreement was based on a 2001 bilateral agreement made between the governments of Vietnam and Laos to use the Vung Ang seaport in Ha Tinh province, Vietnam, as a common cargo port for both countries.
The new company was created by restructuring the Ha Tinh Seaport Joint Stock Company, under the guidance of the two parties and governments of Laos and Vietnam. The formation of the company was supervised by the Lao Ministry of Public Works and Transport and Vietnam’s Ministry of Transportation.

The new company will have more capital and includes more stakeholders from Laos and Vietnam to enable investment, use and development of the port in line with the approved plan. It is expected that Vung Ang port will meet the demand for cargo transport with priority given to transit cargo from Laos, and will provide general seaport services.
Vietnam has chosen founder stakeholders with strong capacity in the areas of finance, marketing and experience in seaport investment and exploitation, such as Petrol Vietnam Corporation and Ha Tinh Minerals and Trading Corporation. They will combine with Lao investors to establish the Vung Ang Lao-Viet Joint Stock Company.
Ha Tinh Minerals and Trading Corporation, r epresenting the Vietnamese stakeholders, worked with Lao company Vung Ang Seaport Development, representing the Lao stakeholders, to develop the Vung Ang exploitatio n and development project.
Public Works and Transport Minister Sommath Pholsena said the Vung Ang Lao-Viet Joint Stock Company was formed to use and exploit the port more efficiently for the economic benefit of both countries.
“This signing ceremony reflects the cooperation and special friendship between the two countries and paves the way for sea transport for Laos, which will help to develop the marine export-import business,” Mr Sommad said.
He added that Laos and Vietnam attach special importance to developing roads leading to the port, namely roads no. 12, 8 and 9, to ensure access for cargo traffic. Paperwork formalities have been streamlined with the introduction of a one-stop inspection of transit cargo documents.
Vietnamese ambassador to Laos Dr Ta Minh Chau said the joint venture reflected the special attention paid by high-level leaders from the two countries, specifically from 2001 to the present.
The signing ceremony took place on the first day of the Lao New Year, immediately following a visit to Laos by the Secretary General of the Vietnam Communist Party, Nong Duc Manh. This is an auspicious sign as the new year gets underway and the relationship between Laos and Vietnam strengthens.
Source: Vientiane Times
April 19, 2010

Laos, Vietnam ink seaport agreement : Lao Voices
 
Can any Chinese member tell us, what is the status of their plans of rail link with Myanmar.
 
Yes, boosting trade for North-East is the plan. Rail connectivity with Myanmar is already decided. Right now we are constructing rail line to Imphal in Manipur which will be extended to Myanmar border further connect Kalay in Myanmar to complete the missing link.

But before the project continues or even gets in connection with the Chinese plans, security forces here and in Myanmar will have to ensure that the region is not hostage to drugs, arms and human trafficking and separatist terrorism.

That is the first step to ensure that entire East Asia is connected through rail links and trade prospers.

And our country's government doesn't seem to be taking any initiative to rehabilitate brainwashed youth or kill the hardened terrorists on the spot, for cheap local votes.
 
But before the project continues or even gets in connection with the Chinese plans, security forces here and in Myanmar will have to ensure that the region is not hostage to drugs, arms and human trafficking and separatist terrorism.

That is the first step to ensure that entire East Asia is connected through rail links and trade prospers.

And our country's government doesn't seem to be taking any initiative to rehabilitate brainwashed youth or kill the hardened terrorists on the spot, for cheap local votes.

The benefits from the railway line are much more than threat of smuggling.
 
how much is a flight from hanoi to hcm?

HCMC - Hanoi - in Jetstar cost me $40 one way and it is about 1 1/2 hrs away. In train it cost me about $57 in an airconditioned train - I think it was S07 which starts at 11 pm in Hanoi and reaches Saigon after 30 hours.

But if there is time, I would say train is the best way to travel/see Vietnam especially the Hue-Danang stretch.
 
Looks like Indonesia should stand alone with its unconnected railways to Asia main continent :wave:
 
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