HIGHLIGHTS
- The new two-way rail service provided by DHL will shorten the transit time between Kunming and Vientiane from 48 hours to 20-24 hours.
- The newly opened China-Laos railway line is of historic significance for the region, turning Kunming into the center of the Indochinese market and rolling as a gateway to the ASEAN economies.
- DHL offers an attractive and cost-effective alternative thanks to a scheduled service that runs in both directions between the Chinese and ASEAN.
FULL ARTICLE
On December 3, 2021, DHL Global Forwarding, the world’s leading international freight forwarder, was the first international forwarder to launch a two-way rail freight service between Con Minh (China) and Vientiane (Laos), via the newly opened China-Laos railway.
The new two-way rail service provided by DHL will shorten the transit time between Kunming and Vientiane from 48 hours to 20-24 hours, decreasing transportation costs between China and some Southeast Asian countries and increasing response time.
Road and rail transport solutions between China and Southeast Asia
Steve Huang, CEO of DHL Global Forwarding Mainland China, Hong Kong, and Macau, said the newly opened China-Laos railway line is of historic significance for the region, turning Kunming into the center of the Indochinese market and rolling as a gateway to the ASEAN economies. With a total GDP of 2.550 billion USD, ASEAN is predicted to be the fourth-largest market in the world by 2030. This shows a very bright future for trade and economic activity in the region.
In addition, Mr. Thomas Tieber, CEO of DHL Global Forwarding Southeast Asia, said that China is the largest trading partner of ASEAN. Thanks to the new rail service, Laos will transform from a landlocked country into a land hub. Businesses transporting goods between China and ASEAN countries will have new alternatives to air and sea transportation. Thereby, DHL’s road and multimodal transport network in Southeast Asia will also be expanded and developed stronger.
Alternative to air freight thanks to low cost and fast transit time
DHL offers an attractive and cost-effective alternative thanks to a scheduled service that runs in both directions between the Chinese and ASEAN, including Thailand, Vietnam, Cambodia, Malaysia, Singapore, and Indonesia.
Specifically, the Chengdu – Bangkok route: road/rail service is 78% cheaper and 2 days faster than air transport. Meanwhile, the Kuala Lumpur – Chengdu route: road/rail service is 70% cheaper, same transit time than air freight, and Shanghai – Singapore route: road/rail service is cheaper 38%, 4 days longer than air freight.
The China-Laos railway is one of six international economic corridors under China’s Belt and Road Initiative (BRI). The Laos section of the railway (414 km long) connects Boten (Laos’ northern border with China) with Vientiane (in the south, near the border with Thailand). This route will cut the journey time from Vientiane to the Chinese border to less than 4 hours, compared with 15 hours by road.
Phan Quyen
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