A Thai company has signed a Memorandum of Understanding with the government of Laos for a feasibility study on a new railway line in southern Laos.
The proposed railway line would connect Khammouane, Savannakhet, Salavanh, and Champasack provinces in southern Laos.
According to a report by KPL, the new public-private partnership rail link would run some 345 kilometers, with a total value of THB 20 billion.
The MOU signing took place in Vientiane on Friday last week, between the government of Laos, represented by Ms. Khamchanh Vongsengboun, Deputy Minister of Planning and Investment, and President of Chinnakorn Civil Public Company of Thailand, Mr. Vanhxay Inthalaseth.
A consultant of Chinnakorn Civil Public Company, Mr. Souneth Konphanthavong, said the initial feasibility study will take about six to ten months to complete.
He said the project would commence its survey after the Lao and Thai borders have reopened, and this would take around six to ten months to complete.
The project is expected to boost socio-economic development, and facilitate imports and exports.
“When this project is completed, Laos and neighboring countries can reduce the cost of transportation and logistics, and it will help develop the areas where the train runs,” said Mr. Souneth.
The new project comes as the Laos-China Railway construction phase comes close to completion. The largest infrastructure project in Laos, the railway will run some 414 kilometers, including 198km of tunnels. It will run from the Boten border gate, connecting Northern Laos to China, down to Vientiane Capital, with an operating speed of 160km per hour.