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Wednesday, July 24, 2024

Vietnam Plans 6-Kilometer Conveyor Belt for Coal Transport from Laos

This Week

Vietnam will construct a 6-kilometer-long conveyor belt to transport coal from Laos. The project, costing around VND 1.5 trillion (USD 58.3 million), aims to transport 30 million metric tons of coal annually.

Specifically, the conveyor belt will stretch from the Laos-Vietnam border to a warehouse in A Ngo Commune, Dakrong district, Quang Tri Province of Vietnam, covering a total of 23.8 hectares.

The project, approved by the Quang Tri Province authorities, aims to improve coal transport between Vietnam and Laos, also addressing the issue of narrow and degraded local roads for easier transfers. It also seeks to ensure Vietnam’s energy security until 2030, meet domestic coal demand, and reduce customs pressure at La Lay International Border Gate and a local highway.

Over the past two years, Laos has increased coal exports to Vietnam, mainly through Quang Tri Province’s border with Salavanh Province in Laos. In particular, La Lay International Border Gate handles nearly 4,000 metric tons of coal daily, peaking at 12,000 metric tons.

In 2023 alone, Quang Tri Province in Vietnam imported 2.2 million metric tons of coal from Laos, leading to increased congestion at the border gate and damage to local roads and highways.

Additionally, to mitigate these challenges, the project investor has proposed the installation of two additional conveyor belts. One would connect the existing conveyor to My Thuy Seaport, while the other would link the Vietnam-Laos border to a coal mine in Laos’ Sekong Province. This initiative aims to establish a 160-kilometer conveyor system for transporting coal from Laos to Vietnam.

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