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Laos-China Railway Hits New Milestone as Cargo Value Soars Past USD 1.4 Billion

This Week

The Laos-China Railway has notched up another milestone in its rapid expansion, transporting more than 2.48 million tones of goods worth over CNY 10 billion (approximately USD 1.4 billion) between January and May this year, according to figures released by Chinese customs and reported by Xinhua.

Both freight volume and value surged compared to the same period last year, with tonnage up 7.9 percent and the total value climbing by a 33.2 percent.

In May alone, the line carried 512,000 tones of cargo valued at CNY 3.76 billion, setting a new monthly record since the 1,035-kilometer railway opened in December 2021.

Fast Track to Regional Trade

Since its launch, the Laos-China Railway, connecting Kunming in China’s Yunnan Province to Laos’ Vientiane, has transformed trade in the region. 

As of 22 May, total freight volume had surpassed 60 million tones, with cross-border shipments accounting for more than 13.9 million tones.

Originally intended to boost trade links between landlocked Laos and China’s market, the railway now acts as a bridge for goods moving across Southeast Asia, and onwards to Europe via China’s rail freight network.

When the line first opened, it carried just over ten product categories. Today, it handles more than 3,000. 

Among the main goods moving north from Laos are fresh tropical fruit, cassava, rubber, and minerals, while Chinese exports heading south include electronics, solar panels, communication equipment, vehicles and daily essentials.

Efficiency Upgrades, Lower Costs

Behind the growing figures are a series of logistical improvements. Officials have boosted the maximum train load from 2,500 tones to 2,800 tones, added more containers, and streamlined customs procedures at the Lao–Chinese border,  cutting declaration times and red tape.

As a result, exporters have seen transport costs slashed by 30–40 percent compared with traditional road haulage, while delivery times for key shipments, such as fruit exports, have shrunk dramatically.

For Beijing, the railway is a flagship Belt and Road Initiative (BRI) project, designed to bind China more closely with its southern neighbors through infrastructure. For Laos, it represents a chance to shift from landlocked to “land-linked”, tapping into a regional supply chain that reaches as far as Europe.

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