Laos, Malaysia sign agreement on railway cooperation
The Lao National Railway Enterprise (LNRE) and Keretapi Tanah Melayu Bhd (KTMB) – Malaysia’s largest railway company - have recently signed a memorandum of understanding on cooperation in a significant move to bolster their respective railway sectors and enhance regional trade within the Pan-Asian railway initiative, according to the Lao media.
The Lane Xang EMU train departs from the China-Laos Railway Vientiane station in the Lao capital Vientiane on December 3, 2021. (Photo: Xinhua)
Vientiane (VNA) - The Lao National Railway Enterprise (LNRE) andKeretapi Tanah Melayu Bhd (KTMB) – Malaysia’s largest railway company - haverecently signed a memorandum of understanding on cooperation in a significantmove to bolster their respective railway sectors and enhance regional tradewithin the Pan-Asian railway initiative, according to the Lao media.
Under the terms of the agreement, Laos will open its railnetwork to KTMB trains, enabling them to operate within its borders. Meanwhile,LNRE trains will also gain access to the Malaysian rail network. In thisregard, both parties have committed to strictly adhering to internationaltechnical standards for railway operations.
This collaboration signifies a notable stride for Laos as itasserts itself as a pivotal player in the Pan-Asian Rail network, following thenearly two-year successful operations of the Laos-China Railway - a 409km linkconnecting Vientiane in Laos to Kunming in China.
By leveraging the high-speed railway, Laos is positioningitself as a vital logistics hub for Southeast Asia, particularly in trade withChina, said KTMB’s Executive Officer, Mohammad Rani.
The Vientiane line is a crucial link in this network thatoffers three key routes: the central route linking Kunming, Laos, and Bangkok;the western route extending through Myanmar and Thailand; and the eastern routetraversing Vietnam, Cambodia, and Thailand before converging in Bangkok andextending southwards towards Malaysia and Singapore. These options will forgefresh trade opportunities in Southeast Asia, ultimately driving down logisticscosts as regional countries prioritize their infrastructure development.
The Pan-Asian Railway is a network of railways that connectsKunming, Singapore, and all the countries of mainland Southeast Asia. ThePan-Asia rail network is also part of the much more ambitious Trans-Asian Railnetwork, which plans to facilitate trade and travel between Europe and Asia./.
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The Lane Xang EMU train departs from the China-Laos Railway Vientiane station in the Lao capital Vientiane on December 3, 2021. (Photo: Xinhua) 
