Jakarta, IO – Before Indonesia has a sophisticated high-speed railway (HSR), Laos had Boten-Vientiane HSR, the first in Southeast Asia. It connects the country’s capital Vientiane and small town of Boten on the border with China.
The project under the Belt and Road Initiative (BRI) was officially operational in April, per Asean Briefing, Monday (16/10).
This train travels a distance of 414 kilometers and shortens the land route journey from 15 hours to just 4 hours. The line passes through 75 tunnels and 167 bridges over a single track at a speed of 160 kilometers per hour.
The train is billed as a cornerstone of Laos’ development. From a landlocked country with the lowest level of industrialization in Asean to a country connected to a wider region.
Previously, Laos only had a four-kilometer railway line. Through increased connectivity, the country is able to facilitate more trade between provinces, as well as with China.
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According to Katadata, the funding for this project came from Exim China bank loans amounting to US$3.5 billion (60%) and company equity worth US$2.3 billion (40%). Proportionally, China covered US$2.48 billion (70%) while Laos US$ 1.06 billion (30%). Likewise, of the financing originating from equity, China contributed US$1.63 billion (70%) while Laos US$ 0.73 billion (30%). (bp)