The Upcoming Opportunities of Rail Transportation Development in Southeast Asia MANAGING DIRECTOR OF PROFREIGHT GROUP

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1 The Upcoming Opportunities of Rail Transportation Development in Southeast Asia P R E S E N T E D B Y M R. S U W I T R ATA N A C H I N D A MANAGING DIRECTOR OF PROFREIGHT GROUP

2 Outline - Introduction - Current rail network - Key rail development projects in Southeast Asia - Future rail network - Opportunities and Challenges - Conclusion

3 Loading

4 Current Rail Network in Southeast Asia Current Rail Network in Southeast Asia

5 The China-Indochina Peninsula Economic Corridor One Belt One Road s Policy This program aims to strengthen cooperation among states of the Greater Mekong subregion, in particular by developing transport (motorways, railways and air connections). Loading This initiative will support trade between China and ASEAN members that are already bound by a free trade agreement since In China, the provinces of Yunnan and Guangxi are the most involved in this cooperation. SOURCE: OBOR Europe 5

6 Rail Development Projects and Investments The Asian Development Bank (ADB) estimates that Asia must spend $8 trillion on infrastructure before 2020 to maintain its economic growth and living standards. It's a massive demand that China and Japan are eager to help fill, and one that can bolster their own slowing economies. Singapore Kunming Rail Link Project (SKRL) China Laos Railway China Myanmar Railway Laos/Thailand borders to Bangkok Thailand to Malaysia Malaysia to Singapore

7 Major Funds for Development Projects Name Size (billion dollars) Intended Recipients Focus Funding Source AIIB 100 All regional member countries Silk Road Fund 40 Countries along OBOR routes Infrastructure Infrastructure resource development, industrial cooperation Member countries Mostly Chinese capital Source: China-Britain Business Councils 7

8 China Laos Railway The planned single track with a metre standard- gauge rail network would have 33 stations, of which 21 would be operational initially, according to the Ministry of Public Works and Transport. There will be 72 tunnels with a total length of km, representing 43 percent of the project s total length. The line will also have 170 bridges of 69.2 km, accounting for 15.8 percent. Passenger trains will travel at a speed of 160 km per hour, while the speed of rail freight will be 120 km per hour. The railway in Laos will link with the track in Thailand to form part of the regional rail link known as the Kunming- Singapore railway, covering a total distance of some 3,000km. source: The Laotian Times (2016)

9 China Laos Railway

10 China Myanmar Railway Myanmar - China Railway Project, 1,193 miles (1,920 km) long, will link Kunming, capital city of China's Yunnan Province with Yangon, Myanmar's largest city. The top permitted speed will be 87 mph (140km/h). Up till now, the section in China has been under construction since December, 2015 and it is expected to be completed by 2020, while the section in Myanmar is still under negotiation. Kunming to Yangon train will start from Kunming, run southwestward to Ruili at Chinese - Myanmar border, and then southward through Mynmar to Yangon. The Kunming - Yangon railway is scheduled to be constructed in two phases. 1. Kunming - Ruili Railway 2. Ruili (Namhkam) - Yangon

11 Thailand s Rail Network Loading - The Thai government has approved plans for a longawaited high-speed railway to China, meaning that it might actually fulfill its promise of beginning construction on the much-anticipated line before the end of this year. - Thailand gives the green light to the first stage of the ambitious Southeast Asia railway project. - This phase will see the construction of a 256km highspeed rail line between Bangkok and Nakhon Ratchasima. The project is estimated to take four years and cost $5.2 billion. Thailand will be providing the money, while China provides the expertise. -However, even after the completion, the line will still be around 600km away from the Laos border. The second phase of the project, a rail line from Nakhon Ratchasima to Nong Khai on the border has not yet been approved.

12 Malaysia: Rail network

13

14 Future Rail Network

15 Future Rail Network Existing rail line Future expansion

16

17 Bangkok to Duisburg via Central Route Route Bangkok to Kunming Kunming to Chongqing Transit time (Estimated) 3-4 day (Forecasted) 19 hours Chongqing to Duisburg, Germany Bangkok to Duisburg By Sea: Lam Chabang to Hamburg 16 days (best transit time) 21 days 28 days 17

18 OPPORTUNITIES AND CHALLENGES Opportunities 1. Boosting trade and investment in countries along the routes. 2. A completed route, rail infrastructure and connectivity in the region. 3. Promoting rail freight transport activities in Southeast Asia Challenges 1.. Some rail transport regulations and operations in each country need to be reviewed in order to compete with other modes of transport (e.g. customs regulation, locomotive and wagon). 2. The difference of gauge systems in each country (standard gauge vs metre gauge) 3.The readiness of local logistics service providers in terms of capital, capability and competency. 4. Creating an integrated rail network from Southeast Asia to Central Asia and Europe. 4. Other affecting factors such as finance and politics.

19 THANK YOU FOR YOUR ATTENTION Q&A

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