A freight transit yard where cargo is transferred for transshipment has been put into operation by the People’s Republic of China (PRC) – Lao People’s Democratic Republic (Lao PDR) Railway on 1 July 2022 at the Vientiane South Station.  The freight yard promises to boost the PRC-Lao PDR railway’s logistics, improving the link between the railways of PRC-Lao PDR and Thailand.  

The PRC – Lao PDR Railway is a standard-gauge railway, while the Thai railway uses meter-gauge. Thus, reloading of cargo is required. This initiative is expected to attract more than 300,000 tons of agricultural products and rubber from Thailand to PRC each year, and further improve the efficiency of international transport between the PRC and ASEAN countries. 

The first railway containers reloaded in the yard were bound for Laem Chabang port of Thailand. Mr. Sonexay Siphandone, Lao Deputy Prime Minister, in his speech delivered at the opening ceremony, remarked that the freight transit yard will greatly benefit Lao PDR given its significant role in bolstering the transport of goods. He added that the railway is significantly reducing the time and logistics costs for cargo transportation, and will result in the growth of many industries like trade and investment.