Mr Sakhone Philangam (second left) explains the project to the Thai delegation.

Thailand’s Palang Pracharath Party leader and former Deputy PM visits Thanaleng Dry Port 

The leader of Thailand’s Palang Pracharath Party and former Deputy Prime Minister General Prawit Wongsuwon, and his delegation on Sunday visited the Thanaleng Dry Port in Vientiane, a key trade gateway between Laos, Thailand, China and beyond.
The integrated logistics centre, which houses extensions of the Laos-China and Laos-Thailand railways, has strengthened logistics and facilitated cost-effective and speedy freight shipment by rail.

The entrance to the Thanaleng Dry Port in Vientiane.

Thanks to this streamlined system, Thai exporters are now able to ship goods much more quickly than in the past, especially farmed products including fresh durian, to Chinese consumers. This direct trade route has enabled Thai exporters to cut costs by about 30 percent when shipping cargo from Thailand to China via Laos, compared to road transport.
President of Thailand-based Kaocharoen Train Transport Co., Ltd., Panya Paputsaro, told the Vientiane Times previously that using rail transport it takes just over one day for containers dispatched from Thailand to reach Chinese markets, much quicker than when using road transport.
Opening for service in December 2021, the dry port and its associated Vientiane Logistics Park are expected to reduce cross-border transport costs, especially at the 1st Lao-Thai Friendship Vientiane-Nong Khai border crossing, by 40 percent from current prices by 2025.
According to its operator, the dry port has witnessed increasing cargo volume. In 2022, it handled as many as 49,183 containers, which were shipped to countries such as Thailand, Vietnam, Cambodia, Myanmar, Malaysia, Singapore, China and Russia.
To tap the trade and investment potential created by enhanced connectivity, Vientiane Logistics Park Co., Ltd. is developing the US$547-million logistics park in ways that will attract more foreign investment. The park includes an export processing zone, a logistics centre, a free trade zone, and a technology and halal hub.
Companies that set up businesses in the park will benefit from a number of incentives, including a corporate tax holiday of eight to 16 years and lower Value-Added Tax, with cheap electricity being an added bonus.
 The Lao developer said there are great opportunities for businesses to invest in cold chain warehouses to store farm products and other food items for export. This is an area that could have significant benefits for Thailand, which is a major producer of farm produce.
To ease the shipment of farm products, the Lao investor is also working with China to build a Sanitary and Phytosanitary (SPS) service centre in the park. Products certified at the centre could then quickly enter China, a key market for Thailand’s agricultural produce.
Also, the dry port developer is working with Chinese authorities to set up a China Certification and Inspection Group (CCIC) representative unit at the dry port to inspect and issue Chinese standard certification to facilitate the shipment of freight.
Through the rail route, freight from Southeast Asia can travel beyond China. Via the China-Europe rail network, freight trains run across Kazakhstan, Russia, Belarus and Poland before reaching Duisburg in Germany.
On February 29, the first train from Thailand passed through the dry port on its way to Italy, the dry port’s managing director, Mr Sakhone Philangam, said on Friday.
The dry port and Vientiane Logistics Park are part of the Lao Logistics Link project, which is being developed by PTL Holding Company Limited - the parent company of Vientiane Logistics Park Co., Ltd. - in partnership with the Lao and Vietnamese governments.
The project includes the Vung Ang seaport in Vietnam’s central Ha Tinh province, a planned railway linking the seaport to Thanaleng Dry Port, and a planned dry port in central Khammuan province through which the railway will pass.
Through this route, freight can reach markets in the Pacific region.

By Advertorial Desk
 (Latest Update March 5, 2024)