Rail Service Between Kunming, China and Vientiane, Laos Sees High Uptake Amid Road Congestion | Taiwan News

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  • The China-Vietnam road border crossing is currently experiencing delays of 20-30 days
  • DHL Global Forwarding, the first international freight forwarder to launch two-way China-Laos rail service, sees rapid demand with transit time of 20-24 hours and costs up to 50% less than air freight
  • Vientiane and Kunming key as multimodal hubs for China-ASEAN trade

SHANGHAI, CHINA – Media OutReach – January 28, 2022 – Heavy traffic congestion at the China-Vietnam border due to local COVID-19-related situations has led to growing demand for new two-way China-Laos rail services facilitating trade between the China and ASEAN. More than 2,000 trucks are queuing on both sides of the main Pingxiang (China) link bordering Lang S’on (Vietnam), causing delays of up to 20-30 days.

The alternative border from Dongxin (China) to the Mong Cai border (Vietnam), reopened on January 10, is still experiencing backlogs. Both congestions are expected to continue until the Lunar New Year.

DHL Global Forwarding, the leading international freight specialist division of Deutsche Post DHL Group, and the first international freight forwarder to launch two-way rail freight service between Kunming, China and Vientiane, Laos, has seen significant uptake with daily connection in each direction for its service on the new China-Laos Railway. The rail service shortens the transit time between Kunming and Vientiane to around 20-24 hours, compared to 20-30 days with the current congestion across Vietnam.

Rail-truck solution between China and Southeast Asia: the key to smooth functioning supply chains

“We launched the China-Laos rail service in December and it was just in time. The backlogs on the road borders between China and Vietnam are not expected to clear up before the Chinese New Year, and it is really essential during this high season to have the rail alternative,” said Steve Huang, CEO of DHL Global Forwarding Greater China.

“With the two-way rail service between Laos and China, we have been able to help customers meet their delivery times with limited delays. The service strategically positions landlocked Laos as a land-based hub. DHL Global Forwarding has the most extensive road and rail services in the region, and our customers transporting goods between China and ASEAN countries now have a solid and viable alternative between air and sea freight,” said Thomas. Tieber, CEO of DHL Global Forwarding Southeast Asia.

Peak Season Relief: Faster and Cheaper Freight from China to ASEAN

DHL’s scheduled service using the new China-Laos Railway is one of six international economic corridors under China’s Belt and Road Initiative (BRI). The Laotian section of the railway is 414 km which connects Kunming (China) to Boten, the northern border of Laos with China, to Vientiane in the south, on its border with Thailand. The route reduces travel time from Vientiane to the Chinese border to less than four hours, compared to 15 hours by road (under normal conditions). At Boten, the railway will connect to the BRI network in Kunming, China via another 595 km rail link, providing Laos with an overland link to global and regional supply chains.

DHL’s scheduled service operating the China-Laos Railway runs in both directions between China and ASEAN markets including Thailand, Vietnam, Cambodia, Malaysia, Singapore and Indonesia, providing an attractive and very profitable alternative when logistics costs are at an all-time high.

The two-way service combines truck transportation from all over China to Kunming hub, via China-Laos railway, then with DHL’s established road network service and back, with significant cost savings and competitive transit times, providing a viable transport alternative. . Here are some examples of services:

  • Chengdu – Bangkok – road/rail services are 78% cheaper and 2 days faster than air freight
  • Kuala Lumpur – Chengdu – road/rail services are 70% cheaper, same transit time compared to air freight
  • Shanghai – Singapore – road/rail services are 38% cheaper, 4 days more than airfreight

Note to editors:

Discover DHL’s road and multimodal logistics offers, with its road freight services on the rise in Southeast Asia, and a rail freight service from Xi’an in China to Hamburg and Neuss in Germany, reducing transit time by more than 40%. Read more on the logistics of DHL objects.

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