Chinese Express: Strategic Importance Of China’s New Rail Routes – Analysis

July 11, 2012
By Shreya Singh
IPCS
Eurasia Review and Analysis

China announced the plan on a proposed high speed railway network in 2010 that would pass through Central Asia, most of the mainland ASEAN countries, India and Pakistan from South Asia and then move into Europe. The first leg, which is the Kunming line (see map) is estimated to be completed first by 2015. The question stands as to what is the strategic importance of the proposed rail networks and how does it help China fulfill its energy needs?

Proposed Networks

China has proposed 3 transcontinental rail routes that will go through at least 17 countries. If the proposed plan goes through then it would be a major breakthrough in transcontinental trade. The routes have been developed mainly to connect the major energy suppliers to China, among other things.

The first line is proposed to connect Kunming in Southern China to Singapore. The line would run through Vietnam, Cambodia, Thailand and Malaysia. A second link originating from Kunming would head into Myanmar, India and Pakistan, finally joining the line which originates in Xinjiang (China) at Tehran (Iran). The Asia Development Bank had loaned £27 million as part of the £93 million for the reconstruction of Cambodia’s line. According to the Chinese authorities, the lines would not be solely dependent on government money and bank loans, the railways can also raise capital from the private sector of the countries concerned.

The second line of the transcontinental high speed rail network would originate from the north western fringes of China, Urumqi in Xinjiang precisely, and move towards Central Asia linking China’s neighbours, and then into Tehran before heading ambitiously to London. This line connects China’s outlying provinces to the Central Asian markets and strengthens the existing trade routes.

Vietnam – Cambodia railroad to be built

Monday ,Jul 25,2011
Saigon Gia Phong (Vietcong Communist Party)

It is part of the Singapore-Kunming railroad project, so it will be a key railroad for Cambodia to transport commodities to regional and global markets, especially in the framework of ASEAN-China Free Trade Area.

The feasibility study for the construction was implemented by the Chinese Railway Ministry's Third Railway Survey and Design Institute since July 2009 with a cost about 3 million USD funded by China.

As planned, the railroad is 257 kilometers in length, starting in Kampong Speu Province’s Oudong district, pass by Kratie province’s Snuol district and end at Vietnam’s Loc Ninh district in the southern border province of Binh Phuoc.

Column: Asia’s engine of growth

Tuesday, Jul 12, 2011
Amitendu Palit
The Financial Express

Asian connectivity has assumed a whole new meaning with high-speed rail linking people and places not only within the countries, but also across countries.

China had begun the process a few years ago by laying out the design of an ambitious rail road network. Now South Korea has also followed suit. New rail links within, and from these countries, are being complemented by upcoming networks across Southeast Asia.

A key project plans to link China to upper Southeast Asia by connecting the former to the CLMV group of countries in the region—Cambodia, Laos, Myanmar and Vietnam—along with Thailand. The specifics of the project include rail corridors from Kunming in China’s western province of Yunnan to Vientiane in Laos, which would produce further connections to Bangkok in Thailand, Phnom Penh in Cambodia, and Ho Chi Minh City and Hanoi in Vietnam. The link will eventually extend right up to the tip of South China Sea and connect Kuala Lumpur and Singapore. This remarkable pan-Asian rail network bridging Northeast and Southeast Asia is expected to be ready by 2020.

China plans rail network in SE Asia

Dec 10, 2010
The Times of India

BEIJING: China will be connected by rail with its neighbours in South East Asia, including Singapore, Thailand and Laos, in the next three years.

This will add a new dimension to cooperation among ASEAN+1 countries and also influence India's relationship with them.

The network of rail lines connecting China's Kunming city with Singapore, Thailand, Myanmar, Cambodia , Vietnam and Malaysia is meant to give a boost to the creation of a Free Trade Area in the region.

The announcement was made by Laos deputy prime minister, Somsavat Lengsavad in Beijing on Thursday, who said theconstruction of a railway track connecting China with his country will begin early next year.

The two sides had inked an agreement last January for laying the track. The track may be used to run high-speed trains.

India has been trying to build relationships in South East Asia on the basis of its ability to provide trade opportunities and political support in international forums . But with the rail network enhancing Chinese influence in the region, New Delhi will face a new obstacle . The situation will be particularly difficult in Myanmar, where India and China are in severe competition to expand influence.

"We believe that this project will contribute significantly to the socio-economic development of Laos, as well as to the promotion of economic cooperation between ASEAN and China," Lengsavad said. The purpose is to support "the masterplan for ASEAN connectivity and the implementation of the ASEAN-China free trade area ," he said.

For China, the new network would facilitate expansion of its construction business in South East Asia. Chinese firms are involved in setting up hydropower projects in Laos besides building several infrastructure projects in Vietnam. Bilateral trade between China and Laos grew by more than 50% in 2009 to $752 million.

Chinese firm inks railroad contract

Monday, 11 May 2009
Written by Chun Sophal
The Phnom Penh Post

$2.3 million agreement will see China Railway Group conduct feasibility study on track extending to Vietnam.

A CHINESE company has been awarded a contract to study Cambodia's rail network to Vietnam as part of the Singapore-Kunming railway project, government officials said Thursday.

The project would see China Railway Group study construction of a 255-kilometre stretch of track from Bat Doeng in Kampong Speu to Snuol district in Kratie province at the Vietnamese border. In a separate arrangement, Australia's Toll Holdings is set to renovate and operate the lines from Phnom Penh to Sihanoukville, and Phnom Penh to the Thai border.

Sokhom Pheakvanmony, director general of Royal Railways of Cambodia, told the Post on Sunday that the Ministry of Public Affairs signed the agreement worth US$2.5 million for carrying out a feasibility study. Experts say the railway could cost more than $700 million to build, with China expected to foot the bill.

We hope that china railway group will start studying the project soon.

"We hope that China Railway Group will start studying the project soon this year," said Sokhom Pheakvanmony.

He added that a detailed study of the project would be finished in between 18 months and two years, after which time they would start building the railway link.

"ASEAN has already linked its entire railway network except for Cambodia, which is the last country to build its portion," said Sokhom Pheakvanmony.

On Thursday, Hu Gian-Wen, a member of China's Foreign Relationship Association, told Prime Minister Hun Sen that China would donate $2.5 million to the project, which would link Cambodia with Loch Minh, Vietnam.

Cambodia has two railroads, one of which links Phnom Penh with the Thai border in Banteay Meanchey province and is 348km in length.

The other line, which links Phnom Penh with Preah Sihanouk province, is 264km long.

Both were built under French rule and are in poor condition.

The 10 member states of Asean, together with China, Japan and Korea, signed an agreement to build the new railroad in 2000.

In total, the railroad would run 5,513km and enable overland travel from Singapore through to Malaysia, Thailand, Cambodia, Vietnam and China.