September 6, 2022

China to Laos Rail Freight Route

All around the world, our international logistics experts support global operations to enhance worldwide logistics operations. Rail Freight transport and logistics developments have made significant headway in resolving many of our client's challenges. 

The new rail link between China and Thailand has been extended by the new China – Laos railway. The Laos rail opened in 2021 and became so popular that the frequency of train services was increased several times.

At the end of May, China’s State Railway Group said the route has delivered more than 4 million tons of goods. The China-Laos-Thailand (CLT) route runs from Chongqing terminal via Vientiane, crosses the border to Thailand at Nong Thai, and continues to Bangkok.

Rail Freight Departures

Departures are available weekly, and lead time is around 8-12 days. The new route brings a lot of investments and business opportunities to the areas to previously disconnected areas. The train passes through some of Thailand’s primary agricultural regions, free trade, and industrial zones. Membership in ASEAN (a Free Trade Agreement with China) and 62 industrial zones in Thailand, offer refunds for VAT.

Other exemptions from import tariffs allows local components to be matched with imported components from China and another South Asian countries. Final products can then be exported to non-Asian markets, such as the United States and Europe. Products may also be reexported to ASEAN members states. ASEAN also has a Free Trade Agreement with India. Currently an increasing number of Chinese companies are entering Thailand in various fields, such as rubber businesses, automobile, energy, and high-tech industries.

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