SOURCE / ECONOMY
Thailand ships for the first time agricultural goods to China through the China-Laos Railway
Published: Jan 26, 2022 11:14 PM
 
The Lane Xang EMU train departs the China-Laos Railway Vientiane station in the Lao capital Vientiane on December 3, 2021. Photo: Xinhua

The Lane Xang EMU train departs the China-Laos Railway Vientiane station in the Lao capital Vientiane on December 3, 2021. Photo: Xinhua


A train loaded with 1,000 tons of glutinous rice, from Nong Khai Province in northeastern Thailand, is heading to Southwest China's Chongqing through the China-Laos Railway after it departed from Vientiane South Station on Wednesday.

This is the first time that Thailand ships agricultural products to China through Laos since the official opening of the China-Laos Railway on December 3. The departure of the train to China unleashed the very beginning of potentially stronger trade between Thailand and China, its major trading partner, boosted by the bigger transport capacity of the newly-opened railway line.

The news was revealed to media on January 22 by Alongkorn Ponlabutr, advisor to the Minister of Agriculture of Thailand, and later confirmed by the Thai Rice Exporters Association.

The association said in an exclusive response to the Global Times on Wednesday that the transport was done through three logistic companies from China, Thailand and Laos.

Sea transport has been the major, if not the only, means for Thai rice to be shipped to China. In addition, the rising logistic hurdles and high freight rates have posed new challenges to the shipping capacity to meet the growing demand.

Media reports said that it takes only about three to four days for goods carried by rail to be delivered at the destination, which is four times faster than sea transport. 

But the Thai rice exporters said in their statement that they need to study the effects and disadvantages of rice exports by train since "the story is still new and unprecedented."

"If there are no trade barriers and it is beneficial to export, we think that there will be [more] rice exports by rail in the future," the representative of the Thai industry association said.

When asked if there is expectation for Thai rice to reach more countries through the China-Laos Railway, the association said that "at this time, there are no plans to export by railway to other countries."

Thailand has set a target of 7 to 7.5 million tons of rice exports in 2022, up from an estimated 6 million tons this year, according to media reports.

In addition to the greater opportunities for Thailand's rice, other products like fresh fruits are also expected to see a bigger trade growth with closer business and logistics cooperation through the new railway.