The extension of a downtown Vientiane railway link from Thanalaeng station near the Lao-Thai Friendship Bridge to Khamsavat village in Xaysettha district may begin soon.
Lao National Railway Authority Deputy Director General Sonesack Nhansana said on Friday the Thai government had provided a grant of 10 million baht to conduct a preliminary design of the proposed 9km railway to determine the cost of such a project.
Design work on the railway began in October 2009 and is scheduled for completion within eight months.
Mr Sonesack said once the design was completed the government would ask Thailand for financial support to build the railway, adding that construction work may begin at the end of this year or next year.
The Thai government has said it will fund construction of the railway through a grant for 30 percent of the cost and the rest in the form of a low interest loan.
Thailand provided Laos with about 197 million baht to build the existing 3.5km railway from the middle of the Vientiane-Nong Khai Friendship Bridge to Thanalaeng station in Dongphosy village, some 25km from Vientiane city centre.
Thirty percent of the funding was in the form of grant aid and the rest was a loan.
Although the railway is short, it is meaningful for Lao-Thai relations. The 3.5km rail link has enabled the operation of a train service between Laos and Thailand , creating better transportation and communications between the two nations.
Officials say the number of people using the train across the bridge has increased in the past few months, in particular those travelling from Bangkok to Vientiane . A train service departs in Bangkok in the evening and arrives in Vientiane in the morning, to connect with the local train into Vientiane .
At present the train between Laos and Thailand carries only passengers. Officials say facilities will be built to enable the train to carry containers, which will enable businesses in Laos to get goods to sea ports more cheaply.
Plans for a railway between Thanalaeng and Khamsavat village were drawn up many years ago, with the French government providing financial support for the survey of the rail link.
Officials said the government would compensate people whose land and property were affected by the railway.
The government considers the construction of railways as very important for Laos , believing it will transform Laos from a landlocked to a land-linked country. This would create a better investment and business environment because the transport of goods from Laos to sea ports would be cheaper.
Business operators say the cost of transport of goods from Laos to world markets is expensive, and is a major problem in competing with overseas businesses.
The government plans to include the construction of a national railway and highway in its next five-year socio-economic development plan. It is now looking for sources of funding to build such a railway.
China and Vietnam have already helped Laos to conduct surveys for the planned national railway.
A Malaysian company is also conducting a feasibility study for a railway from Savannakhet to the Laos-Vietnam border.
The extension of a downtown Vientiane railway link from Thanalaeng station near the Lao-Thai Friendship Bridge to Khamsavat village in Xaysettha district may begin soon.
Lao National Railway Authority Deputy Director General Sonesack Nhansana said on Friday the Thai government had provided a grant of 10 million baht to conduct a preliminary design of the proposed 9km railway to determine the cost of such a project.
Design work on the railway began in October 2009 and is scheduled for completion within eight months.
Mr Sonesack said once the design was completed the government would ask Thailand for financial support to build the railway, adding that construction work may begin at the end of this year or next year.
The Thai government has said it will fund construction of the railway through a grant for 30 percent of the cost and the rest in the form of a low interest loan.
Thailand provided Laos with about 197 million baht to build the existing 3.5km railway from the middle of the Vientiane-Nong Khai Friendship Bridge to Thanalaeng station in Dongphosy village, some 25km from Vientiane city centre.
Thirty percent of the funding was in the form of grant aid and the rest was a loan.
Although the railway is short, it is meaningful for Lao-Thai relations. The 3.5km rail link has enabled the operation of a train service between Laos and Thailand , creating better transportation and communications between the two nations.
Officials say the number of people using the train across the bridge has increased in the past few months, in particular those travelling from Bangkok to Vientiane . A train service departs in Bangkok in the evening and arrives in Vientiane in the morning, to connect with the local train into Vientiane .
At present the train between Laos and Thailand carries only passengers. Officials say facilities will be built to enable the train to carry containers, which will enable businesses in Laos to get goods to sea ports more cheaply.
Plans for a railway between Thanalaeng and Khamsavat village were drawn up many years ago, with the French government providing financial support for the survey of the rail link.
Officials said the government would compensate people whose land and property were affected by the railway.
The government considers the construction of railways as very important for Laos , believing it will transform Laos from a landlocked to a land-linked country. This would create a better investment and business environment because the transport of goods from Laos to sea ports would be cheaper.
Business operators say the cost of transport of goods from Laos to world markets is expensive, and is a major problem in competing with overseas businesses.
The government plans to include the construction of a national railway and highway in its next five-year socio-economic development plan. It is now looking for sources of funding to build such a railway.
China and Vietnam have already helped Laos to conduct surveys for the planned national railway.
A Malaysian company is also conducting a feasibility study for a railway from Savannakhet to the Laos-Vietnam border.
