New cargo rail service that connects Malaysia, Thailand, Laos and China kicks off
Railway experts have hailed the inaugural freight service as historic.
Melissa Goh & Louisa Tang
11 Jul 2024 12:22PM (Updated: 11 Jul 2024 01:19PM)
KELANA JAYA, Selangor: A newly launched cargo rail service connecting Malaysia, Thailand, Laos and China is expected to open new markets in the region and lower costs for local businesses and people.
The first ASEAN (Association of Southeast Asian Nations) Express departed a Kelana Jaya inland depot in Malaysia’s Selangor state on Jun 27 in the presence of representatives from the four countries.
It arrived at its destination in Chongqing, China on Thursday (Jul 11) with its cargo of electronic appliances and agricultural products. Another train going the opposite way from Chongqing arrived in Selangor this week as well.
The transit time was just under 14 days – faster than the sea freight route which could take up to three weeks.
Industry experts predict that the new logistics option will spur the rail manufacturing industry and lower logistics costs by up to 30 per cent.
Some durian farmers are already planning to export the prized Musang King variety via rail to China later this year, after China agreed last month to allow imports of fresh durian from Malaysia.
RAMPING UP TO DAILY SERVICES
The ASEAN Express, which links the three members of the Southeast Asian grouping and China, will connect new trade routes and inland ports across the region.These include the Kontena Nasional Inland Clearance Depot in Selangor, Latkrabang Inland Port in Thailand, and Thanaleng Dry Port in Laos.
Malaysian railway company KTMB intends to run two services per week between Kelana Jaya and Chongqing.
The eventual goal is to ramp up frequency to daily runs between the both cities, said the firm’s CEO Mohd Rani Hisham Samsudin.
“This is going to be the first phase. If everything's okay, then we are seriously looking into passenger trains as well in the future,” he added.
HOW THE RAIL JOURNEY WORKS
From Kelana Jaya, shipments can reach Padang Besar – close to the border between Malaysia and Thailand – in less than a day.No gauge change will be needed here as both countries’ rail networks operate on a 1m track gauge system.
In rail transport, track gauge refers to the distance between the two rails of a railway track. Several different track gauges exist worldwide, presenting a barrier to wider operation on railway networks.
This happens at the train journey's next border between Thailand and Laos, as the latter's railway differs from Malaysia's and Thailand's.
Laos operates on a standard railway gauge, which has a track gauge of 1.435m.
At the Thanaleng Dry Port in Vientiane, containers are shifted one by one to a different set of wagons – a process that takes nearly two hours.
From Laos, the ASEAN Express travels to Kunming in China’s southern Yunnan province, before arriving in Chongqing.
The rail service is 30 per cent cheaper than road haulage on average, said KTMB, and is also a greener and more sustainable alternative.
“A GOOD START”
Railway experts have hailed the inaugural freight service from Malaysia to China as historic."This is a good start. Even though it is small, it can grow,” said Mr Rosli Azad Khan, consultant and managing director of MS Traffic Planners.
He also said this would allow Malaysia to grow its transportation sector, so it can be a dominant player in the countries served by the ASEAN Express.
“I think Malaysia should take the lead in this - it is a good opportunity,” he said.
Professor Khalid Hasnan, head of Malaysia’s Industry Centre of Excellence for Railway, noted: “If you can convince the industry that you can deliver fast, efficient, cheap, and yet the integrity of your goods is assured, they will go for it.”
The experts also said that apart from improving regional rail connectivity, they expect logistics costs to go down.
Mr Rosli pointed out that passenger and freight demand in all four countries is “very high” and railway services would better serve their needs than roads.
“In the future, we cannot rely on highways to serve us, both for passengers and for freight. We have to go back to the railway,” he added.
