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Laos also has fertile land for developing modern agriculture with its abundant water resources, rich natural/ mining resources and vast forest expanse and its economic mainstay along the Mekong River await to expand inland. The Laos social and economic experience have been growing rapidly since reformation and the implementation of the Government’s Open Policy declared in 2003.

The Lao Government desires to develop a nationwide railway network to improve the nation’s transportation system in order to support the growing mining sector and increasingly lucrative bulk cargo transportation. It is envisaged the new railway tracks network will offer about 2,500 km and cost over US$13 billion to complete.

The master scheme comprises a north-south railway link from China’s border linking to Vientiane Capital, and subsequently reaches out  to the provinces of Khammouane, Savannakhet (Kaysone Promvihane) and Champasak with future linkage to Cambodia. in the central Southern region another railway line will connect Vietnam, Thailand and so on.

The development of the mining industry creates good demand prospect for railway. An Iron ore mining project will generate freight transportation of at least 50,000 to 150,000 tons a year.

Presently, Laos export of mineral alone creates 200,000 to 300,000 tons of freight transportation a year; the transportation of agricultural products even reach several million tons.

Due to lack of railway transportation system, the rich coal resources cannot be developed fully and presently they can only transport via road.

As a result, the roads are rapidly deteriorated due to heavy trucks loaded with minerals drove on the roads. However, funding for such a project is a top priority issue. The government has given permission to the governments of China and Vietnam to conduct studies and design for the main lines, the backbone of the project. China and Vietnam have completed the study and design phase. 




The main objective of the preliminary surveyworks are to provide adequate framework for future survey and other related activities and studies which would enable data acquisition be made to assists in design and construction of proposed double track electrified railway from Savannakhet to Lao Bao .

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Lao People's Democratic Republic, situated in north Indo-China peninsula, serves as an important linkage between China and ASEAN countries. Although Laos covering an area of 23.68 X 104 km2 only. Laos has a enormous virgin land with potential for economic development integral to its abundance of natural resources. 

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The Government of the Lao People's Democratic Republic have signed a Master Agreement on 9th November, 2012 with Giant Consolidated Limited for the railway construction of the part of Lao National Railway Network that is from Savannakhet to Lao Bao which is approximately 220km on a Build-Operate-Transfer basis.

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