BEIJING -- Plans for a pan-Southeast Asian railway network are starting to take shape. And China is the one nudging the long-stalled process along.
In 1995, Association of Southeast Asian Nations leaders proposed constructing regionwide rail connections as an alternative to less efficient road transport. Yet the project soon ran into two problems: disagreements between nations over how to proceed, and a shortage of funds.
Enter China, which has a keen interest in making the dream a reality. It envisions Chinese-made trains zipping around the region, and it is offering money and technical expertise to make it happen.
"The length of China's high-speed railways in operation has reached 16,000km, accounting for more than 60% of the world's total," Chinese Premier Li Keqiang noted March 5 in his opening speech to this year's session of the National People's Congress. Li said China would step up efforts to expand rail links abroad.
By that, Li meant mainly Southeast Asia. Since he became premier in 2013, Li has frequently visited the region and served as a de facto salesman for Chinese railway businesses.
Those businesses are well-positioned to take advantage of opportunities to the south. State-owned China CNR and CSR, the world's two biggest rolling stock makers by sales, have agreed to merge. Even without the economies of scale the deal will produce, Chinese state-run players enjoy cost advantages, since they can handle everything from railroad design and track-laying to station construction and system installation.
By one estimate, Chinese companies can accomplish all these tasks for 50% to 66% less money than their Japanese, U.S. and European rivals. For Southeast Asian countries that need to prioritize low costs, China is an attractive partner.
Laos and China are reportedly close to reaching a deal on a high-speed rail project. Initially, the line would link the Laotian capital of Vientiane with Kunming, the capital of China's southern Yunnan Province. In an interview with the Nikkei Asian Review, Somsavat Lengsavad, a Laotian deputy prime minister, said Laos hopes to reach an agreement with Beijing by June.
If Chinese President Xi Jinping has his way, this project would be just the beginning.
Grand plan
Xi's hopes to build transport infrastructure linking China with Europe and Africa, establishing new zones of economic growth along the old Silk Road. Beijing also aspires to build a "maritime Silk Road" that would start from Southeast Asia.
A Southeast Asian rail network would provide a foundation for Xi's larger goals and increase Beijing's influence over the region. China aims to construct railways running from Kunming to Myanmar, Cambodia, Thailand, Malaysia and Singapore, spanning some 3,000km.
When he attended a Greater Mekong Subregion summit in Bangkok in December, Li and Thai Prime Minister Prayuth Chan-ocha agreed to partner on an 800km rail project. The line is to connect Thailand's northern Nong Khai Province with Map Ta Phut, an industrial area in southern Rayong Province, and Bangkok. Chinese technology, specifications and equipment will be used for the project.
The stretches of track planned for Thailand and Laos account for more than half of the proposed pan-ASEAN rail link. "The long-distance railroad we will build in Thailand will mark the beginning of the development of rail links throughout the Indochinese Peninsula," Premier Li said at the summit.
When multiple countries are involved, technical standards can be a sticking point. China uses 1,435mm-gauge tracks -- the global standard for the width between rails. Indochinese Peninsula countries generally use a 1,000mm gauge. China's vast currency reserves could be a powerful incentive to get countries to adopt its specs, though.
The China Development Bank plans to set up a 10 billion yuan ($1.59 billion) loan facility to finance infrastructure in Southeast Asia. The China-led Asian Infrastructure Investment Bank, to launch this year, will add to Beijing's clout.
Chinese Commerce Minister Gao Hucheng says the transport initiative will cover all nations in Southeast Asia, including poor ones. He stresses this will contribute to global economic growth -- not just China's.
"We owe our growth to cooperation with China," Prayuth said at the Greater Mekong Subregion summit.
But as China uses its diplomatic clout and financial resources to accelerate foreign projects, it needs to be aware of potential pitfalls.
China Railway Construction, another state-run enterprise, last year won a contract to build a high-speed railway in Mexico. The project has been put on hold indefinitely, however, due to allegations of bribery against Mexican contractors involved in the endeavor.
ปักกิ่ง - แผนการแพนตะวันออกเฉียงใต้เครือข่ายรถไฟเอเชียกำลังเริ่มก่อตัว และจีนเป็นการหยุดการทำงานยาวตลอดมันพริ้วอยู่ ใน 1995 ผู้นำสมาคมประชาชาติเอเชียตะวันออกเฉียงใต้เสนอสร้างเชื่อมต่อทางรถไฟ regionwide เป็นทางเลือกในรถมีประสิทธิภาพน้อย แต่โครงการเร็ว ๆ นี้ประสบปัญหาสอง: ความขัดแย้งระหว่างประเทศผ่านการดำเนินการ และการขาดแคลนเงินทุน ป้อนจีน ซึ่งมีความสนใจกระตือรือร้นในการทำให้ฝันเป็นจริง มัน envisions ทำจีนรถไฟ zipping ทั่วภูมิภาค และถวายเงินและความเชี่ยวชาญทางเทคนิคจะทำให้เกิด "ความยาวของรถไฟความเร็วสูงของจีนในการดำเนินงานได้ถึง 16, 000 กม. บัญชีมากกว่า 60% ของผลรวมของโลก พรีจีน Li Keqiang กล่าววันที่ 5 มีนาคมในคำพูดของเขาเปิดไปยังเซสชันนี้ปีของสภาประชาชนแห่งชาติ หลี่กล่าวว่า จีนจะก้าวขึ้นพยายามขยายเชื่อมโยงทางรถไฟต่างประเทศ โดยที่ หลี่หมายถึง ภูมิภาคเอเชียตะวันออกเฉียงใต้ส่วนใหญ่ ตั้งแต่เขากลายเป็นพรีเมียร์ในปี 2013, Li ได้เยี่ยมชมภูมิภาคบ่อย ๆ และเป็นพนักงานเดิมสำหรับธุรกิจรถไฟจีน ธุรกิจที่มีห้องเพื่อใช้ประโยชน์จากโอกาสทางใต้ รัฐเป็นเจ้าของโรงแรมซีเอ็นอาร์จีนและ CSR โลกสองที่ใหญ่ที่สุดหุ้นกลิ้งผู้ตามการขาย ได้ตกลงการผสาน แม้ไม่ มีเศรษฐกิจของขนาดที่จะผลิตการจัดการ จีนรัฐเล่นสนุกกับข้อได้เปรียบต้นทุน เนื่องจากพวกเขาสามารถจัดการกับทุกอย่างจากรถไฟออกแบบและวางติดตามการติดตั้งระบบและก่อสร้างสถานี By one estimate, Chinese companies can accomplish all these tasks for 50% to 66% less money than their Japanese, U.S. and European rivals. For Southeast Asian countries that need to prioritize low costs, China is an attractive partner. Laos and China are reportedly close to reaching a deal on a high-speed rail project. Initially, the line would link the Laotian capital of Vientiane with Kunming, the capital of China's southern Yunnan Province. In an interview with the Nikkei Asian Review, Somsavat Lengsavad, a Laotian deputy prime minister, said Laos hopes to reach an agreement with Beijing by June. If Chinese President Xi Jinping has his way, this project would be just the beginning.Grand planXi's hopes to build transport infrastructure linking China with Europe and Africa, establishing new zones of economic growth along the old Silk Road. Beijing also aspires to build a "maritime Silk Road" that would start from Southeast Asia. A Southeast Asian rail network would provide a foundation for Xi's larger goals and increase Beijing's influence over the region. China aims to construct railways running from Kunming to Myanmar, Cambodia, Thailand, Malaysia and Singapore, spanning some 3,000km. When he attended a Greater Mekong Subregion summit in Bangkok in December, Li and Thai Prime Minister Prayuth Chan-ocha agreed to partner on an 800km rail project. The line is to connect Thailand's northern Nong Khai Province with Map Ta Phut, an industrial area in southern Rayong Province, and Bangkok. Chinese technology, specifications and equipment will be used for the project. The stretches of track planned for Thailand and Laos account for more than half of the proposed pan-ASEAN rail link. "The long-distance railroad we will build in Thailand will mark the beginning of the development of rail links throughout the Indochinese Peninsula," Premier Li said at the summit. When multiple countries are involved, technical standards can be a sticking point. China uses 1,435mm-gauge tracks -- the global standard for the width between rails. Indochinese Peninsula countries generally use a 1,000mm gauge. China's vast currency reserves could be a powerful incentive to get countries to adopt its specs, though. The China Development Bank plans to set up a 10 billion yuan ($1.59 billion) loan facility to finance infrastructure in Southeast Asia. The China-led Asian Infrastructure Investment Bank, to launch this year, will add to Beijing's clout. Chinese Commerce Minister Gao Hucheng says the transport initiative will cover all nations in Southeast Asia, including poor ones. He stresses this will contribute to global economic growth -- not just China's.
"We owe our growth to cooperation with China," Prayuth said at the Greater Mekong Subregion summit.
But as China uses its diplomatic clout and financial resources to accelerate foreign projects, it needs to be aware of potential pitfalls.
China Railway Construction, another state-run enterprise, last year won a contract to build a high-speed railway in Mexico. The project has been put on hold indefinitely, however, due to allegations of bribery against Mexican contractors involved in the endeavor.
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