Land-locked Laos moves to become logistics link
THANALENG Dry Port (TDP) and Vientiane Logistics Park (VLP) – two mega infrastructure projects – are set to significantly bolster the Lao government’s efforts to transform Laos into a logistics link and land-linked country within the region and beyond.
The TDP is a dry port of international importance, approved by the UNESCAP through Resolution No 69/7 on the Intergovernmental Agreement on Dry Ports adopted in Bangkok on May 1, 2013.
The port tops the list of development priorities in the Lao National Logistics Strategy for 2016-2025 adopted under PM decree No 158/GOL dated May 27, 2015, an action plan that will drastically transform Laos from being landlocked to a land-linked country.
Once it is realised, the project, which is being developed in the capital Vientiane, will provide advanced and modern logistics services for various forms of transport. The project is planned to link with sea trade routes, airports and railways. Therefore, the project will bolster and maximise trade and investment potentials.
In the near future, the project is planned to link with the
Vung Ang seaport in Vietnam’s central Ha Tinh province, which the Lao and Vietnamese governments have agreed to jointly develop.
The governments of Laos and Vietnam have also agreed to build a railway connecting Vientiane with the seaport to facilitate transport.
Feasibility studies for the TDP and VLP have been conducted in accordance with a memorandum of understanding signed on April 5, 2019.
After the feasibility studies and environmental impact assessment were completed, meetings were held to discuss the project and related issues among the sectors concerned.
On February 7, last year, the Lao government approved the feasibility studies and gave the green light for the establishment of Vientiane Logistics Park Co Ltd to execute the project.
Meanwhile, the company and the government signed a 50-year project concession agreement on a build-operate-transfer (BOT) basis.
On July 3, a groundbreaking ceremony was held to start construction of the TDP and VLP in Dongphosy village, Hadxaifong district, Vientiane.
The TDP and VLP are being built on a 382ha site with a total investment cost estimated at $727 million.