Inland terminal at Vientiane Logistics Park expected to become a major road and rail freight hub along the economic corridor between China and Thailand.
Kerry Logistics subsidiary KLN (Singapore) and Laos’s Sitthi Logistics have agreed to establish a joint venture to develop a dry port in the Vientiane Logistics Park in Laos that is expected to become a major road and rail freight hub along the economic corridor between China and Thailand.
The move is part of Kerry Logistics’ development strategy to seek accelerated growth within the ASEAN region by developing an integrated ‘Greater Mekong Region platform’ covering Thailand, Cambodia, Myanmar and Laos.
The inland port will be situated in an area of approximately 35 hectares, to be developed in phases for the transfer of cargo at Vientiane, which connects the railway lines between China and Thailand from Kunming to Bangkok. An efficient dry port is not only expected to help attract investment to Vientiane and its surrounding areas, but also turn the city into a major economic hub along the Belt and Road trade routes, the Asian logistics specialist said.
George Yeo, chairman of Kerry Logistics, said: “We are proud to play a role in the development of Laos and what will become an important economic corridor between China and southeast Asia. We are fortunate to have, in Sitthi Logistics, a strong local partner. Together with Sitthi Logistics, we will work hard to make the dry port project a success and an asset to the Laotian economy.”
Kerry Logistics will provide management expertise, while Sitthi Logistics will provide local support. The facilities are intended to allow the logistics industry to transport goods by road and rail and create an efficient logistics system to accommodate a range of industries and facilitate distribution along the economic corridor between China and Thailand, Kerry said.
“To enable the Laotian economy to benefit from the Kunming-Bangkok rail and to fully utilise the plentiful resources and labour in Laos, the Lao government is introducing economic incentives and conducive regulations for the building of an efficient logistics centre in Vientiane,” the company highlighted.
Kerry Logistics in 2018 completed the first phase of developing the inland port in Mandalay in northern Myanmar and the inland port in Myanmar’s capital Yangon. “With stronger growth anticipated to persist in Asia, particularly in Southeast Asia and India, Kerry Logistics will continue to leverage its established network in Asia to take advantage of the booming intra-Asia trade and maintain its business growth in Asia,”the company said.
Source: Lloyd’s
