China and Thailand are looking forward to improved trade and tourism. (Photo : Reuters)
There are currently plans to link China to Thailand via a railway that will be completed in three years, improving trade and tourism between the two countries.
From Kunming in Yunnan Province, the 840-kilometer railway will connect to Thailand's Nong Khai Province, capital city of Bangkok and Rayong Province.
According to Thai Deputy Prime Minister Tanasak Patimapragorn's comments during the China-ASEAN Expo in Nanning, south China, construction of the railway will start before the end of this year.
The railway would be important to transport goods and people between China and Thailand, Patimapragorn told Chinese state media agency Xinhua.
He added that the railways could lead to the creation of special economic zones, fueling Thailand's economic development, as well as that of its neighbors.
Chinese companies are looking forward to transporting cargo more conveniently to other parts of Asia, Africa and Europe through Thailand, reducing overall transportation costs.
"I am looking forward to a lower transport cost," said Boonyong, a Thai businessman who sells rice at an annual profit of over 50 million yuan ($7.86 million).
According to secretary-general of the ASEAN-China Center Yang Xiuping, the railway will be beneficial to Southeast Asian tourism.
According to statistics from the China Tourism Academy, 11 million Chinese tourists traveled to Southeast Asia in 2014, with the railway expected to bring an additional 2 million each year.
China Railway Construction Corporation Limited said that roundtrip fares from Kunming to Bangkok will cost around 700 yuan, roughly half of the airfare. Freight fees are equivalent to around a ninth of the cost by air.
The railway is also considered a blessing for Laos, as it will pass through the country.
According to Khammanh Siphanhxay, a researcher at the Lao Academy of Social Science, Laos, with its underdeveloped infrastructure, desperately needs railroads.
The line will pass through some of the mountainous areas of Thailand and Laos, adding difficulty to construction. However, China has plenty of experience in building railroads in complicated terrain, according to Siphanhxay.
Siphanhxay also noted that some of the areas along the route are underdeveloped, so distribution of profits, along with the environment, will be an important issue to address.
