Four Cross-Border Railways Gain Momentum (AI Translation)
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文｜财新周刊 邹晓桐
By Caixin Weekly Zou Xiaotong
2025年2月，中国在北亚、中亚、东南亚三个方向的四条跨境铁路均取得了突破性进展，如果实施顺利，这些延宕多年的国际铁路工程都将在年内开工。
In February 2025, China saw groundbreaking progress in four cross-border railways in the directions of Northeast Asia, Central Asia, and Southeast Asia. If executed smoothly, these long-delayed international railway projects are expected to commence within the year.
2月26日，越南国会主席陈青敏签发了“老街—河内—海防”标准轨铁路项目投资决议，该铁路全长约390.9公里，干线设计时速160公里，计划在2025年12月开工，较此前预期的2027年大幅提前。
On February 26, the Chairman of Vietnam's National Assembly, Tran Thanh Man, signed the investment resolution for the “Lao Cai–Hanoi–Haiphong” standard-gauge railway project. The railway spans approximately 390.9 kilometers, with a mainline designed speed of 160 kilometers per hour, and is scheduled to begin construction in December 2025, significantly ahead of the previously anticipated start in 2027.
2月8日，中泰两国发布联合声明，强调加快中泰铁路一期建设，尽快确定二期合作模式，争取早日动工。中泰铁路一期工程于2017年开工，迄今进展仅为四成左右，预计2027—2028年完工；二期工程近日获泰国内阁批准，计划2025年开工，预计2030年完工。
On February 8, China and Thailand issued a joint statement emphasizing the acceleration of the first phase of the China-Thailand railway construction and aiming to determine the cooperation model for the second phase at the earliest opportunity to commence construction soon. The first phase of the China-Thailand railway project commenced in 2017, with progress currently around 40%, and is expected to be completed between 2027 and 2028. The second phase recently obtained approval from the Thai Cabinet, is planned to start in 2025, and is expected to be completed by 2030.
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- China and Thailand are advancing the China-Thailand railway with the second phase set to start in 2025, aiming for completion by 2030, while the first phase is only 40% complete.
- Vietnam is planning the Lao Cai–Hanoi–Haiphong railway and exploring enhanced rail connectivity with China, reflecting changes in regional trade dynamics.
- The China-Kyrgyzstan-Uzbekistan Railway project, seen as a strategic link to Europe, is expected to start in July 2025 with a $4.7 billion investment.
In February 2025, significant developments were made in four cross-border railway projects involving China, marking a substantial step forward in international railway connectivity in Northeast Asia, Central Asia, and Southeast Asia. These projects, if executed as planned, are expected to begin by the end of the year. [para. 1]
One project is the "Lao Cai–Hanoi–Haiphong" railway in Vietnam, spanning approximately 390.9 kilometers with a mainline designed for 160 kilometers per hour. Construction is set to start in December 2025, earlier than previously planned. [para. 2]
In Southeast Asia, the China-Thailand railway's first phase is about 40% complete, with the second phase approved and slated to start in 2025. The plan is to enhance regional connectivity through the Pan-Asian Railway Network, linking China with ASEAN countries. [para. 3][para. 4]
For instance, the China-Laos Railway, completed in 2021, has significantly reduced transportation costs and travel times in the region. Its success has influenced Vietnam and Thailand to expedite their railway projects with China, aiming to improve logistics and trade routes connecting to Europe. [para. 5][para. 6][para. 8]
Yet another vital development is the initiation of the China-Kyrgyzstan-Uzbekistan Railway, with a projected construction start in July 2025. Once completed, this route will serve as a crucial segment of the "middle corridor" linking China to Europe, addressing disruptions caused by geopolitical tensions. [para. 9][para. 10]
Similarly, efforts are underway in North Asia, where China and Mongolia agreed to construct a second cross-border railway, further stabilizing coal transportation between the two nations. [para. 11]
Overall, China's push for overseas railway projects aligns with its Belt and Road Initiative, promoting the internationalization of Chinese railway technology and exploring new markets. However, these ventures also entail significant risks, requiring flexibility and skillful navigation of economic and geopolitical landscapes. [para. 12][para. 13]
A notable evolution in China's approach to overseas railway projects is the transition to a Special Purpose Vehicle (SPV) investment model. This model allows for deeper collaboration with local entities, emphasizing comprehensive project engagement from financing to operation. [para. 14][para. 15]
As part of China's ongoing efforts, the Belt and Road Initiative has fostered developmental benefits in over 150 countries, supporting the creation of new trade corridors and strengthening regional ties across Asia and Africa. This is epitomized by projects such as the China-Laos Railway and other emerging routes, which are reshaping global trade dynamics. [para. 16][para. 17]
Vietnam's engagement in these railway initiatives is a noteworthy example of shifting attitudes, primarily driven by growing trade volumes with China. The "Lao Cai-Hanoi-Haiphong" project symbolizes this new commitment, expected to meet Vietnam's budding infrastructure needs. [para. 18][para. 20][para. 22]
Vietnam has gradually embraced the idea of standard gauge connectivity with China, recognizing the potential to bolster economic ties and promote efficient transportation. This shift aligns with Vietnam's broader infrastructure goals, including ambitious high-speed rail plans between Hanoi and Ho Chi Minh City. [para. 23][para. 25][para. 26]
Despite challenges and complexities, Vietnam and China have demonstrated a commitment to advancing their railway projects through strategic collaboration, addressing technical and financial hurdles. [para. 27][para. 28][para. 30]
Parallel to Vietnam, Thailand is progressing with the China-Thailand Railway, seeking to realize its aspirations as a regional logistics hub. This project has encountered various hurdles, but recent political shifts indicate renewed momentum to meet completion targets by 2030. [para. 32][para. 33][para. 35]
Moreover, the China-Kyrgyzstan-Uzbekistan Railway is positioned as a strategic project connecting East and West, promoting enhanced trade and infrastructure integration across Central Asia. This project is crucial for creating a new China-Europe corridor, effectively linking regional economies and broadening trade routes. [para. 36][para. 38][para. 40]
China's evolving overseas railway investment strategies reflect a broader focus on Transit-Oriented Development (TOD) models, aiming to blend infrastructure projects with economic growth initiatives. This approach seeks to enhance the long-term viability and profitability of such large-scale endeavors, exemplified by ongoing projects like the Jakarta-Bandung High-Speed Rail. [para. 42][para. 44][para. 45]
Overall, China's cross-border railway projects promise considerable economic and strategic benefits, but they necessitate careful navigation of international relations and investment models to maximize returns and foster sustainable regional development. [para. 47][para. 49][para. 50]
- China Railway Construction Corporation
中国铁道建筑集团 - China Railway Construction Corporation (CRCC) is mentioned as a potential project implementer for the China-Vietnam railway, likely involved in its construction. CRCC and its counterpart, China Railway Group, initially started with EPC projects overseas but are now exploring more integrated roles, such as investment through SPV models. They aim to leverage international railway projects to export Chinese railway technology and explore overseas markets.
- China Communications Construction Company
中国交通建设集团 - The China Communications Construction Company (CCCC) is involved in the construction of international railway projects. As of early 2025, CCCC was close to completing 80% of Malaysia's East Coast Rail Link project. The company focuses on expanding its global footprint, particularly in railway infrastructure, contributing to increasing connectivity between China and neighboring regions.
- China Railway International Company
中国铁路国际有限公司 - China Railway International Company is involved in the construction of the China-Kyrgyzstan-Uzbekistan (CKU) railway project. The company has established a Kyrgyzstan branch and participated in the bidding process for the Kyrgyz segment construction, which spans 304.94 kilometers and includes challenging terrains at altitudes above 3,000 meters.
- CRRC Corporation
中国中车集团 - CRRC Corporation, referred to in the article, is involved in overseas railway projects to facilitate the export of railway equipment. It has successfully formed consortia to win international contracts, such as a $56 billion project for the Dubai metro and the São Paulo intercity rail project. These projects highlight CRRC's strategy to enter foreign markets and expand its presence in the global railway industry.
- China Railway Engineering Corporation
中国铁路工程集团 - China Railway Engineering Corporation (China CREC) is involved in overseas rail projects, primarily through EPC (Engineering, Procurement, and Construction) and EPC+F (Financing) models. The company, initially part of China's railway system, expands international business by investing in infrastructure projects. Post-pandemic, CREC, with reduced overseas investment scale, aims at city rail projects while exploring the SPV model, partnering locally for comprehensive project roles, from design to operation.
- China Energy Engineering Corporation
中国能源建设集团 - The article briefly mentions China Energy Engineering Corporation as one of the infrastructure companies involved in overseas projects, particularly city rail transit projects, alongside others like China Communications Construction Group. These companies are noted for their participation in markets outside China's large-scale railway projects, focusing instead on city rail transit and other infrastructure developments.
- Euro-Asia Rail International Freight Forwarding
欧亚铁国际货运代理 - Euro-Asia Rail International Freight Forwarding (Shanghai) Co., Ltd., represented by Yang Jie, focuses on "regional trade corridors" or "intercontinental trade corridors" between China and Europe, mainly emphasizing the role of the China-Kyrgyzstan-Uzbekistan (CKU) railway. The CKU railway, despite initial delays due to issues like funding and track gauge standards, aims to create a second "middle corridor" to improve trade connectivity and efficiency between Asia and Europe.
- Fitch Ratings
惠誉评级 - Fitch Ratings, mentioned in the article, is represented by Wang Zhan, the director of global infrastructure project finance. Wang comments on the evolution of China's overseas railway investments, transitioning from the early EPC+F (Engineering, Procurement, Construction, and Financing) model to exploring SPV (Special Purpose Vehicle) models, allowing Chinese railway companies to deepen involvement in financing, designing, constructing, and operating railway projects abroad.
- June 2024：
- Vietnam's Minister of Transport expressed willingness for cooperation with China on railway projects
- August 2024：
- China and Vietnam agreed to accelerate connectivity, including three railway projects extending to the China-Vietnam border
- September 2024：
- Thailand's Deputy Minister of Transport affirmed that the China-Thailand Railway would proceed as planned
- November 2024：
- Vietnam's Prime Minister discussed with China Railway Construction Corporation on cooperation for Vietnam's high-speed rail
- January 25, 2025：
- Progress on the first phase of the China-Thailand Railway is at 41%
- January 31, 2025：
- Thai government's statement on the China-Thailand railway as a step towards Thailand becoming a regional logistics hub
- February 2025：
- China made significant progress on four cross-border railways towards Northeast Asia, Central Asia, and Southeast Asia
- February 8, 2025：
- China and Thailand issued a joint statement to accelerate the first phase of the China-Thailand railway
- February 14, 2025：
- China and Mongolia signed an agreement to construct a new cross-border railway, with construction expected to begin in April 2025
- February 21, 2025：
- Initial bidding started for the China-Kyrgyzstan-Uzbekistan Railway, expected to start construction in July 2025
- February 26, 2025：
- Vietnam's National Assembly chairman signed the investment resolution for the 'Lao Cai-Hanoi-Haiphong' railway project, set to start in December 2025
- March 4, 2025：
- Lin Songtian, a CPPCC National Committee member, highlighted the benefits of the Belt and Road Initiative during an interview
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