Malaysia and Laos Launch Rail-Sea Trade Corridor

Malaysia and Laos have launched a new rail-sea trade corridor to strengthen regional logistics, boost economic cooperation, and connect Southeast Asia to global trade routes. This is reported by the railway transport news portal Railway Supply.

On May 25, Penang Port Sdn Bhd and Thanaleng Dry Port signed a Memorandum of Cooperation (MoC) to develop this strategic initiative. The MoC was signed by MMC Ports CEO Datuk Azman Shah Mohd Yusof and PTLH CEO Chanthone Sitthixay, in the presence of both nations’ prime ministers.

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This rail-sea trade corridor links the China-Laos Railway to Malaysia’s west coast, enhancing multimodal connectivity and supporting Laos’ vision to transform into a land-linked economy.

Rail-Sea Trade Corridor Boosts Regional Integration

MMC Ports oversees five Malaysian ports and aims to strengthen Malaysia’s role as a logistics hub. According to Azman Shah, the corridor reduces transit times, cuts logistics costs, and promotes ASEAN integration.

The partnership also includes system integration, joint marketing, staff exchanges, and documentation simplification. These efforts aim to streamline operations and improve efficiency across the corridor.

Laos Taps Maritime Links through Rail-Sea Trade Corridor

TDP managing director Sakhone Philangam said Laos relies on regional partnerships due to its small-scale economy and landlocked geography. Malaysia’s strong maritime ties with India and Africa make Penang Port an ideal gateway.

This MoC follows an earlier agreement between TDP and Mutiara Perlis Sdn Bhd, connecting Perlis Inland Port and Vientiane. The ongoing expansion helps Laos access broader networks and benefit from economies of scale.

In 2024, Malaysia-Laos trade reached approximately $20.9 million, with Malaysia exporting $14.2 million and importing $6.7 million. Malaysia is Laos’ fifth-largest investor, with $942 million across 46 projects.

Source, photo: www.thestar.com.my

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