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Opinion | Why railways are Southeast Asia’s answer to decarbonisation and growth

  • Shifting more freight traffic from road to rail is a major decarbonisation pathway for Southeast Asia, but major hurdles stand in the way
  • Harmonising standards, securing investment, collective bargaining with suppliers, acquiring land and navigating geopolitical tensions must all be addressed

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A train on the China-Laos railway crosses a bridge over the Mekong River in Laos on May 28. Difficult terrain, geopolitical uncertainty and a lack of connectivity are just some of the hurdles to securing investment in Southeast Asian countries’ railway networks. Photo: Xinhua
Greenhouse gas emissions from transport have more than doubled since 1970 and are now the second-largest contributors to climate change. Countries must find a way to decouple demand for transport with carbon dioxide emissions.

Rail transports about 7 per cent of global passengers and 6 per cent of global freight but accounts for only around 1 per cent of transport emissions – despite diesel providing 53 per cent of the energy that powers the global rail industry.

Road freight is the biggest source of transport-related carbon emissions. Thus, pushing more freight to rail should be a major decarbonisation pathway, especially in Southeast Asia, one of the world’s fastest-growing regions.

Rail transport’s full potential emerges when networks in different countries harmonise interoperability and standards. However, rail networks in Southeast Asia are fragmented and operate under different standards, making it difficult and time-consuming to transport goods across borders.

The region’s geography also makes building railways difficult and expensive. This is one reason Southeast Asian countries have prioritised infrastructure spending on projects such as roads that are cheaper and have a faster return on investment.

Despite this, the new China-Laos railway, which links Vientiane and Kunming, has opened the door to catalysing Southeast Asia’s rail connectivity. This railway cuts the cost of transport through Laos by 30 to 40 per cent compared to truck transport. Transforming Laos from landlocked to “land-linked” is expected to boost freight transport, agriculture trade and tourism.
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