Investment/cross border logistics

Chatrudee Theparat

The cabinet gave a greenlight 1.83 billion baht of soft loan to Laos government to improve the R12 highway to make the regional logistics network better between four nations - Thailand-Laos-Vietnam-China.

Government spokesperson Kenika Oonjit said the cabinet approved a 1.8 billion soft loan to Laos government to improve the R12 highway in a bid to facilitate cross border transport, trade and tourism facilitation.

Kenika Oonjit

The 147 km of improved project will be implemented from R12 highway at Thakhek, Khammouan, Laos, which is able to cross to R 13 highway, away 17 km from a permanent border checkpoint at Nakhon Phanom via the third Thai-Laos friendship bridge. It links to Yommalath, Boualapha, Khammouan province and terminates at international border checkpoint of Napao which is opposite to the international border checkpoint Chalo, Quang Binh, Vietnam.

The projects include an improvement of the road following a standard requirement of Asian highway, checkpoint building and facilities, electricity system and tourism facilitation in purposes.

The 30-year term of 1.83 billion baht loan is offered with an interest rate charge of 1.75%, and also requires Thai construction company to build.

The study showed the R12 highway would help strengthen connectivity between Thailand, Laos, Vietnam and China and the Greater Maekong Sub Region.

The improvement of the R12 highway and facilities can shorten custom procedures to 4 hours from 10 hours, and reduce to 2 border checkpoints from previous 5 checkpoints.

The project will enhance Thailand to become a destination of production base of the investment from the regional and global firms, and also make people of countries travel more freely in the region.

The R12 highway will be the shortest route compared to the R8 and R9 along the East-West Economic Corridor (EWEC).

In addition, the study reported that it is highly likely that up to 50% of motorists would make their decision to use the R12 highway, leading to increase intra border trade between Thailand and Laos via the Nakhon Phanom border checkpoint.