Mr Viengkhone Sitthixay (left) presents a gift to Mr Zhao Bo.

China’s Kunming, Laos’ leading dry port seek to facilitate cross-border trade

The Thanaleng Dry Port, Laos’ premier logistics centre, and authorities from Kunming, the capital of China’s Yunnan province, are seeking cooperation to make it easier, faster, and cheaper to move goods across the Laos-China border and bolster trade across the region.
On Tuesday, a delegation from Kunming, led by the city’s Deputy Mayor Zhao Bo, visited the dry port in Vientiane. Strategically located where the Laos-China and Laos-Thailand railways converge, the Thanaleng Dry Port, which functions as a single window customs clearance point for rail transport, plays a pivotal role in linking Southeast Asia to China and beyond.

During the visit, Lao operators and Chinese officials discussed practical ways to cut transport costs, speed up delivery times, and make full use of the expanding railway network.
The talks took place as Kunming plans to build its own dry port in Mohan, a border town linking directly to Laos.
“We plan to build a dry port at Mohan to become a connecting point for trade,” a member of the Chinese delegation said through an interpreter.
Once operational, the Mohan dry port is expected to further energise trade flow through Laos, solidifying the country’s role as a key gateway between China and Southeast Asia. To increase competitiveness, the Kunming side proposed measures such as reducing or waiving certain logistics fees for large shipments.

In response, the Vice President of Vientiane Logistics Park Co., Ltd., which operates the Thanaleng Dry Port, Viengkhone Sitthixay, welcomed these ideas.
He said his company is ready to explore promotional incentives for high-volume cargo, in line with Laos’ broader push to promote rail freight.
To fulfil this, the Lao businessman said both sides could engage further to work out more details.
Partnership in this regard between the dry port and the Chinese city could be built on lessons learnt from previous experiences.
Since it became operational in 2021, Thanaleng Dry Port executives have worked hand in hand with government agencies and private sector partners in both Laos and China to tackle bottlenecks.
The results are already tangible, with service costs reduced, delivery times shortened, and clients rewarded with fee discounts.
For example, businesses shipping at least 50 containers enjoy reduced logistics fees, while those handling between 500 and 1,000 containers are exempt from document declaration fees.
Building on this experience, Mr Viengkhone suggested that Kunming and the dry port “should form a joint working group to study and figure out what barriers could be removed to streamline procedures and reduce costs.”
He also suggested that the two sides coordinate more closely to link and share information regarding cargo to be shifted through Laos to China, and via China to Europe and beyond. This would enable proper management in advance of shipments, which would save time and cut costs.   
“Unlinked information is one of the main reasons for slow service and shipment,” he said.
“If this issue is addressed, I believe that service times and transport costs will be substantially reduced.”
The Chinese guests invited the dry port executives to visit Kunming to explore cooperation opportunities and forge a closer partnership.
This attempt to improve cross-border trade comes as China and other countries in the region are intensifying joint efforts to increase trade.
The Laos-China railway, part of China’s Belt and Road Initiative, plays a vital role in bolstering regional trade, with rail freight transport recording an increasing number of shipments.
Connecting Vientiane to Kunming, the railway has transported over 14 million tonnes of imported and exported goods with a value of more than 60 billion yuan (about US$8.4 billion) since the start of its operation in December 2021, according to data released by Kunming Customs last week.
The railway’s cross-border freight volume exceeded 3.43 million tonnes with a value surpassing 15.4 billion yuan in the first seven months of this year, up 6 percent and 41 percent year-on-year respectively, both of which are record highs for this period.
Serving as a vital trade corridor, the railway connects 19 countries, including Laos, Thailand and Singapore. Its cargo has significantly diversified, with transported commodities expanding from just over 500 categories to more than 3,600, demonstrating robust growth.

By Advertorial desk
(Latest Update August 14 , 2025)