DPM: Thanaleng Dry Port, Vientiane Logistics Park ‘significant’ to boost trade competitiveness

Deputy Prime Minister Dr Sonexay Siphandone has said the Thanaleng Dry Port (TDP) and Vientiane Logistics Park (VLP) project is significant to drive trade competitiveness for Laos.
The DPM, who is also Minister of Planning and Investment, made the comment on June 10, 2021 during his working tour to the mega project, which is being developed on 382 hectares in Vientiane. TDP is expected to fully open for service in a few months.
“The development of the dry port is very important. We have recognised the problem – the export competitiveness of the Lao PDR is disadvantaged by high transport costs,” he told the project developer.

Dr Sonexay Siphandone (right) is briefed on the progress of the project.

“The development of Thanaleng Dry Port will be a strength of the Lao PDR.”
Welcoming the DPM and his delegates were President of VLP Co., Ltd. Mr Chanthone Sitthixay; the former Minister to the Prime Minister’s Office and current President of the Executive Board of Strategy and Planning in PTL Holding Company Limited, Mr Alounkeo Kittikhoun; former Deputy Minister of Finance and now VLP Co., Ltd.’s Senior Advisor, Mr Sila Viengkeo and the executive management team of VLP Co., Ltd.
TDP tops the list of development priorities in the Lao National Logistics Strategy from 2016 to 2025 adopted under PM decree No. 158/GOL dated May 27, 2015, an action plan that will drastically transform Laos from being landlocked to a land-linked country.
On February 7, 2020, the Lao government approved the feasibility studies and gave the green light for the establishment of the Vientiane Logistics Park Company Limited to execute the 50-year-concession project.
Estimated to be developed at a total cost of US$727 million, the project aims develop Green, Modern and Smart logistics services for intermodal transport. The project is planned to link with sea trade routes, airports, and railways. Therefore, the project will bolster and maximise trade and investment potentials.
The TDP project is expected to reduce cross-border transport costs, especially at the 1st Lao-Thai Friendship border checkpoint Vientiane-Nongkhai by 40 percent from current prices by 2025, making Laos not only preferred a transit place but also an international commercial connected centre.

Dr Sonexay stated that the Thanaleng Dry Port and Vientiane Logistics Park project would maximise the benefits of the Laos-China railway -- the mega project to boost Laos’ land-link effort.
He informed Thursday’s meeting with the TDP and VLP developer that the railway, which is currently under construction, is slated to open for service on December 2, 2021 – the day the Lao PDR will mark the 46th anniversary of its founding.
The DPM told the TDP and VLP developer to compile and submit outstanding issues if any that need the government’s support and facilitation in order to ensure the project is smoothly implemented.
VLP Vice President Tee Chee Seng briefed the DPM on the progress of the project, saying a part of the project has already been opened for services and more parts of the project could be opened for service in August.  
Development of the project is divided into three phases as follows:
- Phase 1: The transition phase through the management of the traditional service model of Container Yard of Lao Logistics State Enterprise (LLSE) in parallel with the intermodal service of Thanaleng Dry Port, at the same time there are transitions of client database and services into the Terminal Operating System (TOS) of Thanaleng Dry Port on 1st June 2021.
- Phase 2:  Soft Opening of TDP is expected to be in beginning of August.
- Phase3: Logistics park is expected to open for service in 2022.   

The Vientiane Logistics Park is the only comprehensive logistics park in Vientiane and comprises five zones in one location as follows:
1. Thanaleng Dry Port (TDP): The dry port acts as the centre of international import and export trade with all categories of customs operations. Importantly, quality equipment, vehicles and warehouse systems will be installed professionally to enable the processing of larger numbers of containers. Use of the Terminal Operation System (TOS) will guarantee the best service in terms of speed, security and reliability.
2.  Tank Farm: This facility will store liquid bulk cargoes for importing and storing fuel from Thailand and will serve as a fuel distribution centre for Laos. Diesel and petroleum products will arrive at the tank from a dedicated rail yard and pipeline in the future.
3. Logistics Park: The main service provided by the Logistics Park is a warehousing and distribution centre which offers goods storage, consolidation, distribution, inventory management, and warehouse management.
4. Free Trade Zone (FTZ): The main business activities in the zone are the HALAL Hub and Agriculture Production Park, Technology Park, Office Zone, SME Building Area, Commercial Zone and Landmark (VLP Co., Ltd. office).
5. Export Processing Zone (EPZ): The new destination as a modern and most dynamic EPZ in the region, this will offer a more competitive business environment and will gear up to become a manufacturing export hub for the Asean and global consumer market.
So far, a number of business executives and foreign diplomats have visited the Thanaleng Dry Port (TDP) and Vientiane Logistics Park (VLP).
Mr Alounkeo told Dr Sonexay that some visiting diplomats have described the project as a promising project to drive the Lao economy.

By Advertorial Desk
(Latest Update June 14, 2021)