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State, Private Sectors Set Up Joint Venture Dry Port Company To Develop Lao Logistics

Source: Vientiane Times

A joint venture agreement was signed in Vientiane on June 10 to establish Thakhek Dry Port Co Ltd, which will develop “Thakhek Dry Port” as a gateway for international goods and encourage Laos to become a regional and international logistics service centre.

On behalf of the government, Lao Logistics State Enterprise Managing Director, Mr Souliya Manivong, and from the private sector, Greater Mekong Logistics Co Ltd Manging Director, Mr Phutphornxai Luanglath, International Transport Co Ltd Director, Ms Thounsavanh Sichanthongthip, and Speed Intertransport Co Ltd representive, Mr Lam Cho Shing, witnessed the signing of this agreement by the Department of State-Owned Enterprises and Insurance Management Director General, Dr Sonephet Inthavong.

The total initial capital of Thakhek Dry Port Co Ltd is worth over 157 billion kip. The Lao government (through the Lao Logistics State Enterprise) holds a 30 percent share in the venture and the private sector (on behalf of the three companies by Greater Mekong Logistics Co Ltd) holds a 70 percent share.

Of this 70 percent, Greater Mekong Logistics Co Ltd, International Transport Co Ltd and Speed Intertransport hold a 52.5 percent, 10.5 percent and 7 percent share respectively.

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Thakhek Dry Port Co Ltd aims to develop Thakhek Dry Port as a gateway for international goods and encourage Laos to become a regional and international logistics service centre through the Khammuan border crossing.

The development of the “Thakhek Dry Port” is part of the government’s strategic plan on “Freight Transport and Logistics Development in Laos”. This identifies the importance of and the need to develop ports in Laos, and is also in line with the country’s policy to move from being “landlocked” to “land-linked” or “transit services” to enhance the transport and logistics potential of Laos.

“Thakhek Dry Port” will serve as a hub for gathering and distributing modern and integrated logistics products and services, and will contribute to the reduction of illegal transshipment and logistics costs. This will enable Lao business ventures to compete within the global market, and fully meet the needs of customers.

Thakhaek district in Khammuan province is suitable for its geographic location and in terms of the volume of international traffic, which is increasing significantly.

The district is located along the strategic four-directions linked road, with easy access to highway No.12 connecting Phnom Penh, Thailand, to Jaloe in Vietnam, which is the shortest route from Laos to Vietnam and lies on highway No.13, which is the main arterial road in Laos.

Thakhaek district has the potential for service-transit and is close to neighbouring countries, making it possible to import goods through the service and accommodate goods from neighbouring provinces such as Borikhamxay and Savannakhet for exporting and importing goods from Thailand, and exporting them to Vietnam in order to ship to China. This has the potential to turn “Thakhek Dry Port” into a regional land transport hub.

“Dry Port” refers to a logistics site located inland that is a centre for loading and unloading goods and can receive, store, distribute, open and store goods in containers in line with the terms of international agreements. It is also an international border checkpoint for the transport of goods in-out and transiting the country.