Why China plans to run trains from Kunming all the way to Singapore

Sub: IR

Sec: Places in news

Context:

During his visit to Malaysia, Chinese Premier Li Qiang expressed China‘s willingness to connect its railway projects in Malaysia, Laos, and Thailand to enhance regional connectivity.
Li attended the groundbreaking ceremony for Malaysia’s East Coast Rail Link (ECRL) Gombak Integrated Terminal Station with Malaysian Prime Minister Anwar Ibrahim.

ECRL Project Overview:

The ECRL project is a nearly $10 billion investment connecting Kota Bharu on Malaysia’s northeastern coast with Port Klang on the west coast.
Expected to bring significant economic benefits through improved connectivity, freight movement, and tourism.
Described as the biggest economic and trade cooperation project between China and Malaysia by Chinese state media.

ECRL Project Challenges and Progress:

Initiated in 2017 but stalled due to funding constraints, now expected to be completed by 2027.
Former Malaysian Prime Minister Mahathir Mohamad suspended the project in 2018 due to high costs.
Domestic politics, including the embezzlement scandal involving Mahathir’s predecessor Najib Razak, also impacted the project.
Resumed in 2020 after a new deal with China at a lower cost.

Pan-Asian Rail Network Concept:

Proposed infrastructure projects to link Southeast Asian countries, dating back to European colonial rule.
The pan-Asian rail network includes three main links from Kunming via Myanmar, Laos, and Vietnam, connecting to Thailand, Malaysia, and Singapore.
Aims to enhance regional economic growth and cooperation.

Current Status of the Pan-Asian Railway Project:

Operational section: Laos-China section since 2021, connecting north and south Laos with Kunming.
Thailand’s segment faces high costs and government reluctance for Chinese assistance, with potential delays.
Economic benefits and demand for the project are questioned; variations in railway track widths and preferences for air travel and maritime shipping are challenges.

China’s Interest in Regional Connectivity:

The pan-Asian railway plans predate Xi Jinping’s Belt and Road Initiative (BRI).
China has significant influence in Southeast Asia due to geography and economic ties, with trade volume between China and ASEAN reaching USD 911.7 billion in 2023.
BRI aims to strengthen these ties, despite concerns about the terms of financing and accusations of “debt trap diplomacy.”
China seeks to leverage economic ties through infrastructure investments to build goodwill and trust, amid regional apprehensions over its territorial claims in the South China Sea.

Source: IE