Malaysia, Lao forge strategic rail-sea trade link
PUTRAJAYA – Laos and Malaysia have established a partnership to boost cross-border trade via rail and sea with the exchange of a Memorandum of Cooperation (MoC) between Penang Port Sdn Bhd (PPSB) and Thanaleng Dry Port (TDP) here today.
The MoC was exchanged between MMC Port Holdings Sdn Bhd (MMC Ports) chief executive officer (CEO) Datuk Azman Shah Mohd Yusof and PTL Holding Co. Ltd (PTLH) CEO Chanthone Sitthixay, witnessed by Prime Minister Anwar Ibrahim and his counterpart, Lao Prime Minister Sonexay Siphandone.
PPSB is a subsidiary of MMC Ports, while PTLH is the parent company of Vientiane Logistics Park Co. Ltd., which manages the TDP.
The collaboration is part of a broader initiative under the Pan-Asia Railway Network, integrating the China-Lao Railway to create a strategic trade route linking southern China through Laos and Thailand to Malaysia's West Coast.
Speaking to Bernama, Azman Shah said the cooperation underscores Malaysia's growing role as a regional logistics hub and is aligned with efforts to enhance ASEAN connectivity.
He added that the initiative will not only promote multimodal integration by combining rail and sea transport but also reduce transit times and logistics costs, improve supply chain efficiency, and boost regional economic growth.
'We are pleased to contribute to TDP's efforts to realise Lao's national strategy to transform from a land-locked country to a land-linked nation.
'This partnership positions Malaysia as a gateway for trade between mainland Southeast Asia and global markets, while also supporting Lao in becoming a land-linked economy,' he said.
Azman Shah said that the collaboration would involve the sharing of operational knowledge, joint marketing efforts, system integration, simplification of documentation processes, harmonisation of infrastructure, and short-term personnel exchanges.
MMC Ports is a holding company for its subsidiaries that operate five ports across Peninsular Malaysia, namely the PPSB, Port of Tanjung Pelepas, Johor Port Bhd, Northport (Malaysia) Bhd, and Tanjung Bruas Port Sdn Bhd, making it Malaysia's largest port operator.
Meanwhile, TDP managing director Sakhone Philangam said the collaboration marked a significant milestone in transforming Laos into a key logistics player despite its landlocked status.
Philangam noted the strategic partnership is expected to benefit Laos economically, as the country's small-scale economy needs to rely on higher trade volumes through cooperation with regional players like Malaysia and China.
'Malaysia is well-established in maritime logistics, with strong links to Africa, India and other regions. This makes Penang Port a logical partner for us.
'In logistics, you need agglomeration and massification. We don't have that volume, so this partnership will enable us to tap into a larger logistics network,' he said.
This was the second time that the TDP signed an MoC with a Malaysian company, following an earlier agreement with Mutiara Perlis Sdn Bhd to facilitate inland port services between Perlis Inland Port and TDP in Vientiane.
In 2024, total bilateral trade between Malaysia and Laos stood at RM99.7 million, with Malaysia's exports valued at RM67.8 million and imports totalling RM31.9 million.
Malaysia is Laos' fifth-largest foreign investor, with total investments worth US$942 million across 46 projects in sectors including renewable energy, transport, telecommunications, construction, banking and hospitality. — BERNAMA
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