KUALA LUMPUR: The Association of Southeast Asian Nations (ASEAN) is looking to improve economic growth and trade within the region through building better transportation and logistics networks.
This would also allow member states to insulate themselves from rising geopolitical and economic risks.
But the task ahead for the trading bloc remains challenging, as countries have to work on simplifying customs clearance and removing red tape, said observers.
“Within ASEAN, we have done quite well,” said Malaysian Transport Minister Anthony Loke, highlighting the grouping’s open skies policy that increases regional connectivity.
For maritime, there are plans for the digitalisation of the region’s ports, so they can share information with each other and become more competitive, he added.
“The rail network (is also) important. There are missing links which have been rectified right now, especially between Laos and China.”
In June, the first ASEAN Express cargo rail service connecting Malaysia to China via Thailand and Laos was launched.
The journey is supposed to take just eight days but instead takes nearly two weeks due to gauge change and customs clearance at the borders.
In rail transport, track gauge refers to the distance between the two rails of a railway track. Several different track gauges exist worldwide, presenting a barrier to wider operation on rail networks.
This happens at the border between Thailand and Laos, as the latter’s railway differs from Malaysia’s and Thailand’s. Each container box has to be lifted by cranes to a
different track.
“It’s a win-win for everyone,” he said. “It is not just that taking down barriers only benefits one country, but it benefits the region as a whole.”
Source: CNA
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