Southeast Asia (SEA) is embarking on a major railway transformation journey, driven by ambitious infrastructure expansion, electrification and green technology integration. Countries like Vietnam, Thailand, the Philippines and Indonesia are investing heavily in modern rail systems to enhance connectivity, streamline freight logistics and reduce carbon emissions. These initiatives are positioning rail as a cornerstone of the region’s sustainable transport future.

Network expansion and freight initiatives

SEA is witnessing a transformative shift in railway infrastructure, with countries launching ambitious expansion and modernisation projects. In April 2025, the Government of Vietnam announced plans to launch several major railway infrastructure projects by 2035. Among these, construction on nine railway lines is expected to begin before 2030, including the $67.34 billion North-South high speed railway (HSR), the Lao Cai-Hanoi-Haiphong line, and the Ho Chi Minh City-Can Tho railway. Further, in August 2024, the

governments of China and Vietnam entered into a partnership to construct three standard gauge HSR links aimed at streamlining logistics and enhancing freight transport between the two countries. Two existing Vietnamese lines will be converted to standard gauge, while a third line will be newly constructed. Similarly, in December 2024, the Ministry of Transport of Thailand announced a $19 billion investment in rail infrastructure for 2025. This includes $8.7 billion allocated for six double-track railway projects spanning 1,312 km. These initiatives are designed to transform Thailand into a major logistics hub connecting China with SEA. With the launch of the Eastern Economic Corridor in 2024 – a dedicated freight corridor (DFC) linking industrial zones to major ports – Thailand aims to increase rail freight capacity by 30 per cent by 2025 as part of the country’s broader green transport plan and take the lead in shifting freight transport from road to rail. More importantly, this strategy is expected to cut transport sector emissions by reducing truck traffic.

In tandem with this infrastructure push, the private sector is also playing a crucial role. In March 2025, NX Vietnam, a subsidiary of Nippon Express Holdings, Inc., introduced a new less-than-container-load (LCL) rail freight service on the North-South Railway. This service complements the existing full-container-load option and offers more flexible, cost-effective logistics solutions. Utilising NX Vietnam’s warehouses as container freight stations, the LCL service enables efficient cargo consolidation and sustainable transport, providing an eco-friendly alternative to road freight.

In the Philippines, the Department of Transportation is undertaking ambitious efforts to triple the railway network by the 2030s through several investment-approved projects. The current railway system spans 270 km, but this is expected to expand to 1,233 km with the completion of projects such as the North-South Commuter Railway. Additionally, in May 2024, the Philippine government launched a comprehensive railway development plan to stimulate economic growth, ease traffic congestion, enhance connectivity, reduce carbon emissions and improve food security. Key projects include the North Luzon Railway (The Amianan Express), a 1,300 km network connecting Clark Freeport Zone to the Cagayan Valley and the Mindanao Railway (The Eagle Express), a 1,500 km HSR network linking major cities in Mindanao, with trains operating at speeds of up to 200 km per hour (kmph).

Embracing sustainability via railway electrification

As SEA expands its rail networks, the focus is also shifting towards sustainability. Railway electrification is emerging as a cornerstone in the region’s strategy to reduce transport-related carbon emissions. In February 2025, Vietnam’s Ministry of Transport submitted a pre-feasibility study for the $8 billion Lao Cai-Hanoi-Haiphong railway project. The new line will replace the existing narrow gauge system, which limits capacity and efficiency. The electrified standard gauge line will initially operate at speeds up to 160 kmph, with future upgrades allowing speeds of up to 200 kmph. It is planned to expand the single-track line into a double-track system, reducing travel time significantly – three and a half hours for express trains and five and a half hours for freight. This project aligns with Vietnam’s 2050 net zero emissions target and supports both passenger and freight services.

Thailand is already taking the lead in this space. In 2024, the State Railway of Thailand launched its first

fully electrified line between Bangkok and Nakhon Ratchasima. The country has set a target to electrify 3,000 km of its network by 2027, reinforcing its commitment to green transport.

Further, in Malaysia, electrification efforts have progressed significantly. In 2024, the KTM Komuter and Electric Train Service lines were electrified. Malaysia targets electrifying over 80 per cent of its rail network by 2025 to substantially lower emissions from rail operations.

Indonesia is also making notable progress. The Trans-Java electric railway project, launched in 2024, focuses on electrifying key corridors across Java Island, home to much of the nation’s population and industry. By 2025, Kereta Api Indonesia plans to electrify additional major routes, reducing diesel reliance and improving energy efficiency.

Technological advancements and renewable integration

Beyond electrification, SEA nations are increasingly focusing on sourcing clean, renewable energy for railway operations. The region’s abundant renewable resources – especially solar and wind – support this transition. Vietnam has taken early steps to integrate green energy into its rail system. In 2024, a pilot programme was launched to power a section of the Hanoi-Ho Chi Minh City corridor with wind energy. By 2025, the initiative is expected to expand, with a focus on both wind and solar energy.

Indonesia has also embraced solar energy. In 2024, it initiated the installation of solar panels along the Trans-Sumatra railway. Scheduled to be operational in 2025, this project aims to supply clean power for electric trains and potentially benefit nearby communities with surplus electricity. Similarly, Thailand is committed to renewable integration. In 2024, the government announced plans to install solar panels at several railway stations and depots along electrified routes.

In Singapore, the Land Transport Authority completed the Singapore Rail Test Centre (SRTC) in Tuas in April 2025. Spanning 50 hectares, the facility is designed for comprehensive testing of trains and railway systems. It also serves as a research and development hub for railway innovation and workforce training. The SRTC received the Building and Construction Authority Green Mark Platinum Certification for its sustainability features, including solar panels and energy-efficient cooling systems.

Technological advancements are also evident in rolling stock. The Jakarta-Bandung HSR became SEA’s first high speed train system to incorporate automatic train operation and regenerative braking. In the Philippines, hybrid electric trains are being introduced on the North-South Commuter Railway, and hydrogen-powered train feasibility studies are under way in Laos and Thailand.

Challenges faced

Despite the progress, several challenges remain. According to the ASEAN Centre for Energy, under the baseline scenario, renewables are expected to account for only 36 per cent of installed capacity and 31 per cent of power generation by 2030 – rising to just 38 per cent and 34 per cent respectively by 2050. These figures fall short of the carbon neutrality scenario, which targets 55 per cent renewables in installed capacity by 2030 and 91 per cent by 2050. Closing this gap will demand more aggressive renewable energy integration across all sectors, including railways. Additionally, diesel-powered locomotives are still being imported in the region. In August 2024, KTMB of Malaysia announced the procurement of 62 trains from the China Railway Rolling Stock Corporation, including 14 six-car diesel multiple units (DMUs), in a $2.4 billion deal. Earlier in 2024, Cambodia’s Royal Railway Cambodia also expanded its fleet with 11 DMUs from Japan, deployed on routes including Phnom Penh-Sihanoukville and Phnom Penh-Poipet.

Funding remains a critical challenge, particularly in countries like Vietnam and Indonesia. Large-scale railway electrification and expansion projects require substantial capital and securing international loans, as attracting private sector investments continues to be difficult. Moreover, public-private cooperation is essential for the success of carbon-neutral rail initiatives. In some countries, such as Thailand, slow collaboration between government and private stakeholders has led to delays in major infrastructure projects.

In sum

SEA’s railway transformation is well under way, with bold investments, green technologies and regional partnerships laying the foundation for a smarter, cleaner future. However, to stay on track, the region must overcome its financial, technological, and collaborative hurdles – ensuring that its railway revolution delivers not just connectivity, but sustainability.