Over the past few years, the development of the road and railway sectors has been a major focus area for all countries in the Southeast Asia (SEA) region. In this regard, various proactive measures are being taken to upgrade and expand the road and railway network. Some of the key measures include accelerated pace of construction of road and rail networks, increased focus on high speed rail (HSR) corridors, and introduction of new and emerging technologies, among others. Besides, the government and private players are focusing on improving operational efficiency and passenger experience in both sectors.
Southeast Asia Infrastructure takes a look at the key trends and developments in these sectors in the SEA region…
Road sector
Growth in network
According to the ASEAN Statistical Yearbook 2023, the total road length in the SEA region is approximately 2.5 million km. The total paved road length in SEA stood at 1.36 million km, which is 54.4 per cent of the total road network. Thailand (703,594.2 km), Vietnam (639,993 km – data available as of 2020) and Indonesia (549,161 km) recorded the highest total road length in the region, whereas Singapore (3,546 km) and Brunei Darussalam (3,102.6 km) recorded less than 5,000 km of total road length each. However, Singapore has 100 per cent paved roads, followed by the Philippines (98.97 per cent) and Brunei Darussalam (93.34 per cent).
New projects announced
In the past one year, various new projects have been launched to enhance road infrastructure development in the SEA region. These road projects are going to improve connectivity and accessibility within and across countries. For instance, plans have been announced to develop a road tunnel project at an investment of $1.43 billion in Malaysia. The 6.5 km long tunnel link will connect the Tanjung Bungah-Teluk Bahang route, the Tun Dr Lim Chong Eu Highway-Bandar Baru Farlim route, and the Pankor Road-Tun Dr Lim Chong Eu Highway. Similarly, the Ministry of Transport (MoT), Thailand, has also announced plans to begin construction on 14 transport infrastructure projects at a total investment of THB 570 billion by the end of 2024. The key projects include the 167 km long dual-track railroad project connecting Khon Kaen and Nong Khai at an investment of THB 29.7 billion.
Privatisation gaining traction
Private participation is being increasingly sought in the road sector to supplement public investment and to bring in efficiency. Netherlands-based APG Asset Management and the Abu Dhabi Investment Authority (ADIA) recently launched a $2.75 billion toll road investment platform in Indonesia with an initial investment in the Trans Java Toll Road project. The platform will cover works on the Kanci-Pejagan and Pejagan-Pemalang sections of the toll road project with financial support from the Indonesia Investment Authority. Furthermore, a 13 km, four-lane road project will be built by China Road and Bridge (CRBC), a subsidiary of China Communications, on a public-private partnership basis in Cambodia. For the project, around $1.6 billion will be provided by CRBC.
Technology advancements
Emerging technologies such as artificial intelligence (AI), automation, blockchain and machine learning are being applied to road projects to optimise efficiency, safety and sustainability. For instance, the Jurong Town Corporation in Singapore is using AI to improve road maintenance and safety. It has developed a solution with a local start-up, Vebits AI. Besides, PT Teknologi Karya Digital Nusa Tbk has partnered with O-CITY to deploy an account-based ticketing (ABT) fleet management system for Indonesia’s public transport sector. Some other services that will use the system are parking, paid road systems, and toll gate automation. The ABT system will be rolled out nationwide and will accept various contactless payment methods, including open loop, QR code, and mobile e-wallets. The system will allow the fare collection system in the country to shift from paper- and card-based tickets to integrated and personalised accounts.
Railway sector
Growth in network
According to the ASEAN Statistical Yearbook 2023, the total rail length in the SEA region spans over 23,300 km. Indonesia (6,642.31 km) has the largest rail network, accounting for about 28.5 per cent of the combined rail network, followed by Myanmar (6,207.2 km) (26.6 per cent) and Thailand (5,098.2 km) (21.9 per cent).
Increased focus on HSR projects
There has been increasing focus on HSR corridor projects, which are aimed at transforming the rail network by increasing passenger train speeds and incorporating world-class technologies. China and Japan both have a major presence in the SEA region’s rail sector. Back in October 2023, passenger service commenced on the Jakarta-Bandung HSR, a landmark project under the China-proposed Belt and Road Initiative (BRI). Additionally, passenger service commenced on the Beijing-Vientiane section of the China-Laos railway in April 2023. Similarly, the Government of Cambodia has also announced plans to upgrade the existing Phnom Penh-Poipet railway to an HSR line. The line will span 384 km and cover 33 stations connecting the Kandal, Kampong Chhnang, Pursat, Battambang and Banteay Meanchey provinces.
Connecting rail networks
In a bid to connect with other SEA countries, Cambodia’s Ministry of Public Works and Transport announced plans to launch a feasibility study for the development of a rail line connecting the country with Thailand and Vietnam. The proposed cross-border rail line will connect Poipet town at the Thailand border with Bavet town at the Vietnam border and will pass through Siem Reap, Kampong Thom, Kampong Chhnang and Phnom Penh in Cambodia. The line will also connect to Ho Chi Minh City via Moc Bai. Similarly, the governments of Laos and Vietnam have approved the development of a rail line connecting Laos and Vietnam. The proposed 554.7 km long line will connect Vientiane to Thakhek district before reaching the Vietnam border and then proceeding to Vung Ang seaport. The Sarawak government is also planning to build a Trans-Borneo railway across the island of Borneo in Malaysia. The line will pass through Sabah in Malaysia, Kalimantan in Indonesia, and Brunei.
Technology advancements
Technology has played an important role in transforming the railway sector by enhancing operational efficiency and passenger experience. The East Coast Rail Link (ECRL) has announced plans to deploy long term evolution (LTE) for railway (LTE-R) communications network using the 4G network to enhance safety, ensure fast communication, and improve the signalling system. Besides, the Rail Technology Research and Development Agency, Thailand, has signed a memorandum of understanding with five France-based companies (Systra, Egis, Alstom, Poma, and Vossloh Cogifer) to develop the country’s HSR and to modernise the operations and services of the state railway of Thailand. Besides, Lao National Railway State Enterprise has signed a memorandum of collaboration with Keretapi Tanah Melayu Berhad (Malayan Railways Limited) to improve cross-border railway operations in Laos and Malaysia.
Next steps
Going forward, both the road and railway sectors have a positive outlook in terms of infrastructure growth, buoyed by the big-ticket projects being planned and implemented. The digital roadmap for the future includes greater and better utilisation of existing technologies, drones and satellite imagery for project planning, monitoring and implementation of projects, and use of sustainable and green construction materials.
