The transport sector has been recognised by the Association of Southeast Asian Nations (ASEAN) as being a cornerstone of economic development and integration. It helps bind ASEAN member states closer together and build the ASEAN economic community that is vital for the future of ASEAN member states. The road and ra ilway sectors form a crucial part of the transport infrastructure in a country, on which the foundation of an economy rests. With the same view in mind, countries in the Southeast Asian region are stepping up their game in both these sectors. All of these countries are currently witnessing some major development or the other in the aforementioned sectors.
Overview of road and rail network
The total road network in all the Southeast Asian countries taken together stood at over 1.9 million km in 2018, about 62.5 per cent longer than in 2006. Indonesia, Thailand, Vietnam, Malaysia and Myanmar recorded the highest total road length in the region in 2018, whereas Singapore, the Philippines, Lao PDR, Brunei and Cambodia had less than 60,000 km road length each in 2018. Average increment of road length in all ASEAN countries during the period of 2006-18 reached 61,825 km annually. Of this, Thailand recorded the highest average increments of road length at over 19,000 km annually, followed by Malaysia and Indonesia with an average increment above 12,000 km annually.
As per ASEAN Statistics 2018, the total paved road length in Southeast Asia stood at 1.05 million km, which is 62.64 per cent of the total road network. Singapore achieved 100 per cent of paved roads, followed by the Philippines (94.42 per cent) and Brunei (93.68 per cent). As per the World Bank’s Global Competitiveness Report 2019, Singapore is the best performer in the quality of roads. Apart from Singapore, Malaysia has been able to make a standing in the top 20 countries in quality of roads. Besides, Brunei bagged 32nd rank among the 141 countries evaluated on the basis of their quality of roads.
Taken together, eight Southeast Asian countries excluding Brunei and Singapore had an aggregate railway network over 21,953 km in 2018 as against a network of 21,463 km in 2016. This accounts for an increase of about 2.23 per cent in 2018 over 2016. Myanmar has the largest rail network, accounting for about 28 per cent of the combined rail network of the eight countries. This is followed by Indonesia (25 per cent) and Thailand (19 per cent).
The major focus of ASEAN over the last few years has been to complete the Asian Highway Network (AHN) and the ASEAN part of the Asian Railway Network – the Singapore-Kunming Rail Link (SKRL) project. While the AHN is broadly complete, the focus is now on upgrading the network, installing common road signs and improving road safety. As for the SKRL project, most of the link is now complete, aside from three sections connecting Thailand with Myanmar, Cambodia with Vietnam and China with Myanmar.
Key developments in ASEAN rail infrastructure
In November 2019, the Vietnamese government proposed a rail project from Hai Phong through Hanoi to Lao Cai, on the border with China, for both freight and passenger trains. Presently, a blueprint has been created for the 392 km project, comprising 38 stations, to be constructed at an estimated cost of $4.3 billion. The government has also proposed the construction of a $58 billion high speed rail (HSR) network in the country. The proposed North-South HSR will connect Hanoi to Ho Chi Minh City with 20 stops, spanning around 1,545 km.
The under-construction Laos-China railway is the biggest development project taking place in Laos and is a part of China’s Belt and Road Initiative. The railway will form part of the planned regional rail route linking China’s Yunnan province to Singapore via Laos, Thailand and Malaysia. The 414 km railway project is expected to be completed by December 2021.
As per the Thailand government’s strategies on infrastructure development in transportation for 2015-22, about 887 km of railway network has been proposed be laid in the country by 2020. Besides, the Thailand government has proposed the Trans-ASEAN Line to build a rail network linking Thailand to other countries including Singapore and China. It will be the first time that Thailand will have such a modern transport network, which will cover 3,193 km at a cost of about TBH 2.07 trillion. Thailand is also in the process of implementing a number of bullet train projects using Chinese HSR technology. In October 2019, a conglomerate led by Thailand’s CP Group signed a contract with the State Railway of Thailand (SRT) for the construction of an HSR line linking Bangkok’s two airports, Suvarnabhumi and Don Mueang, to three eastern provinces. Expected to begin service in 2024, the 137 mile line will terminate at U-Tapao airport, outside of Pattaya in Rayong province.
Indonesia and Japan recently signed a deal on an outline of a medium speed train project linking the Southeast Asian country’s capital of Jakarta and its second largest city, Surabaya. The project will be split into two phases, with the first between Jakarta and the Central Java provincial capital of Semarang and the second between Semarang and Surabaya, the capital of East Java province, spanning about 436 km and 284 km respectively. Besides, an HSR connecting the Indonesian cities of Jakarta and Bandung is soon expected to come up. The project is a joint effort between China and Indonesia and will feature the construction of a 142 km rail line connecting the Indonesian capital with Bandung, the capital of West Java province.
Key developments in ASEAN road infrastructure
In recent years, Southeast Asian countries have laid increased emphasis on the construction of expressways and bridges.
The Philippines government announced an aggressive infrastructure programme, the Build Build Build (BBB) programme. The construction of several expressway projects is envisaged under this programme. The four-lane, 44.2 km Cavite-Laguna Expressway is an important project being implemented under the programme. Another major ongoing expressway project is the 8.25 km Cebu-Cordova Link expressway, expected to be completed by 2022. The expressway will provide an alternative link between Mactan Island, where the Mactan-Cebu International Airport is located, and Cebu, the regional growth centre of Visayas.
The Myanmar government is gearing up for construction of the four-lane, 47.5 km Yangon expressway. It is the country’s first greenfield road project being implemented on a public-private partnership basis. The estimated cost of the project is $350 million-$400 million.
The 1,187 km trans-Java toll road in Indonesia was officially declared open in early 2019. In addition, the 4.4 km South Sulawesi Expressway, being undertaken by Indonesia’s Metro Pacific Tollways Corporation, is expected to be completed in 2020. The project is being implemented at an estimated cost of $20 million.
The construction work for the 190 km Sihanoukville expressway has commenced in Cambodia. The four-lane expressway is being constructed on a build, operate, transfer basis by Chinese Communication Construction Company Limited. Driven by the objective to further enhance Singapore’s infrastructure, the government plans to construct the 21.5 km North-South Expressway. In January 2019, civil construction contracts amounting to SGD 3.14 billion were awarded for the project.
The Vietnamese government laid the foundation stone for the Cam Lo-La Son expressway project in September 2019. It is the first of 11 sub-projects for the eastern North – South Expressway project, which is expected to entail an investment of VND 118.716 trillion ($5.15 billion). Besides, Vietnam’s 57.7 km Long Thanh-Ben Luc Expressway and 77 km La Son-Tuy Loan Expressway are expected to be completed in 2020. In Brunei, construction of the 30 km Temburong bridge, slated to become Southeast Asia’s longest oversea bridge, is nearing completion.
The Thai government has approved financial assistance to Laos for the construction of the fifth Thai-Lao friendship bridge linking Thailand’s north-eastern province of Bueng Kan with Lao’s central province of Bolikhamsai. The construction work on the bridge is expected to be completed in about three years. The government has also approved the construction of the sixth Thai-Lao friendship bridge connecting north-eastern Thailand with southern Laos. It is expected to entail an investment of THB 4.3 billion.
The Malaysian government is also coming up with the $23.75 million Rambungan bridge project in Sarawak. Work on the cable-stayed bridge, which will have a two-lane single carriageway, is expected to take 36 months.
The way forward
The ambitions for Southeast Asian countries are quite high as far as road and rail development is concerned. However, with growth picking up pace, there is a need to enlarge the markets to meet this growth and exploit the comparative advantage of each country to boost economic development and enhance competitiveness in the region. These measures, when taken alongside the development of physical infrastructure, will help spur overall regional connectivity and growth.
