Lao, Japanese officials discuss Vientiane Logistics Park
Lao, Japanese officials discuss Vientiane Logistics Park
L ao and Japanese officials from the public works and transport sector met in Vientiane on Monday to discuss the progress of the Vientiane Logistics Park Public-Private Partnership (PPP) project.
The Vientiane Logistics Park is designed to become a transport and logistics hub for Laos, serving as a gateway for imports into the country and a dry port for exports.
The Park is expected to include a customs procedures area, heavy bulk cargo areas, general cargo warehouse areas, a parking lot, a management building, an office building, a maintenance workshop, a gate and weight scale, a buffer area, an interior load area, and other facilities.
The project, which is being supported by the Japan International Cooperation Agency (JICA), is in keeping with Laos' development strategy to transform the landlocked country into a land-linked country.
As part of this strategy, one of the projects the Lao government asked JICA to undertake was a comprehensive logistics master plan survey in 2009-2010, which revealed the need for the Vientiane Logistics Park.
A dedicated logistics park is needed to ease the congested situation at the existing Thanalaeng warehouse with its limited capacity, according to JICA.
Speaking at the opening of the final VLP steering committee meeting, Deputy Minister of Public Works and Transport, Mr Lattanamany Khounnyvong, stressed that Laos has made significant progress in the development of transport facilities via many modes including roads, waterways, airways and railways.
He said its most notable achievements have included upgrading the Asean highways crossing Laos and also airport development.
However, the deputy minister noted that besides these achievements, Laos is still facing many challenges as it has limited funds amidst rapidly rising demands in the sector.
Moreover, the maintenance of existing infrastructure to ensure user safety, meet durability and serviceability expectation, tackling natural disasters all impose funding demands.
Mr Lattanamany said Laos has invested hugely in transport infrastructure but in terms of logistics services, it still lags far behind other countries in the region. Therefore, this project is among the top priorities for the Lao government.
Currently, the government is preparing to initiate investment promotion for developing and improving transport infrastructures via the form of public-private partnerships as a PPP mechanism is considered the best option, Mr Lattanamany said.
After a one year comprehensive study conducted by JICA, the VLP project is now ready to move forward towards the implementation phase.
The aim is to deploy warehouse-oriented logistics facilities to provide comprehensive logistic services, involving multi-modality (rail and truck), domestic/ international transit cargo, and consumer/industrial goods.
This final steering committee meeting was attended by Mr Lattanamany, Ambassador of Japan to Laos, Mr Hiroyuku Kishino, Director General of JICA Headquarters, Mr Yasushi Tanaka, Vice Mayor of Vientiane, Mr Keophilavanh Amphaylath, and other officials.
