A railway boom promises to tie South-East Asia together—and boost China’s sway

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South-East Asia’s existing network of railways is creaking, patchy and underfunded. Most goods move about the region by lorry and ship. But that creates choke points while running up fuel bills. An integrated rail system could be just the ticket.

Enter China, chequebook in hand. It has recently signed agreements to build new lines in Laos and Thailand, while it extends its network from Kunming to the China-Laos border. These lines are meant to be ready by 2015. The benefits may be huge.

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In a region with American leanings, China wants to bind its neighbours into an economic sphere with strategic weight. Laying lines into Myanmar, with a large but decrepit network, would add a coveted Indian Ocean port. More regional trade with its centre in Yunnan spreads wealth inland, another Chinese objective.

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In December Laos said China would build a $7 billion high-speed railway from the border to its capital, Vientiane. Construction is set to begin in April. Meanwhile, Thailand is negotiating with China to build a connecting north-south line to Bangkok, using concessionary Chinese loans.

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On paper, the Laos-Thailand route is more direct, but it is also far more mountainous, with 190 kilometres (120 miles) of tunnels in Laos and countless bridges. Remote areas of Laos are also littered with unexploded bombs from the Vietnam war. None of this is likely to stop a country that laid a railway up to the Tibetan plateau.

http://www.economist.com/node/17965601?fsrc=scn/fb/wl/ar/sway