Express rail services drive export growth and give consumers better prices
The China-Laos Railway enhanced the supply chain for Thai durian exporters targeting China delivering benefits to producers and consumers alike.
According to the Global Times, a raft of South-East Asian agricultural products including Thai durian have seen growth fuelled by the key infrastructure project.
China’s import volume of Thai durian and other tropical fruits through the Mohan border checkpoint in Southwest China’s Yunnan Province has increased by 25 per cent from the same period last year, per a report from the China State Railway Group.
Since the express service began operations in January 2022, transport costs for South-East Asian fruits have been cut by 60 per cent compared with traditional overland shipping, while the average retail price in the domestic market has fallen by 30 per cent according to the report.
Xu Liping, director of the Centre for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times regional transportation projects are facilitating smoother trade flows, reducing transportation costs, and enhancing market access.
“For Thailand, increased exports will drive economic growth and create jobs in the agricultural sector. For China, the availability of high-quality Thai agricultural products will meet the diverse needs of its consumers and support the ongoing trend of consumption upgrading,” said Xu.
Reduced logistics costs have also benefited Chinese consumers. “A month ago, a standard box (16kg) of durian varieties like Golden Pillow cost Rmb1,100 (US$153) to Rmb1,200, but now it’s only Rmbn730-780. The price has fallen sharply,” a fruit vendor at the Xinfadi wholesale market told the Global Times.
