Thai railway firm in Laos

Thai railway firm in Laos

Bangkok (DPA): A Thai steel manufacturer has won a concession to build more than 1,200 kilometers of railway track in neighboring Laos that could eventually link Thailand to China, a company source said yesterday.

Vichit Poonawat, managing director of steel producer Pacific Transportation Company Ltd, said the first phase of the railway link, spanning the Mekong River via the Friendship Bridge, would cost about 900 million baht (US$36 million) and be completed within the next eight months.

Under the concession agreement, a new joint venture will be set up called Lao Railway Transportation Co., Ltd, in which the government of Laos will hold 25 percent and Pacific Transportation 75 percent.