On April 27, 2025, Laos, China, and Cambodia inaugurated a direct cross-border transport route aimed at enhancing regional connectivity and streamlining logistics. The route commences in Kunming, China, traverses Vientiane, Laos, and concludes in Phnom Penh, Cambodia. This initiative is part of the Greater Mekong Subregion (GMS) Cross-Border Transport Facilitation Agreement, which seeks to improve transportation efficiency among member countries.
The new route employs advanced smart logistics technologies and a “one container (truck) to the end” approach, eliminating the need for cargo transfers or unpacking during transit. This system is projected to reduce travel time from approximately 13 days to 6-8 days, marking a 40% improvement in efficiency. Additionally, it significantly lowers the risk of goods being damaged during cross-border shipping. The Department of Transport in Yunnan has announced plans to further expand the cross-border logistics network and introduce additional international routes within the GMS framework to bolster supply chain cooperation and promote high-quality economic development throughout the region.
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Context & Background
The Greater Mekong Subregion (GMS) Cross-Border Transport Facilitation Agreement (CBTA) is a multilateral initiative involving six countries—China, Cambodia, Laos, Myanmar, Thailand, and Vietnam—aimed at enhancing regional connectivity and economic integration. The CBTA focuses on simplifying and harmonizing cross-border transport procedures to facilitate the efficient movement of goods and people across the region.
In recent years, significant infrastructure projects have been undertaken to bolster this connectivity. Notably, the China-Laos Railway, operational since December 2021, has transported over 4 million tons of cargo, including goods from Laos to China and vice versa. Additionally, the Greater Mekong Subregion has restarted cross-border road transport with trial runs, further emphasizing the commitment to improving regional logistics and trade.
In This Story
Greater Mekong Subregion (GMS)
A cooperative framework involving six countries—China, Cambodia, Laos, Myanmar, Thailand, and Vietnam—focused on enhancing economic integration and connectivity in the Mekong River basin.
China-Laos Railway
A 1,035-kilometer railway connecting Kunming, China, to Vientiane, Laos, operational since December 2021, facilitating cargo and passenger transport between the two countries.
Department of Transport, Yunnan Province
The provincial government body responsible for transportation infrastructure and policy in Yunnan, China, playing a key role in regional connectivity initiatives.
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