## Southeast Asian railway light and dark
Editor’s note
Table of Contents
Correspondent Heo Gyeong-joo, who was appointed as Hankook Ilbo’s third Vietnam correspondent in February 2023, introduces the society and lifestyle of each Southeast Asian country through ‘Inside ASEAN’, which is too good to know about alone. Join us every other Friday for stories about the 10 ASEAN countries that are close by but surprisingly unknown to you!
Last May, a model of the ‘Hushi’ train, Southeast Asia’s first high-speed railway, was displayed inside the Halim Station station in jakarta, Indonesia. Jakarta = Correspondent Heo Gyeong-ju
Halim Station, a high-speed rail station located on the outskirts of Jakarta, the capital of Indonesia. This station, which can be reached by driving about 30 minutes from the city, is the departure point of the ‘Whoosh’ high-speed railway connecting Jakarta and Bandung, the capital and third city of West Java Province.
Last May,after passing through a strict airport-level security checkpoint in a new building housing a large number of global brand stores,a spacious waiting room was revealed. About 50 citizens and tourists heading to Bandung for the weekend were waiting for the train.
A woman in her 20s who is going to the volcanic island of Bandung said,”The distance that takes over 3 hours by car is 40 minutes by bus,” and added,”The ticket price (250,000 rupiah,approximately 22,000 won,one-way economy class) is more expensive than the bus fare (77,700 rupiah),but it can save time.”
Citizens enter the station to board a train at Halim Station in Jakarta, Indonesia, last May. Jakarta = Correspondent Heo Gyeong-ju
Indonesia’s debt woes
‘Hushi’,which officially began operation in October 2023,is Southeast Asia’s first high-speed railway. It runs at a maximum speed of 350 km/h over a 142 km section between major cities in Indonesia. At the opening ceremony, Indonesian president J
Indonesia’s High-Speed Rail: A Looming ‘Debt Time Bomb’ and Warning for Southeast Asia
Indonesia’s enterprising high-speed railway project, connecting Jakarta and Bandung, is facing a critical juncture as it navigates mounting debt concerns. Last month, the nation entered into debt restructuring negotiations with China. “We will implement comprehensive reforms to avoid default on our debt,” Indonesian Investment Minister rosan Ruslani stated.
Locally, discussions are underway regarding potential investment of government funds. Plans to extend the route by over 500km to Surabaya, Indonesia’s second-largest city, to broaden its user base are currently stalled due to the financial burden. The project has become Indonesia’s ‘debt time bomb’.
(Image: Last May, the train time to Bandung was displayed on the electronic display board in the waiting room at Halim Station in Jakarta, indonesia. Jakarta = Correspondent Heo Gyeong-ju)
Structural Risks in Laos
The challenges facing Indonesia vividly illustrate the inherent risks within Southeast Asia’s ‘Chinese railway progress model.’ China is aggressively pursuing a vast railway corridor stretching from Kunming in Yunnan province to Laos, Cambodia, Thailand, malaysia, and Singapore.This initiative is a key component of the One Belt One Road (Land and Sea Silk Road) strategy.
The overarching goal is to secure control over both land and sea routes, establishing a direct link between China’s interior and the crucial gateway to the Strait of Malacca – a vital artery for global maritime trade. This expansion also aims to bolster China’s influence in Southeast Asia and guarantee secure transportation routes for essential resources like oil and gas.
(image: Laos-China Railway Vientiane History, located in Vientiane, Laos, October 2023.It was built in Chinese style. Vientiane = Correspondent Heo Gyeong-ju)
large-scale Chinese loans are notably appealing to Southeast Asian nations eager for infrastructure development but lacking sufficient capital. Unlike western financing, these loans often come with less stringent environmental, human rights, and warranty stipulations. However, China’s lending practices have drawn criticism for possibly creating ‘debt traps’ for developing countries. Indonesia’s situation is now being viewed as an early indication of these underlying structural problems.
Laos is increasingly cited as the next country most vulnerable to financial strain. The ‘Laos-China International Passenger Train (LCR)’ connecting Vientiane and Kunming, China, commenced operations in December 2021. The total distance is 1
Debt Warning Spreads Throughout Southeast Asia
There is a high possibility that the debt warning sound originating from China will spread throughout southeast Asia in the future. Although it is still in the early stages,several countries are pursuing new high-speed railway construction and existing railway improvement projects linked with Chinese capital.
Vietnam is pursuing the construction of a 391km railway from Lao Cai, the northern border city bordering China, through the capital Hanoi to Haiphong, the largest port in the north. It costs a total of 203 trillion dong (about 11.5 trillion won), and part of the funds are planned to be covered by Chinese loans. The Malaysian East coast Railway (ECRL) is also a 665km project led by China and is scheduled to open in 2027.
A train stopped at Hanoi Station in Vietnam last June. Hanoi = Correspondent Heo Gyeong-ju
Thailand signed a railway network connection project agreement with china and Laos in 2019. Currently, construction on the 250km section of the first stage from Bangkok to Nakhon Ratchasima is in progress. Once the second stage (Nakhon Ratchasima – Nong Khai,Laos,357km) is completed,it will be connected by land from Bangkok through Laos to Kunming,China. China’s official Global Times praised this, saying, “Southeast Asia’s ‘golden railway’ corridor has begun to take shape.”
However, there is considerable concern regarding the debt sustainability of these projects.