ASIATODAY.ID, KUALA LUMPUR – The Association of Southeast Asian Nations (ASEAN) continues to accelerate in increasing economic growth and trade through building better transportation and logistics networks. This step aims to strengthen regional connectivity while protecting member countries from increasing geopolitical and economic risks.
Currently, big challenges still lie ahead. Therefore, ASEAN member countries must simplify customs procedures and reduce bureaucracy that hinders trade flows.
Observers highlight the importance of these steps to ensure successful economic integration in the region.
“In ASEAN, we have done quite well,” said Malaysian Minister of Transport, Anthony Loke, Tuesday, December 10 2024.
He highlighted ASEAN’s open skies policy which has improved air connectivity in the region.
In the maritime sector, ASEAN also plans to digitalize ports to share real-time information and increase regional competitiveness.
In addition, developing the railway network is an important priority for regional economic growth. Currently, several broken railway lines are being repaired, especially between Laos and China.
Last June, the first ASEAN Express cargo train service was launched, connecting Malaysia to China via Thailand and Laos. However, this service faces obstacles such as differences in rail size and customs processes that lengthen delivery times.
The difference in rail width between ASEAN countries is a major obstacle for cross-border operations. For example, at the border between Thailand and Laos, containers have to be moved to different lines due to differences in rail gauge.
Anthony Loke emphasized the importance of reducing bureaucracy to speed up this process.
“This benefits all parties, not just one country, but the region as a whole,” he said.
Thailand is also committed to improving connectivity, including by expanding the double-track railway network and building a land bridge in southern Thailand. The project, which is scheduled for completion in 2028, is expected to create new trade routes, reduce congestion in the Malacca Strait, and speed up ship travel times.
However, infrastructure alone is not enough. According to Ruben Emir Gnanalingam, Executive Chairman of Westports, the key to success lies in the efficiency and affordability of the logistics system.
“If the cost is too high, it is difficult to market and promote this option as an alternative,” he said.
Experts also emphasize the importance of collaboration between ASEAN countries. EU-ASEAN Business Council Executive Director Chris Humphrey highlighted competition among member countries in attracting foreign direct investment (FDI) and trade.
He reminded that ASEAN needed to utilize its collective strength rather than compete with each other.
By strengthening collaboration and overcoming existing obstacles, ASEAN has a great opportunity to become a region with solid economic connectivity and integration, supporting sustainable economic growth. (AT Network)
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