Roads Completed, Railways Rising: Mekong Strategy Pushes for Smarter Regional Integration

The Greater Mekong Subregion has made strong progress in building roads, railways, and ports, significantly improving regional connectivity since 2018. The next phase to 2030 will focus on smoother border procedures, stronger rail links, better logistics, greener transport, and deeper private sector participation to turn connectivity into real economic integration.

Over the past decade, the Greater Mekong Subregion has quietly transformed its transport landscape. Stretching across Cambodia, the People’s Republic of China, the Lao People’s Democratic Republic, Myanmar, Thailand, and Vietnam, the region has made transport the backbone of its integration strategy.

A new midterm review of the Transport Sector Strategy 2030 shows real progress. Major economic corridors are now fully connected by road. Cross-border links along the East–West, North–South, and Southern corridors are operational. Capitals, industrial centers, ports, and airports are linked by upgraded highways.

Since 2018, 19 major transport projects have been completed and 30 more are under construction. Together, they represent nearly $51 billion in investment. By the time ongoing projects are finished, the region will have added almost 5,000 kilometers of new or improved roads, 13 bridges, more than 4,400 kilometers of railway, and eight upgraded ports.

For communities and businesses, this means faster travel, easier trade, and stronger economic ties across borders.

Railways Making a Comeback

While roads still dominate investment, railways are gaining importance. Of the nine key cross-border rail links identified earlier, two are now operational, and two more are advancing.

The Lao–China Railway, opened in 2021, is a landmark project. It connects Vientiane to Kunming and forms part of a larger regional rail vision linking Southeast Asia with China. It has already cut travel time and improved freight efficiency.

Yet challenges remain. Different track gauges, older rail systems in some countries, and limited electrification make full integration difficult. Large investments are still needed to modernize networks and ensure trains can move smoothly across borders.

Rail transport is also critical for climate goals, as it produces fewer emissions than road freight. Strengthening cross-border rail links is therefore both an economic and environmental priority.

The Border Bottleneck Problem

Infrastructure is only part of the story. Even with good roads and railways, delays at border crossings can slow trade.

The Cross-Border Transport Facilitation Agreement was designed to solve this. It allows trucks and goods to move more freely between countries. A pilot program launched in 2018 showed promising results, with trade volumes rising sharply at some crossings.

However, the COVID-19 pandemic disrupted progress. Border closures, expired permits, and administrative delays slowed momentum. Operations resumed in 2024, but recent trial runs have revealed ongoing issues such as inconsistent regulations, paperwork problems, and limited facilities at some border points.

Improving border procedures is now one of the region’s top priorities. Without smoother processes, the full benefits of new infrastructure cannot be realized.

Logistics, Cities, and Climate Pressures

The review also highlights the need to strengthen logistics and multimodal transport. In simple terms, goods must move smoothly from roads to railways to ports and airports. Some GMS countries perform well in logistics efficiency, but others lag behind, and overall logistics costs remain high compared to global standards.

Digital technology can help. Better tracking systems, online documentation, and smarter logistics planning can reduce delays and costs.

Rapid urbanization adds further pressure. Cities across the region are growing quickly, leading to traffic congestion and pollution. The strategy calls for better public transport, support for nonmotorized transport, and climate-friendly urban infrastructure.

Climate change is another major concern. The transport sector contributes significantly to greenhouse gas emissions. The updated strategy promotes rail electrification, cleaner vehicle technologies, electric vehicle charging networks, and climate-resilient infrastructure. Transport investments must now align with national climate commitments.

The Road to 2030

Looking ahead, the region’s focus is shifting. The first phase of the strategy emphasized building infrastructure. The next phase must emphasize integration, sustainability, and smarter planning.

Key priorities include speeding up border facilitation, expanding cross-border railway links, improving logistics systems, enhancing road safety, promoting green transport, and encouraging greater private sector participation.

Private companies are expected to play a larger role, not only by financing projects but also by bringing innovation and efficiency to transport and logistics services.

The midterm review delivers a clear message. The Greater Mekong Subregion has laid a strong physical foundation for connectivity. The highways are in place, rail links are expanding, and trade routes are stronger than ever.

But real success by 2030 will depend on turning transport corridors into fully functioning economic corridors. That means smoother borders, modern logistics, climate-smart systems, and closer cooperation among all six countries.

If these goals are achieved, transport will not just connect places. It will connect opportunities, businesses, and people across one of Asia’s most dynamic regions.