Quang Tri collaborates with Laos' Sekong to boost coal transportation

A project transporting coal from Laos to Vietnam via the La Lay international border gate is considered a highly feasible project driven by the determination of the two governments to meet the domestic demand for coal.

The two sides signed a memorandum of understanding to enhance coal import-export cooperation. Photo: L.T

Demand and potential for coal

According to the National Energy Master Plan for the 2021-2030 period, with a vision to 2050, the annual domestic demand for coal is estimated to be around 90-100 million tons, reaching approximately 137 million tons by 2030.

However, the total amount of coal produced domestically is only about 40-45 million tons per year. Survey results show that the coal reserves in Sekong and Salavan provinces (Laos), located approximately 118 km from the La Lay international border gate, are estimated to be about 0.8-1 billion tons. The imported coal to serve domestic demand is significant, ranging from 50-71 million tons per year.

In 2023, coal transportation from Laos to seaports in the Central Vietnam region through the La Lay international border gate reached 1.5-2 million tons.

The reason is that the transportation of coal by road still faces numerous difficulties due to deteriorating and inconsistent transportation infrastructure, long travel distances leading to environmental factors, traffic safety concerns, and increased transportation costs.

The leaders of Quang Tri Province visited the Kaleum coal mine site. Photo: L.T

Therefore, Quang Tri Province has chosen the long-term solution of transporting coal through cross-border conveyors. The province has developed a comprehensive plan for transporting coal from Laos to Vietnam, consisting of three sections.

Among them, section 1 goes from the Kaleum coal mine (Sekong) to the coal depot in Salavan, with a length of 100 km, to be researched and implemented by Laos. Section 2 goes from the Salavan depot through the La Lay international border gate to the depot in A Ngo Commune, Dakrong District, and section 3 goes from the depot in A Ngo Commune to My Thuy seaport.

The two sections within Quang Tri Province are actively being implemented by the local authorities. Specifically, section 2 is constructing a coal conveyor system from Laos to Vietnam, crossing the border at the La Lay international border gate, with a length of approximately 5.5 km. The construction of the coal conveyor requires a total investment of about VND1.84 trillion (US$75.1 million), divided into two phases, to build the conveyor line with a total transport capacity of 6,000 tons per hour, along with supporting facilities. Section 3, which is 70 km long, is proposed by Central Capital Co., Ltd.

With permission from the Vietnamese government to implement the project, Quang Tri is urgently directing the relevant units and businesses in Vietnam to follow the necessary procedures for the next steps.

To promptly realize the project, the Provincial People’s Committee continues to direct the relevant sectors to implement Resolution No. 04/NQ-CP dated January 5, 2024, regarding the investment in constructing conveyors as part of the project to build a coal conveyor system from Laos to Vietnam.

To promptly realize the project, the Provincial People’s Committee continues to direct the relevant sectors to implement Resolution No. 04/NQ-CP, dated January 5, 2024, which pertains to the investment in constructing conveyors as part of the project to build a coal conveyor system from Laos to Vietnam.

At the end of January, a Quang Tri delegation led by the Chairman of the Provincial People’s Committee, Vo Van Hung, worked with the leadership of Sekong in Laos to promote cooperation in various areas, with a focus on transportation and exportation of coal from Laos to Vietnam through the La Lay International Border Gate.

During the working session, representatives from the Kaleum coal mine proposed that the authorities of both sides implement the project for the coal conveyor system from Laos to Vietnam, passing through the border area at the La Lay International Border Gate.

The working delegation discussed with the leaders of Sekong and signed a memorandum of understanding to enhance coal import-export cooperation.

Notably, Quang Tri Province requested coordination with Sekong and Salavan provinces, as well as a formal agreement from the Lao side, to enable the two provinces to proceed with the subsequent procedures of the project for the coal conveyor system from Laos to Vietnam.

The competent agencies and governments of both countries were requested to allow an extension of working hours for the functional forces at the La Lay International Border Gate (Vietnam) - La Lay Border Gate (Laos) to meet the demand for customs clearance of goods.

A corner of the Kaleum coal mine. Photo: L.T

Chairman Vo Van Hung affirmed that the recent working trip to Sekong Province has promoted cooperation with the neighboring province and expanded the partnership with Salavan Province in investment, trade, logistics, and tourism, leveraging the advantages of the East-West Economic Corridor. It also supported and created the most favorable mechanisms and conditions for enterprises to boost the exploitation and exportation of coal through the two border gates.

The project, once operational, will generate new economic and social growth while providing favorable conditions and motivation for businesses to invest in production and business activities in the western part of Quang Tri Province.

To accelerate the project, the Provincial People’s Committee has set up a Steering Committee and delegated tasks to relevant departments and units, intending to streamline procedures, address challenges, and facilitate prompt implementation by investors.

Le Truong – Khanh Khanh