The Bricklaying and signing ceremonies of the Concession Agreement for the Thanaleng Dry Port and Vientiane Logistic Area was held on the 03rd July 2020. The bricklaying took place at the project site while the signing ceremony was held at the Landmark Mekong Riverside Hotel. The Concession Agreement was signed between the government of the Lao PDR represented by the Ministry of Planning and Investment and Vientiane Logistic Park co. ltd with Mr. Sonexay SIPHANDONE, President of the Lao Front for National Construction (LFNC), Mr. Bounchanh SINTHAVONG, Minister of Public Work and Transport, Mr. Phoukhong BANNAVONG, Vice-Governor of Vientiane Capital, Prof. Dr. Ott PHONGSAVANH, Founder and Honorary Advisor to Phongsavanh Group acting as witness and in the presence of representatives from concerned ministries and private sector. The Concession Agreement for the Thanaleng Dry Port and Vientiane Logistic Area is a BOT model in an amount of 727 million USD encompassing 200 ha and has a concession period of 50 years. The first phase is expected to be completed in time for the inauguration of the Lao-China railway.
The Thanaleng Dry Port and Vientiane Logistic Area project is a large scale investment project of the Lao PDR and is one of the priority projects in the Logistics sector. The objective is to implement the Government’s policy to transform the Lao PDR into a connectivity hub in the region. The Government has authorized Sitthi Logistics Lao co. ltd to conduct the feasibility study for this project has signed the related MOU on 19th April 2019. After the Feasibility Study was completed, the Sitthi Logistics Lao company held consultation with the Government on the 7th February 2020 to endorse the Feasibility Study and establish Vientiane Logistic Park company as BOT contactor for a period of 50 years.
The Project is located at Dongphosy village, Hatxayphong district, Vientiane Capital, has a toal area of 200 ha and is valued at 727 million USD. The Construction is divided into three phases: the first phase is the construction of Dry Port container areas, cold storage facilities, roads and other facilities totaling 150-180 million USD and is expected to be completed in time for the inauguration of the Lao-China railway. The 2nd and 3rd phases involve the expansion of the logistics park and are expected to be complete within 5-10 years. The investment is expected to achieve breakeven point within 15 years, ut most importantly, the project represents a solution to the Government’s vision in transform the Lao PDR into a connectivity Hub for comprehensive trade and transport.