Revised June 28, 2002

Project Proposal
(Final Draft)

Feasibility Study
For
the Missing Links and Spur Links of the
Singapore Kunming Rail Link Project
in
CLMV Countries

Project ID: TRN/02/005

IAI Project Formulation Workshop

24-26 April 2002, Vientiane, Lao PDR

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

1. Background of the Project

1.1 Introduction
The Singapore Kunming Rail Link (SKRL) Project was proposed at the Fifth ASEAN
Summit in Bangkok in December 1995, with Malaysia as the project coordinator.
The SKRL Project is the core agenda for action of the ASEAN Mekong Basin
Development Cooperation (AMBDC) Program. At the Second ASEAN Informal
Summit in Kuala Lumpur in December 1997, the ASEAN leaders agreed that the
proposed rail link should be implemented by a consortium involving all ASEAN
countries and that a decision be made about its implementation. The leaders also
agreed that non-ASEAN countries, such as the United States, Japan and the
European countries, would be invited to participate in its construction. The 1998
Hanoi Plan of Action again underscored the importance of the SKRL project.
A team of Malaysian consultants commenced the feasibility study for the Singapore
Kunming Rail Link Project in March 1997 and completed in August 1999. The
study examined six routes to link Singapore with Kunming. All the six routes have a
common sector from Singapore to Bangkok via Kuala Lumpur. The study results are
briefly presented in Table 1.1 below:
Table 1.1 Route Alternatives for SKRL Project
Study
Route

Total
Capital
Outlay
(US$
Billion)

Route
Distance
(km)

Missing
Links
(km)

Countries Involved

Route 1

1.8

5,382

431

Cambodia, Lao PDR, Vietnam

Route 2

6.0

4.559

1,127

Route 3

1.1

4,259

531

Route 4

5.7

4,164

1,300

Route 5

1.1

4,481

616

Lao PDR, Vietnam, Thailand

Route 6

1.1

4,225

589

Lao PDR, Vietnam, Thailand

Myanmar, Thailand, China

Lao PDR, Vietnam
Lao PDR, China

Source: Feasibility Study for the Singapore Kunming Rail Link, K.L. Consultant
November 2000

Among the six routes, the Consultants recommended Route 1, as it has the highest
social economic impact. The Consultants also recommended the development of
part of Route 2 that would integrate Myanmar into the regional rail network. This
overall route configuration covers seven ASEAN member countries and China.
The sectors of proposed Route 1 from Bangkok to Kunming, spur links between Lao
PDR and Vietnam; and missing links in Myanmar as well as Thailand are shown in

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

Table 1.2 below.

Table 1.2 Route Compositions by Country of SKRL

Country
Thailand
Cambodia
Cambodia
Vietnam

Route
Bangkok Aranyaprathet
Poipet Sisophon Phnom Penh
Phnom Penh Loc Ninh
Loc Ninh Ho Chi Min Hanoi Lao Cai

China
Lao PDR
Thailand
Myanmar

Hekou Kunming
Vientiane Thakhek Mu Da- Tan Ap
Three Pagoda Pass Nam Tok
Three Pagoda Pass Mawlamyine

Length
200
48 + 352 = 400
300
150 + 2000 =
2150
350
466 + 53 = 519
150
116

The ASEAN Transport Ministers (ATM) at their sixth meeting in October 2000 in
Bandar Seri Begawan, Brunei Darussalam supported the above route
recommendations. Subsequently, the ASEAN leaders at the Fourth ASEAN Informal
Summit in Singapore in November 2000 endorsed the broad thrust of the feasibility
study and directed that the project should be moved forward. The Seventh ATM in
Kuala Lumpur reiterated the importance of the SKRL Project, as this will provide the
link to Europe, through the Trans-Siberian railway network.
The ASEAN leaders at the Seventh ASEAN Summit in Brunei Darussalam in
November 2001 reaffirmed the SKRL as a priority project, and endorsed the routes
agreed by the transport ministers.
1.2

Need of Preparation Studies

Consultancy services will be required for the conduct of feasibility study which will
lead to conduct the detailed feasibility studies and subsequent engineering studies
for the missing sections and spur lines as well as improvement and upgrading
works for the SKRL priority network consisting of Route 1 and part of Route 2, which
covers Cambodia, Lao PDR, Vietnam, Thailand, and Myanmar. Some 1,265 km of
missing links and spur lines in these five countries are identified in Table 1.3 below:
Table 1.3 Missing Links and Spur Lines of Selected SKRL Route Configuration
Missing and Spur Lines

Poipet - Sisophon
Phnom Penh Loc Ninh
Loc Ninh Ho Chi Minh
Ho Chi Minh Vung Tau

Country Involved
Cambodia
Cambodia
Vietnam
Vietnam

Distance
(km)
48
286
149
75

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

Three Pagoda Pass Mawlamyine

Nam Tok Three Pagoda Pass
Vientiane Thakkek Mu Da
Mu Da Tan Ap
Source: Feasibility Study for the Singapore
November 2000.

Myanmar
116
Thailand
153
Lao PDR
466
Vietnam
53
Kunming Rail Link, K.L. Consultant

The route selected at present for SKRL project is illustrated as shown in Figure 1
below.
Figure 1 Singapore Kunming Rail Link Route

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

The numbers are to be referred with the above table.

The present status of the implementation progress of the SKRL Project as of April
2002 is tabulated in Table 1.4 below.
Table 1.4 Present Status of Missing Links and Spur Lines of SKRL
Missing Links and Spur
Present Status and Notes

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

Lines
Poipet - Sisophon

Cambodia Thailand Rail

Restoration Project
Phnom Penh Loc Ninh

Sisophon Phnom Penh

Rolling stocks for Cambodia

Loc Ninh Ho Chi Minh

Ho Chi Min Vung Tau

Thakhek Mu Da (Spur
Line)
Nong Khai - Vientiane

Vientiane - Kunming
Mu Da Tan Ap
Nam Tok Three Pagoda
Pass (Thailand)
Three Pagoda Pass
Mawlamyine (Myanmar)

China, Japan, Germany and Thailand conducted

preparatory studies on various levels. ADB included this
rail link project (US$ 22 million estimated by Thai Study)
for T/A for project preparation in 2002 and expects its
implementation from 2004.
The SKRL Project has been included in Cambodias
National Development Plan. ADB confirmed its financial
assistance for the implementation for 2002 2004.
Study is expected to be started from 2003 - 2004 but
depend on above PPT/A. Estimated cost is US$ 500
million based on estimates by K.L. Consultant including
bridges over the Mekong River (L= 2000m) and the Sap
River (L=1800m). No study has been done yet.
Rehabilitation work is needed especially for bridges.
China, Japan and Germany conducted various studies in
the past 5 years. No concrete rehabilitation plan
prepared yet.
11 locomotives needed. French government indicated
interest but pending. In 2002, Cambodia Railway
Company reformed its operation structure.
Railway track built by French around 70 years ago exists
but destroyed by war. Pre-F/S have been done in 2001
by Vietnamese consultant attached to the Vietnam
Railway. No base exists along major portion of planned
track.
Large-scale container port in Cai Mep or Vung Tau has
been under planning.
Included in the Vietnam National Railways Master Plan
2020. Pre-F/S has been completed in 2001
Railway of Thailand extended to the middle of the
Friendship Bridge over the Mekong River in Thailand
side. Detailed study for Lao PDRs portion (3.5 km)
completed. The estimated cost of this portion is US$7.0
million, but no financial arrangement started yet. The
total length of planned railway in Lao PDR side is 14 km.
This 700 km length railway was studied by China in 1999
Pre-F/S completed in 2001.

Three Pagoda Pass to Thanbuzayat, a distance of 100 km

railway track in Myanmar was built during WW II and its
alignment exists. This line needs to be newly
constructed and the Thanbyuzayat-Mawlamyine, 56 km
of existing track is required to be upgraded. The spur

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

Rehabilitation of Railway
Network in Myanmar

line is to be redesignated as Three Pagoda- Mawlamyine.

External financial assistance is required to construct the
missing link between Three Pagoda Pass- Thnabyuzayat.
The Thanbyuzayat-Mawlamyine line will be upgraded
with internal funding. To link Mawlamyine to the main
network, a rail-cum-bridge on Thanlwin River is under
construction and expected to be completed in 2003.
Rehabilitation work on existing line is also needed as
construction of SKRLs missing lines in Myanmar.

The detailed design study of Poipet Sisophon is under discussion with ADB for
its implementation in 2003.
2. Outline of the Project
The Project principally aims to complete feasibility studies for the missing links and
spur lines of SLRL. As no study taken place for the Route 1 and a part of Route 2
after these were selected among alternative routes, the economic and financial
viability of SKRL will be studied further in depth.
The Project is composed of the following three (3) feasibility studies:
A.

Study of the economic and financial viability of the agreed SKRL route;

B.

Study of the missing links and spur lines of SKRL; and

C.

Study of the harmonization of railway standards

(A)
Study of the economic and financial viability of the SKRL agreed route
This study will lead to the completion of the railway track between Singapore and
Kunming of China and allow the world-famous tourism train, Eastern Orient
Express, to transport tourists not only from Singapore to Bangkok, but up to China.
Further, this railway link is planned to be connected with the Siberian Railway,
which will make railway travel possible between Singapore and Europe via
Malaysia, Thailand, Cambodia, Vietnam, and China.
K. L. Consultant conducted study for the financial viability of the SKRL in 2000. The
result of this study led to the selection of Route 1 and part of Route 2 as the
preferred railway route configuration of the SKRL Project. More in depth financial
viability study specifically for Route 1 is needed at present.
The share of financial risk should meet the share of expected economic benefit or

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

financial revenue from the operation of the SKRL. The equitable sharing of the
financial burden and benefits may be realized by establishing a multinational
freight and passenger transport entity, which would be the lessee of the railway
link and operate the rolling stocks. The Study therefore will seek the effective and
possible means of establishing this private, public or public-private company to
operate and manage the SKRL. However, the study for the formulation of programs
for the operation and management of the SKRL will be conducted after the
economic and financial viability of the SKRL has been established. This additional
study will include the possible schedule of fees and charges to be collected by the
railway operation entity.
B.

Study of the SKRL missing links and spur lines

The following SKRL rail sections would be addressed by the feasibility study.
(1)
Phnom Penh Loc Ninh in Cambodia (286 km);
(2)
Loc Ninh Ho Chi Minh Vung Tau in Vietnam (224 km);
(3)
Vientiane Mu Da in Lao PDR (466 km)
(4)
Mu Da Tan Ap in Vietnam (53 km); and
(5)
Three Pagoda Pass Thanbyuzayat in Myanmar (110 km)
The study will include the rehabilitation plan of the existing railway line in
Cambodia.
In the Third Meeting of the Special Working Group on the SKRL Project in Yangon,
Myanmar on 14-15 May 2002, Thailand and Viet Nam requested that the Feasibility
Study includes the route connection from Nam Tok to Three Pagoda Pass under part
of Route 2 and Tan Ap to Vung Ang rail line, respectively.
C. Study of the harmonization of railway standards, traffic control and signaling
system
The railway design standards and criteria differ by each country in ASEAN,
especially in CLMV due to the historical background of the railway system of each
member country. The harmonization of design standard not only for railway design
but also traffic control and signaling system is needed to ensure safety and
efficient railway operation. The harmonization of traffic control and signaling
system is needed not only regional level but also domestic level in each member
country. The study envisages the standardization or harmonization of railway
design and traffic control as well as signaling system In order to make SKRL as a
safe and efficient inter-state railway link.
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Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

3. Project Justification
The completion of the railway link between Singapore and Kunming in China via
four ASEAN member countries, namely: Malaysia, Thailand, Cambodia, Lao PDR,
Myanmar and Vietnam, is symbol of the close economic cooperation of ASEAN.
The missing links and spur lines along this important railway should be constructed
to make the SKRL operational.
Through this Project, member countries have to equitably share the cost and
benefit of the SKRL. It should also enable one or more entities to operate and
manage the entire or a major part of the railway system. The managerial plan
should prepared based on demand forecast, economic and financial viability
studies.
4. Implementation Modality
Consultancy services will be required for the Project. In line with the above specific
goals, the Project will cover the consultancy services for the preparatory study to
conduct necessary feasibility studies for each component of the Project. The
consultancy services will also take into account the progress of implementation of
the Asian Development Banks (ADB) priority projects concerned with railway
transport development in the Greater Mekong Sub-region and CLMV. The
Consultant is required to work closely with the ASEAN Mekong Basin Development
Cooperation (AMBDC) Special Working Group for SKRL (Lead country is Myanmar in
2002) and the AMBDC Financial Expert Group (Lead country is Vietnam in 2002).
The preliminary Terms of Reference for the consulting services required for the
Project is prepared as shown in Appendix 1.
5.
Output of the Project
The primary output of the Project is the phased implementation program of the
SKRL Project in CLMV. The implementation program will report on the technical,
economic and financial feasibility of the entire route of the SKRL project, the
recommended financing options, as well as the recommended implementation
schedule, among others.
The Consultants will submit regular progress reports to the Special Working Group
on the SKRL Project and STOM/ATM through the ASEAN Secretariat. A Final Report
of the Project will be published after CLMV and concerned member countries have
endorsed the Draft Final Report.
6.
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Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

Implementation Arrangement
Each CLMV country will designate a team of key official(s) to work with the
Consultants throughout the studies. The ASEAN Secretariat and the Special
Working Group on the SKRL Project will coordinate the organization of relevant
activities between CLMVs team and the Consultants. Such designated key
official(s) will assist and work with the Consultants on railway transport in their
respective jurisdictions. The Consultants shall submit to the ASEAN Secretariat
regular progress reports for each phase, as well as the Draft Final Report and Final
Report, for circulation to the member countries.
The Special Working Group on the SKRL Project will serve as the project
management organization to conduct the feasibility study of the Project in
coordination with the ASEAN Secretariat.
7.
Budget Requirements
The estimated total cost for the Project is US$ 830,000, which should essentially
cover the cost of consultancy services, data collection, field surveys, and the
regional workshop as well as meetings. Each study will be conducted for six to nine
months period. The breakdown of the cost is shown below.
A.

Study of the economic and financial viability of the agreed SKRL route (US$
387,000)

B.

Study of the SKRL missing links and spur lines

(US$ 350,000)

C.

Study of the harmonization of railway standards and traffic control system

(US$ 93,000)

8.
Risks
The cooperation and active participation of CLMV and related member countries
will be essential.

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Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

TERMS OF REFERENCE
FOR
Feasibility Study
for the
SKRL Missing Links and Spur Lines
1.

INTRODUCTION

Consultancy services will be required for the conduct of feasibility and engineering
studies for the missing links and spur lines as well as improvement and upgrading
works for the SKRL priority network consisting of Route 1 and part of Route 2, which
covers Cambodia, Lao PDR, Myanmar, Vietnam and Thailand. Some 1,292 km of
missing links and spur lines in these five countries will be subjected to further
detailed studies, as follows:
Missing Links and Spur Lines
Phnom Penh Loc Ninh
Loc Ninh Ho Chi Minh
Vientiane Thakkek Mu Da
Mu Da Tan Ap
Nam Tok Three Pagoda Pass
Three Pagoda Pass - Thanbyuzayat
2.

Country Involved
Cambodia
Vietnam
Lao PDR
Vietnam
Thailand
Myanmar

Distance (km)
286
149
466
53
153
110

OBJECTIVES OF THE STUDY

The Project principally aims to complete feasibility studies for the missing links and
spur lines of SLRL. As no study taken place for the Route 1 and a part of Route 2
after these were selected among alternative routes, the economic and financial
viability of SKRL will be studied further in depth.
The objectives of the three study components are as follows:
A.

Study of the economic and financial viability of agreed SKRL route

A-1
project
A-2
A-3
A-4
A-5
B.
B-1
B-2

To review and update all available existing studies concerned to SKRL

To conduct demand forecast for SKRL project
To conduct economic and financial study on SKRL project
To formulate implementation program of SKRL project
To formulate operation plan including financial mechanism of SKRL project

Study of the SKRL missing links and spur lines

To review all available existing studies concerned to SKRL project;
To formulate indicative implementation program for the phased or staged

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Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

B-3
C.
C-1
C-2

C-3

3.

construction of missing links and spur lines of SKRL project;

To formulate an indicative development program of SKRL project;
Study of the harmonization of railway standards
To review all available existing studies concerned to SKRL project;
To formulate program for the harmonization of design standards and traffic
management system applied for the railway development and
improvement project in CLMV; and
To prepare the detailed Terms of Reference for the implementation of the
harmonization program for the railway standards in CLMV countries.
STUDY LINES

The study lines are the agreed routes of SKRL project including the following
missing links and spur lines:
(1)
Phnom Penh Ho Chi Minh via Loc Ninh in Cambodia and Vietnam;
(2)
Ho Chi Minh Vung Tau in Vietnam;
(3)
Vientiane Thakkek Mu Da Tan Ap in Lao PDR and Vietnam; and
(4)
Three Pagoda Pass Thanbyuzayat in Myanmar
4.

SCOPE OF WORKS

1.1

Review of Existing Studies

Review the feasibility study of SKRL project including its methodology; approach
and basic assumptions used in these various available studies for the study lines
1.2

Demand Forecast

Conduct traffic projection on both freight and passengers on the section of SKRL.
1.3

Formulation of Rehabilitation Plan

Formulate rehabilitation plan of the existing lines to be connected by construction

of the missing links and spur lines.
1.4

Supplemental Survey

Undertake necessary supplemental surveys and investigations for the conduct of a

preliminary study on the construction of missing links and spur lines, rehabilitation
13

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

of existing lines and prepare the operation as well as management plan.

1.5

Alignment Study

Conduct alignment study on planned lines to eliminate missing lines taking into
consideration such factors as costs, economic, social and environment impacts.
1.6

Evaluation

Conduct economic and financial studies on the construction of missing links and
spur lines and rehabilitation of existing lines on preliminary feasibility basis.
1.7

Development Program

Prepare indicative development program for the phased or staged implementation

for the construction of missing links and spur lines as well as the rehabilitation of
existing lines including institutional development plans, as appropriate.
2.

TIME SCHEDULE

2.1

Inception Report

Inception Report shall be prepared and submitted to the ASEAN Secretariat within
one (1) month from the effective date of contract in Jakarta.
2.2

Interim Report

Interim Report, which presents the traffic forecast and preliminary engineering
study as well as cost estimates, shall be submitted within two (2) months from the
commencement of the Study.
2.3

Draft Final Report

Draft Final Report, which presents the result of the Study including the
recommended technical details and preliminary cost estimates concerning the
construction of missing links and spur lines as well as rehabilitation of existing lines
shall be submitted within four (4) months from the date of notification by the
ASEAN Secretariat of approval of Interim Report.
2.4

Final Report

Final Report shall be submitted within one (1) month after receipt of the comment
on the Draft Final Report from the ASEAN Secretariat.
3.

Staffing Requirement

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Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

The expertise required for the Study and man-months for each expert for the Study
are as follows:

A.

Study of the economic and financial viability of agreed SKRL route;

1
2
3
4
5
6

B.

Railway Transport Planner

Demand Forecast Specialist
Railway Operation Analyst
Cost Estimator
Economic and Financial Analyst
Management Expert
Total

4
4
4
2
2
2
18

Study of the SKRL missing links and spur lines;

1
2
3
4

C.

Railway Engineer
Structural Design Engineer
Traffic Control System Expert
Cost Estimator
Total

6
4
4
2
16

Study of the harmonization of railway standards and traffic control system

1
2

4.

Railway Engineer
Traffic Control System Expert
Total

2
2
4

Indicative Budget

(A) Study on the economic and financial viability of agreed SKRL route
Item
Consultants
Air Freight
Local Transport
Other Expenses
Total

(B)

Unit Price
20,000
1,200

Unit (Month,
Trip)
18
10

Amount in US$
360,000
12,000
5,000
10,000
US$
387,000

Study on the SKRL missing links and spur lines

15

Feasibility Study For the Missing Links and Spur Lines of the
Singapore Kunming Rail Link Project in CLMV Countries

Item
Consultants
Air Freight
Local Transport
Other Expenses
Total

Unit Price
20,000
1,200

Unit (Month,
Trip)
16
6

Amount in US$
320,000
7,200
5,000
17,800
US$
350,000

(C) Study on the harmonization of railway standards and traffic control system
Item
Consultants
Air Freight
Local Transport
Other Expenses
Total

Unit Price
20,000
1,200

Unit (Month,
Trip)
4
4

Amount in US$
80,000
4,800
3,000
5,200
US$ 93,000

16