Opinion: Why railways are Southeast Asia’s reply to decarbonisation and progress

Rail transports about 7 per cent of worldwide passengers and 6 per cent of worldwide freight however accounts for less than round 1 per cent of transport emissions – regardless of diesel offering 53 per cent of the power that powers the worldwide rail trade.

Rail transport’s full potential emerges when networks in several international locations harmonise interoperability and requirements. Nonetheless, rail networks in Southeast Asia are fragmented and function beneath totally different requirements, making it tough and time-consuming to move items throughout borders.

The area’s geography additionally makes constructing railways tough and costly. That is one motive Southeast Asian international locations have prioritised infrastructure spending on tasks reminiscent of roads which are cheaper and have a sooner return on funding.

If Southeast Asian international locations had been to collectively buy Chinese language rail know-how, it might enhance their bargaining energy for higher costs, phrases and skill to require the difference of Chinese language rail know-how to higher go well with the circumstances of the area. This might additionally assist harmonise enterprise operations, operational providers and data processes.

Past the technical and institutional capabilities required for Southeast Asian international locations to increase and interconnect their rail networks, elevated financing is required. Most rail tasks are cash-hungry and revenue-poor. Funding within the rail trade can battle to get good returns as rail belongings are costly to obtain, construct, preserve and overhaul.

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The best to make use of the land over or beneath railways is a priceless asset which can be utilized to finance rail tasks. Moreover, land worth seize in railway funding requires refined taxation so the windfall acquire of landowners from a railway funding can be utilized to offset the funding value and fund different essential public providers.

Having the ability to seize the financial worth of improved entry and diminished air pollution, and redistribute these advantages, could make the rail sector extra engaging to buyers. Non-public sector funding, significantly from multilateral growth banks, is essential for accelerating and increasing rail growth and connectivity.

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Potential approaches embody elevating consciousness of the advantages of rail freight, highlighting profitable examples of rail freight in different areas reminiscent of Europe and China, securing commitments from authorities and companies to put money into rail freight and establishing a Southeast Asia rail freight fund.

Along with extra funding, larger worldwide assist is required in insurance policies, organisations and capacities for sustainable transport. Dialogue is essential to make sure that funding and capacity-building assist future insurance policies relatively than previous priorities.

Yuen Yoong Leong is director of sustainability research on the UN Sustainable Growth Options Community and a professor at Sunway College

Wing Thye Woo is vice-president for Asia on the UN Sustainable Growth Options Community, a analysis professor at Sunway College and visiting professor on the College of Malaya