China and Laos on Tuesday signed the first bilateral intergovernmental cooperation agreement in the field of rail transport.

The agreement, which was signed via video link, is based on the principles of promoting mutual respect, win-win cooperation, safety and quality, convenience and efficiency and deepening friendship, and aims at optimizing bilateral cross-border railway transport services.

The China-Laos railway is a docking project between the China-proposed Belt and Road Initiative and Laos' strategy to convert itself from a landlocked country to a land-linked hub. Construction started in December 2016 and is scheduled to be completed and operational in December this year.

The electrified passenger and cargo railway links Kunming, capital of southwest China's Yunnan Province and Lao's capital Vientiane, with a total length of 1,035 km.