Debaser beat me to it . . . The cement will certainly strengthen the laterite - but you should ensure that you have a subgrade that is "adequate" - say, soaked CBR > 8 onto which to place the cement modified laterite. We have heavy haul trucks (45 tonne Volvos) on the local road here and they seem to have lasted well over the last 5 years since last surfacing - but with local potholing during the rainy season. Like with any pavements, drainage-drainage-drainage!