Thai-owned Trans Asia Logistics Co Ltd is to form a joint venture with a state-run Chinese company to set up four integrated logistics complexes as gateways to facilitate growing trade between Asean and China.

Initially, the company will form a joint venture with Nuctech Co, an IT-systems developer, to invest in four integrated logistics centres. The target areas are Chiang Khong in Chiang Rai, Mohan in the south of China and two centres in Burma, one of which will be located at Talo.

The US$3.8-billion (Bt145 billion) project is scheduled to be completed within five years and is intended to make Thailand the regional logistics hub for Asean and China, replacing Singapore.

Beijing will provide financial support for the project and assist the company's cash flow.

Thailand is to provide 51 per cent of the total investment cost, which it plans to borrow from major banks in China, and the remainder is to come from the Chinese government.

Sathorn Vanitsthian, president of the as yet unnamed company, said establishing the centre in Mohan is the first priority and 50 per cent of the land has already been developed. The centre is due to be completed within two years.

The Mohan complex will have a range of facilities.

These include a bus terminal, hotels, cargo warehouses, container yards, a shopping centre, a hospital, banks and distribution centres to handle products from both Asean and China.

Trans Asia has also formed a separate joint venture with the Chinese government to construct a road link from neighbouring Asean members with China through the north of Thailand.

"Both joint ventures will create huge benefits, particularly for exporters and the tourism industry," Sathorn said.

The China-Thailand trade cooperation pact aims to triple bilateral trade to $50 billion and also raise the number of Chinese visitors to Thailand to 4 million by 2010.

The logistics complexes and new road link will facilitate the transport of Thai products to Chinese markets and goods from China to Asean markets.

The new road will link the 210-rai Mohan complex to the Kunming-Yunnan highway.

The Chinese government is to allow a duty-free area in the complex, which means all products imported from Asean to China will be zero rated for import tariffs if buyers orders are made through the centre.

The company forecasts that about 8,000 containers of fresh fruit will pass through the centre every day.

In addition, in September last year, Trans Asia and China's Kunming Transportation Co signed a cooperation deal for a road link from Thailand to Kunming.

Sathorn said the road would not only ease travel from China to Thailand, but also to Burma, Malaysia and Singapore.

The 1,797 kilometre eight-lane road from Kunming to Bangkok will be completed next year. This should cut the travel time from China to Thailand to 36 hours.

The company is also considering setting up a bus service to promote tourism.

Petchanet Pratruangkrai

The Nation