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Mon, April 24, 2006 : Last updated 19:45 pm (Thai local time)



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Home > Business > Marine logistics system urged





Marine logistics system urged

Thailand should quickly develop a marine transport system, to boost export growth and reduce foreign-exchange earnings losses, says the deputy secretary-general of the Federation of Thai Industries.

Sayan Chanvipaswongse, who is also managing director of International Trade Logistics and Management Consultants, said Thailand would soon lose business opportunities and competitiveness to neighbouring countries. In particular, Singapore, Malaysia and even Burma have established their own marine logistics systems to facilitate exports.

Although exports are the Kingdom's most important engine driving economic growth, the lack of a marine transport system has reduced export competitiveness. All shipments are now managed by foreign shipping companies.

"Thai exporters must use foreign shippers' services, because we have no choice. As a result, exporters have low bargaining power whenever the foreign shippers want to increase fees. Having our own marine transport system would reduce the country's export costs. All exporters would like to see the development of a logistics system, so we could become Asean's real regional hub," said Sayan, adding that slow development of such a system would delay the country's economic growth.

He said the government should concentrate more on investing in the shipping industry, because 90 per cent of imports and exports rely on shipping.

He also suggested the government set up a special programme to facilitate exports by small and medium-sized enterprises (SMEs). So far, Thai SMEs have faced minimum charges at the same rate for big exporters, despite the small export volume. Minimum transport fees should apply to SMEs. A survey should be conducted among SMEs to match businesses, allowing them to pool exports to save costs.

Meanwhile, Paiboon Ponsuwanna, vice chairman of the National Shippers' Council, said the plan to set up a marine transport system would be quite difficult to effect, because it was not at the top of the agenda of the next government.

He suggested that both government and private companies cooperate better in setting up a task force to encourage the project after the new government is appointed.

Petchanet Pratruangkrai

The Nation








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