In order to achieve this target, the government has set aside a Bt1.2-billion budget for a three-year logistics development project to cover services such as transportation, freight forwarding and shipping, materials handling and storage systems, international couriers and warehouses.

Kunyaphan Raengkhum, deputy director-general of the Export Promotion Department, said: "We need to urgently improve the efficiency of Thai logistics providers and other enterprises if we want to become a logistics centre in the near future."

According to the Thai International Freight Forwarders Association logistics costs should be a maximum of 10 per cent of a company's sales.

Kunyaphan said well-organised logistics providers substantially reduce production costs and improve operating efficiency.

He urged the government to make the development of this sector a priority if it wanted to reach its goal or reducing transportation costs. For instance, the soon-to-be opened Suvarnabhumi Airport will include a multi-model transportation system to facilitate air service operation. The system is set to manage 45 million passengers per year as well as 3 million tonnes of cargo.

Don Muang Airport serves 36.5 million passengers a year and handles 2.6 million tonnes of goods.

Suwit Ratanachinda, president of the Thai International Freight Forwarders Association, said developing Thailand's logistics would not only make it more competitive in the export market, it would also enable small and medium-sized enterprises to compete internationally.

"Interested enterprises will able to select the most appropriate logistics services and technologies available to increase their performance and save costs," Suwit said.

To aid the government's logistics development plan, the association and the Export Promotion Department will hold the Thailand Logistics Fair from July 13 to 15 at the Queen Sirikit National Convention Centre in Bangkok.

The event will serve as a platform for the Thai logistics industry to demonstrate its capabilities and the latest industry technology. It will also enable businesses, in particular small and medium-sized enterprises, to develop their own logistic services to meet international standards.

The fair will disseminate information on various services.

More than 120 exhibitors from Thailand and overseas will display their logistics technology at the fair. Another highlight is a "business-matching" service which attempts to link Thai logistics providers with 26 business from around the world.

Petchanet Pratruangkrai

The Nation