The source yesterday said revision of the logistics strategic plan was a response to the likelihood of a higher level of trade with China and India in the future.

The ministry is switching its focus to two strategic ports, one in the North and the other in the South.

Under the new plan, the ministry will build a second port at Chiang Saen in Chiang Rai province and expand the capacity of Pakbara port in Satun.

Moreover, the two ports will be connected by railways and new distribution points will be set up, needing more investment from the government.

The source said there was a strong chance of free trade with Vietnam, China and India in the future, generating huge amounts of revenue for Thailand. If the Kingdom does not establish convenient logistics for this trade, it will lose its trading competitiveness to Vietnam.

He said trade with China and India would stimulate Thailand's economy because of the scope for adding value and re-exporting goods to third countries.

Land along the railway routes will also be available for commercial development, creating revenue for the State Railway of Thailand. The Transport Ministry is currently filling in the details of the plans, which will need confirmation from the government.

The source said the old strategy of developing Laem Chabang port as a logistic hub would not make Thailand competitive with Vietnam, which has a common border with China and cheaper logistics costs.

The ministry proposes to move the budget from Laem Chabang port's third phase to invest in Pakbara and Chiang Saen ports, the source said.

Watcharapong Thongrung

The Nation