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Published on August 9, 2007

The Industry Ministry plans to help industrial firms, particularly smaller ones, improve their logistics systems, which can account for up to 30 per cent of their operating costs.

"The state could provide some financial assistance, and if these plants could eventually reduce their logistics costs, then they could act as a prototype for others in their industries," Industry permanent secretary Chakramon Phasukavanich told a logistics seminar yesterday.

Bringing logistics costs down is one of the key measures for boosting industrial competitiveness, aside from production technology, in-novation development and worker training, he said.

While operators must decide how they can cut out logistics costs, the state will provide infrastructure.

The National Economic and Social Development Board will gather comments from the private sector and will work out solutions with other agencies.

Deputy Industry Minister Piyabutr Cholvijarn said public-private cooperation was vital to raising competitiveness, which would be carried out under the industrial logistics-development master plan for 2007-11.

The master plan was

the joint work of the ministry, the Federation of

Thai Industries, the Thai Chamber of Commerce and educational institutions.

Isara Vongkusolkit, chairman of the Board of Trade's logistics-development committee and president of Mitr Phol Sugar, said that to survive, companies needed to upgrade their logistics management.

"At Mitr Phol, we've invested more than Bt100 million in personnel and supply-chain management. Now, we're taking a look at increasing yields of sugar-cane plantations until all output arrives at the mills. Cost control is necessary for the industry, given that logistics accounts for one-third of our sales," he said.

Also yesterday, Deputy Transport Minister Sansern Wongcha-um told a seminar on the railway's role in economic development that the government would speed up the extension of the train network to link neighbouring countries.

Watcharapong

Thongrung

The Nation