• 
• 

Published on September 13, 2007

Thai Logistics Service Providers president Suwit Ratanachinda told a seminar entitled "Trade Logistics Policy and Implications for Thailand's Logistics Users and Service Providers" yesterday that despite having assets such as Laem Chabang Port and Suvarnabhumi Airport, Thailand's logistics costs remained high.

According to the National Economic and Social Development Board's database, Thailand's logistics costs are as high as 19 per cent of gross domestic product (GDP), he said, and this is because the country does not manage its infrastructure efficiently.

For example, the country has 4,000 kilometres of railways, but only 2 per cent of the system is used for transporting cargo. As well, a 500,000-square-metre cargo free zone at Suvarnabhumi Airport is not yet available for use.

"If the government had a proper policy to support logistics, the country would be able to compete with any other country under globalisation," Suwit said.

The government should create a policy to encourage the private sector to use technology to improve their logistics activities, he added.

Using electronic data interchange technology, which provides paperless logistics systems, and with radio frequency identification technology (RFID) for consignment monitoring, all state agencies could use the same logistics network as that used by private organisations, creating a single-window service with access to a database linking many agencies.

Suwit said Thailand could become a logistics hub if it developed its rail system, created a single-window service connecting many organisations, speeded up agreements for single-stop customs formalities at borders and developed human resources for the logistics industry.

Federation of Thai Industries deputy secretary-general Thanit Sorat said that providers of logistics services in Thailand should adjust themselves to trade liberalisation and particularly to free-trade pacts.

He said that because the value of Thailand's exports represented 68 per cent of GDP, "whatever government [wins the December election], it will have to move on free-trade agreements".

Logistics firms will have to be self-reliant in competing with rivals in the world market, Thanit said. They will have to formulate business strategies under global competition as well as providing world-class services. To survive, they will need to have connections with supply-chain alliances and to try to build their own value-added services.

National Shippers' Council executive Suchart Chantaranakaracha told the seminar that global warming and security were now issues impacting the logistics business. However, the success of logistics development would depend on infrastructure and data, regulations and collaboration between government and private organisations.

Sasithorn Ongdee

 The Nation