Logistics development crucial, insists dep

The DEP also plans to contribute to lowering Thailand's logistics cost per gross domestic product (GDP) to 16 per cent by 2011 and make Thailand a logistics hub for all of Asean and southern China.

"The government has placed logistics development on the national agenda, especially regarding logistics trading, which is an area of interest in the eyes of foreign investors," said Permanent secretary Siripol Yodmuangcharoen.

He said policies had also been framed to accommodate projected growth in logistics trading and investment, ensure Thailand had an international-standard logistics infrastructure and facilitate regulations to make it easier for overall logistics operations.

Plans are already in the pipeline to train Thai logistics professionals and entrepreneurs, expand trade networks, establish interagency information-transfer systems and create tools to minimise risks in trade and transport.

The DEP hopes the Thailand International Logistics Fair 2008, which ends tomorrow at the Bangkok Trade and Exhibition centre in Bang Na district, will turn out to be the grandest and most comprehensive logistics exposition ever staged in Asean.

The event has brought together 181 leading companies to exhibit their logistics capabilities and innovations in 324 booths.

Siripol said that in 2005, Thailand's logistics cost per GDP was 19 per cent: 8 per cent from transport costs, 8 per cent from inventory costs and 3 per cent from administration costs.

The National Logistics Development Plan for 2007-11 is aimed at reducing the figure from 19 per cent in 2005 to 16 per cent in 2011," he said, adding that this was to develop Thai logistics to be more reliable and efficient in satisfying customers' logistics needs.

"Under the development plan, we've created a number of short- and medium-term operation plans to lead us to our objectives," Siripol said.