Local firms join hands to take on foreign players

One such operation, Siam Logistics Alliance (SLA), made its official debut on Friday.

 SLA comprises 26 companies with combined resources of 3,100 employees, 1,700 trucks and 250,000 square metres of warehouse space, SLA chief executive Piyanoot Sumrit said.

This pooling of resources enables the alliance to pitch for projects on a par with foreign competitors, Piyanoot said.

Similarly, Thai Logistics Alliance, which comprises 31 companies, has 3,000 employees, 1,200 trucks and 50,000 square metres of warehouse space.

According to chairman Chumpol Saichuer, joining forces has enabled the group, which was formed two years ago, to provide total logistics solutions.

Speaking at a seminar titled "Thailand's Logistic Business Vision in the Global Crisis" on Friday, Deputy Commerce Minister Alongkorn Ponlaboot said forming alliances had enhanced local logistics players' competitiveness.

To aid in this effort, the government plans to set up a National Logistics Council, he said.

For each of the last two years, the nation's logistics industry was worth Bt736 billion, employing approximately 3 million people. Local operators' share of this market, however, amounted to just 1 per cent. The government wants to see this share grow to 10 per cent, worth around Bt73 billion, within five years, Alongkorn said.

The land-transport sector of the logistics market was worth Bt364 billion, suggesting the country relies too heavily on this costly form of transport, the minister said.

In future, Thailand will place more importance on logistics management and reducing logistical costs, which are higher than those in neighbouring countries, Alongkorn said.

Local logistic operators have tended to form up the companies together in a bid to boost their competitive edge in securing the local market shares against the foreign operators.

One of the alliances is Siam Logistics Alliance Co Ltd (SLA), which made an official debut last Friday.

Piyanoot Sumrit, chief executive of SLA, said that the company is made up of 26 companies and with combined sources of 1,700 trucks, warehouse space of 250,000 square metres, and total of 3,100 employees.

She added that these capacities enable the company to pitch for projects on par with foreign competitors.

Another company, which was founded two years ago, is Thai Logistics Alliance Co Ltd, which is made up of 31 companies. The company has total of 1,200 trucks, 50,000 square metres of warehouse space, and 3,000 staff.

The company's chairman Chumpol Saichuer said the join force enables the company to provide total logistic solution.

Deputy Commerce Minister Alongkorn Polabutr said in the seminar, "Thailand's logistic business vision in the global crisis" last Friday that the formation of the logistic business alliance is one mean to boost the local players' competitiveness.

He added that the government would set up the National Logistic Council to help the logistic operators improve their competitiveness.

The country's logistic industry value last two years stood at Bt736 billion and employed 3 million people.

However, the Thai logistic operators could secure only one per cent market share. The government wants to see them securing the logistic market share at total of 10 per cent worth around Bt73 billion within five years, he added.

Of total logistic market value last two years, the value of the land transport business was Bt364 billion, which suggested that the country has relied too heavily on the land transport, which has high cost.

He said Thailand would give more importance to the logistic management and its reduction of the country's logistic cost, which is higher than the neighbouring countries.