A workshop on creating a worldclass logistics centre for the Greater Mekong Subregion (GMS) yesterday proposed that the government focus on strengthening logistics service providers (LSPs) and building multimodal transport.
Speaking at the panel, Bhanumas Srisukh, managing director of SCG Logistics Management and chairman of the workshop, said the meeting agreed that two of 10 logistics facets needed to be developed most urgently - LSPs and multimodal transport.
For LSP development, he said the group agreed that thirdparty and fourthparty LSPs should be developed simultaneously, as they would both have much impact on a worldclass logistics centre in the GMS.
Thirdparty LSPs are general logistics providers that normally have oneyear contracts, while fourthparty LSPs are valueadded logistics providers that normally invest in their own information technologies and get threetofouryear contracts. They have more competitive costs than other general LSPs.
Bhanumas said Thailand would increase trade within the subregion, relax trade rules, increase border trade and increase collaboration of Thai LSPs to cater to the rising demand for transhipments.
He said the government should strengthen thirdparty LSPs so they could support the fourthparty LSPs as a network. At the same time, the government would have to provide incentives for Thai LSPs to become fourthparty providers.
In terms of multimodal transport, Bhanumas said the workshop agreed that the country should focus on rail networks, inland waterways and coastal transport as strategic moves that have much impact on establishment of a worldclass logistics centre for the GMS.
"The rail network was voted the transport system that most urgently needs implementation," said Bhanumas, adding that land transport comprised 86 per cent of Thailand's overall transport while Japan's emphasis was 45 per cent on waterways and the United States concentrated on its rail network.
Thailand has long coastlines on two sides of the country. But there is little optimisation of this benefit through linking water transport with the regional network. The workshop found that the implementation of water transport is not very complex, so the government should seriously study that mode of transport, he said.