Sunday, September 6, 2009

Ministry of Commerce commits 2 billion baht to drive Thai logistics

       Logistics is one of the key elements of trade and investment relations being developed by ASEAN, including ASEAN+3, ASEAN+6 and ASEAN-China and in relation to ASEAN countries around the Mekong Region.
       Related projects being discussed at the ASEAN level cover border agreements dealing with cargo. A network of distribution centres, transit stations and cargo portals supporting international trade is also being developed. Various projects will also support maritime trade, including adoption of incoterms and multiple transport forms. Collaboration between the public and private sectors in developing infrastructure and providing logistics is being encouraged.
       In this connection. the Thai government has devoloped a program of related economic incentives involving a budget of over US$2 billion. The money will be used to develop logistics systems around the country, with emphasis on improving rail and water transportation. The possibility of joint venture projects with private companies in China under the supervision of the Chinese government to develop high-speed rail systems and para-rail systems linking maritime transport with rail systems in southern China is also being looked at. Meanwhile, the rail system from northeast Thailand to Laem Chabang Deep-Sea Port is also being developed and both projects are expected to progress considerably following the impending visit of Thai Commerce Minister, Korbsak Sabhavasu, to China.
       The Deputy Minister added that: By the end of this year, our logistics trade policies will be implemented in two ways, offensively and defensively. Defensive implementation involves creating new logistics pathways to target countries, including both standard and advanced formats, so as to stimulate trade in various targeted regions."
       Defensive implementation will also extend to encouraging Thai logistics companies to find solutions to their liquidity problems with help from the Small and Medium Enterprises Devolopment Bank of Thailand (SME Bank). A logistics management network will be established under two groups, namely Thai Logistics Alliance Co., Ltd. (TLA), comprising 31 members, and Siam Logistics Alliance Co., Ltd. (SLA) comprising 26 members. The objective here is to expand water - and rail-based transportation services and encourage more widespread use by reducing costs and increasing efficiency and customer service.
       Among the top priority projects is Pakbara Deep-Sea Port in Satun province which will be developed as part of efforts to open up trade routes to the BIMTEC group comprising India, Sri Lanka, Bangladesh, Nepal, Bhutan, Myanmar and Thailand. Backed by full business incentives, the new port will be a gateway to economic development for the five southern border provinces of Thailand. It will promote trade between Thailand and India, the Middle East, Europe and Africa, thereby advancing Thailand's competitiveness in doing business with the West.
       The Thai economy and society are inextricably linked to the rest of the world. Therefore, we must adapt in order to develop. It we make the most of the opportunities presented by globalisation now by enlisting the help and cooperation of all citizens, our prospects for the future should be brighter than ever.
       Ministry of Commerce
       www.moc.go.th
       As Chairman of Logistics Trade, Deputy Commerce Minister Mr. Alongkorn Pollabutr said: "We expect to see rapid progress in implementing the free trade plans within 2009. Thailand will become capable of providing far more sophisticated logistics services to ASEAN members. In order to build the momentum for more active ASEAN markets, we will encourage the private sector to get involved. With this in place, we expect to see Thailand's intra-ASEAN trade growing at a rate of at least 10-20% annually"

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