Thailand To Invest Bt676 Billion To Improve Logistics Infrastructures

[george]

Thailand to invest Bt676 billion to improve logistics infrastructures

BANGKOK: -- Thailand on Wednesday moved toward investing Bt676 billion in logistics programmes during 2009-2013 to reduce production costs and boost the country’s competitiveness, according to Deputy Prime Minister Korbsak Sabhavasu.

Speaking to journalists after his first meeting with the logistics committee, Mr. Korbsak said it was agreed to invest in logistics programmes as proposed by the National Economic and Social Development Board (NESDB).

Approval was given after it was found that Thailand’s logistics costs in 2007 ran as high as Bt1.6 trillion, equivalent to 18.9 per cent of gross domestic product (GDP).

In developed countries, logistics costs are 9-11 per cent of GDP only.

Mr. Korbsak said the NESDB was asked to improve the national logistics system to boost Thailand's competitiveness, including programmes able to be implemented immediately and, most importantly, create new jobs and use mainly locally-produced raw materials.

Other major issues agreed at the meeting were to find ways to solve the short-term problem of business operators affected by economic crisis, especially small and medium-sized enterprises, speed on implementing new investment projects under the logistic development programme, amend rules and improve skills of the personnel.

-- TNA 2009-02-25

[Thai at Heart]

So all those years of underfunding and corruption in the trains and reliance on the 10 wheel truck finally comes home to roost.

[Ricardo]

I propose that they build more fly-overs, to bypass the bad logistics, at ground-level.

Would be nice if some of this money went to constructing the LCC-terminal, at Swampy, I've lost count of how many times this project has been announced, but not started !

[Rtwo]

Excellent news, just thinking of all the hundreds of transparent contracts to be awarded makes me go weak at the knees. Newin's father-in-law for one will be very happy. Problem is there's a worldwide recession on, hasn't anybody told them and if so where do they expect to get the money from?

[PeaceBlondie]

Amazing press release. You need to know what the [proposal means. To me, logistics refers to deep sea ports, modernized harbors, multi-lane railroad tracks, multi-lane superhighways everywhere, containerization. It does not mean more Skytrains and Metros, or more passenger planes. Anybody here in the business care to explain? Or is it just another silly Thai govt. press release about a pie-in-sky idea that will never materialize?

[bkkjames]

Amazing press release. You need to know what the [proposal means. To me, logistics refers to deep sea ports, modernized harbors, multi-lane railroad tracks, multi-lane superhighways everywhere, containerization. It does not mean more Skytrains and Metros, or more passenger planes. Anybody here in the business care to explain? Or is it just another silly Thai govt. press release about a pie-in-sky idea that will never materialize?

PB, don't get fooled by their overuse of the term Logistics - in fact if you replace it with the word with 'infrastructure' it will in fact allow you to better make use of logistics.

Logistics costs are so high because infrastructure (roads, ports etc) are so poor.

The problem is the the 'implemented immediately' portion of this release. It appears to be something that is band-aid in nature but profitable.

[bkkjames]

Amazing press release. You need to know what the [proposal means. To me, logistics refers to deep sea ports, modernized harbors, multi-lane railroad tracks, multi-lane superhighways everywhere, containerization. It does not mean more Skytrains and Metros, or more passenger planes. Anybody here in the business care to explain? Or is it just another silly Thai govt. press release about a pie-in-sky idea that will never materialize?

PB, don't get fooled by their overuse of the term Logistics - in fact if you replace it with the word with 'infrastructure' it will in fact allow you to better make use of logistics.

Logistics costs are so high because infrastructure (roads, ports etc) are so poor.

The problem is the the 'implemented immediately' portion of this release. It appears to be something that is band-aid in nature but profitable.

Once again, complete and utter bullshit.

what is ... PB or my response ?

[henryalleman]

I think there is some misunderstanding about logistics. Logistics aren't necessary infrastructure.

Its mostly warehousing, distribution centers, handling, supply centers, port infrastructure and so on.

Companies specialised in logistics create a wide range of different jobs. From an unskilled worker till ICT experts and engineers.

If Thailand succeed to be a regional hub it can create then thousand of jobs.

They are already for distributing Toyota spare parts.

But its owned by a foreign company who have logistic centres all over the world.

http://www.katoennatie.com/new/Home/tabid/36/Default.aspx

There is an strong competition between EU countries to get investments from logistic companies;

A small example DHL employ almost 10 000 people in there regional European hub.

So in this view its a good move from the Thai government.

[The Philosopher]

Excellent news, just thinking of all the hundreds of transparent contracts to be awarded makes me go weak at the knees. Newin's father-in-law for one will be very happy. Problem is there's a worldwide recession on, hasn't anybody told them and if so where do they expect to get the money from?

[/quote

A better logistics infra structure is all about reducing the number of transport contracts:

Thru:

Regional hubs

Better stock management

New roads = more efficient routing

More effective re order and replenishment = less vehicle trips and more efficient vehicle fills.

All of the above will reduce costs and increase competitiveness

[noahvail]

Thailand to invest Bt676 billion to improve logistics infrastructures

BANGKOK: -- Thailand on Wednesday moved toward investing Bt676 billion in logistics programmes during 2009-2013 to reduce production costs and boost the country's competitiveness, according to Deputy Prime Minister Korbsak Sabhavasu.

Wow - Bt676 billion... the imagination is boggled. If my calculator is right, which often it isn't, that comes to Bt10,730 for every man, woman, and child in Thailand. Anyone who's old enough to remember - when logistics was called trucking, warehousing, etc.... Trucking, warehousing, etc. were a lot cheaper. As soon as it was called logistics, the prices took off, or so it seems. But I reckon they took their lessons from the pharmaceutical companies; medicine became very expensive once they started to call it medication. Such is the perversity of language.

[teletiger]

One of the basics of good logistics is communication. These days the internet is central to good communications.

Outside of Bangkok and other major cities, the internet in Thailand is basic to say the least. 50 million Thais live outside cities. 10's of thousands (maybe 100's) of small/medium sized companies are based outside city networks. Not a bad place to start I think.

6 years ago, a European based transport company tried setting up a database for empty trucks. I.e. Your Nakon Sawan company sends a truckload of goods to Klong Toey, put your name in the database to get a load back at a reduced rate.

Result.....null point. They later put their Thai logistics arm up for sale.

Regards

[khundon]

One of the basics of good logistics is communication. These days the internet is central to good communications.

Outside of Bangkok and other major cities, the internet in Thailand is basic to say the least. 50 million Thais live outside cities. 10's of thousands (maybe 100's) of small/medium sized companies are based outside city networks. Not a bad place to start I think.

6 years ago, a European based transport company tried setting up a database for empty trucks. I.e. Your Nakon Sawan company sends a truckload of goods to Klong Toey, put your name in the database to get a load back at a reduced rate.

Result.....null point. They later put their Thai logistics arm up for sale.

Regards

Logistics can only be applied, when the people using these systems understand the meaning of the word logic.

Thai logic! I rest my case.

[quiksilva]

Amazing press release. You need to know what the [proposal means. To me, logistics refers to deep sea ports, modernized harbors, multi-lane railroad tracks, multi-lane superhighways everywhere, containerization. It does not mean more Skytrains and Metros, or more passenger planes. Anybody here in the business care to explain? Or is it just another silly Thai govt. press release about a pie-in-sky idea that will never materialize?

PB, don't get fooled by their overuse of the term Logistics - in fact if you replace it with the word with 'infrastructure' it will in fact allow you to better make use of logistics.

Logistics costs are so high because infrastructure (roads, ports etc) are so poor.

The problem is the the 'implemented immediately' portion of this release. It appears to be something that is band-aid in nature but profitable.

Once again, complete and utter bullshit.

what is ... PB or my response ?

I wouldnt go as far as to say that your response was that bad but it is off the mark.

Road infrastructure in this country is in fact excellent, compared to many of Thailand's neighbours, especially where it matters. To clarify, I mean in the arterial routes to and from the major seaports and industrial estates, as well the linkages to main goods distribution hubs (yes I used that word). There are three, Wang Noi (national), the Eastern Seaboard (exports) and Samut Prakarn (a mixture of both).

The problem with Thailand's logistics costs is that 90% of goods travel by road, this is partially what makes logistics so expensive in this country. The development of a better freight railway system, complete with more, modern inland container depots in strategic locations will help to reduce this.

Its a very welcome move.

[skiman1]

Amazing press release. You need to know what the [proposal means. To me, logistics refers to deep sea ports, modernized harbors, multi-lane railroad tracks, multi-lane superhighways everywhere, containerization. It does not mean more Skytrains and Metros, or more passenger planes. Anybody here in the business care to explain? Or is it just another silly Thai govt. press release about a pie-in-sky idea that will never materialize?

Talk about "pie in the sky"

http://www.pattayamail.com/794/

so bad its funny - complete <deleted>

[Ricardo]

Excellent news, just thinking of all the hundreds of transparent contracts to be awarded makes me go weak at the knees. Newin's father-in-law for one will be very happy. Problem is there's a worldwide recession on, hasn't anybody told them and if so where do they expect to get the money from?

Step forward, the credulous farang or Japanese/Chinese government, perhaps even the World Bank ? Who cares, so long as much of the money comes in brown-envelopes !

[Rtwo]

Excellent news, just thinking of all the hundreds of transparent contracts to be awarded makes me go weak at the knees. Newin's father-in-law for one will be very happy. Problem is there's a worldwide recession on, hasn't anybody told them and if so where do they expect to get the money from?

Step forward, the credulous farang or Japanese/Chinese government, perhaps even the World Bank ? Who cares, so long as much of the money comes in brown-envelopes !

Absolutely spot on. Anybody who thinks that talk of investment in improving logistics by any Thai Government, not just this one, is little more than another scheme to pour yet more concrete will I'm afraid be sadly disappointed. When a bunch of thugs is allowed to close the airports and stifle trade; I think it sends a pretty clear message to everyone where the country’s leaders, real priorities lie.

[Thai at Heart]

Why are people talking almost exclusively about roads. How does all the sugar, rice, and euclayptus get shifted around this country to the factory and then to the ports. 10's of Thousands and I mean literally 10's of thousands of 10 wheel trucks. There is an absolute crying need for a massive upgrade of the upcountry and to the border train network. Want to ship from Khon Kaen to Bangkok - 90% by truck. Want to ship from Bangkok to Chiangmai - 90% by truck. Want to consider exporting from outside Bangkok, truck is the only real option. The trucking companies of Thailand have had every government in the last 50 years in their pocket.

Thailand must be the only food exporting country in the world that doesn't use truck to train transport to move un-processed/refined food around. That alone would probably knock 10% off the export price of Thai food commodities.

The roads are more than capable already, trains are needed to make these export products cheaper.

[BSJ]

It's a pipedream. Take away the present global blip, the endemic corruption and the vested interests in retaining the status quo and you have something that is nothing. And even if you could solve all the logistic problems, your still left with the rest!

[animatic]

This is welcome news, competitiveness is going to become a priority in the near term.

ANYTHING that knocks of costs and speads delivery to export is gonna save jobs;

band-aide or Deep water port.

lo⋅gis⋅tics

–noun (used with a singular or plural verb)

1. the branch of military science and operations dealing with

the procurement, supply, and maintenance of equipment,

with the movement, evacuation, and hospitalization of personnel,

with the provision of facilities and services, and with related matters.

2. the planning, implementation,

and coordination of the details of a business or other operation.

And looking at national logistics this is also looking at routing and thus infrastructure.

Which can include roads bridges and ports, but also warehousing and ALL the support

needed to move goods/raw materials to manufacturing

and off again to the market or export.

There is a drastic need for this to be upgraded here.

Yes there ARE 'vested interests' here but even they can understand

they will make more money if they can move more product...

More trucks passing an hour more kickbacks an hour.

Edited February 27, 2009 by animatic

[dumball]

Reading all of the posts here I think a 'Time and motion study ' would be advisable before dumping money into low profit , time waisting ventures , if you are not totally aware of what goes where/when and how , how can this be corolated into an efficient system ? .

[stumonster]

the first step - which is not going to happen - is to root out all the corruption in the railways as was done successfully in India.

[mindabenda]

676 billion??? that's a considerable amount. Is that a misprint or is it the same monies that were allocated for infrastructual development as announced on a previous thread?? The thread that I refer to was in the amount of 76 billion. That amount seemed a might curious. Where did 76 Billion come from, why 76 and not 75? Are these the frozen assets that been withheld from Mr.T

[Ratesunion]

676 billion??? that's a considerable amount. Is that a misprint or is it the same monies that were allocated for infrastructual development as announced on a previous thread?? The thread that I refer to was in the amount of 76 billion. That amount seemed a might curious. Where did 76 Billion come from, why 76 and not 75? Are these the frozen assets that been withheld from Mr.T

Haha