Lat Krabang estate holds the key to exports

Paiboon Ponsuwanna, chairman of |the Thai National Shippers Association, |said last week that Lat Krabang is con-sidered as the major container yard for small- and medium-sized exporters, |while Mahachai is a centre for fresh-food trading.

Among the more than 4 million containers shipped out of Laem Chabang Port each month, almost half are gathered at Lat Krabang Industrial Estate. If road or factories in this estate were severely flooded, exports would be suspended immediately, he said.

Logistics costs will rise, which wil lead to a drop in exports as prices go up.

It is very difficult to estimate the losses if those two important locations and other factories in the East are submerged. But food for domestic consumers, particularly for those in Bangkok, will dwindle, while exports will slump by 15 per cent from the average of US$20 billion (Bt600 billion) a month.

Not only will fresh food be scarce, but also other materials such as packaging, as many packaging firms are located in Sinsakorn Industrial Estate, which is the nucleus for the printing and packaging industries, he added.

Panisuan Jarmnarnvej, president of the Thai Frozen Foods Association, said gross domestic product, now Bt10 trillion, could shrink 10 per cent if eastern industrial estates were swamped after seven industrial estates were already hard hit.

Due to the difficulty in transportation and lower supply of raw materials, exports of frozen and processed food would decline by 30 per cent a month this quarter.

Manufacturers in the remaining estates are trying hard to protect their plants. Each plant is built 2.5 metres higher than the road level and has 1.5m-tall barriers to ensure safety. If the water is not too high, those plants will still be safe. However, if road and rail transportation were obstructed by floods, food exports would also be impacted somewhat.