Port development 'must be a priority' for govt
Private port operators have said that Thailand will face difficulties to compete in global marine transportation and within the Asean Economic Community (AEC) as the government is not strongly supporting the rules and laws that need to be improved.
The port operators also proposed that Thailand should focus on becoming a hub for the hinterlands such as Laos, Cambodia and South China.
Panellists shared similar views at a seminar entitled "Role and Competitive Strategies of Thai Port Operators", held yesterday, focusing on marine transportation and challenges for the future.
Sorat Chuchuaywongse, a private port operator, said that as Thailand is not located along the main shipping routes, it’s very difficult to become a world-class port. Thailand’s Laem Chabang port ranks 23rd, falling from its previous rank of 20. Its ranking will fall again when the port in Ho Chi Min, and additional ports in Indonesia become operational. Soon some medium-sized ports in China are likely to get ahead of Laem Chabang.
He said that within the AEC, which comes into effect in 2015, Thailand would not be able to compete with Singapore or Malaysia, both of whom have greater container capacity than Thailand. These facts need to be faced up to and a strategy mapped out to enable its ports to become hubs for cargo destined for Burma, Laos, Cambodia and South China. The strategy must develop a clear-cut policy for port operation. A national port committee has to be set up to oversee port operations permanently under the exclusive Port Bill. Among the first priorities, the government should begin mending hostilities and open the borders with neighbouring countries. Hopefully, by 2015 when the AEC comes into affect, goods to these areas can be easily transported through Thailand’s ports and road network.
In addition, the government must get involved in securing land for future port development. The private sector is limited in its ability to do this. It was also suggested that a port development fund be set up.
Other areas of concern that need to be addressed are: environmental impact studies; human resource requirements for port operations and logistics activities; a detailed transportation network plan; future economic prospects and how they will impact the entire strategy. Ultimately what is needed is an accurate model that will aid the private sector in determining what the systematic risks are and whether or not to invest.
Thawanrath Onsira, director-general of Marine Department, said that Thailand would be a coordinator in the AEC and will help create a maritime roadmap that will set guidelines and establish fee structures within the region. The department is in the process of employing a consultant. Eventually, Thai businesses will be able to access marine trade information within the entire region. In addition, his department will evaluate the potential of Thailand’s existing ports, including Bangkok Port, Laem Chabang Port and Songkhla Port, and see what improvements are needed to reduce obstacles and increase competitiveness.
The government must negotiate with other governments to give Thai businesses a level playing field when it comes to opportunities abroad. They will need to speed up regulation reforms to allow for private investment. And finally, the private sector must be encouraged to form alliances and business networks so that the country is up to international standards and ready for the opportunities created by the AEC.
