Logistics cost to GDP declines
Thailand's logistics costs-to-GDP ratio is likely to have declined in 2011, according to the National Economic and Social Development Board's latest data.
Speaking yesterday at the board’s seminar on Thailand’s logistics picture for 2011, NESDB secretary-general Arkom Termpitayapaisit said the main reasons for the country’s lower rate of logistics costs to gross domestic product were changes in the calculation method and the use of the 2002 GDP, rather than 1988, as the base figure.
The adjustment reflects current prices and an increase in GDP of Bt230 billion, up approximately 4.4 per cent from the previous data set.
He added that the state had adjusted data sources to reflect real logistics costs by road, sea and multimodal transport. This saw the value of logistics decline by Bt33.3 billion or 2.6 per cent from the previous data set.
The change of calculation method for national income, and the improved logistics information, will see logistics costs decline by about 1.5 per cent on average from previous data.
Thailand’s overall logistics costs in 2010 were calculated at Bt1.64 trillion, or 15.2 per cent of GDP at current prices. This breaks down to Bt776.4 billion for product-transport costs (47.2 per cent), Bt722.5 billion for inventory costs (44 per cent) and Bt145.1 billion for logistics management costs (8.8 per cent). The 15.2-per-cent ratio in 2010 was up slightly from 2009’s 15.1 per cent, thanks to the economic recovery, which brought about higher domestic consumption and exports, as well as higher logistics-management costs and fuel prices.
The NESDB estimates the ratio of logistics costs to GDP will fall to 14.5 per cent in 2011 because of the massive flooding in the third and fourth quarters, which caused a big delay in product transport.
Arkom said logistics costs in China were higher than in Thailand, but showed a tendency to decline gradually on improvements to transport efficiency and energy savings.
