FTI calls for measures to lower logistics costs
The Federation of Thai Industries (FTI) yesterday urged the government to draw up a plan to reduce the country's logistics cost to 11 per cent of gross domestic product (GDP) by 2016.
The logistics, service development and management committee also acknowledged the strategic framework for logistics development during 2012-2016. Under the plan, it targets value addition in the logistics business of 10 per cent per year.
Thanit Sorat, vice chairman of the FTI, said Thailand’s logistics cost accounts for 14.5 per cent of GDP currently. This should gradually decline to the target rate of 11 per cent by 2016.
He added that the government’s three- to four-year plan to invest in logistics development, particularly the double-rail track system with a budget of more than Bt100 billion, was welcome. The move will facilitate Thailand’s links with the region through the Asean Economic Community.
“The strategy is drawn up not only to prepare for the regional trade liberalisation but also to strengthen the private sector’s competitiveness,” said Thanit.
A World Bank report on the Logistics Performance Index this year said Thailand placed 38th among 155 countries. It also said Thailand lags behind Malaysia and Singapore on customs procedures and service efficiency of logistics operators in the domestic market in both the government and private sectors. Moreover, basic infrastructure, information technology and the use of the GPS (Global Positioning System) are urgent issues to be solved and developed.
To achieve the development strategies, the government should focus on basic infrastructure and upgrade the logistics system to strengthen competitiveness, increase working efficiency and service on trade facilitation, upgrade efficiency of logistics providers, develop more efficient human resources in the logistics area, improve the supply chain between the agricultural and industrial sectors and develop more trading and distribution channels.
However, it was reported that the investment plan of the State Railway of Thailand (SRT) to construct basic infrastructure during 2011-2014 has been delayed, particularly in the budget reimbursement process.
SRT has 14 projects under development with a combined budget of Bt102.432 billion. So far, only five projects have received budget allocation, totalling Bt24.44 billion.
