Thailand’s logistics sector draws 2.5bn baht in foreign investment

According to the Trade Policy and Strategy Office (TPSO) , Thailand’s logistics sector currently comprises 46,570 registered companies. 

In July 2025, 327 new firms were established, down 2.1% year-on-year, while 69 firms closed, a 14.8% decrease from the same period last year.

The most notable area of growth was transportation and cargo/passenger handling services, which accounted for 194 of the newly established firms, representing the largest share of new logistics businesses. This segment recorded a year-on-year growth rate of 38.6%.

Foreign investment in Thailand’s logistics sector during July 2025 totalled 2.56 billion baht, accounting for 14.83% of all logistics investment. The top investor nationalities were China, the Netherlands Antilles, Singapore, the Netherlands and Hong Kong.

The subsector attracting the most foreign investment was port facility operations (excluding cargo handling), which represented 2.55% of all foreign investment in Thailand’s logistics industry.

Global rail and water transport upgrades highlight shift in connectivity

Countries across the world are pressing ahead with rail and water transport development to boost efficiency, trade and regional links.

Seamless Baltic rail

In the Baltic region, Estonia, Latvia and Lithuania have integrated their railway systems, enabling seamless travel between Tallinn, Riga and Vilnius with a single ticket. The scheme has cut both travel times and passenger costs, reducing the need for multiple train changes.

China’s rail reforms and new canal

In China, Hunan province has upgraded its Huaihua international railway checkpoint with ten new measures, including streamlined customs inspections, advance declarations, cargo handovers at rail sidings, and fast-track channels for imports and exports. The checkpoint also integrates rail terminals with economic zones and transfer points, delivering clearance speeds above the national average. The move supports China’s new land-sea transport corridor in the west, strengthening logistics links with ASEAN.

Results are already visible; the transport time for fruit imports from Laos to Hunan has been reduced to under four days. Meanwhile, construction of the 135-kilometre Pinglu Canal in Guangxi has passed 80% completion, with final delivery expected by 2026. It will be China’s first new inland waterway since the country’s founding, able to handle 5,000-tonne vessels, easing congestion on the Yangtze River and improving connections between China’s economic zones, the Beibu Gulf and ASEAN.

India’s shipbuilding clusters

India has launched a shipbuilding cluster development plan across five coastal states, Maharashtra, Tamil Nadu, Andhra Pradesh, Odisha and Gujarat — covering more than 15,000 acres. Backed by investment worth 1.5 trillion rupees, the clusters will support both public and private ship demand. Measures include funding support, workforce training, and green energy innovation, such as hydrogen-powered vessels planned in Tamil Nadu.

Vietnam’s new coastal shipping route

In Vietnam, Nghi Son International Port in Thanh Hoa province has officially opened a new Hai Phong–Nghi Son container shipping route. The line is expected to cut costs by 15%, reduce greenhouse gas emissions by up to 70%, and ease pressure on overburdened road networks. It also strengthens Thanh Hoa’s trade and investment links with northern and central Vietnam.

Thailand’s ongoing upgrades

In Thailand, the State Railway of Thailand has extended suburban train services on route 355/356, formerly running between Bangkok’s Hua Lamphong station and Nong Pladuk Junction in Ratchaburi, to now reach Ban Pong in the same province.

At Laem Chabang Port, a truck queue management system is being introduced to reduce congestion, alongside broader infrastructure upgrades. Meanwhile, Bangkok Port will serve as the pilot site for the National Single Window electronic delivery order system (NSW e-D/O), a key step towards transforming Thai ports into “Smart Ports”.

Thailand’s logistics sector: trade performance by transport mode

Maritime transport

Sea freight accounted for the largest share, with a total trade value of 1.11 trillion baht (60% of total), though the sector contracted by 11.8%.

• China: 23.1% share, up 1.2%
• United States: 13.4% share, down 4.2%
• Japan: 10.3% share, down 6%

Road transport

Cross-border road trade was valued at 176.8 billion baht (9.5% of total), expanding by 3%.

• China: 35.5% share, up 47.5%
• Malaysia: 15.4% share, down 12%
• Lao PDR: 12.6% share, up 3.3%

Air transport

Air freight recorded a trade value of 545.7 billion baht (29.2% of total), growing by 11.8%.

• China: 20.2% share, up 62.7%
• United States: 19.7% share, up 23.5%
• Taiwan: 8.1% share, down 28.5%

Rail transport

Rail trade, though the smallest channel, posted significant growth, with a total value of 4.14 billion baht (0.22% of total), rising by 40%.

• China: 90.6% share, up 43.9%
• Japan: 1.5% share, up 37.2%
• Germany: 1.3% share, up 1,925.9%

Cybersecurity in the logistics sector

Cybersecurity has become a critical challenge for the logistics industry, as global supply chains increasingly rely on interconnected digital systems and data networks.

According to a report by SecurityScorecard, a leading cybersecurity consultancy, more than 70% of logistics organisations worldwide have faced external cyberattacks. The average cost of a single incident is estimated at US$4.3 million. Data breaches and cyber intrusions can damage not only a company’s operations but also disrupt the wider supply chain.

Key defensive measures

• Data encryption – Converting sensitive information into unreadable code that can only be accessed with a decryption key helps protect against data interception.
• Multi-factor authentication (MFA) – Strengthening user verification beyond passwords by requiring methods such as one-time passcodes, fingerprint scans or authentication apps ensures more secure access to logistics management systems.
• Network segmentation – Separating critical operational networks, such as container management systems, from office IT systems limits the spread of malware in case of a breach.
• Real-time monitoring and AI detection – Deploying artificial intelligence and machine learning tools to analyse anomalies, such as unusual access to customer data or transport systems, enables early detection and containment of attacks.
• Employee training – Educating logistics staff about threats such as phishing and social engineering, including suspicious emails, SMS scams or fake links, helps prevent human errors that often open the door to cyberattacks.