Smart and green tech essential for enhancing Thai logistics
Advanced and sustainable technologies are key to enhancing Thai logistics to meet international standards, experts said during the press conference to unveil the “Tilog Logistix 2023” event on Thursday. The 2023 edition is expected to attract over 9,000 visitors and generate trade worth more than 4 billion baht
The Department of International Trade Promotion (DITP) director general Phusit Ratanakul Sereroengrit said the logistics industry is one of the emerging industries that the Thai government hopes will help drive the country’s development and is already included in the 20-year National Strategy and 13th National Economic and Social Development Plan.
The government is working on developing infrastructure, enhancing entrepreneurs’ potential, and creating a logistics network to boost the country's competitiveness, which will be needed if the country is to climb up the performance rankings. Earlier this year, the World Bank ranked Thailand’s Logistics Performance Index (LPI) at 34th among 139 countries worldwide, two ranks lower than its 32nd spot in 2018.
"In Asean, Thailand is ranked in third place behind Singapore and Malaysia," he added.
Thai logistics has potential in customs procedures, infrastructure, transport and technologies, and traceability but there is room for improvement in punctuality if it is to meet international standards.
Thailand has more than 34,000 logistics providers, covering land, sea and air, and a total value of 3.41 billion baht.
DITP is accelerating the promotion of best practices and certification to meet international standards, Phusit said, adding that Thai logistics can be improved further if government and private sectors work together.
Thai Logistics Service Provider Federation president Suwit Ratanachinda said logistics facilities, such as warehouses, ports and technologies are essential if Thailand is to achieve success in trading but pointed out that digital disruption and climate change posed challenges to development, as logistics is a significant greenhouse gas emitter.
"Thai logistics providers need to explore and embrace smart and green technologies that will help ease global warming, improve management efficiency, streamline work process, serve customers better, and increase service value,” he said, noting that Thailand is lagging behind overseas logistics providers in implementing such technology.
Thai National Shippers' Council (TNSC) executive director Kongrit Chantrik also spoke at the press conference, saying that Thai logistics is being pressured by geopolitics and climate change. He expected the European Union's Carbon Border Adjustment Mechanism (CBAM) would cover all product categories within 10 years and that other countries, such as the US, Japan and China, would undoubtedly follow suit.
“Logistics providers should enhance their service efficiency by improving service solutions, investing more on platforms, and adopting new technologies especially automation that will allow them to better connect with their customers," he said, adding that supply chain finance should be introduced to mitigate the burden of rising logistics costs.
Varaporn Dhamcharee, managing director of exhibition organiser RX Tradex, announced that Tilog-Logistix 2023 on the theme “Smart and Green Logistics for a Sustainable Tomorrow” was designed to support businesses’ effort to become sustainable via next-generation logistics technologies while raising awareness of sustainability.
The event will feature cutting-edge technologies, solutions and services from over 415 brands, and 25 countries that will help participants succeed in the digital age, lower costs, and increase efficiency.
Technologies include transport route planning and management system, inventory management system, security system, solar-powered smart warehouse system, product-picking robots that can move in any direction, sorting robots and belts, and lithium-battery forklift system.
Seminars would also be held including the World Transport & Logistics Forum and the Trade Logistics Symposium, as well as talks by logistics associations and councils.
Another special showcase will be an “ELMA Hall of Fame” that will inspire participants with success stories of leading Thai logistics providers who have been recognised with Excellent Logistics Management Awards (ELMA).
Tilog-Logistix 2023 will run from August 17 to 19 at Hall 98 of the Bangkok International Trade & Exhibition Centre from 10am to 6pm.