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Wed, September 13, 2006 : Last updated 20:25 pm (Thai local time)



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Home > Business > Cargo: the Kingdom can now take on S'pore, HK





Cargo: the Kingdom can now take on S'pore, HK

Thailand can now compete more effectively with Singapore and Hong Kong for air-cargo handling and a customs-free-zone for global supply chain management, an executive at the new airport said yesterday.

Anuphong Rojnuckarin, executive chairman of Suvarnabhumi Airport Customs Free Zone Operator, told a seminar held by Airports of Thailand (AOT) and The Nation, the so-called "Free Zone" has a total space of 600,000 square metres with 14 large warehouses using the latest technology in logistics management.

"Currently, Thailand handles an annual 1.2 million tonnes of air cargo. We aim to boost the volume to three million tonnes in a few years.

"We'll have to work much harder to achieve the new target. At Don Muang, we work only eight hours a day. Here, we could work 24 hours a day.

"Previously, we were not as competitive when compared to Singapore or Hong Kong due to the lack of large and integrated customs-free zones that facilitate multinational firms' supply chain management for global manufacturers across various national borders," Anuphong said.

Charnchai Singtoroj, chief of Thai Airways International's air cargo operation, said the national-flag carrier would also launch three value-added businesses at the new airport.

First, it will establish a logistics centre for electronic components, which need speedy delivery to serve the vast computer and electronics industry with manufacturing plants in Thailand and other Asian countries.

"Global supply chain management means that different parts and components of electronic and related products are made in several places, so raw materials and parts have to be imported for processing and then re-exported to another third-country."

"These cargoes do not have to go through customs as they're treated like non-resident goods in the free zones."

Besides the electronic logistics centre, he said THAI would consider setting up a perishable goods centre for farm produce and food products using the latest technology in temperature control and cold storage.

Thirdly, the airline would consider building an express cargo centre for selected industries such as the oil industry, which regularly need spare parts on an urgent basis.

Amarit Pansiri, an adviser for the Thai Airfreight Forwarders Association, said efficient logistics management was a key competitiveness factor in today's globalised economy.

"Now, it's the era of economy of speed. For example, Wal-Mart, the world's largest retailer, which is buying more Asian goods, would call late shipments the '$1 shipments' if they arrived at US cities behind schedule or after the retailer had already launched its massive marketing and promotion campaign," he said.

Suwit Ratanachinda, head of the Thai International Freight Forwarders Association, said Thailand would be more competitive if the costs of logistics were lower and service faster.

The opening of Suvarnabhumi will also increase the country's competitiveness in terms of multi-modal transport since the new airport is closer to the Lat Krabang inland container depot and Laem Chabang seaport.

Customs Department head Sathit Limpongpan said its e-Customs service would start at the new airport on January 1.

The Nation







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