The interim government is planning to invite private-sector companies to lease the railways and ports to achieve greater logistical efficiency and reduce dependency on imported fuel, Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula said yesterday.

Speaking at an economic seminar organised by Thammasat University, Pridiyathorn said: "More ports and longer railway lines won't ensure efficiency in logistics operations if the management is not improved."

He said the government would, for instance, allow private companies to lease and construct container yards in ports and provide rail transportation services, especially on the route connecting the East to the South, to cut short the transport process.

He said the government was also considering whether Songkhla or Surat Thani would be the location for receiving goods from Laem Chabang.

A source said that the National Economic and Social Development Board (NESDB) and the Transport Ministry were working out the interim government's logistics plan, which will involve inviting the private sector to participate in logistic operations, especially the railways.

Under the plan, the State Railway of Thailand will build the railways and the private sector will be invited to lease and operate them.

However, the source said that the government may have to wait for the next fiscal year's budget to finance new investment after it introduces the logistics blueprint. The blueprint will be issued after the setting up of a National Logistics Committee.

Pridiyathorn, meanwhile, said the private sector's participation should help improve efficiency. At present, it takes two days to take products from a receiving point and load them into containers.

He said that along with the SRT's plan to expand rail routes, the government planned to concurrently develop maritime transport and link the railways and ports together.

Although government plans already exist for another two ports on the Gulf of Thailand, they won't ensure the improvement of logistics if the port and railway operations remain inefficient, he said.

Former commerce minister Narongchai Akrasanee said that to develop the country's logistics, the government should also go ahead with creation of the so-called "aerotropolis" surrounding Suvarnabhumi Airport to make the new airport the logistic centre of the region.

As for the planned construction of five new mass transit routes in Bangkok, Pridiyathorn said the government should be able to call for bidding and begin construction on three of the routes. The other two should be ready for bidding within the term of the interim government, but construction may start during the term of a new government.

Pridiyathorn said the electric railways should be ready for bidding soon because they required no further study. "We can't wait because these new lines will help ease Bangkok's population density by encouraging development to spread out along the routes."

The Finance Minister said the new government was also working to ensure good governance to attract foreign investors and economic growth. For instance, it is investigating allegations that the Small- and Medium-Sized Enterprise Development Bank of Thailand has extended unreasonable loans to the friends of its management.

Deputy Finance Minister Sommai Phasee has also been assigned to look into alleged irregularities in the Government Savings Bank's loan approvals and loans made by commercial banks to the Picnic Corporation.

Anoma Srisukkasem,

Watcharapong Thongrung

The Nation