preface - otp.go.th · preface “the development of multimodal transport and logistics supply...

PPRREEFFAACCEE

“The Development of Multimodal Transport and Logistics Supply Chain Management for

Implementation of Action Plan” is one of the major studies conducted under the supervision of the

Office of Transport and Traffic Policy and Planning (OTP), Ministry of Transport (MOT). Due mainly

to the national policy of the government to position Thailand as the economic and transport hub of

the region, it is necessary to develop the multimodal transport which can efficiently link all modes of

transport, i.e., land transport (highway and railway), waterway transport (river, coastal and sea), air

transport, and pipelines so that the national logistics costs can be reduced and also reduce the

energy consumption in transport sector. To conduct a study on this pertinent issue of the

development of multimodal transport and logistics supply chain management, OTP in March 2005

procured the consultant group comprising TransConsult Company Limited (TC), Research and

Consultancy Institute of Thammasat University (TU-RAC), Center for Logistics Excellence of King

Mongkut’s University of Technology Thonburi (LOGEX-KMUTT), Wilbur Smith Associates (WSA),

and School of Information Technology, King Mongkut’s University of Technology Thonburi (SIT-

KMUTT).

This study has now been fully completed and this document is the Executive Summary

Report of the study. This Executive Summary is prepared aiming at presenting the major outcomes

of the project incorporating important key issues which are related to multimodal transport such as

demand of freight transport, logistics costs of prospective cargos, factors affecting modal shift,

cargos with prospective modal shift, reduced logistics costs due to modal shift, effect of transport

economic costs, action plans supporting multimodal transport along with the requirement of human

resources development for multimodal transport and database.

The consultant group would like to take this opportunity to convey our high gratitude to the

Director General of OTP who entrusted us in conducting this very important study and regularly

provided us his constructive guidance. Similarly, we would like to express our high appreciation to

the Deputy Director General of OTP, members of steering committees and project counterparts

who gave their invaluable advices and comments, which brought this study to a successful

completion. We would also like to thank all officials at the Bureau of Planning, other bureaus of OTP

and relevant institutions, which provided their helping hands and facilitated any kinds of services

as well as excellent coordination, which brought this study to a very successful completion.

Consultant Group

May 2006

Executive Summary Report 1

The Development of Multimodal Transport and Logistics Supply Chain Management for Implementation of Action Plan

TC / TU-RAC / LOGEX / WSA / SIT KMUTT

CCOONNTTEENNTTSS PPaaggee

1. PROJECT BACKGROUND 1

2. OBJECTIVES 1

3. SCOPE OF STUDY 2 4. DEMAND OF FREIGHT TRANSPORT 5 5. LOGISTICS COSTS 15 6. TRANSPORT INFRASTRUCTURE CAPABILITY 17 7. GUIDELINES FOR MULTIMODAL TRANSPORT DEVELOPMENT 35 8. FACTORS INFLUENCING FREIGHT TRANSPORT MODAL SHIFT 40 9. RECOMMENDATIONS FOR MULTIMODAL TRANSPORT DEVELOPMENT 43 10. THE DECREASING LOGISTICS COST 92 11. THE EFFECTS ON ECONOMIC COST OF TRANSPORT 94 12. THE IMPLEMENTATION OF THE MULTIMODAL TRANSPORT DATABASE SYSTEM 96 13. TECHNICAL SUPPORTS 101

14. KNOWLEDGE AND TECHNOLOGY EDUCATION 103




LLIISSTT OOFF AABBBBRREEVVIIAATTIIOONN

3PLs = Third Party Logistics Providers

4PLs = Fourth Party Logistics Providers

ASEAN = Association of South East Asian Nations

ATI = Agri-Tech International

BIMSTEC = Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand

Economic Cooperation

CIDA = Canadian International Development Agency

CSI = Container Security Initiative

CY = Container yard

DOA = Department of Aviation

DLT = Department of Land Transport

DOH = Department of Highways

DOR = Department of Rural Road

DTN = Department of Trade Negotiations

DWT = Dead weight ton

EDI = Electronic data interchange

ETA = Expressway and Rapid Transit Authority of Thailand

EU = European Union

FCL = Full container load

F.O.B. = Free on Board

FTA = Free Trade Agreement

GIS = Geographic Information System

HS = Harmonized System

ICD = Inland container depot

ICT = Information and Communication Technology

IMH = International Multimodal Transportation and Logistics Hub

ITS = Intelligent Transportation System

JIT = Just-in-Time

KSRP = Kumnun Song Rice Port




LLIISSTT OOFF AABBBBRREEVVIIAATTIIOONN ((CCOONNTT’’DD))

LCL = Less than full container load

LCP = Laem Chabang port

LCV = Longer combination vehicle

LICD = Lat Krabang Inland Container Depot

LNR = Lower Northern Region

MD = Marine Department

MIS = Management Information System

MOT = Ministry of Transport

MT = Multimodal transport

NESDB = National Economic and Social Development Board

OPS-MOT = Office of the Permanent Secretary-Ministry of Transport

OTP = Office of Traffic and Transport Policy and Planning

PAT = Port Authority of Thailand

PCC = Pure car carriers

PSO = Public service obligation

RFID = Radio frequency identification

RoRo = Roll-on Roll-off

SAO = Sub-District Administrative Office

SMART = Selective mass regulation for trucks

SRT = State Railway of Thailand

TEU = Twenty foot equivalent unit

THAI = Thai Airways International Public Co., Ltd.

THAPPLINE = Thai Petroleum Pipeline Co., Ltd.

TQM = Total quality management

USA = United States of America

VOC = Vehicle operating cost

YCL = Young Community Leaders




11.. PPRROOJJEECCTT BBAACCKKGGRROOUUNNDD

The Ministry of Transport (MOT) has developed multimodal transport system since 1993, with the

objectives to enable multimodal transport system which would be a key factor for the logistics

development, to support transport system and entrepreneurs, to enhance the competitiveness of

Thai products, and to position Thailand as the economic and transport center in the region as well

as position at the economic gateway of Inner Asia, East Asia and South Asia.

At present, to be able to compete with other countries, Thai industrial sector should recognize not

only production in order to reduce costs, but also distribution and transport of the products, logistics

management, data link among concerning institutes in every process with adequate basic

information to analyses problems, obstacles and setting effective transport system for logistics

costs reduction.

The development of multimodal transport and logistics supply chain management and its

implementation with action plan has a intertwined purpose with multimodal transport development

as outlined above by study demand of freight transport, basic transport infrastructure, the

development of database system, information technology (IT), modification of laws, regulations,

rules, restrictions, and organizations and personnel as well as multimodal transport education for

interested person. Besides, it provides basic infrastructure development plans and estimate

potential logistics costs reduction from operation followed by suggestions.

22 OOBBJJEECCTTIIVVEESS

To study products and their transport modes which are essential to Thai economy.

To study the performance of current transport network and the ways to create

intermodal linkages.

To make database system of domestic and international products transport.

To support Office of Transport and Traffic Policy and Planning (OTP) technically, and

National Commission of Multimodal Transport

To educate concerned public and the private sectors in multimodal transport

technology.




33.. SSCCOOPPEE OOFF SSTTUUDDYY

The stated area of work with the given Terms of Reference (TOR) comprises four parts which the

consultant group has been re-divided into six parts as follows:

PPaarrtt 1 1 –– SSttuuddyy ooff tthhee DDeemmaanndd ooff PPrroodduuccttss TTrraannssppoorrtt SSeerrvviiccee SSyysstteemm

PPaarrtt 2 2 –– SSttuuddyy ooff PPeerrffoorrmmaannccee iinn tthhee CCuurrrreenntt PPrroodduuccttss TTrraannssppoorrtt NNeettwwoorrkk aanndd IInntteerrmmooddaall LLiinnkkaaggee

PPaarrtt 33 –– AApppprrooaacchh ttoo pprreesseenntt ssttuuddyy aanndd ttoo pprreevviioouuss ssttuuddiieess aanndd rreesseeaarrcchh aanndd aapppprrooaacchh ttoo llooggiissttiiccss ddeevveellooppmmeenntt iinn TThhaaiillaanndd aanndd ootthheerr ccoouunnttrriieess

PPaarrtt 44 –– EEvvaalluuaattiioonn aanndd ssuuggggeessttiioonn ffoorr eennhhaanncciinngg ccaappaacciittyy

PPaarrtt 55 –– MMuullttii--MMooddaall TTrraannssppoorrtt DDaattaabbaassee SSyysstteemm

PPaarrtt 66 –– TTeecchhnnoollooggiiccaall SSuuppppoorrtt aanndd EEdduuccaattiioonn

MMEETTHHOODDOOLLOOGGYY

The study of transport demand, transport supply and transport condition of the products in the

country in order to understand the current transport conditions. All these are fundamental

information to forecasting transport condition in the future. Moreover, the review of relevant

research and of multimodal transport system in Thailand and in other countries will reflect

Thailand’s performance and directions of development. Thereafter all information derived will be

evaluated. The ways of development and operation strategic plan will be discussed to develop

multimodal transport for forecasting the future demand in order to reduce logistics costs and

enhance Thailand’s competitiveness. The approach to the project study is shown in Figure 1.




FFiigguurree 1 1:: MMeetthhooddoollooggyy

The study on the overall picture of the products demand in the part one is about the transport of the

Thai products. In total, 52 types of products have been focused. They are divided into: (i) top

twenty imports by value; (ii) top ten exports by value; (iii) top twelve net export value; and (iv) top

ten net transit cargoes. The study has shown the transport characteristics, transit from production

sources to destinations, routes, modes, domestic vehicles, time, transport network and logistics

costs. All these information are fundamentals to forecasting the kinds of imports, exports and transit

cargos which have shown a tendency of growing fast during 2006-2015 as calculated by using

econometrical techniques which were applied for forecasting the quantities of products in the

future. Moreover, this information has been to analyze Thailand’s freight transport problems with a

view to planning the multimodal transport to respond transport demand in the future and for making

multimodal transport database.




The study on products transport supply in part two shows quantity, quality and usage in transport

system. So the study of products transport supply has brought forward problems and obstacles.

This leads us to evaluate transport system and its relevant facilities in the country in order to

suggest the ways to change transport mode from road to water and rail transport as main modes.

Also facilities will have more roles to play for adding higher values to the transport section.

The revision of previous research and studies in the part three has brought forward the logistics

development in Thailand and the cases of other successful countries to identify problems and

obstacles with emphasis on multimodal transport, transport logistics management and relevant

policy, work plan and action plan.

According to the study above, it has lead the approach in development and evaluation which is

part four and it incorporates results of making strategic plan for implement of action as well as

evaluating the decreasing logistics cost. There are three main points of multimodal transport

system, namely (i) enhancing the performance of current transport system; (ii) supporting higher

role of the intermodal links in transport, which lead to a higher value added to transport by focusing

on domestic transport development and logistics cost reduction; and (iii) creating effective

approach to transport with least cost by changing the main modes of transport to rail and water

transport. This part has comprised of strategic plan for 2006-2015, project plans and operation

plans which lead to implementation of the action plan.

Part five has discussed the development of the multimodal transport database. This database will be used

to support policy implementation, planning, decision making and conducting a research for development.

All this is to reduce problems and obstacles of multimodal transport as well as to promote and strengthen

production and transport sector of Thailand. The development of the multimodal transport database

requires revision of Management Information System (MIS) and Geographic Information System (GIS) at

OTP. Both systems will be developed and distributed in aspect of products transport demand. Search

engine must be provided for this database. Besides, the system must be able to make an interactive

report for administrators via Internet and Intranet. In the process of developing the database, there will be

seminar-cum-workshops to ensure completeness of the database.

Final part, the report has discussed required human resources identified as well as knowledgeable

and efficient persons to put the plan into action, and coordination of each organization.

Consequently, these studies provide technological support and education: in-house technical

arms, academic service, training, education and business trip in other countries and training for

trainers for training people who will be trainers in the future.




44.. DDEEMMAANNDD OOFF FFRREEIIGGHHTT TTRRAANNSSPPOORRTT

In year 2004, Thailand has commodity transport volume of about 500 million tons; comprised of

imported goods transport 96 million tons and exported goods transport 87 million tons and rest as

domestic transport. The structure of imported goods constituted of raw materials and semi-finish

goods (45.4%), capital goods (28.4%), fuel goods (14.0%), consumer goods (7.2%), vehicles and

transport instruments (3.9%) and other goods (1.1). Also the main imported markets of Thailand are

Japan (23%), Asian (17%), The European Union (10%) and U.S.A. (8%). The structure exported

goods are constituted of industrial goods and agro-industrial goods (84.0%), agriculture goods

(10.6%), and mineral goods and fuel goods (3.8%) and the main export markets are Asian (22%),

U.S.A. (16%), Japan and The European Union (14% each) as shown in Figure 2.

fuel goods14.0%

raw materials and semi-finish goods

45.4%

other goods 1.1%

vehicles and transport

instruments , 3.9%

consumer goods 7.2%

capital goods 28.4%

agriculture goods 10.6%Other goods

1.6%

industrial goods 77.5%

mineral goodsand fuel goods

3.8%

agro-industrial goods6.5%

Imported goods structure Exported goods structure

FFiigguurree 22:: TThhee ssttrruuccttuurree ooff iimmppoorrtteedd--eexxppoorrtteedd ggooooddss ooff TThhaaiillaanndd iinn yyeeaarr 22000055

For understanding problems and obstacles situation of commodity transport, nowadays, and using

it to define strategy for multimodal transport system development, there must be commodity

transport study by concentrating on domestic commodity flow process from origins to destinations;

including detail in each routes, vehicles, time and logistics costs. For data collection, there are

many methods to gather data, particularly secondary information sources, questionnaire and

interview (importers, exporters and transport service providers). Goods selected for study are as

the following.

1) The high value imported goods such as crude oil, hot-rolled iron, parts and

accessories of the motor vehicles and electronic integrated circuits

2) The high value exported goods such as motor vehicles, computers, rubber and rice




3) The net high value exported goods such as cement, cane or beet sugar and fresh

orchids

4) The high volume transit goods such as coffee, garments and electrical machinery.

Moreover, the selected goods must be the important factor for economic development having

capability, potential and tendency to high growth rate, having clear transport routes, using

multimodal transport and/or having high weight. The overall weight of 52 goods is 50 percent of

imported-exported goods or 18 percent of commodity transport volume of Thailand.

FFiigguurree 33:: TThhee ddoommeessttiicc ggooooddss ttrraannssppoorrtt vvoolluummee iinn 22000055

According to this study, it is found that the selected imported goods have main origins at Bangkok, its

vicinity and industrial estate, especially eastern industrial estate and upper-central industrial estate.

For the selected exported goods, the main origins are located at the central, northeast and lower-

north of Thailand. Furthermore, the important gateways for the import and export goods are Laem

Chabang Port, Bangkok Port, Maptaphut Port, Songkhla Port, Ko Si Chang Port and Bangkok

International Airport. Beside, Laem Chabang Port is the main port for container cargos. Maptaphut

and Ko Si Chang are the major ports for bulk cargos, but Maptaphut Port is for irons and ores and Ko

Si Chang is for rice, sugar, soybean and manioc. Also, the Bangkok International Airport serves fresh

and valuable products. The summary of commodity flow is shown in Table 1, 2 and 3 respectively.

In Year 2004, some selected Thai exported goods have joined the world rank, such as rice and

rubber. Also, Thailand is the world's leading exporter of rice and rubber which constitute about 10

million tons and 3 million tons respectively. The main rubber products for export are smoked sheet,

block rubber and latex rubber. Additionally, Thailand is the world’s number three exporter of

manioc (cassava) with an export of around 5 million tons. The details such as origins, destinations,

main routes, are shown in Figure 4.

Imported-exported goods 36 %

Domestic goods 64 %

52 selected goods ( 18 %)




TTaabbllee 11:: SSuummmmaarryy ooff sseelleecctteedd iimmppoorrtteedd ggooooddss iinn 22000055

Percent Quantity Value Percent Percent Percent

(Weight) (Ton) (Million Baht) (Value) (Value) (Weight)

Crude Oil Central 53.0 Arub amirete 33.0 Maptaphut Port 56.1 58.1 4.7

(HS 2709) East 10.0 Saudi Arabia. 16.0 Leam Chabang Port 41.3 39.6

North 8.0 Yemen 14.0 Bangkok Port 2.6 2.3

Northeast 9.0 Oman 14.0

West 6.0 Other 23.0

South 14.0

Air Pumps and Fans Central 84.0 Japan 34.0 Leam Chabang Port 47.4 - 8.8

(HS 8414) East 10.0 United States 11.0 Bangkok Port 36.1

Other 6.0 China 10.0 Bangkok Airport 8.6

Malaysia 9.0 Other 7.9

Indonesia 6.0

Other 30.0

Moulding Boxes for Central 75.0 Japan 51.0 Bangkok Airport 46.4 17.6 9.3

Metal Foundry East 19.0 Taiwan 13.0 Bangkok Port 29.0 45.2

(HS 8480) Other 6.0 Korea 8.0 Leam Chabang Port 20.3 28.8

China 7.0 Other 4.3 8.4

Other 21.0

Eletrical Transformers Central 87.0 China 29.0 Bangkok Airport 43.3 7.4

(HS 8504) East 9.0 Japan 20.0 Bangkok Port 28.0

Other 4.0 Singapore 8.0 Leam Chabang Port 18.1

United States 7.0 Other 10.6

Malaysia 6.0

Other 30.0

Eletrical Apparatus for Line Central 95.0 China 30.0 Bangkok Airport 64.2 7.3

Telephony or Line Telegraphy East 3.0 Finland 13.0 Bangkok Port 21.6

(HS 8517) Other 2.0 Japan 9.0 Leam Chabang Port 10.1

United States 7.0 Other 4.1

Italy 6.0

Other 35.0

Acyclic Alcohols and Central 92.0 Saudi Arabia. 31.0 Bangkok Port 72.5 65.3 11.8

Derivatives East 5.0 Malaysia 16.0 Maptaphut Port 23.3 32.5

(HS 2905) Other 3.0 Singapore 15.0 Leam Chabang Port 3.5 1.9

Taiwan 11.0 Other 0.7 0.3

Kuwait 10.0

Other 17.0

Electronic Integrated Circuits Central 92.0 Japan 36.0 Bangkok Airport 88.5 13.2

(HS 8542) East 4.0 United States 17.0 Bangkok Port 3.4

Other 4.0 Singapore 10.0 Leam Chabang Port 2.8

Taiwan 8.0 Chiang Mai Airport 2.5

Malaysia 7.0 Other 2.8

Philippines 5.0

Other 17.0

Hot-rolled Iron Central 50.0 Japan 78.0 Maptaphut Port 35.2 36.9 8.5

(HS 7208) East 50.0 China 5.0 Prachuap Khiri Khan Port 25.0 26.3

Australia 4.0 Bangkok Port 23.7 22.2

Kazakhstan 3.0 Kerry Siam seaport 11.4 10.7

South Korea 2.0 Leam Chabang Port 2.4 1.7

Other 8.0 Other 2.3 2.2

Gateway

Region Country Name

Source of Consumption Import (2004) Imported Market

37,000,000 434,000

16,000 16,000

80,600 24,000

5,000 17,000 -

95,000 24,000 -

874,000 25,000

12,000 290,000 -

2,300,000 42,000

Imported Goods

Average

Growth per

Year*




TTaabbllee 11:: SSuummmmaarryy ooff sseelleecctteedd iimmppoorrtteedd ggooooddss iinn 22000055 ((CCoonntt’’dd))



Computers Central 95.0 China 34.0 Bangkok Airport 61.4 18.9

(HS 8471) East 5.0 Malaysia 10.0 Bangkok Port 17.6

Singapore 10.0 Leam Chabang Port 10.3

United States 9.0 Sadao Customhouse 4.3

Taiwan 8.0 Padangbesa Customhouse 3.1

Other 29.0 Other 3.3

Computer parts and Central 91.0 Malaysia 25.0 Bangkok Airport 76.7 23.3 17.4

Accessories East 5.0 China 22.0 Bangkok Port 9.8 30.9

(HS 8473) Other 4.0 United States 17.0 Sadao Customhouse 9.6 30.8

Thailand 9.0 Leam Chabang Port 2.9 11.2


Unwrought Aluminium Central 60.0 Australia 37.0 Leam Chabang Port 52.7 34.6 8.1

(HS 7601) East 40.0 South Africa 15.0 Bangkok Port 40.5 61.0

Arub amirete 15.0 Other 6.8 4.4

Russia 12.0

Other 21.0

Parts and Accessories of the Central 62.0 Japan 69.0 Leam Chabang Port 77.2 69.8 11.7

Motor Vehicles East 38.0 Germany 10.0 Bangkok Port 16.9 24.8

(HS 8708) Philippines 8.0 Bangkok Airport 3.3 1.6


Soybean Central 92.0 Argentina 39.0 Ko Si Chang Port 99.5 99.7 21.0

(HS 1201) East 3.0 Brazil 29.0 Other 0.5 0.3

North 5.0 United States 25.0

Other 7.0

Oil-Cake Central 92.0 Brazil 46.0 Ko Si Chang Port 77.7 75.8 8.9

(HS 2304) East 3.0 Argentina 27.0 Bangkok Port 21.2 23.1

Other 5.0 Other 27.0 Other 1.1 1.1

Polyacetals, Other Central 72.0 Japan 35.0 Bangkok Port 44.1 50.6 9.6

Resins East 22.0 United States 13.0 Leam Chabang Port 35.7 42.3

(HS 3907) Other 6.0 Korea 11.0 Bangkok Airport 12.8 0.8

Singapore 10.0 Thai Prosperity Terminal 2.4 2.1

Malaysia 8.0 Other 5.0 4.2

Other 23.0

Medical Insruments Central 95.0 United States 31.0 Bangkok Airport 69.7 8.8

(HS 9018) East 3.0 Japan 16.0 Bangkok Port 15.5

Other 2.0 Germany 12.0 Leam Chabang Port 5.0

Thailand 5.0 Chiang Mai Airport 4.2

Netherlands 5.0 Thai Prosperity Terminal 2.8


Reception Apparatus for Central 91.0 Korea 50.0 Bangkok Airport 53.6 20.0

Television East 6.0 Japan 19.0 Leam Chabang Port 25.5

(HS 8528) Other 3.0 China 10.0 Bangkok Port 19.6


Interchangeable Tools for Central 74.0 Japan 75.0 Bangkok Airport 41.0 13.3 1.3

Hand Tools, whether or East 20.0 Taiwan 7.0 Leam Chabang Port 33.6 49.6

not power-operated Other 6.0 Korea 6.0 Bangkok Port 23.1 35.3

(HS 8207) Other 12.0 Other 2.3 1.8

Synthetic Filament Yarn Central 85.0 Japan 23.0 Bangkok Port 61.0 64.6 14.8

(HS 5402) East 8.0 Taiwan 20.0 Leam Chabang Port 26.3 27.7

Other 7.0 Indonesia 18.0 Bangkok Airport 6.2 2.6

United States 8.0 Other 6.5 5.1

Korea 6.0

Gateway

Region Country Name


27,000 60,000 -

34,000 128,000

387,000 28,000

328,000 100,000

1,400,000 19,000

1,300,000 16,000

171,000 16,000

6,000 10,000 -

3,000 7,000 -

6,000 7,000

59,000 8,000

Imported Goods

Average

Growth per

Year*




TTaabbllee 11:: SSuummmmaarryy ooff sseelleecctteedd iimmppoorrtteedd ggooooddss iinn 22000055 ((CCoonntt’’dd))



Woven Fabrics of Synthetic Central 91.0 Taiwan 40.0 Bangkok Port 73.6 73.1 2.3

Filament Yarn East 4.0 China 15.0 Leam Chabang Port 13.8 17.9

(HS 5407) Other 5.0 Japan 14.0 Bangkok Airport 10.0 3.1

Korea 14.0 Other 2.6 5.9

Other 17.0

Frozen Fish Central 76.0 Indonesia 21.0 Bangkok Port 51.9 46.0 1.5

(HS 0303) South 19.0 Taiwan 15.0 Mae Khlong Port 21.9 34.7

Other 5.0 Vanuatu 12.0 Songkhla Port 14.4 11.9

Japan 8.0 Leam Chabang Port 10.6 6.1


Fertilizer Central 73.0 Saudi Arabia. 27.0 Ko Si Chang Port 72.6 73.0 2.3

(HS 3102 & 3105) East 27.0 Malaysia 16.0 Bangkok Port 15.1 15.3

Qatar 15.0 Sriracha Harbour Port 4.6 4.3

Indonesia 14.0 Other 7.7 7.4

Other 28.0

Television Therminonic Tubes Central 89.0 Arub amirete 20.0 Leam Chabang Port 55.13 0.0

and Accessories East 7.0 Australia 15.0 Bangkok Port 20.37

(HS 8540) Other 4.0 Bangladesh 14.0 Padangbesa Customhouse 15.03

Belgian 13.0 Bangkok Airport 6.96

Switzerland 12.0 Other 2.51

Other 26.0

Paper and Paperboard in roll Central 92.0 Malaysia 35.0 Thai Prosperity Terminal 55.9 55.7 8.7

(HS 4811) East 4.0 Korea 28.0 Leam Chabang Port 22.6 20.0

Other 4.0 China 16.0 Bangkok Port 16.4 15.0

Taiwan 7.0 Private Port C.R.C. 2.6 3.4


Gateway

Region Country Name


30,000 7,000

970,000 35,000

-

48,000 5,700

3,390,000 30,000

142,000 39,000

Imported Goods

Average

Growth per

Year*

Source: Consultant Group

Note: HS is Harmonized System Code

* Average growth per year is an expected average growth per year during A.D. 2006-2015

TTaabbllee 22:: SSuummmmaarryy ooff sseelleecctteedd eexxppoorrtteedd ggooooddss iinn 22000055



Computers Central 85.0 United States 27.0 Bangkok Airport 65.8 19.0

(HS 8471) East 7.0 China 17.0 Leam Chabang Port 24.0

Other 8.0 Netherlands 11.0 Bangkok Port 8.6


Computer parts and Central 88.0 Singapore 28.0 Bangkok Airport 64.2 16.2 19.5

accessories East 6.0 China 18.0 Sadao Customhouse 10.1 7.3

(HS 8473) Other 6.0 Malaysia 12.0 Padangbesa Customhouse 9.9 1.4

Hong Kong 9.0 Leam Chabang Port 8.8 49.0

Japan 6.0 Bangkok Port 4.0 13.9

United States 6.0 Other 3.0 12.2

Other 21.0

Motor Vehicles for the Central 68.0 332,000 (คัน) Australia 24.0 Leam Chabang Port 98.4 11.7

Pickups East 14.0 England 14.0 Other 1.6

(HS 8704) Other 18.0 Saudi Arabia. 6.0

Italy 4.0

Arub amirete 4.0

Other 48.0

Region Country Name

Source of productions Export (2004) Exported Market

60,000 146,000

100,000

Gateway

220,000 215,000 -

-

Exported

Average

Growth per

Year*




TTaabbllee 22:: SSuummmmaarryy ooff sseelleecctteedd eexxppoorrtteedd ggooooddss iinn 22000055 ((CCoonntt’’dd))



Eletronic Integrate Circuits Central 83.0 Japan 15.0 Bangkok Airport 99.4 13.2

(HS 8542) East 9.0 United States 12.0 Other 0.6

Other 8.0 Taiwan 12.0

Hong Kong 12.0

Netherlands 11.0

Singapore 10.0

Other 28.0

Rubber South 87.0 China 23.0 Padangbesa Customhouse 36.6 34.1 6.8

(HS 4001) East 10.0 Japan 20.0 Leam Chabang Port 17.9 16.6

Other 3.0 Malaysia 15.0 Songkhla Port 14.4 13.7

United States 10.0 Sadao Customhouse 13.8 18.4

Korea 7.0 Bangkok Port 7.4 7.1


Reception Apparatus for Central 77.0 United States 53.0 Leam Chabang Port 90.8 9.9

Television North 9.0 England 9.0 Bangkok Port 5.2

(HS 8528) East 6.0 Japan 8.0 Other 4.0


Polyacetals, Other Central 83.0 Hong Kong 19.0 Leam Chabang Port 89.4 88.9 29.0

Resins East 8.0 China 15.0 Bangkok Port 6.9 7.8

(HS 3907) Other 9.0 Taiwan 9.0 Other 3.7 3.3

United States 8.0

Japan 8.0

Malaysia 4.0

Other 37.0

Knitted Fabrics Garments Central 87.0 United States 50.0 Leam Chabang Port 59.8 5.0

(HS 61) Other 13.0 England 9.0 Bangkok Airport 20.5

Japan 7.0 Bangkok Port 18.9

France 5.0 Other 0.8

Other 29.0

Woven Fabrics Garments Central 86.0 United States 53.0 Leam Chabang Port 55.8 0.0

(HS 62) Other 14.0 Japan 6.0 Bangkok Airport 25.6

France 5.0 Bangkok Port 17.4


Rice North 27.0 China 8.0 Leam Chabang Port 29.6 33.8 1.7

(HS 1006) Northeast 42.0 Nigeria 7.0 Ko Si Chang Port 34.3 32.7

Central 26.0 South Africa 7.0 Bangkok Port 28.6 27.2

South 4.0 United States 6.0 Other 7.5 6.3

Iraq 6.0

Iran 5.0

Malaysia 5.0

Hong Kong 5.0

Senegal 5.0

Other 46.0

Artickes of Jewelry and Parts United States 43.0 7.3

Thereof, of Precious Metal England 12.0

(HS 7113) Germany 7.0

Japan 5.0

Other 33.0

Region Country Name

Source of productions Export (2004) Exported Market Gateway

26,000 196,000 -

-

2,900,000 137,000

380,000 66,000

112,000 73,000 -

660,000 41,000

98,000 64,000

-

10,000,000 100,000

4,000 51,000

-

Exported

Central Bangkok Airport 100.0100.0

Average

Growth per

Year*




TTaabbllee 22:: SSuummmmaarryy ooff sseelleecctteedd eexxppoorrtteedd ggooooddss iinn 22000055 ((CCoonntt’’dd))



Hot-rolled Iron East 67.0 Hong Kong 31.0 Maptaphut Port 32.2 35.0 17.5

(HS 7208) Central 33.0 Malaysia 21.0 Leam Chabang Port 29.1 29.7

China 16.0 Prachuap Khiri Khan Port 25.6 23.6

Vietnam 11.0 Ko Si Chang Port 9.4 8.2

United States 7.0 Bangkok Port 1.7 1.5


Cold-rolled Iron East 60.0 United States 31.0 Maptaphut Port 49.8 52.0 7.0

(HS 7209) Central 40.0 Italy 17.0 Prachuap Khiri Khan Port 37.2 36.2

Canada 17.0 Padangbesa Customhouse 5.4 4.9

Philippines 5.0 Leam Chabang Port 3.8 3.5

Spain 5.0 Bangkok Port 1.9 1.7


Region Country Name

Source of productions Export (2004) Exported Market Gateway

610,000 12,000

Exported

420,000

Average

Growth per

Year*

9,000




TTaabbllee 33:: SSuummmmaarryy ooff sseelleecctteedd nneett eexxppoorrtteedd ggooooddss iinn 22000055



Crustacens, Mollusce and Central 72.0 United States 60.0 Leam Chabang Port 75.3 76.0 7.9

Other Aquatic Invertebrates South 20.0 Japan 23.0 Bangkok Port 18.1 17.3

(HS 1605) Other 8.0 Canada 5.0 Songkhla Port 5.2 5.2


New Pheumatic Tyres Central 70.0 293,000,000 Japan 12.0 Leam Chabang Port 61.9 8.3

(HS 4011) East 6.0 (Piese) United States 11.0 Bangkok Port 25.5

Other 24.0 Hong Kong 11.0 Other 12.6

Malaysia 6.0

Korea 5.0

Belgian 5.0

Other 50.0

Plastics Article for the Central 86.0 Japan 28.0 Leam Chabang Port 49.2 54.2 6.7

Goods East 4.0 United States 21.0 Bangkok Port 41.9 39.2

(HS 3923) Other 10.0 England 13.0 Bangkok Airport 2.8 0.5


Wooden Funiture Central 78.0 350,000,000 United States 50.0 Leam Chabang Port 80.2 80.9 12.0

(HS 9403,30-40-50-60) North 12.0 (Piese) Japan 26.0 Bangkok Port 17.5 16.6

East 10.0 Canada 4.0 Other 2.3 2.5

Other 20.0

Woven Fabrices of Cotton Central 92.0 China 13.0 Bangkok Port 52.2 46.5 5.0

(HS 5208) North 5.0 Germany 10.0 Leam Chabang Port 26.5 33.4

Other 3.0 United States 10.0 Aranyaprathet Customhouse 3.8 4.0

Italy 6.0 Nong Khai Customhouse 5.3 4.4

Laos 5.0 Sadao Customhouse 4.5 4.7

Myanmar 5.0 Bangkok Airport 3.0 1.5


25,000

120,000 35,000

Exported

Source of productions Export (2004)

Region Country Name

23,000

Average

Growth per

Year*

Exported Market Gateway

-

280,000 18,000

34,000 8,000




TTaabbllee 33:: SSuummmmaarryy ooff sseelleecctteedd nneett eexxppoorrtteedd ggooooddss iinn 22000055 ((CCoonntt’’dd))



Manioc Northeast 53.0 China 57.0 Leam Chabang Port 57.2 59.6 6.4

(HS 0714) Central 34.0 Spain 18.0 Ko Si Chang Port 41.8 39.5

North 13.0 Natherland 16.0 Other 1.0 0.9

Other 9.0

Cane or beet Sugar Northeast 73.0 Indonesia 28.0 Bangkok Port 50.0 50.1 5.0

(HS 1701) Other 27.0 Japan 15.0 Leam Chabang Port 38.4 39.1

Malaysia 12.0 Khlong Yai Port 3.8 3.2

Taiwan 8.0 Ko Si Chang Port 3.8 3.9

Bangladesh 7.0 Other 4.0 3.7

Other 30.0

Crustaceans Central 76.0 Korea 67.0 Bangkok Airport 71.2 71.3 2.5

(HS 0306) South 19.0 Canada 7.0 Bangkok Port 10.0 10.8

Other 5.0 United States 6.0 Leam Chabang Port 14.0 8.4

Singapore 5.0 Phuket Airport 3.3 7.5


Fruit, Nuts and Other Edible Central 79.0 United States 40.0 Leam Chabang Port 71.1 68.3 6.6

Produces form Plants Other 21.0 Japan 7.0 Bangkok Port 25.4 28.0

(HS 2008) Natherland 6.0 Other 3.5 3.7

Germany 5.0

Canada 4.0

Other 38.0

Cement Central 86.0 United States 27.0 Leam Chabang Port 33.9 38.1 18.5

(HS 2523) Northeast 13.0 Vietnam 25.0 Ko Si Chang Port 28.1 29.5

Other 1.0 Cambodia 15.0 Krabi Port 7.1 7.2

Bangladesh 13.0 Aranyaprathet Customhouse 8.7 6.7

Other 20.0 Kantang Port 5.1 5.6

Other 17.1 12.9

Fresh Orchids Central 95.0 Japan 36.0 12.0

(HS 0603) Other 5.0 United States 22.0

Italy 13.0

Hong Kong 6.0

Other 23.0

Fresh Durains Central 83.0 China 34.0 Leam Chabang Port 97.8 4.0

(HS 0810) Northeast 7.0 Taiwan 29.0 Bangkok Airport 0.6

Other 10.0 Indonesia 18.0 Other 1.6

Hong Kong 14.0

Other 5.0

Exported

Source of productions Export (2004)

Region Country Name

740,000 23,000

Average

Growth per

Year*

Exported Market Gateway

4,600,000 32,000

950 240

100.0 100.0

5,000,000 15,000

12,000,000 13,000

120,000 1,600 -

18,000 2,000 Bangkok Airport




Besides, exported goods of Thailand, which were the first rank in the world in year 2004, were rice

and rubber. Thailand exported rice about 10 million-tons and rubber about 3.0 million-tons. The

main rubber production could be divided into three types, which are block rubber, rib smoked

sheet, and concentrated latex. Moreover, Thailand was the third largest in cassava export in the

world which constituted about 5.0 million-tons. The main origins, destinations and freight routes are

shown in Figure 4.




OOrriiggiinn –– DDeessttiinnaattiioonn

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ช ัยภ ูม ิ

นครสวรรค

นครราชส ีมาลพบ ุร ี

ช ัยนาท

ส ิงห บ ุร ี

สระบ ุร ีอ างทอง

พระนครศร ีอย ุธยา

นครนายก

ปราจ ีนบ ุร ีปท ุมธาน ี

สระแก ว

นครปฐม นนทบ ุร ี

ฉะเช ิงเทรากร ุงเทพมหานคร

สม ุทรสาคร สม ุทรปราการ

จ ันทบ ุร ี

ชลบ ุร ี

ระยอง

นครสวรรค นครราชส ีมา

ฉะเช ิงเทรา

อย ุธยา

อย ุธยา

นนทบ ุร ี

สม ุทรปราการ

สม ุทรปราการ

ท าเร ือกร ุงเทพ

เกาะส ีช ัง

ท าเร ือแหลมฉบ ัง

เส นทางขนส งส ินค า# จ ุดต นทาง-ปลายทางส ินค า

ส ัญล ักษณ

FFllooww

Rice


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เช ียงราย

เช ียงใหม แม ฮ องสอน

พะเยา

น าน

ลำปาง แพร ลำพ ูน หนองคาย

อ ุตรด ิตถ เลย สกลนคร นครพนมอ ุดรธาน ี

ตากส ุโขท ัย

พ ิษณ ุโลกหนองบ ัวลำภ ู

เพชรบ ูรณ

กาฬส ินธ ุ ขอนแก น ม ุกดาหาร

กำแพงเพชร

ช ัยภ ูม ิ มหาสารคามพ ิจ ิตร

ร อยเอ ็ด ยโสธรอำนาจเจร ิญนครสวรรค

อ ุบลราชธาน ีนครราชส ีมา บ ุร ีร ัมย

อ ุท ัยธาน ี

กาญจนบ ุร ี

ศร ีสะเกษลพบ ุร ีส ุร ินทร

ช ัยนาทส ิงห บ ุร ี

สระบ ุร ีส ุพรรณบ ุร ีอ างทองพระนครศร ีอย ุธยา

นครนายกปราจ ีนบ ุร ีปท ุมธาน ี

สระแก วนนทบ ุร ี

ราชบ ุร ี สม ุทรสาครสม ุทรปราการสม ุทรสงคราม

เพชรบ ุร ี

พ ัทล ุง

ป ัตตาน ี


ช ุมพร

ภ ูเก ็ต

พ ังงา

ระนอง

ประจวบค ีร ีข ันธ

สต ูล

จ ันทบ ุร ีจ ันทบ ุร ี

ระยองระยอง

นราธ ิวาสยะลา

ตร ัง

นครศร ีธรรมราช

สงขลา

ส ุราษฏร ธาน ี

ศร ีษะเกษ

กร ุงเทพ

ตราด

กระบ ี

ด านศ ุลกากรสะเดา

ท าเร ือสงขลา

ด านศ ุลกากรปาด ังเบซาร

ท าเร ือเช ียงแสน

ท าเร ือคลองเตย

ท าเร ือภ ูเก ็ต




FFllooww

Rubber


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เช ียงใหม น าน

ลำปาง แพร

ลำพ ูนอ ุตรด ิตถ

นครพนม

ตาก

ส ุโขท ัย หนองบ ัวลำภ ู

เพชรบ ูรณ

พ ิจ ิตร

ยโสธร อำนาจเจร ิญ


ศร ีสะเกษลพบ ุร ี

ส ุร ินทร ส ิงห บ ุร ี

สระบ ุร ีส ุพรรณบ ุร ี อ างทอง

นครนายกปท ุมธาน ี

นครปฐม

สม ุทรสาคร

สม ุทรสงคราม

เพชรบ ุร ี

ช ุมพร

ตราด

ประจวบค ีร ีข ันธ

เลย

พ ิษณ ุโลก

ช ัยภ ูม ิ

ขอนแก น กาฬส ินธ ุ

สกลนคร

ม ุกดาหาร

อ ุบลราชธาน ีบ ุร ีร ัมย

นครราชส ีมา

ปราจ ีนบ ุร ี

สระแก ว

จ ันทบ ุร ีระยอง


ฉะเช ิงเทรา

อย ุธยา

ลพบ ุร ี


กำแพงเพชร

อ ุท ัยธาน ี

ช ัยนาท

กาญจนบ ุร ี

ราชบ ุร ี

ร อยเอ ็ดมหาสารคาม

ท าเร ือศร ีราชาท ี จอดเร ือนอกเกาะส ีช ัง


กร ุงเทพ

หนองคาย

อ ุดรธาน ี



FFllooww

Manioc’s Products

FFiigguurree 44:: TTrraannssppoorrttaattiioonn ooff sseelleecctteedd ggooooddss ((rriiccee,, rruubbbbeerr aanndd mmaanniioocc’’ss pprroodduuccttss))




Regarding transit goods transport, there is the flow only between Thailand and Laos. Goods from

Laos transit Thailand to third countries by order of weight are spice, tea and coffee, wood and

wood products, garments made up of woven fabrics, shoes and component, vegetable, and fruit.

Also Goods from third countries transit Thailand to Laos by order of weight are motor vehicles and

parts, beverages spirit vinegar, product of milling industry, cereals including rice, and electric

machinery and equipment. In year 2004, the volume of cargo form Laos transit Thailand to third

countries was 190,000 tons and the volume of cargo from third countries transit Thailand to Laos

was 100,000 tons, as transported by 10 and 18 wheels trucks to Nong Khai customhouse. Figure 5

shows transport routes and proportion of volume in each route.

Transportation from Laos transit Thailand to Third Countries Transportation from Third Countries transit Thailand to Laos

FFiigguurree 55:: TTrraannssppoorrttaattiioonn ooff ttrraannssiitt ggooooddss

Nowadays, most of Thailand’s domestic transport is based on single mode, and in order of

importance the modes of transport are road, water, rail and air respectively. However, there are

some products using multimodal transport, which are rice, sugar and manioc’s products. They are

transported from lower north and northeast by trucks to ports at Ang Thong and Phra Nakhon Si




Ayutthaya provinces where quality improvement are made and they are transport by ship to Ko Si

Chang port. Similarly, container transportation for export and import via the Laem Chabang Port will

have the Ladkabang ICD as node for interchanging mode between road and rail. Beside, the

transportation of rubber cargos from the Surat Thani Port to the Laem Chabang Port is multimodal

transport too.

Although, most of imported/exported goods transport, currently, will use road transport as main

mode, there are some products that use multimodal transport. Also some goods can be

transported using multimodal transport, but basic infrastructure or services are not appropriate to

run their business. The study found that users, who use road, train, river and coastal transport,

basically consider products safety as the first priority, but air transport users consider delivery on

time thus speed comes to be their first priority. For persuasion and support train transport instead

of road transport, improvement in punctuality, transit time, transport cost, safety and relative facility

must be made.

55.. LLOOGGIISSTTIICCSS CCOOSSTTSS

The transport of goods is a key factor for running import and export business and defining logistics

format. This study has considered and clustered products by characteristics, particularly size and

shape, weight, duration, packaging, time, and value. These characteristics determine the physical

characteristics of logistics system usage which would be able to group selected products into 13

groups. The logistics costs per sales are shown in Table 4.

TTaabbllee 44:: LLooggiissttiiccss ccoossttss ppeerr ssaalleess ooff eeaacchh ggrroouupp

Group No

Commodity Group Transportation

Cost (%) Inventory Cost (%)

Administration Cost (%)

Total Logistics Cost (%)

1 Textiles, woven goods, and synthetic fiber 4.06 4.80 7.00 15.86

2 Seafood 2.43 0.89 2.85 6.17

3 Fruits 6.25 5.00 4.00 15.25

4 Agricultural products 5.00 10.00 4.00 19.00

5 Fertilizer, mineral products, and cement 14.96 3.08 1.07 19.11

6 Raw chemicals, plastic products, and tires 1.50 3.00 3.43 7.93

7 Rubber, paper, and wood furniture 2.15 5.70 8.70 16.55

8 Iron and aluminums 6.70 6.50 2.00 15.20




TTaabbllee 44:: LLooggiissttiiccss ccoossttss ppeerr ssaalleess ooff eeaacchh ggrroouupp ((CCoonntt’’dd))

Group Commodity Group Transportation

Cost (%) Inventory Cost (%)

Administration Cost (%)

Total Logistics Cost (%)

9 Machinery, vehicles, molds, and

components

2.83 7.00 5.30 15.13

10 Computers, components, and electric

transformers

0.74 6.00 7.00 13.74

11 Medical tools and equipment,

electronic circuit boards, and jewelry

0.50 0.90 5.00 6.40

12 Crude oil, petroleum, and fuel oils 2.43 5.30 1.50 9.23

13 Fresh orchids 1.30 3.00 5.50 10.80

Source: Consultant Group.

Note: The specific items under each commodity group are as follows.

Group 1: Synthetic fiber, Woven Fabrics of Synthetic Filament Yarn, Garments with Fabric, and Cotton Fabrics

Group 2: Frozen Fish, Crustaceans Products, and Chilled Crustaceans

Group 3: Fresh Durian, and Fruits

Group 4: Rice, Cassava and sugar cane

Group 5: Soybean, Oil Cake, Nitrogenous Fertilizer, Fertilizer which includes Nitrogen, Phosphorus, and Potassium, and

Cement

Group 6: New pneumatic type, Plastic articles, Polyacetals Other Polyethers and Polyoxide Resin, and Acyclic Alcohol and

Derivative

Group 7: Rubber, Wooden Furniture, and Paper and paperboard in rolls and rectangular

Group 8: Hot-rolled, Unwrought Aluminums, and Cold-rolled

Group 9: Air Pumps and Fans using in industry, Moulding Boxes for Metal Foundry, Interchangeable tools for hand tools,

Automobile Parts and Transport vehicles including trucks

Group 10: Electrical Apparatus for line telephony or line telegraphy, Computer accessory and computer parts, Computer,

Reception for television, Television thermionic tubes, and Electric Transformer

Group 11: Medical Instrument, Integrated Circuits, and Jewelry

Group 12: Crude Oil

Group 13: Fresh orchids




66.. TTRRAANNSSPPOORRTT IINNFFRRAASSTTRRUUCCTTUURREE CCAAPPAABBIILLIITTYY

The transport infrastructure development is a means for making Thailand transport perspective

efficient and can compete with neighboring countries. In the year 2005, the road transport played a

major role in domestic transport in Thailand, by carrying 435 million tons of cargos or 86.90 percent

of the total domestic transport. The water transport remained the second domestic transport mode

in Thailand, with the volume of 53 million tons or 10.52 percent. The details of the domestic freight

transport are shown in Table 5.

TTaabbllee 5 5:: DDoommeessttiicc FFrreeiigghhtt TTrraannssppoorrtt ((iinn mmiilllliioonn ttoonnss))

Year Mode

1999 2000 2001 2002 2003 2004 2005

Road 392,244 397,976 400,241 434,918 440,018 435,147 430,275*

Railway 9,264 9,171 8,776 8,893 10,521 12,883 8,2001/

Inland Waterway 17,910 25,235 17,833 25,043 25,839 26,825 29,630*

Coastal 21,970 23,347 19,657 24,795 22,941 25,862 25,625*

Air 56 57 66 56 54 53 392/

Total 441,444 455,786 446,573 493,705 499,373 500,770 493,769

Remark: * Preliminary figures

1/ : Jan-Aug 2005

2/ : Jan-Sep 2005

RROOAADD TTRRAANNSSPPOORRTT

The road transport is the most favorite mode for domestic transport, because of its accessibility. It

can be linked to any places in the country, it can provide the door-to-door transport service, and

it’s easy to find vehicles. Currently, highways in Thailand are classified into six types which are (1)

motorway; (2) national highway; (3) rural road; (4) municipal road; (5) sanitary road; and 6)

concession highway. The main institutions, which take responsibility for highway network, are the

Department of Highways (DOH) that takes responsibility for approximately 62,000 kilometers (per

two-traffic lanes) of highways, and the Department of Rural Road that takes responsibility for

approximately 44,500 kilometers of roads. The highway network linking to all regions of Thailand is




shown in Figure 6. Most vehicles used in road transport are 6-wheel trucks and 10 or more-wheel

trucks. In 2005, the number of registered trucks was 675,000 vehicles, which, however, has been

noticed that the number of registered trucks has been declined, with a rate of 1% during 2003-

2005.

FFiigguurree 66:: HHiigghhwwaayy nneettwwoorrkk

Road transport can link with other transport modes by nodes such as truck terminals, off-dock

container freight stations (CFS), inland container depots (ICD), and container yard (CY). The road

intermodal transport to neighboring countries is in good condition, but some of them need to be

improved. In 2004, most shipments by road transport constituted mainly industrial raw materials,

fuel, construction materials, and agricultural produces such as sugar rice, cane etc. The proportion

for goods transported by road transport is shown in Figure 7. Most of the transports are on main

highways or roads to gateways. The volume of transport on roads is shown in Figure 8.




Source: Information Technology and Communication Center, Office of the Permanent Secretary Ministry of Transport

FFiigguurree 77:: CCoommmmooddiittyy sshhaarreess bbyy rrooaadd ttrraannssppoorrtt,, 22000044

FFiigguurree 88:: TTrruucckk vvoolluummee oonn hhiigghhwwaayy nneettwwoorrkk,, 22000055

This study has found that the key problems and threats of road transport are the traffic jam in

Bangkok and its vicinity, overloaded trucks, insufficient facilities, and truck restriction measure. To

cope with these problems, the government has devised future road transport plan, which is

summarized in Table 6.

Furniture

6%

Others

20%

Soil, Stones, Sand

12% Sugar cane

13%

Minerals

9% Fuel oil

7% Solid fuel

7%

Rice

6%

Miscellaneous goods

7%

Cement

6% Construction metals

7%

Truck Volume (pcu/day)Less than 5,0005,000 -10,00010,001 – 20,000More than 20,000

Truck Volume (pcu/day)Less than 5,0005,000 -10,00010,001 – 20,000More than 20,000

Volume to Capacity0 ≤ v/c ≤ 0.250.25 < v/c ≤ 0.500.50 < v/c ≤ 0.750.75 < v/c ≤ 1.00






TTaabbllee 66:: RRooaadd ttrraannssppoorrttaattiioonn ppllaann ffoorr tthhee ffuuttuurree

Projects Objectives

Inter city motorway project

To connect existing roadway network systemically which can help to

distribute development benefits to the provincial areas, relieve traffic

congestion problem in a long term basis, and decrease travel time and

cost.

Bangkok and outskirts express

roadway project

To increase motorway network for supporting traffic growth and ease traffic

volume from roadways in Bangkok and its outskirts, and also to facilitate

country development.

Industrial ring road project

To connect the Phra Pradaeng Industrial Estate, the Phu Chao Samhing

Phray Industrial Estate and the Bangkok port together.

Four–lane highway widening

project

To improve state highway route which connect Bangkok and other

important provinces for increasing transport capabilities

Roadway network connection

with neighboring countries

To create roadway network in order to connect the internal roadway network

with those of the neighboring counties and to promote the country as the

center of land transport in the provincial part.

Source: Department of Highways.

RRAAIILLWWAAYY TTRRAANNSSPPOORRTT

The railway transport can transport a big amount of cargos in low unit cost. Currently, Thailand has a

railway network that connects 47 provinces with a total length of 4,044 kilometers. The railway lines

are compose of single rail (3,764 kilometers or 93.07%), double rail (173 kilometers or 4.28%), and

triple rail (107 kilometers or 2.65%). However, most railway lines are very old. Though it is well

maintained by changing rail ties and gravel, it still cannot be used with full capacity. Moreover, there

are 150 trains; consisting of electrical diesel trains and hydraulic diesel trains. For commodity

transport, only electrical diesel trains are used with highest speed, around 80 kilometers/hr. There are

four types of cargo trains: (i) big bogey for general cargoes; (ii) container bogey; (iii) cement bogey;

and (iv) fuel bogey. In 2005, there sere 576 bogeys and each bogey could carry between 38 and 42

tons. The main points of linkage between railway transport and road transport are Bangkok Port,

Laem Chabang Port and ICD Ladkabang. Railway connections can link to neighboring countries at




Nong Khai station linking to Laos, Aranyaprathet station linking to Cambodia, Padang Besar and

Sungai Kolok stations linking to Malaysia. At the same year, 12.8 million tons of freights were

transported by rail transport; constituting 7.5 million tons of containerized freights, 3.1 million tons of

fuel and petroleum products, and 2.1 million tons of combined cement, stone and sand, as shown in

Figure 9. The details of freight volumes are shown in Table 7.

Other1%

Oil and petroleum24%

Cement, stone, sand16%

Containerized Goods59%

Source: State Railway of Thailand

FFiigguurree 99:: SShhaarree ooff ccoommmmooddiittyy ccaarrggoo iinn rraaiillwwaayy ttrraannssppoorrtt,, 22000044

TTaabbllee 77:: DDoommeessttiicc ccoonnttaaiinneerr vvoolluummee oonn tthhee mmaaiinn rraaiillwwaayy lliinneess bbyy ccaarrggoo,, 22000044

Cargo Routes Volume (tons) Containerized cargo ICD Latkrabang Laem Chabang

Laem Chabang ICD Latkrabang

ICD Latkrabang Tha Rua Noi (Kanchanaburi)

3,861,400

2,929,516

143,439

Oil Bung Phra (Phitsanulok) Laem Chabang Port

Bung Phra (Phitsanulok) Bangkok Port

Map Ta Phut Khon Kaen

573,187

571,080

254,599

Cement

Hin Lap (Nakhon Ratchasima) Preng

(Chachoengsao)

Hin Lap (Nakhon Ratchasima) Phahonyothin Ban Chong Tai (Saraburi) Phahonyothin

375,951

320,779

319,722

Stones Bu Yai (Saraburi Province) Lat Krabang 367,049

Gypsum Ban Song (Surat Thani Province) Padang Besar 95,308

Other

Flour

Rubber

Noodle

Sugar

Phahonyothin Padang Besar Thungsong Junction Bangkok Post

Ban Pong (Ratchaburi) Padang Besar Buriram Laem Chabang Port

16,543

18,068

4,352

2,271

Source: State Railway of Thailand




The table highlights that most of the freight is transported via the Chachoengsao Junction-Sri

Racha Junction section, followed by the ICD Lat Krabang-Chachoengsao Junction section, Sri

Racha Junction-Laem Chabang Port section, Ban Phachi Junction-Kaeng Khoi Junction section,

Chachoengsao Junction-Khlong Sip Kao Junction section, and Khlong Sip Kao Junction-Kaeng

Khoi Junction section respectively. The details of the bulk of freight transport on rail network are

shown in Figure 10.

FFiigguurree 1100:: FFrreeiigghhtt vvoolluummee oonn TThhaaiillaanndd’’ss rraaiill nneettwwoorrkk,, 22000044

This study has found that the major problems and threats of road transport are railway line

deterioration, main tracks as single tracks, too much rail grade crossings (level crossings), and

insufficient trains. In this state of railway transport development, the future railway transport plan is

presented in Table 8.




TTaabbllee 88:: RRaaiillwwaayy ttrraannssppoorrttaattiioonn ppllaann

Projects Objectives

National double track partial construction

To construct double track by considering at the

congested sections with the total distance of 801

kilometers.

Double track construction for the east coast

railway (Khlong Sib Kao-Kang Koi-

Chachoengsao and Chachoengsao-Sriracha

-Laem Chabang)

To increase capacity and efficiency of the east coast

railway in order to support the growth of commodity

transport, especially from the expansion of the Laem

Chabang port phase 2.

Railway maintenance phase 4, 5, and 6

To maintain tracks and bolsters (timber type) in order to

be used as usual.

The supplementary of 13 locomotives and

284 container bogies

To increase the services of internal container bogies (full

train) from the North Eastern and Southern regions to

waterway stations and the Laem Chabang port.

Supplementary of 2 rental locomotives ( with

litters) for State Railway of Thailand

The Port Authority of Thailand requires rail tracking system

to be able to support more containers that are shipping

through the Laem Chabang port

Source: State Railway of Thailand, 2006

WWAATTEERRWWAAYY FFRREEIIGGHHTT TTRRAANNSSPPOORRTT

In 2003, most inland waterway transport was routing through the Chao Phraya River (about 53.9%

of total domestic water transport), followed by Pasak River (30.1%), Bang Pa Kong (8.1%), Tah

Chean (7.8%), and Meklong (0.1%), respectively. The navigable waterway for freight transport in

Thailand is presented in Table 9.




TTaabbllee 99:: NNaavviiggaabbllee wwaatteerrwwaayy ffoorr ffrreeiigghhtt ttrraannssppoorrtt iinn TThhaaiillaanndd

River Waterway Routes

Chao Phraya from estuary (Samut Prakan province) to Amphoe Maung, Ang Thong province, total

length 170 kilometers

Pasak from Chao Phraya River (Phra Nakhon Si Ayutthaya province) to Amphoe Tha Rua,

Pha Nakhon Si Ayutthaya Province, total length 47 kilometers

Bang Pa Kong transport routes are in ten kilometers from estuary (Chachoengsao)

Meklong Around estuary area (Samut Songkhram province)

Tah Chean from estuary (Samut Sakhon province) to Amphoe Nakhon Chaisi, Nakhon Pathom

province, total length 78 kilometers

Source: Development of Inland Waterway Transport Center in Promoting Coastal and International Transport,

Marine Department

Currently, the Chao Phraya River can support international coastal ships only for 45 kilometers

inward from its estuary. Beyond this point, the river can support only barges. Most freight transport

ships in the Chao Phraya River are non-motorized ships, which are registered as canal boats, in

total about 12,000 registrations. Among the principle ports along the east and west coasts of the

Chao Phraya River, which are nodes for linkage with other transport modes are located at Amphoe

Pa Mok (Ang Thong province), at Amphoe Nakhon Luang, Amphoe Bang Pha Inn-Bang Thri and

Amphoe Tha Rua (Phra Nakhon Si Ayutthaya province), and at Pathum Thani and Nonthaburi

provinces.

The freight transport volume in the Chao Phraya River and Pasak River is much higher to the

downward waterway than upward waterway, as presented in Figure 11. Beside, most cargos

transported in downward waterway routes are soil, stone, sand, bagged cement, cassava plant,

sugar, and rice. Most upward transported cargos are coal, fertilizer, woods and its products,

animal feed, soybean, and fuel, among others.




SSoouurrccee:: MMaarriinnee DDeeppaarrttmmeenntt,, ssuurrvveeyyeedd bbeettwweeeenn JJuullyy 1155 aanndd JJuullyy 3300,, 22000033((nnoorrmmaall sseeaassoonn))

FFiigguurree 1111:: VVoolluummeess ooff wwaatteerr ffrreeiigghhtt ttrraannssppoorrtt

In addition, international freight transport along the Mekong River is related to commerce with

southern China, which is using the Chiang San port in Thailand. The important exports are dry longan,

and products from animal. On the other hand, important imports are fruits, vegetables, and textiles.

There are many water transport problems. The major ones can be considered as empty lighters

could not pass through the Nonthaburi Bridge in the flood season, the private ports are insufficient,

the water level in Mekong River is shallow in some periods, and high international ports service fee

rates don’t encourage lighters. The future plan of water transport is shown in Table 10.

TTaabbllee 1100:: WWaatteerr ttrraannssppoorrtt ppllaann

Projects Objectives

The construction of waterway transport

stations at Ang Thong and Phra Nakhon,

Sri Ayuttaya provinces

To promote the usage of waterway transport, because waterway

transport is the most energy efficient transport

Chiang Saen development To develop special economic border zone at Chiang Rai province

facilitated by the agreement of water transport route in the Mekong

river as a center of collecting goods from northern, northeastern and

central regions of Thailand for export to and import from China

Source: Marine Department, 2006

Downward waterway volumes Upward waterway volumes




SSEEAA aanndd CCOOAASSTTAALL FFRREEIIGGHHTT TTRRAANNSSPPOORRTT

The sea and coastal freight transport are key function in Thailand’s economic development,

because Thailand’s international trading activities use this mode as principle transport. In 2004, the

import volume was 92 million tons and the export volume was 78 million tons. The important

international ports in Thailand that are operated by the government are Bangkok port, Laem

Chabang port, Maptaphut port, Songkhla port, and Phuket port. Additionally, coastal ports that are

owned by the private sector are Bangkok Modern Terminal port (BMT), Thai Prosperity Terminal

port (TPT), UNITHAI port, and BDS Terminal port. In 2005, the container volumes through ports

were 5.4 million TEUs. The detail as are shown in Table 11.

TTaabbllee 1111:: TThhee ccoonnttaaiinneerr vvoolluummeess tthhrroouugghh ppoorrttss iinn 22000055 UUnniittss:: TTEEUUss

Import Export Port

Laden Empty Total Laden Empty Total Grand Total

Laem Chabang 795,387 1,103,929 1,899,315 1,895,419 23,263 1,918,682 3,817,997

Bangkok 579,181 83,624 662,805 687,521 9,806 697,327 1,360,132

Songkhla 11,647 50,461 62,108 61,339 1,381 62,720 124,828

Private* 106,167 47,335 153,502 N/A N/A 84,065 84,065

Total 1,500,331 1,285,353 2,785,684 2,644,279 34,450 2,762,794 5,387,022

Source: Bangkok Shipowners and Agents Association (BSAA)

The inland coastal freight transport routes mostly have origins or destinations at the coasts in the

central part of Thailand, eastern and southern regions on the Thai Gulf coast, as presented in

Figure 12. In 2003, the coastal freight transport volume was 22.9 million tons, i.e. about 4.6 percent

of its market share (inland transport). Fuel constituted the highest volume, which was

approximately 20.3 million tons or 88 percent of the overall coastal transport. Second was the metal

for construction with a total volume of approximately 1.6 million tons, i.e., 7 percent of the total

coastal transport and the rest were fertilizer, chemical, rubber tree, and bagged cement

constituted.




FFiigguurree 1212:: IInnllaanndd ccooaassttaall ffrreeiigghhtt ttrraannssppoorrtt nneettwwoorrkk

There are many problems and obstacles of coastal freight transport. For example, the priority of

coastal transport is low when anchor at Laem Chabang port, coastal ships and vessels have to pay

for anchor charges in the same range as sea ports, inter modal transports that are connected to this

mode of transport are still not in the state of high efficiency, and channels are shallow. However,

government has plans to improve sea and coastal freight transport, which are presented in Table 12.

TTaabbllee 1212:: TThhee ffuuttuurree ppllaann ooff ccooaassttaall ffrreeiigghhtt ttrraannssppoorrtt

Projects Objectives

Khlong Yai multi-purpose port

construction project, Trat province

To be eastern coast gateway, linking to neighboring countries.

Port development, Chumporn

province

To link upper southern and eastern regions to western coast by furry.

Multi-purpose port development,

Ranong province

To be one of the major international ports on the Andaman coast for

supporting trading with BIMSTEC and GMS-EC.

Don Sak multi-purpose port

maintenance project, Surat Thani

province

To connect transport network for sea freight and passenger transport at

the east coast between Kor Samui, Kor Panjun and Ang Thong

archipelago and Thai gulf coast.




TTaabbllee 1212:: TThhee ffuuttuurree ppllaann ooff ccooaassttaall ffrreeiigghhtt ttrraannssppoorrtt ((ccoonntt’’dd))

Projects Objectives

Pak Bara deep sea port

development

To be gateway on the Andaman coast, linking the sea transport center to

South Asia, Middle East, and Europe, including Andaman, Thai gulf, and

East coast.

2nd Songkhla deep sea port

development

To support international trading which is in growing up trend and

increase port capability at lower Thai gulf coast

Source: Marine Department, 2006

AAIIRR FFRREEIIGGHHTT TTRRAANNSSPPOORRTT

Currently, there are 37 airports in Thailand, including seven international airports (including

Utaphao Airport) and 30 domestic airports. There are five important airports for domestic freight

transport, which are Bangkok International airport, Chiang Mai airport, Chiang Rai airport, Phuket

airport, and Hat Yai airport. In 2005, the most domestic route of air transport was between these

five domestic airports, as shown in Figure 13.

FFiigguurree 1133:: DDoommeessttiicc aaiirr ffrreeiigghhtt rroouuttee iinn 22000055




In 2005, the volume of air freight transport was 1.19 million tons, having the Bangkok International

airport as the main airport with volume around 1.13 million tons or 95 percent of the total air freight

transport, followed by the Chiang Mai and Phuket airports, respectively. The details of airports are


TTaabbllee 1313:: AAiirr ffrreeiigghhtt vvoolluummee ttrraannssppoorrtt bbyy aaiirrppoorrtt iinn 22000055

Quantity (Tons) Airport

Load Unload Total Percentage

Bangkok International 676,033 454,265 1,130,298 95.34 %

Chiang Mai 15,519 8,911 24,430 2.06 %

Phuket 8,138 6,948 15,086 1.27 %

Hat Yai 2,891 7,768 10,659 0.90 %

Chiang Rai 3,491 1,599 5,090 0.43 %

Source: The Department of Air Transport

There are three types of freight airplanes: passenger flight, combi flight, and charter flight. The

main commodities of air transport are computer parts and accessories, electric equipment,

precious stones and jewelry, fresh fruits, and vegetables. At this time, there are 31 registered air

freight transport operators with the leader of air freight transport as AOT (previously “Airports

Authority of Thailand”).

The major problems and obstacles hindering air freight transport in Thailand are the congestion of

warehouse space of Airports Authority of Thailand, no air freighters, and the limitation of

refrigerated rooms or cool storages. However, these problems will be eliminated when

Suvarnabhumi Airport operates and government has plans to develop air freight transport as





TTaabbllee 1414:: TThhee ffuuttuurree ppllaann ooff aaiirr ffrreeiigghhtt ttrraannssppoorrtt

Projects Objectives

The development of Chiang Mai and

Phuket airports to establish as the

aviation center in respective regions

The Chiang Mai airport development project includes

passenger terminal improvement, warehouse improvement,

and air terminal improvement.

The container service area expansion

project in order to expand the services

to other capital cities around the world

Thai Airway has expanded the commodity service areas by

making interline agreement.

Freighter charter flight To increase the competitive capability in the demanding

periods and routes

Supplementary freighter services To increase freighter services capability by modifying the two

MD-11 aircrafts.

Perishable Logistics Center for Asia To provide the preservation services both the quality and

freshness, and internal distribution services.

Express Logistics Center

establishment

To provide storage, distribution, and custom clearance

services. Source: Ministry of Transport, Thai Airways International Public Company Limited.

PPIIPPEELLIINNEE FFRREEIIGGHHTT TTRRAANNSSPPOORRTT

Pipeline is a unique transport system. Currently, there are two oil pipeline transport providers,

namely Thai Petroleum Pipeline Co., Ltd (THAPPLINE) and Fuel Pipeline Transportation Limited

(FPT). The pipeline route of THAPPLINE starts from the oil refinery group at Amphoe Si Racha at

Chonburi province and ends to Sao Hai at Saraburi province, and another route starts from the oil

refinery at Mabtaput Industrial Estate and ends at amphoe Si Racha with a total length of 360

kilometers. The FPT’s pipeline starts from the Bangjak oil refinery and ends to tank farm at amphoe

Bang Pa-In with a total length of 68 kilometers, as presented in Figure 14. Beside, gas pipeline

consist of offshore transmission with 1,359 kilometers and onshore transmission with 1,031

kilometers. They are shown in Figure 14.




FFiigguurree 1144:: TThhaaiillaanndd’’ss ppiippeelliinnee ffrreeiigghhtt ttrraannssppoorrtt

The capacity of the two oil pipeline transport providers, at present, are running at low performance

with THAPPLINE Co. Ltd. approximately at 32 percent and FPT Co. Ltd. approximately at 36

percent of their respective transport performances.

The major problems and obstacles facing by pipeline transport are the government’s policy of

Bangkok Oil Depots usage still not obvious, the inferiority of pipelines transportation cost when

compared to other modes of transport, some routes of rail transport are the same as pipeline

transport, and the performance capacity of pipeline is low. At present, the government has Two

Pipeline Transport Expansion Projects which are Saraburi-Nakhonsawan–Pitsanuloke–Lumpang

and Saraburi-Nakhonratchasima-Khonkan. Also, the Cabinet had approved The Third Master Plan

of Natural Gas Pipelines System on May 17, 2005 for supporting nature gas demand expansion.

TTRRAANNSSPPOORRTT LLIINNKKAAGGEE PPOOIINNTT

The transport linkage points, which relate to the logistics system, are important facility for transport

system, because freight transportation must gather, distribute and store products including

customs clearance. The transport linkage points will enable these activities to act faster, cheaper,

easily and more efficiently. The detail of various transport linkage points with their major activities

along with the likely investors and operators are presented in Table 15.

Thailand’s oil pipeline Thailand’s gas pipeline




TTaabbllee 1515:: TTrraannssppoorrtt lliinnkkaaggee ppooiinntt wwhhiicchh rreellaattee ttoo llooggiissttiiccss ssyysstteemm

Linkage Node Activities Investors Operators Number of Entrepreneur

Truck terminal - To gather and distribute goods within

domestic

- To store products

- To provide inspection and registration

vehicle service

Government

Sector

Private

Sectors

3

CFS1

- To check and load goods for export

- To store goods and containers

Government

Sector

Private

Sectors

16

Government

sector

(Latkrabang

ICD)

Private

sector

6 ICD2 - To check and load goods for import

and export

- To store goods and containers

- To provide custom clearance services

Private sector private

Sector

3

Private sector Private

sector

21 Container yard,

(CY)

- To store containers

Government

sector

Government

sector

4


sector

78 Public

warehouse

- To store goods

Government

sector

Government

sector

7

Silo - To store goods, especially, agriculture

products.


sector

13

Cold storage - To store seafood, fruits, vegetables and

chemical products.


sector

102

Bonded

warehouse

- To give the privilege to exporters by

refraining taxes for the imports and

exports. These goods could also be

processed by adding values to the

products, for examples, mixing or

assembling.


sector

238

Note: 1 = Container Freight Station 2 = Inland Container Depot




IINNDDUUSSTTRRIIAALL EESSTTAATTEE

Industrial estates are the areas which are reserved for the industrial factories. Currently, there are

34 industrial estates within 14 provinces, controled and managed by the Industrial Estate Authority

of Thailand (IEAT). These industrial estates are distributed across 14 provinces in the country.

Figure 15 presents the location of these industrial estates. It can be noticed that mostly these are

located on the Bangna-Trad road, Chonburi province, and Rayong province. Also, the additional

estates are closely located to the international port, such as: the Laem Chabang port, Sriracha

Harbor, and Map Taphut.

FFiigguurree 1155:: LLooccaattiioonn ooff iinndduussttrriiaall eessttaattee iinn TThhaaiillaanndd

The development of domestic basic infrastructure should only be is considered for its sufficiency,

but also it should considered for multimodal transport with neighbor countries too. Thailand has

good capabilities and better conditions in this regard, for example, firstly, the road network which

covers the country can be used to transport cargos through Myanmar, Lao, Cambodia and

Malaysia and extended to Vietnamese and south of China, secondly, the connection of railway and




main gateway, thirdly, the existence of the Asian Highway in North-South corridor and the East-

West corridor, that have main northern gateway at amphur Muang, Chiang Rai province and main

northeastern gateway at amphur muang, Mukdahan province and finally, the existence of the

Trans-Asian Railway in North-South corridor.

Furthermore, if the government doesn't initiate any new project to improve transport system in the

future, Thailand will encounter with basic infrastructure problems, especially, the traffic congestion

at motorways around Bangkok–Chon Buri and Mittaphap road around Bang Pa In-Nakhon

Ratchasima, the insufficiency of railway services, and the maximum capacity of Songkhla port.

Therefore, the solution for making Thailand transport perspective efficient is multimodal transport

development which can reduce both logistics costs and energy in order to increase Thailand

competitive capability. Also it will enhance position Thailand as economic and transportation center

in the region as well as the positioning at the economic gateway of Inner Asia, East Asia and South

Asia.

Asian Highway Trans-Asian Railway

FFiigguurree 1166:: TThhee AAssiiaann HHiigghhwwaayy aanndd tthhee TTrraannss--AAssiiaann RRaaiillwwaayy nneettwwoorrkk iinn TThhaaiillaanndd




77.. GGUUIIDDEELLIINNEESS FFOORR MMUULLTTIIMMOODDAALL TTRRAANNSSPPOORRTT DDEEVVEELLOOPPMMEENNTT

To develop the multimodal transport which is appropriate for Thailand, not only the characteristics

of freight demand and infrastructure system of the whole country, but also the best practices from

successful countries have been reviewed and taken into account. The summary of the multimodal

transport practices of major countries are as follows:

MMuullttiimmooddaall TTrraannssppoorrtt iinn UUSSAA

The multimodal transport in USA was originated from the construction of major

highways connecting between the East and the West regions so that the heavy trucks

could link to major gateways, e.g., ports, railway stations, airports, etc. Later, additional

transfer facilities and more coastal ports were developed. Furthermore, the policy was

imposed to enforce the bulk cargo with more than 500 miles to deliver by railway

whereas the short-haul transport was made by truck.

For the development of the multimodal transport, the Federal Government will be the

policy-maker for passenger and freight transport development, resulting that the whole

transport system is convenient, fast, safe, equitable, and environment-friendly. In

addition, they will subsidize the budget for solving bottlenecks and encourage

research and development (R&D) to improve both transport and service in operation

and management by inviting the private sector to operate the system.

California is one of the states where the multimodal transport and logistics

management is the most productive from the evidence that there are two world-class

ports, i.e., Port of Los Angeles and Port of Long Beach where the railway transport is

currently the main access to both ports. The containers within the ports can be

handled very efficiently as the double-stack railcar has been used to increase the

freight volume. Moreover, many overpass and underpass have been built to eliminate

the railway crossing making the railway operation very reliable.

In addition, the distribution center (DC) situated in Inland Empire sub-region is one of

the very large logistics facilities in California where it directly connects to Ontario

Airport. Several enormous warehouses are available comprising private warehouses of

Walmart, Prologis and NYK Logistics as well as public and for-hire warehouses.




Furthermore, many of the biggest couriers of the world are gathered here such as

FedEx, UPS, DHL, Airborne, etc. This is since this DC can link to another 5 airports

conveniently and can serve huge volume of air freight efficiently.

MMuullttiimmooddaall TTrraannssppoorrtt iinn EEUU

The EU members concentrate on competitiveness promotion among transport modes

and develop the linkages to lessen the bottleneck problem at borderlines and ports. In

addition, they have proposed tax exemption for multimodal transport operators (MTOs)

and made common agreements among country members in relation to multimodal

transport including facilitating the railway transport that can link among members

countries, efficiently.

MMuullttiimmooddaall TTrraannssppoorrtt iinn AAuussttrraalliiaa

In Australia, the government has promoted the railway transport while discouraging

road users from collecting road toll. Several connective points between road and

railway have been built in order to reduce long-haul transport made by trucks.

Moreover, an efficient database has been developed as well as the state-of-the-art

technology has been adopted in transport sector such as cargo transfer facilities,

intelligent transport system (ITS), etc.

MMuullttiimmooddaall TTrraannssppoorrtt iinn CChhiinnaa

China has carried out the railway and highway development plan since 1993 as it has

built more highway networks and improved the existing routes to cater for expanding

the economy. Government has assigned the Hong Kong Bank to operate toll roads.

Additionally, the inland waterway transport is specially developed by the government

and properly managed so that it can efficiently support the transport, agriculture and

flood control sector.

MMuullttiimmooddaall TTrraannssppoorrtt iinn JJaappaann

The multimodal transport (MT) in Japan is currently concentrated on just-in-time (JIT)

and total quality management (TQM) distribution as well as on electronic transaction,

e.g., information interchange, common truck use, etc. Furthermore, they are also

interested in logistics development for environment quality protection.




MMuullttiimmooddaall TTrraannssppoorrtt iinn MMaallaayyssiiaa

The multimodal transport in Malaysia involves the improvement of the North port and

access to the port for both highway and railway systems. In addition, they have

negotiated with Thailand for border trade facilitation in order to reduce handling time.

The development of the multimodal transport in other Asian countries mostly involves in

infrastructure development, seminar holding, improvement of connective points, etc.

The concepts and strategies of the multimodal transport is derived from successful

countries which will be the best practices in the multimodal transport and logistics

management for Thailand, which can increase trade competitiveness and domestic

transport performance. This helps reduce time and costs from trial-and-error. Finally,

the multimodal transport development matching Thailand’s problems can be

concluded as follows.

Guidelines for domestic transport development

Road transport network

• Develop road transport networks to expand links with other transport modes.

• Develop road transport network at borderlines connecting with neighboring

countries in facilitating freight shipment to the third countries.

• Construct and improve road transport network at areas with high potentials for

linking with freight transfer network.

Rail transport network

• Promote long-haul freight shipment by using rail mode, linked with other

modes.

• Create rail network to connect major production and distribution areas and

centers, such as, ports, industrial estates, etc.

• Enable regional cooperation to create cross-border network and construct

transfer facilities at borderline.




Waterway transport network

• Develop networks with a view to maximizing waterway utility, basically as

break-of-bulk-points or interfaces between waterways and roads, vessel and

rail shipment that link to seaports, which promote multimodal transport and

offers an alternative for users to select the most cost-effective mode.

Guidelines for intermodal transport nodes development

• The government should specify the economic and transport connection nodes

and interfaces which function as logistics center and industrial operation

center, located nearby gateways, such as ports, airports, border checkpoints,

etc.

• Develop the management system of terminals, transfer nodes or break-of-bulk-

points since they affect the efficiency of the entire multimodal transport system.

Guidelines for international transport network development

• Collaborate with neighboring countries in relation to freight transport development.

• Promote international agreement that advance borderless freight transit,

whether it be in the form of border trade or transit goods, concurrently with

development of multimodal transport.

Guidelines for public and the private sector support for development of efficient freight transport

• The government should support the cargos that possibly shift to multimodal

transport, subject to national policy (in some countries, the multimodal

transport is active, because of enforced measures from the government despite

having short-haul transport).

• The government should promote and invest more facilities that link with major

routes, especially intermodal nodes, such as ICDs, truck terminals, ports.

• The public sector needs to deliberate freight and passenger transport

simultaneously on key transport routes.




• The government must provide funding to resolve bottleneck problems on key

transport routes, especially access to ports, airports, and intermodal transport

links.

• The public sector should consider enacting administrative improvements to

freight transfer terminals simultaneously with construction of transport

networks.

• Examine service schedules of component modes comprising multimodal

transport, otherwise time and cost delays will occur.

• Review legal and regulatory consistencies when dealing with cross-border and

transit goods.

• Deliberate a transport system that is neither too complex nor too complicated to

operate in multimodal transport development.

• In multimodal transport development, the information systems used in

management should be developed.

• To develop human resources, attention should be paid to multimodal transport

and logistics management.

• To successfully implement multimodal transport service, the operators have to

consider service opportunities, quality, standard, and most importantly,

reliability.

The government should maximize the utilization of the existing routes and extend more routes in the

future as well as increase the intermodality among the modes. In addition, the government should

integrate both logistics strategic plan and infrastructure development plan since the public sector

is the decision maker and the centralized unit which is relevant to requirements, rules, and

regulations leading to national development and efficient multimodal transport development.

Nonetheless, all relevant agencies should realize the importance of coordination between public

and the private sectors about multimodal transport either in terms of domestic or international level.




88.. FFAACCTTOORRSS IINNFFLLUUEENNCCIINNGG FFRREEIIGGHHTT TTRRAANNSSPPOORRTT MMOODDAALL SSHHIIFFTT

There are many factors that influence transport modal shift, which are composed of characteristics

of consumption demand, value of goods, characteristics of goods, travel distance, etc. They can

be dived into four groups as follows.

Costs during transport chain such as transport costs, damaged costs, etc.

Physical characteristics of cargos such as size of cargoes and packaging

Transport operational characteristics such as frequency and distance of transport

Transport service characteristics such as capacity, timing period, and reliability in

services.

Given these factors, it can be concluded that commodity in group 4, agricultural

products (rice, cassava, and sugar), group 7, rubber, paper and wood furniture, and

group 12, petroleum crude oil and fuel have potentials to shift modes as shown in Table

16.

TTaabbllee 1166:: GGooooddss ccllaassss tthhaatt ccaann aaffffeecctt ttrraannssppoorrtt mmooddaall sshhiifftt

Goods class Production sources Transport mode

options Reason

Group 4:

Agricultural

products (rice,

cassava, and

sugar)

Most production sources

are located in the lower

northern, north-eastern,

and the central regions

Rail, Water

These are the heavy weight products,

but also the important export

products. Each transport has high

volume. The transport from the lower

northern and north-eastern regions

can use the rail transport connecting

to the Laem Chabang port. For the

central region, water transport can be

used for the transport from Phra

Nakhon Sri Ayuttaya and Aung Thong

to Koh Si Chung port.




TTaabbllee 1166:: GGooooddss ccllaassss tthhaatt ccaann aaffffeecctt ttrraannssppoorrtt mmooddaall sshhiifftt ((CCoonntt’’dd))

Goods class Production sources Transport mode

options Reason

Group 7: Rubber,

paper, and wood

furniture

More than 80% of the

production sources are

located in the Southern

region.

Rail, Coastal Rubber from the Southern region,

which is exported to the Laem

Chabang port is being used coastal

transport (approximately 20-25%), rail

transport (approximately 20-25%), and

road t ranspor t ( the rema in ing

approximately 40-50%), For the past five year, cargo transport by coastal

transport has gradually increased and

it is expected that the operation in the

beginning of 2006 will have more

number of ships in service between

Surat Thani and Laem Chabang.

Moreover, rail transport from Surat

Thani has the support of container

y a r d a t B a n T h u n g P o h a n d

connection to the Laem Chabang port. However, the transport costs and

management capabilities are still

needed for the improvements .

Group 12: Petroleum

products

The consumption sources

of this product is

distributed all over the

country and also located

in the distances from

distillery.

Pipe, Rail,

Coarse

This is the dangerous goods, which

requires high security in transport.

Currently, pipeline transport has been

used under 40 percent from its full

capacity. However, in 2005, there were

additional construction of pipeline

alignments between Sri Racha and

Map Ta Put and railway (parallel to

roadway). Hence, these constructions

are helping to increase the chance of

shifting in transport modes.

Source: Consultant group




The data derived from interview with importers and exporters in relation to factors that can

influence transport mode shift, various factors, which users will consider for selecting transport

mode, are derived and presented in Table 17.

TTaabbllee 1177:: UUsseerrss’’ ooppiinniioonn iinn cchhoooossiinngg ttrraannssppoorrtt mmooddee

Transport Mode Reasons for Choosing Transport Mode

Roadway (truck) Safety

Responsibility

Accessibility and connectivity

Flexibility

Reliability

Availability of terminal facilities

Railway Safety

Availability of terminal facilities

Flexibility

Waterway (along river) Level of coordination

Safety

Reliability

Waterway (Coastal) Price

Safety

Time

Airway Time

Responsibility

Reliability


The whole picture, the transport users (road, rail, river and coastal transport) consider safety as first

priority, but for air transport users time is the first priority. In reality, air transport is suitable for

goods, which need short time shipment, and it also has a high safety standard. Therefore, the way

to support rail transport instead of road transport is to adjust the following factors: reliability,

accessibility, time, price, flexibility and relevance facility.




99.. RREECCOOMMMMEENNDDAATTIIOONNSS FFOORR MMUULLTTIIMMOODDAALL TTRRAANNSSPPOORRTT DDEEVVEELLOOPPMMEENNTT

MMUULLTTIIMMOODDAALL TTRRAANNSSPPOORRTT DDEEVVEELLOOPPMMEENNTT

To support multimodal transport by infrastructure development in the future, it should concentrate

on transport mode connection, data management and operation, safety and reliability of

distribution system, and efficiency of cost management. Besides, the capacity of multimodal

transport system will depend on transport area, transport mode, pattern of network, number of

node and distance of transport, type of vehicle, and characteristics of station. Also, containerized

cargo is a factor to support multimodal transport system. There are many advantages of

containerized cargo to support multimodal transport such as transport standard creation, usage

flexibility which can contain many type of products, and high speed of transportation.

The characteristics of multimodal transport could be shown as Figure 17, which has distribution

centers as nodes to link transportation between region and locality.

FFiigguurree 1177:: MMuullttiimmooddaall ttrraannssppoorrtt nneettwwoorrkk

Currently, many organizations may have their own transport division, while complex supply chain

management may hire third party logistics providers (3PL) or fourth party logistics providers (4PL)

to carry out the work. Both groups play an important role in intermodal transport revolution which is




assumed more important in the future. An introduction to door-to-door service takes away users’

concern what mode and route the products will be shipped. The only concern left is the costs and

level of service. This reflects a conflict between service users and service providers. From the

user’s point of view, intermodal transport routes and modes are meaningless and not concerned to

them at all, while from the provider’s point of view shipping routes and modes are very important in

any shipment.

Today, logistics system development in Thailand faces legal problems that hold back practices.

Information from various sources including internet, transport and logistics journals, existing

research findings, private organization conferences, and interviews with relevant parties, suggest

that Thailand has experienced legal problems which do not support logistics system development.

Primary and secondary laws do not exist to support and develop logistics system. Existing laws

only create obstacles to such development and should be amended as follows:

Lack of laws for institutional establishment which can be in form of a juristic council of

logistics providers in order to supervise and unite the country’s logistics system.

The International Road Transport Bill has been completed but is still pending for

enactment.

Laws related to truck height and weight should be revised to match an international

standard.

Another factor that supports multimodal transport system is technology system. The efficiency of IT

by electronic data interchange (EDI) system will replace manual customs system in the future and

this will create information linkage between organizations via electronic means. Other technologies

are as the following.

Container inspection system by container security initiative (CSI) and 24-Hour Rule

measure.

Tracking system demonstration and prevention of international maritime transport

terrorism through Radio Frequency Identification (RFID) Technology via E-seal.

Intelligent transport system i.e. ITS applies information, communication and computer

technologies to transport services in both passenger and freight sectors




Organization and personnel are important elements in compelling efficient multimodal transport.

The concept of organization development involves developing organizational strength in logistics

field, creating connection between organizations, defining responsibility clearly, creating

development machinery, reducing top-down management, and giving the private sector to join and

share operation and development. The personnel element should be provided logistics education

in term of both quality and quantity to meet demand of industrial estates, especially in supply

management groups by concentrating on the development of knowledge, skill, and educational

institutions.

RREECCOOMMMMEENNDDAATTIIOONNSS OOFF CCOONNSSUULLTTAANNTT GGRROOUUPP

11)) TTrruucckk RRoouutteess

The road transport has increased continuously, mainly along with the population growth and

economic expansion which contribute to more consumption and utilization demand. However,

truck transport has experienced several problems. The business operators want trucks to be

fully loaded to reduce transport costs per trip. In real world, trucks carry exceeding load than

allowed loads by regulation while the government cannot monitor and control efficiently. This

causes rapid deterioration of road surface. In addition, overloading negatively affects road

safety and environmental conditions including air and noise pollutions and vibration to roadside

communities. Truck transport is also a concern that is usually mentioned as a cause of traffic

congestion in urban and suburban zones due to its large size and slow movement. The

congestion problem also includes parking for loading and unloading.

An approach to solving these problems is to provide truck route designed with higher

engineering standards so as to accommodate heavy loading and separate normal traffic.

While reviewing studies conducted in other countries, it is found that there are several factors

that are necessary to exclusive truck infrastructure and also some specific criteria for choosing

the appropriate truck routes. These criteria are only initial framework in specifying highway

sections that accommodate sufficient freight transport activities for allocating special transport

pattern with proper benefits to road users. When a section is completed with a feasibility study

it should be conducted in details. Initial criteria include:




•• TTrruucckk vvoolluummee ccrriitteerriioonn

Truck volume will be fundamental criterion for the consideration of highway sections

whether it accommodates sufficient transport density for truck exclusive lanes. The study

uses 10,000 trucks per day as an initial threshold to specify highway capacity.

•• TTrruucckk pprrooppoorrttiioonn iinn ttrraaffffiicc ssttrreeaamm ccrriitteerriioonn

Truck proportion in traffic stream is another factor that can be considered to determine the

need for special freight transport management, because it will affect the traffic condition and

highway maintenance cost. This study hereby uses 20 percent as a criterion for

consideration.

•• HHiigghhwwaayy lleevveell ooff sseerrvviiccee ((LLOOSS)) ccrriitteerriioonn

This study divides levels of service into two categories: highway sections with LOS A, B

and C which are considered non-congested traffic condition, and highway section with

LOS D, E, and F which are considered congested traffic condition.

In addition to the three criteria above, there are at least two other criteria that should be

proposed.

FFiirrsstt ccrriitteerriioonn iiss aa lloonngg ddiissttaannccee ffoorr hhiigghhwwaayyss wwiitthh hhiigghh ttrruucckk ppeerrcceennttaaggee.. Texas

transportation Institute research specifies minimum highway sections that should be

considered at 15 to 20 km.

SSeeccoonndd ccrriitteerriioonn iinnvvoollvveess hhiigghhwwaayy llooccaattiioonn iinn rreellaattiioonn ttoo ttrruucckk pprroodduuccttiioonn//aattttrraaccttiioonn

ssoouurrcceess.. Highway sections connecting production and attraction points are the most

proper route for measures imposition.

For the first analysis by using the above three criteria, it can be concluded that:

It is obvious that some sections of highway should be considered.

The measures should be applied to specific areas in need, but they should not be

applied to the whole system.




Analysis in this regard indicated that the initial area that is suitable for truck routes was

routes along Outer Bangkok and its vicinity ring road and routes around Bangkok with

a distance about 200-250 km.

The analysis suggests that the most appropriate route is Highway No. 7, Bangkok-

Chonburi–Pattaya, especially for Chonburi-Laem Chabang port. However, the DOH is

currently implementing the widening project of this route from 4 lanes to 8 lanes. Thus,

it is unable to implement the truck route on this route. Moreover, the Laem Chabang

port, in the future, will open new terminal phase three. This terminal will sharply raise

container transport volume up, so it has a probability to study on opportunity of a new

highway construction to serve the increasing traffic volume. If due consideration is

given to this study, the criteria for choosing the appropriate truck routes should be a

part of that project too.

In case of the new outer Bangkok ring road, DOH is procuring the consultants to

conduct the feasibility study on this route. Thus, it is possible that the truck route can

be proposed under this project.

Another recommended route suitable for implementing truck route is Bang Pa In–

Saraburi–Nakhon Ratchasima section of Highway No. 1 and 2 as shown in Figure 18.

It is recommended that the detailed study should be conducted and the section

length of 20-50 kilometers is recommended for pilot project.




FFiigguurree 1188:: RReeccoommmmeennddeedd hhiigghhwwaayy sseeccttiioonn ssuuiittaabbllee ffoorr iimmpplleemmeennttaattiioonn ooff ttrruucckk rroouuttee

While analyzing the framework of truck route development for the next 10 year, it is found that there was

a highway network that matches with criteria. However truck route is a component of road transport, in

other words, other factors should be considered such as trucks and articulation type, relevant laws,

organizations, and personnel for the efficiency of road transport development. The conclusions derived

from the analysis are as follows.

11. . IInnffrraassttrruuccttuurree

•• It is recommended that the truck route management, engineering design supporting

the longer combination vehicles (LCVs), and relevant management plan be

considered in undertaking the feasibility study of the new Greater Bangkok Outer Ring

Road with 270 kilometers surrounding Bangkok and its vicinity.




•• It is recommended that the DOH conduct a feasibility study on separated truck

facilities along the highway between Bang Pa In–Saraburi–Nakhon Ratchasima.

Objective of the study should also include the selection and design of the first 20-50

kilometer pilot section.

•• In the future, the new highway of Bangkok-Laem Chabang-Pattaya corridor should be

considered and mainly focused on freight transport.

•• It is recommended that the climbing lane be provided on the mountainous terrain

highway where needed.

•• The weigh-in-motion (WIM) should be provided on highway sections about one

kilometer before the permanent weigh in order to pre-screen the overweight trucks

which can reduce number of trucks going to permanent weigh.

•• It is recommended that the feasibility study of truck route be undertaken on 6-lane-or-

more highway construction or widening projects.

22. . VVeehhiiccllee

•• It is recommended that some types of LCVs (longer combination vehicles), e.g.,

turnpike double, be permitted on the truck routes where the physical structures are

specifically designed.

33. . MMaannaaggeemmeenntt

•• It is recommended that the selective mass regulation for trucks (SMART) be utilized

and enforce the truck operators to install special equipments and register for having

license so that they can be controlled by the authorized agencies.

•• Broaden the application of SMART to cover all types of truck in highway network with

the incentives to truck operators to register and get into the SMART system.

44. . RReegguullaattiioonn

•• Amend relevant regulations such as Land Transport Act, Land Traffic Act, Highway

Act, etc, so that the LCVs can be permitted to use on highways under the suitable

infrastructure conditions and management system.

55. . OOrrggaanniizzaattiioonn aanndd PPeerrssoonnnneell

•• Promote the truck operators to provide incentives for drivers by giving compensations.




22)) DDeevveellooppmmeenntt ooff SSuuppppoorrttiinngg NNeettwwoorrkk ffoorr PPaakk BBaarraa FFrreeiigghhtt TTrraannssppoorrtt

Based on the crucial logistics strategy, i.e., to develop the promising gateway for the global

destination network, the Deep Sea port project on the Andaman coast of Thailand is expected

to be the gateway for import and export between Thailand and the Middle East or Europe. It will

be a gateway for regional products, which will encourage investment and thus regional

economic development as well. The study conducted to find the location for building the port

indicates that the most suitable place in terms of geography, navigability, hydrology, and

environment is located at Khlong Pak Bara, Amphoe La Ngu, Satun province. Moreover, this

location is not far from the main shipping route which traverses across the Malaka Channel. At

present, the Pak Bara port project is included in the 5-year Quick Win Project of Thailand

Logistics Development Master Plan and the project is in the detailed design stage.

To support freight transport through the Pak Bara port as mention above, connecting water

transport to land transport is essential. Currently, the existing road, accessing to Pak Bara is a

2-lane road, which is called Highway No.4052. It is now being improved to be a 4-lane for the

whole length. This road connects Amphoe La Ngu with a distance of 8 Km. Besides the road of

the Department of Highway (DOH), there is a 8 Km. 2-lane paved road under the Department

of Rural Roads (DOR), namely Satun 3003, which connect Highway No. 416 and also has

potential to be used as a bypass of Amphoe La Ngu on Highway No.4052. Currently, there is

no rail access to the Pak Bara port. There are two existing rail routes near the port area which

are Trang line and Hat Yai line. The nearest stations are Trang station of Trang line located at

100 Km. to the north and Kuan Niang station of Hat Yai line located at 110 Km. to the east.

Furthermore, consultant group predicted that major exporting commodities from this port are

rubber, furniture from rubber wood, and sea food and products, including containers from

other regions such as Bangkok, with the forecasted number of export for the year 2025, which

is about 208,000 TEU. Most of importing goods are chemical products and material and

industrial products with the forecasted number of import for the year 2025 is about 19,000 TEU.

Due to the imbalance between export and import volumes, Pak Bara port will encounter the

shortage of containers for export as a common problem, as has been facing by other ports in

the country. Therefore, in order to solve such container shortage problem, there is a tendency

for exporters or freight forwarders to use Pak Bara port as a gateway to import empty

containers. Overall, import and export volumes including importing empty containers for year

2025 is forecasted to be 415,000 TEU.




The study and analysis of the existing transport network around Pak Bara port in order to obtain

basic information for recommending the measures to improve transportation infrastructure for

supporting the development of Pak Bara port found that there are a number of projects for

improving the road network by DOH and DOR, for instance, a project to develop an access

road, namely Satun 3003, to the port by DOR, projects to improve Highway Number 404, 408,

and 416 by DOH, etc. The quality of road network connecting Pak Bara port in terms of

accessibility, road standard and level of services will be high and it should be enough to

support Pak Bara port, if all of these committed projects are finished.

To support the transport via the Pak Bara port, extending rail network to the port is a very

important issue. The merits of rail system are comparatively low transport costs, less pollution and

less accident costs. Besides the target of supporting the goods transport, the extended rail

system will also provide more choices for travelers and thus improve the convenience in traveling

to the passengers. Currently, the State Railway of Thailand (SRT) is interested to extend the train

service to link Pak Bara port. There are three alternative routes for consideration, namely Hat Yai–

Satun route, Trang–Pak Bara route, and Kuan Niang–Satun–Pak Bara route. To select the best

alternative, various factor should be considered, including (1) distance which affects the

construction cost and also travel time and cost of users; (2) route alignment such as gradient,

curvature, etc., which affects the difficulty and cost in construction as well as serviceability, safety

and speed in operation; and (3) accessibility and connectivity, the place where the rail passes

through and the location of stations will have an effect on the volume of passengers. As a

preliminary consideration, this study recommends the Trang–Pak Bara route, because it requires

lowest construction cost and it is the most suitable route for transport between Pak Bara and

other regions of Thailand in terms of distance and travel time, while the Hat Yai–Satun route, and

the Kuan Niang–Satun–Pak Bara route can play the role of land bridges linking the Pak Bara port

on the west coast and the Songkhla port on the east coast of the southern part of Thailand. For

economic aspect, extended rail should be used to accommodate both goods and passenger

trips. Therefore, passengers’ demand between Satun and Songkhla should be taken into account

as one of the major criteria. Moreover, in general, transportation for short distance of less than

200 Km. rail system would not provide economical transportation cost over road system. Another

advantage of the Trang–Pak Bara route is that it can be used for traveling purpose as there are

many tourist places along the Andaman coast.




The recommendation of transport basic infrastructure for supporting Pak Bara port could be

concluded as shown in figure 19 and details are narrated as follows:

RReegguullaattiioonnss rreellaatteedd rreeccoommmmeennddaattiioonnss

Offer tax incentives to importers/exporters who use Pak Bara port.

Use special tariff rates.

Reduce freight charge and handling charge for rail containers.

Provide one-stop services for customs procedures, for example, relevant agencies

provides in-situ officers at the port to reduce coordination time for document works.

Provide a free zone at Pakbara port.

OOrrggaanniizzaattiioonn aanndd hhuummaann rreessoouurrcceess rreellaatteedd rreeccoommmmeennddaattiioonnss

Improve intermodal transport between rail and truck. Promote cooperation between truck

operators and the State Railway of Thailand for intermodal transport service from rail to

port.

Advertise Pakbara port potential to import/export business operators, ship liners, freight

forwarders, general public and relevant agencies.

Provide opportunity for private participation in port management.

OOtthheerrss RReeccoommmmeennddaattiioonn

Promote domestic investment and production, especially in the southern region.

Educate the manufacturers about product quality control and value adding.




FF iigg uu

rr ee 11

99 :: RR

ee ccoo mm

mmee nn

dd eedd

ii nn ff rr aa

ss tt rr uu

cc tt uu rr

ee pp ll a

a nn ss

uu pppp oo

rr tt iinn gg

PPaa kk

BBaa rr

aa pp oo

rr tt




33)) DDeevveellooppmmeenntt SSuuppppoorrttiinngg NNeettwwoorrkk ffoorr RRaannoonngg PPoorrtt

Ranong is one of the provinces which has a coastal area adjacent to the Andaman Sea. It has

high potential to become a container port and gateway of Thailand for exporting goods to the

Indian Ocean. There is a multi-purpose port constructed to cater for 500 DWT vessels. It has

been completed in 2000. However, this port has never been intensely utilized due to physical

limitations, e.g. steep access road to the port and location in mountainous terrain. Also there is

no direct rail access to the port. As a result, the Cabinet approved on 25th March 2003 to let

the port operated by the Port Authority of Thailand (PAT). At present, Ranong port has been

expanded to cater for larger vessels at 12,000 DWT.

From the study of trade potential between Thailand and BIMSTEC (Bangladesh, India,

Myanmar, Sri Lanka, Thailand Economic Cooperation) which use Ranong port as main gateway

between Thailand and BIMSTEC. The exporting cargoes are summarized and presented in

Tables 18 and 19 and in Figures 20 and 21.

TTaabbllee 1188:: PPrroodduuccttiioonn ssoouurrcceess ooff eexxppoorrttss ttoo BBIIMMSSTTEECC vviiaa RRaannoonngg PPoorrtt aanndd rreelleevvaanntt ccoonnttaaiinneerr yyaarrddss

Production sources Region Central provinces

Target products CY/ICD for stuffing /

unstuffing

Northeastern Khon Kaen, Nakhon

Ratchasima

Sugar Tha Phra CY, Khon Kaen and Gutjik CY, Nakhon Ratchasima

Central Samut Prakarn, Cha

Choengsao, Ayutthaya, and

Pathum Thani

Woven fabrics Reception apparatus for

television Parts and accessories of

the motor vehicles Polyacetals

Lat Krabang ICD

Northern Lam Poon Reception apparatus for television

Polyacetals

Sila Art CY, Uttaradit

Western Nakhon Pathom,

Kanchanaburi

Sugar Polyacetals Woven fabrics

Lat Krabang ICD

Southern Nakhon Sri Thammarat Portland Cement (Bulk) Rubber

Ban Thung Pho Junction, Suratthani

Source: Evaluate data by consultant group, 2006




TTaabbllee 1199:: CCoonnssuummppttiioonn bbaasseess ooff iimmppoorrttss ffrroomm BBIIMMSSTTEECC vviiaa RRaannoonngg ppoorrtt aanndd rreelleevvaanntt ccoonnttaaiinneerr yyaarrddss

Consumption bases Region Central province

Target products CY/ICD for stuffing /

unstuffing

Central

Nonthaburi,

Pathumthani, Samut

Prakarn, Ayutthaya,

and Samut Sakhon

Wood and wooden products Copper and copper-made products Semi-finished products of iron Oil cake

Lat Krabang ICD

Northern Lam Phun, Tak Copper and copper-made products Wood and wooden products Chilled and frozen fish

Sila Art CY, Uttaradit

Southern Phuket, Pang Nga Chilled and frozen fish -

Source: Evaluate data by consultant group, 2006

FFiigguurree 20 20:: MMuullttiimmooddaall ttrraannssppoorrtt rroouutteess pprrooppoosseedd ffoorr eexxppoorrttiinngg ccaarrggooeess ffrroomm pprroodduuccttiioonn ssoouurrcceess iinn eeaacchh rreeggiioonn ttoo BBIIMMSSTTEECC vviiaa RRaannoonngg ppoorrtt

Samut Prakarn

Cha Choengsao

Nonthaburi, Patumthani

Khon Kaen

Nakhon Prathom, Kanchanburi

Lamphun

Tha Phra CY

Kut Chik CY

Sila Art CY

Lat Krabang

Laem Chabang

Ranong

Wisai CY

Bang Sue J.

Nakhon Ratchasima

Ban Thung Pho CY BIMSTEC By Road

By Train By Sea

NOT TO SCALE

Legend

Nakhon Sri Thammarat

Ban Phachi J. Ayutthaya

Kaeng Khoi J.

Bua Yai




FFiigguurree 2211:: MMuullttiimmooddaall ttrraannssppoorrtt rroouutteess pprrooppoosseedd ffoorr iimmppoorrttiinngg ccaarrggooeess ffrroomm BBIIMMSSTTEECC ttoo ccoonnssuummppttiioonn bbaasseess iinn eeaacchh rreeggiioonn vviiaa RRaannoonngg ppoorrtt

Besides, the recommendations for infrastructure development comprised with road improvement,

intersection improvement, and entrance enhancement are as shown in Figure 22.

Samut Sakhon, Samut Prakarn

Nonthaburi, Pathumthani

Lamphun

Tha Phra CY

Kut Chik CY

Sila Art CY

Lat Krabang ICD

Laem Chabang Port

Ranong Port

Wisai CY

Bangsue Junction

Ban Thung Pho CY BIMSTEC

By Road By Train By Sea

NOT TO SCALE

Legend

Pang Nga, Phuket

Ban Phachi J. Ayutthaya

Kaeng Khoi J.

Bua Yai Junction

Tak




4

2

1

Ranong Port

Wisai Station

3

5

6

1st Access

2nd Access

7

4

2

1

Ranong Port

Wisai Station

3

5

6

1st Access

2nd Access

1st Access

2nd Access

7

5

6

7

Construction of Interchange at PathomPhon Intersection

DOH

Improvement of BanWisai Nua-Highway No. 41 Intersection

DOH, DOR, Ban Wisai Nua SAO

Improvement of Access Road to Wisai Station

DOR, Ban WisaiNua SAO

1

2

3

4

Improvement of Highway No. 4 (Kraburi – Ranong) DOH

2005-200625 km

Improvement of Rural Road No. 4010

DOR2005-2006

15 km

Improvement of Rural Road No. 3008

DOR2005-2006

4.3 km

Improvement of Rural Road No. 3008 (Ban Wisai Nua –Wang Mai)

DOR200625.8 km

FFiigguurree 2222:: IInnffrraassttrruuccttuurree ddeevveellooppmmeenntt ppllaann ffoorr ssuuppppoorrttiinngg RRaannoonngg ppoorrtt




The consultant group also recommended regulations, and organization and personnel, which are

presented as follows:

RReegguullaattiioonn RReeccoommmmeennddaattiioonn

Apply special tariff rate to encourage shipping lines to use the service and enhance

the competitiveness of Ranong port.

Promote Ranong port as customs free zone (CFZ).

Consider the possibility of establishment of Export Processing Zone (EPZ) for the

production of reception apparatus for television, computer and accessories, electric

cables, bulb, or pipe and copper-made products, and reception apparatus for radio.

OOrrggaanniizzaattiioonn aanndd PPeerrssoonnnneell RReeccoommmmeennddaattiioonn

Coordinate with relevant agencies e.g. the State Railway of Thailand (SRT) and

entrepreneurs etc. to provide multimodal transport service from railway to the Ranong

port.

Make public relation of the Ranong port to public, exporters and importers, shipping

lines, freight forwarders, and other relevant agencies to acknowledge the potential of

the Ranong port and the benefits that the country will gain from the promotion of the

Ranong port to become another important gateway at the Andaman Sea.

Transfer Rural Road No. 4010 (Ban Khao Nang Hong–Ban Namtok) and No. 3008 (Ban

Khao Nang Hong–Ban Sam Lam) to be under the responsibility of the Department of

Highways (DOH) for convenience in the rehabilitation and improvement of highway.

44)) TThhee SSuuppppoorrttiinngg ooff AAuuttoommoobbiillee ttrraannssppoorrtt ffrroomm LLaaeemm CChhaabbaanngg PPoorrtt ttoo tthhee SSoouutthh ooff TThhaaiillaanndd

Songkhla and Surat Thani are most likely to be the distribution points for RoRo (Roll-on Roll-off)

ship as seen from the sales volume of passenger cars and pick-ups within these two

provinces. They are about 1,500–1,800 vehicles per month, 600–800 vehicles of Surat Thanni

and 900–1,000 vehicles of Songkhla, or 350–400 vehicles per week in total. Although the

market share of water transport is aimed at 50 percent, it is still possible to achieve that goal.

The carriers can be divided into two types, i.e., common carrier and exclusive carrier.




As for common carriers, the consultant considered that, at the beginning, the opportunity to carry

automobile by PCC (Pure Car Carrier) ship from Lam Chabang to the South is very risky.

Consultant group commended that, in the beginning, RORO ship should be used. When the market

is steady, PCC ship will then be used to provide the services later. In the first stage, the RoRo ship

should be focused for carrying carriages and containers. The most possible routes, in descending

order, are

Laem Chabang–Songkhla–Laem Chabang (Two trips per week)

Laem Chabang-Surat Thani–Songkhla-Lam Chabang (Two trips per week)

Laem Chabang-Surat Thani–Laem Chabang (2-3 trips per week)

For downstream journey, empty container will be carried to pick up exporting goods, carriage

goods, and automobiles. For upstream, exporting goods will be unloaded at Laem Chabang and

carriage goods. The characteristics of the ship are specified as follows:

TTaabbllee 2200:: TThhee cchhaarraacctteerriissttiiccss ooff tthhee sshhiipp

Port Service Route Laem Chabang -

Surat Thani Laem Chabang –

Surat Thani - Songkhla Laem Chabang -

Songkhla

Maximum Length (m) 90 90 170

Maximum Draft (m) 4 4 7

Speed (Knot) 14 – 16 16 – 18 14 - 16

Ship Capacity (LM)1 400 – 500 400 – 500 500 – 1,000

Deck Clearance2 4.2 4.2 4.2

Minimum Handling Capacity (TEU) 100 100 200

Source: Consultant group 1 Lane Meter (passenger car/pick-up is 5-meter length whereas 18-meter length is for trailer) 2 In case that containers are included

If the long-term transport contract is signed, the carriers may choose to use the PCC ship which

can handle about 100-150 autos with service line between Surat Thani and Songkhla for two trips

per week. The ship should be specified as follows:




Ship capacity 400 – 500 Lane-Meter1

Maximum ship length is 90 meters

Maximum depth is 4.00 meters

Optimum cruising speed is 14 – 16 knot

There are three issues related to problems and obstacles including port, ship provision, and

regulations but the most important one are regulations.

Port: due to limitation of water channel of the Surat Thani port, the small ship must be

provided to suit the channel. In addition, there is a problem of resting area for

automobiles around the Songkhla port which it needs to be located outside the port

instead.

Ship providing: it is difficult to find the RoRo ship that suit water channel of the Surat

Thani port.

Regulations include 2 issues:

FFiirrsstt iissssuuee Custom regulation enforces all the coastal ships wishing to dock at

international port must ask for approval from local custom gate case by case. This

causes risk to entrepreneurs of RoRo navigation which is fixed route coastal

navigation.

SSeeccoonndd iissssuuee The section 47 of Thai Shipping Act allows using rental ship which is not

Thai ship for trading in Thai navigation zone in the pre-defined routes. But each

approval should not last longer than one year. That causes a risk to RORO navigation

entrepreneurs. Also service users need to change transport mode. For entrepreneurs,

this type of service is a long-term regular service which is difficult to find a ship that

suit to market condition and trench. It is then necessary to rent a ship with long-term

contract but allow the returning ship for each year. The service users will also lose

confident in the continuity of the service.

1 Lane-Meter is the area measuring unit used in RoRo ship to indicate the parking length of motor vehicles.




RReeccoommmmeennddaattiioonnss

First issue, the government should relieve or remove the important obstacle of

entrepreneurs including

- Amend the customs regulations regarding to international port docking of

coastal ship to allow automatic docking without approval if coastal ship and

port follow the pre-defined conditions or regulations.

- Amend the section 47 of the Thai Shipping Act to allow non-Thai ship rental that

in coastal trading for longer time period e.g. not over five years by determining

the conditions to allow the trading only in the predefined routes. If offense

occurs, the permit will be cancelled.

Next issue, the government should support by enforcing boosting measures in both

supply and demand of coastal transport simultaneously. To boost the development of

the transport market by this type of ship, the measures that are likely to be effective

and have minimum impacts to market mechanism is tax measures including,

- For the demand side, freight forwarders may include coastal ship fee in the

calculation of expenditure than the one actually paid.

- For supply side, there might be the income tax exempt or reduction for coastal

transport service to coastal navigation entrepreneurs. In addition, coastal navigation

entrepreneurs may be allowed to use some major expenditures (e.g. ship rental; ship

price depreciation) for tax reduction including tax exempt of ship import and

equipment for ship repairing in case of purchasing or importing ships from abroad.

The parking area for automobile requires at least 3 rais which the Government is not

responsible for providing land. But, if there are undeveloped lands nearby the port, the

Government may support this project by giving permission for this activity.

55)) LLooggiissttiiccss CCeenntteerr ffoorr RRiiccee EExxppoorrtt ooff NNaakkhhoonn SSaawwaann PPrroovviinnccee ((RRiiccee HHuubb))

According to the government act as paddy pledgee and also set price higher than market price,

it leads to new situations such as the direct transport, and the increasing of rice mills. Also, rice

that is grinded must be shipped to manufactories around Bangkok for quality improvement.

Besides, the volume of rice at Ta Kaao Gamnan Song is sharply decreased from 238,000 tons in




2003 to 15,850 tons in 2005 (Ta Kaao Gamnan Song is a paddy market, which used to be

middleman to pledge paddy and transport rice to Bangkok and ports by using rail transport in

order to save cost and energy), which enforces Nakhon Sawan province to establish international

multimodal transportation and logistics hub: IMH at Nakhon Sawan province for supporting

Nakhon Sawan province to be a lower northern logistics center of Thailand.

FFiigguurree 2233:: LLooccaattiioonn ooff IIMMHH iinn NNaakkhhoonn SSaawwaann

The general aim of IMH is to be an inland container deport (ICD) or container yard (CY) for

international trade, which has origin at Nakhon Sawan and destination at the Laem Chabang

port. IMH will also provide customs clearance service including inspection and document

service. Additionally, the IMH will operate, the first time, in 2007. At the beginning, IHM will

focus on supporting rice export from this region by improving rice quality at the lower northern

region. In the long run, IMH will acts as logistics center for other commodity from the northern

and northeastern regions such as cassava and furniture. The expected exported rice volume

that will use IMH is following;

1st year (2007): 300,000 Tons or around 14,000 containers,

2nd year (2008): 600,000 Tons or around 28,000 containers,

3rd year (2009): 900,000 Tons or around 42,000 containers,

4th year (2010): 1.2 million Tons or around 56,000 containers,

5th year (2011): 1.5 million Tons or around 70,000 containers.

Decha Tiwong Bridge

Chao Phraya River

To Bangkok

Muang Nakhon

IMH (KSRP)




The development of IMH is shown in Figure 24.

Source: “Feasibility Study on the International Multimodal Hub Project in Nakhon Sawan” by YCL in association with ATI,

Seaport Consultants and Panya Consultants under sponsorship of CIDA, March 2006

FFiigguurree 2244:: DDeevveellooppmmeenntt ffrraammeewwoorrkk ooff IIMMHH

Based on this study, the consultant team could conclude the recommendations for developing

logistics center at lower northern as the following;

IInnffrraassttrruuccttuurree RReeccoommmmeennddaattiioonnss

Highway development plan within 2011 as the following:

1) Construct the northern bypass connecting Highway No. 1-No. 117;

2) Construct the northern bypass connecting Highway No. 117-No. 225 as two lanes with

bridge to cross Nan River and railway;

3) Construct the interchange at the intersection between Highway No. 1 and No. 122

(Ban Nong Tako);

IMH




4) Construct the overbridge at the intersection between the northern bypass and Highway

No. 117 (Ban Don Du);

5) Improve the intersection between Highway No. 1 and No. 117 (Yaek Uttayan Sawan)

as well as improve the clock tower intersection;

6) Construct the northern bypass around the eastern side; and

7) Construct local road connecting IMH.

FFiigguurree 25 25:: TThhee RReeccoommmmeennddaattiioonn ffoorr hhiigghhwwaayy nneettwwoorrkk ddeevveellooppmmeenntt ppllaann ooff NNaakkhhoonn SSaawwaann pprroovviinnccee wwiitthhiinn 22001111

For highway network development plan during 2016-2021 as the following:

1) Widen Highway No. 122 and No. 117 to four lanes;

2) Improve the intersection between Highway No. 1 and No. 225 (Yeak Chum Saeng);

3) Improve the intersection between Highway No. 1 and No. 3001 (Yaek Khai Jiraprawat).




FFiigguurree 26 26:: TThhee RReeccoommmmeennddaattiioonn ffoorr hhiigghhwwaayy nneettwwoorrkk ddeevveellooppmmeenntt ppllaann ooff

NNaakkhhoonn SSaawwaann pprroovviinnccee wwiitthhiinn 22001166

For the other recommendation of infrastructure is the following;

Construct the double tracking railway line for Lopburi–Nakhon Sawan;

SRT should provide sufficient locomotives and carriages for freight transport at IMH

where rail transport demand is expected to be 70,000 TEUs per annum within the 5th

year (2011);

Provide another rail siding within IMH by the 3rd year of IMH’s operation (2009) and

another rail siding by the 5th year (2011);

Install fencing around IMH;

Improve the pavement strength of container yard to support containers and equipment

loads;

Enhance the efficient handling system by providing more units e.g. Toplifter/MT

Stacker/Reach Stacker etc.;

Consider river transport as another choice when the water level at IMH is suitable for

river transport;

Establish the truck terminal nearby IMH which is to be specified in two development

stages. The first stage is within 2011 comprising parking area, petrol station, stuffing

and unstuffing area, warehouses for consumer product storage. The second stage is




after 2015 consisting of truck repairing and inspecting center, truck parts center,

container repairing center and bonded warehouses to cater for future industrial estate

in Nakhon Sawan (if any).

OOrrggaanniizzaattiioonnaall RReeccoommmmeennddaattiioonnss

Establish the Commission of International Multimodal Transportation and Logistics Hub

(CIMH) of which the members are from various concerned agencies.

Allow Ta Kaao Gamnan Song Co. Ltd to be operators of IMH under control of CIMH for

the highest capability.

Marine Department should expand the contract which will end in 2012 to ends in 2027.

Increase the production capacity of the entrepreneurs to cater for purchasing orders of

oversea markets.

Establish the rice quality enhancement factories in Nakhon Sawan. In short run, these

factories may be set up within the area of the large rice mills scattering in several

districts of Nakhon Sawan. In the long run, it is proposed to locate then within IMH area

in order that the container stuffing can be made immediately and the containers are

ready to export.

Support the MOAC to establish the branch office of Rice Department at Nakhon

Sawan. This office will be responsible for full-cycle activities including seed production

center, increasing productivity per rai, harvesting, storage, and research and

development center for product processing.

Supports the MOAC in cooperation with the Ministry of Industry expedite the research

and development of processed products from rice, and concrete research study on

rice nutrition.

RReeccoommmmeennddaattiioonnss oonn HHuummaann RReessoouurrcceess

Make public relation of IMH to the public, entrepreneurs, and relevant agencies to

acknowledge the potential of IMH as well as the benefits which the LNR will gain.

Provide the training for the LNR entrepreneurs to enhance the understanding and

increase the skill in international marketing needed for becoming the exporters. The

local entrepreneurs will learn how to do the marketing and develop their brands to

enter the market on their own.




RREECCOOMMMMEENNDDAATTIIOONNSS OONN MMUULLTTIIMMOODDAALL TTRRAANNSSPPOORRTT SSYYSSTTEEMM

To develop transport system in the future for supporting multimodal transport in order to reduce the

logistics costs as a whole, the rail-oriented and water-oriented transport must be the precursor of

future transport development. Road transport will be the feeder system connecting ICDs with

production and consumption sources since road transport can provide the door-to-door service. It

is recommended that rail network be accessed to all major gateways. The transport network and

multimodal connection points to be developed within 2015 are outlined as follows:

RRooaadd TTrraannssppoorrtt NNeettwwoorrkk DDeevveellooppmmeenntt

The development of road transport network in the future should concentrate on the

implementation of intercity motorway as it is the high efficient transport mode with full control of

access. The top priority motorway routes that should be developed by 2015 are as follows:

•• Pattaya – Map Ta Put route (Eastern route)

•• Bang Pa In – Nakhon Ratchasima (North eastern route)

•• Bang Yai – Ban Pong – Kanchanaburi route (Western route)

•• Ban Pong – Pak Tho – Cha Am route (Southern route)

•• Cha Am – Prachuab Kirikhan – Chumphon route (Southern route)

•• Bang Pa In – Angthong route (Northern route)

•• Widening Bangkok-Chonburi Motorway to 8-lane highway

In addition to intercity motorway network, widening of important highways that connect major

gateways to become four-lane highway is considered as important project within 2015 of which

they are as follows:

•• Four-lane widening of access road to Ranong port including

Highway No. 4 (Chumporn – Ranong section)

•• Four-lane widening of access road to Pakbara port including

Highway No. 404 (Yan Ta Khao – Pa Lian – Yong Star pass)

Highway No. 416 (Pa Lian - Thung Wa - La Ngu – Ban Chalung)




FFiigguurree 2277:: RReeccoommmmeennddeedd ccoonnssttrruuccttiioonn aanndd iimmpprroovveemmeenntt ooff rrooaadd nneettwwoorrkk wwiitthhiinn 22001155




Furthermore, it is recommended that the eastern bypass in Nakhon Sawan be constructed to

reduce the congestion at the Decha Tiwong bridge as well as support the IMH as the logistics

center for rice export which will increase the quantity in agricultural product from the northern

region.

Moreover, to enhance capacity and reduce transport cost of road transport, a feasibility study

should be conducted on tuck route along the highway between Bang Pa-in–Saraburi–Nakhon

Ratchasima by selection and design of the first 20-50 kilometer

pilot section. The reasons are the number of trucks on these

routes are high, and these routes are main road between

northeastern and the Laem Chabamg port. Besides, it should

consider truck route management and engineering design for supporting the longer

combination vehicles (LCVs), and relevant management plan be considered in undertaking the

feasibility study of the new Greater Bangkok Outer Ring Road with 270 km encircling Bangkok

and its vicinity; including consider feasibility of truck route construction or widening lane into 6-

lane-or-more. In the future, consultant group recommends that the new highway of the

Bangkok-Laem Chabang-Pattaya corridor should be considered and mainly focused on freight

transport.

RRaaiillwwaayy TTrraannssppoorrtt NNeettwwoorrkk DDeevveellooppmmeenntt iinn tthhee ffuuttuurree

For the development of railway transport network in the future (within 2015), the consultant

group commends that the government should pay attention on the implementation of double

track in the eastern and southern lines as they link to major ports such as LCP, Ranong port

and Pakbara port together with concentration on providing more carriages and locomotives.

Meanwhile, the development of northeastern and northern railway lines should be focused on

the provision of more carriages and locomotives instead of doubling rail track. It can be

concluded that the railway lines that should be track doubled within 2015 are prioritized as

follows;

•• Kaeng Koi – Chachoeng Sao – Sri Racha – LCP (Eastern Line)

•• Nakhon Pathom – Petchburi – Chumphon – Hat Yai – Padang Besar (Southern Line)

•• Lopburi – Nakhon Sawan route (Northern Line)

•• Mab Kabao – Nakhon Ratchasima route (Northeast Line)




Furthermore, it is also recommended that new track route be built to access into Pak Bara port

(Trang – Amphur La Ngoo) as shown in figure 28. For rail network which connect with South

China require collaboration among China and Myanmar. In long term, this track will be the main

track for freight transport between South China and deep sea ports of Thailand.

However, if SRT still operates the same as usual, the financial status of SRT trend may be

worst. Consequently, SRT might not be able to provide efficient services to meet the

transport demand in the future. Thus, government should be aware by SRT that SRT’s

problem is a national problem.

The following are the ways to resolve problems and to improve service for supporting rail

transport efficiencies.

•• To strengthen SRT’s financial condition, SRT must create awareness of government sector

on liability of SRT and to force government to compensate liability from running business

around 18,000 million baht. Also SRT has to transfer infrastructure liability to government

around 15,000 million baht and handle other loans by one way or another such as transfer

SRT’s land to The Treasury Department about 4,00 million baht.

•• To enforce Public Service Obligation (PSO), Government should takes responsibility for

social service instead of SRT. To restore financial status of SRT, the relationship between

SRT and the government should be improved by using PSO. PSO is a concept that forces

government to take responsibility for social services by defining social rail transport service

and separating capital account of social rail transport service to government in order to

handle social service costs. SRT should be only hireling service provider.

•• The way to improve land of SRT is to let professional manage efficiently for reducing

liability and increasing income of SRT.

•• SRT should set an organization to handle freight transport only or to set an organization for

business such as establish companies for container transport together with adjust service

attitude of employees. When the business is grown, SRT should allow the private sector to

join by using strategic partner in term of investment, service and marketing.

•• SRT should reduce passenger transport around city and increase in freight transport at

nodes around suburb. Also, SRT should concentrate on mass transport such as electric




train project, and bus stations. SRT should clearly define service role to circulate

locomotives for freight transport.

•• SRT should create facilities at nodes and main tracks. SRT also should focus on long term

activities and node development which are short distance transportation within the region.

•• Government should support rail transport to be the main transport in Thailand and raise

role of rail transport up as national to improve logistics system in order to enhance

economic competitiveness and efficiency, to save energy and to protect environment.

Moreover, government should take care of all infrastructure network development same as

road transportation.

•• SRT must prepare rail transport services which are the part of multimodal transport;

including neighboring country connection, especially South China. Neighboring country

connection is a chance strategy for Thailand to increase freight transport through

international ports. Thus SRT should operate as the following:

1) To encourage tracks connection with neighboring countries

2) SRT should collaborates with the Department of Trade Negotiation, The Customs

Department, Department of Land Transport and other relevant agencies for creating

and supporting facility for freight transport within this region (in short run focus on road

transport) by supporting railway transport service usage at border train stations. These

stations should be the centers for packaging, processing, and gathering products (in

long run focus on railway transport)

3) To create market with the private sector by linking rail transport with international ports

of Thailand.




FFiigguurree 2288:: RReeccoommmmeennddeedd ccoonnssttrruuccttiioonn aanndd iimmpprroovveemmeenntt ooff rraaiillwwaayy nneettwwoorrkk wwiitthhiinn 22001155




IInnllaanndd WWaatteerrwwaayy TTrraannssppoorrtt NNeettwwoorrkk DDeevveellooppmmeenntt

The development of inland waterway transport (IWT) network in the future (within 2015) should

pay attention on the implementation of public river ports on the high potential area. These river

ports will be used as the IWT hub and function as ICD which aim at shifting the goods from

water transport to land transport of which efficient handling equipments should be provided.

The potential areas for the IWT hub are Phra Nakhon Sri Ayutthaya (Amphoe Tha Rua) and Ang

Thong (Amphoe Muang). For international transport in the Mekong River, the Chiang Saen,

currently, run full capacity, but there are other option to improve international transport in the

Mekong River by developing Chiang Kong port, and Chiang Saen 2.

CCooaassttaall TTrraannssppoorrtt NNeettwwoorrkk DDeevveellooppmmeenntt

The development of coastal transport network should concentrate on the development and

services of the Laem Chabang port for linking inland water transport in the central and coastal

transport in southern region. The Songkhla port should be increased its’ handling capacity by

supporting the private sector to provide Gantry Cranes. Also the Pakbara port should be

improved to be the gateway to Andaman Sea together with activities behind port such as

industrial estate to attract imported containers. The value addition should be in Thailand before

exporting goods to create transport volume and production. In the long run, the potential areas

at gulf of Thailand side, which have high capability, should be developed to be deep sea port.

Furthermore, the government should encourage RoRo services (Laem Chanbang- Surat Thani

or Laem Chabang- Surat Thani – Songkhla). If the service providers are common carriers, in

the beginning, they should use RoRo ship and concentrate on carrying carriages and

containers. If the long-term transport contract is signed, the carriers may choose to use the

PCC ship which can handle about 100-150 for 2 trips per week.

AAiirr ttrraannssppoorrtt nneettwwoorrkk ddeevveellooppmmeenntt

The development of air transport network should focus on Suvarnabhumi Airport opening in

commercial aspect for making Thailand to be the Center of Air Transport for Asian. Also, it

should implement Chiang Mai and Puket airport development project which has an aim to be

center of Air transport for the respective region. There are many projects to implement for

achieving air transport development such as the container service area expansion project in




order to expand the services to other capital cities around the world, freighter charter flight

project, Thai Airway warehouse construction at the Suvarnabhumi airport project, perishable

logistics center for Asia project, express logistics center project, and TAGS warehouse

construction in custom free zone at the Suvarnabhumi airport project.

PPiippee ttrraannssppoorrtt nneettwwoorrkk ddeevveellooppmmeenntt

Government has the policy to develop Thailand as Energy Center of South East Asia and

define Sri Racha province as oil trading center for the region. Thus, there are two pipeline

transport expansion projects: Northern regional network (Saraburi –Nakhonsawan –Pitsanuloke

– Lumpang) and North-Eastern regional network (Saraburi -Nakhonratchasima- Khonkan).

However, the government should postpone project until next 5-10 years. The reason is,

presently, there is only 30% of total pipelines performance, so it will take some risks, if the

government wants to invest now. The performance of pipeline is expected to be batter, if the

government seriously supports pipeline transport and the oil trading among Thailand, South

China, and Indochina is possible.

MMuullttiimmooddaall CCoonnnneeccttiioonn PPooiinnttss

The efficient multimodal transport depends upon not only the transport network, but also the

connection points enabling shifting from one mode to another. Currently, some of them are

under utilized. The potential connection points that are recommended to improve their

efficiency are as the following.

•• NNaakkhhoonn RRaattcchhaassiimmaa ((vviicciinniittyy ooff KKuutt CChhiikk CCYY))

Nakhon Ratchasima is the important distribution center (DC) of the lower northeastern

region with jasmine rice, cassava, sugar, etc as the major agricultural exports. Currently,

these cargos are containerized and transported by both road and rail from Nakhon

Ratchasima to LCP. Additionally, the Kut Chik railway station has already been developed

as container yard (CY). Therefore, it is recommended that the vicinity of Kut Chik station be

developed as the mode-shifting point between road and rail of freight transport towards

LCP.




•• KKhhoonn KKaaeenn ((vviicciinniittyy ooff TThhaa PPhhrraa CCYY))

Khon Kaen is the freight transport center of the upper northeastern region where the major

agricultural exports are sugar, cassava, etc. Currently, most of those cargos are

containerized and transported by road from Khon Kaen to LCP. Additionally, the Tha Phra

railway station has already been developed as container yard (CY), therefore, it is

recommended that the vicinity of the Tha Phra station be developed as the mode-shifting

point between road and rail of freight transport towards LCP.

•• NNaakkhhoonn SSaawwaann ((vviicciinniittyy ooff KKuummnnuunn SSoonngg RRiiccee PPoorrtt:: KKSSRRPP))

Nakhon Sawan has high potential to be the DC of LNR where white rice and cassava are

the main exports of the region. At present, KSRP can be

accessed efficiently by both road and rail. Therefore, it is

recommended that the vicinity of KSRP be developed as the

mode-shifting point between road and rail of freight transport

towards LCP and Bangkok port.

•• PPhhrraa NNaakkhhoonn SSrrii AAyyuutttthhaayyaa aanndd AAnngg TThhoonngg

It is found that many of the agricultural products from the central and northeastern regions

are currently loaded by truck and unloaded to the barges in the Chao Phraya River in Phra

Nakhon Sri Ayutthaya and Ang Thnong. Those cargos are such as parboiled rice, cassava,

sugar, etc. Consequently, it is undoubtedly recommended that both provinces be the

connection point between road and waterway of bulk cargos in order to transship to the

bigger ship at Koh Si Chang. In the future, it can be developed to become ICD so that it

can facilitate the exporters in terms of customs clearance.

•• CChhuummpphhoonn ((vviicciinniittyy ooff WWiissaaii CCYY))

Ranong Port is positioned as the main gateway of the upper southern region connecting

Thailand and BIMSTEC countries. Currently, there is no railway connection to the port, so, it

is necessary to develop the vicinity of Wisai railway station in Chumphon (the reasons why

this railway station is chosen can be found in the technical report) as CY which functions

as the connecting point between rail and road to support the freight activity of the Ranong

port.




•• SSuurraatt TThhaannii ((vviicciinniittyy ooff BBaann TThhuunngg PPhhoo CCYY))

Surat Thani is ready to be the DC of the southern region since it can be connected by

road, railway and coastal transport modes. Natural rubber is the most important exports of

this region. At present, the Ban Thung Pho railway station has already been developed as

container yard (CY), therefore, it is recommended that the vicinity of the Ban Thung Pho

station be developed as the modal-shifting point between road and rail of freight transport

towards LCP which can enhance the exporting potential of the cargos produced in the

southern region.

•• BBoorrddeerr TTrruucckk TTeerrmmiinnaall

The importance of freight movement along the border has been increasing especially the

influence of the North-South and East-West economic corridor development. It is

necessary to establish the truck terminal at the borderlines in order to function as the

distribution center and facilitate the freight operators in terms of rest area, maintenance

point, and customs clearance. The potential border points are Amphoe Mae Sot, Tak;

Amphoe Maung, Nong Khai; Amphoe Muang, Mukdahan; and Amphoe Chiang Khong,

Chiang Rai where these truck terminals can be developed to become ICD in the future.

TThhee AAnnaallyyssiiss ooff RReeccoommmmeennddaattiioonn

Cube Cargo is used as an analytical approach to calculate results base on the scenarios, which

are set by relevant agencies and consultant’s suggestion. The set of scenario are as follows:

Case I: without project (do nothing)

Case II: with project (subject to the government plan only)

Case III: with project (subject to the government plan and consultant’s suggestion)

Also, the difference between the consultant’s suggestions in case III and case II is case III

proposes to build double tracks for routes which have high traffic volume as shown in figure 29.

While case II proposes to build double tracks only on routes which have high intersections.




FFiigguurree 2929:: RReeccoommmmeennddeedd mmuullttiimmooddaall ccoonnnneeccttiioonn ppooiinnttss




Modal Shift of Freight Transport

It can be concluded that case III is the most viable modal shift of freight transport by

increasing rail transport usage form 2.84% in 2006 to 8.29% in 2016. For water transport

usage is slightly increased which is 10.41% (as shown in Figure 30)

FFiigguurree 3030:: PPrrooppoorrttiioonn ooff ffrreeiigghhtt ttrraannssppoorrtt mmooddaall sshhiifftt

Change in freight transport of prospective cargos

FFiigguurree 3311:: PPrrooppoorrttiioonn ooff pprroossppeeccttiivvee ccaarrggooeess wwiitthh mmooddaall sshhiifftt iinn 22001111

Domestic products 63.44 %

Import-Export Cargos

52 Items 18.37 %

Other import-export Cargos 18.19 %

Import-Export Cargos shifting the transport mode

• Project Case-subject to the government plan only 0.42 %

• Project Case-subject to consultant’s suggestion 0.74 %




In 2005, the total transport volume is about 500 million tons per year. Only 36 percent of the total

volume is shared by the imports, exports and transit cargoes and 64 percent of the total volume is

shared by domestic transport. In the future, if the government can implement projects as

suggested by this study, in 2016, the 52 products will rail and water transport usage and will raises

up around 3.3 percent in the total import-export volume. The goods that have potential to be

transported by train and water instead of truck are rice, rubber, cassava, and sugar. Besides, the

important infrastructure and nodes development that support modal shift is shown in Figure 29

above. The multimodal transport that link with the Laem Chabang port by rail transport will reduce

handling cost by about 30-40 percent when compared with the single mode of transport i.e. road

transport. The products volume, that passes main nodes as recommended, as shown in Table 21,

will force rice, rubber, cassava, and sugar to change mode of transportation, as shown in Figure

32. The important infrastructure and nodes which encourage for modal shift are presented in Table

22.

TTaabbllee 2121:: TThhee vvoolluummee ooff sseelleecctteedd ggooooddss tthhaatt sshhiifftt iinnttoo rraaiill aanndd wwaatteerr ttrraannssppoorrtt iinn 22001166

Product volume (Million-Tons/Year) Selected Products

Case II Case III

Rice 1.13 1.85

Sugar 1.54 2.51

Cassava 0.87 1.43

Rubber 0.13 0.21

Total 3.67 6.00 Source: Consultant group

TTaabbllee 2222:: TThhee eexxppeecctteedd pprroodduucctt vvoolluummee tthhaatt mmiigghhtt ppaassss rreeccoommmmeennddaattiioonn’’ss nnooddeess iinn 22001166

Node Product type Product Volume

(Million-tons/Year)

Surat Thani (vicinity of Ban Thung Pho CY) Cassava 0.2

Phra Nakhon Sri Ayutthaya and Ang Thong Rice, Sugar and Cassava 0.5

Nakhon Sawan (vicinity of Kumnun Song Rice Port:

KSRP)

Rice and Cassava 1.5

Khon Kaen (vicinity of Tha Phra CY) Rice, Sugar and Cassava 1.5

Nakhon Ratchasima (vicinity of Kut Chik CY) Rice, Sugar and Cassava 2.3

Source: consultant group




Rice Sugar

Cassava Rubber

Sign: (Unit: Million-tons/Year)

FFiigguurree 3232:: MMooddaall sshhiifftt ooff rriiccee,, ssuuggaarr,, ccaassssaavvaa aanndd rruubbbbeerr –– ccaassee IIIIII




TTaabbllee 2233:: SSuuggggeessttiioonnss ffoorr mmaaiinn iinnffrraassttrruuccttuurree aanndd iinntteerrmmooddaall ccoonnnneeccttiioonn ddeevveellooppmmeenntt iinn oorrddeerr ttoo ssuuppppoorrtt mmooddaall sshhiifftt

Projects Budget (million baht)

Authorities Rice Cassava Sugar Rubber Modal Shift Supporting Measures

Procurement of 13 electrical locomotives and

284 container bogeys

2,100 SRT road → rail

Maintenance program for 50 locomotives 2,225 SRT road → rail

Track rehabilitation -stage 4, 5, and 6 30,204 SRT road → rail

Double track construction on Lopburi –

Nakhon Sawan section

12,540* SRT road → rail

Double track construction on Map Kabao –

Nakhon Ratchasima


Double track construction on eastern railway

lines, Chachoengsao – Khlong Sibkao –

Kaeng Koi section and construction of chord

lines at Chachoengsao station, Kaeng Koi

junction, and Ban Phachi junction


Double track construction on Chachoengsao

– Sri Racha - Laem Chabang


- The government should support fund for

investment and development (not for

barter trade because of delay and

liability accumulation). - The government should enhance SRT’s

management system to be commercial.

The government also takes responsibility

for social service instead of SRT by using

PSO (Public Service Obligation). - SRT should concentrate on main line

together with improvement of commercial

management. - SRT should collaborate with private

sector to create a pilot transport project

for rice, cassava, sugar and rubber.






Double track construction

- Nakhon Pathom - Nong Pla Duk Junction

- Nong Pla Duk Junction - Petchaburi - Petchaburi – Hua Hin

- Hua Hin - Prachuap Khiri Khan

- Prachuap Khiri Khan - Chumphon - Chumphon - Ban Thung Pho Junction

(Surat Thani)

- Ban Thung Pho Junction - Ban Na (Surat Thani)

- Ban Na (Surat Thani) – Khao Chum Thong

Junction (Nakhon Si Thammarat)

2,970*

11,000*

6,600*

9,833* 18,260*

15,927*

4,070*

16,081*

SRT road → rail - SRT should collaborate with private

sectors, PAT, DLT and MOC to create

market for supporting long haul transport

that link with the Laem Chabang port and

Pakbara port. - Intermodal connection nodes have to be

developed so that they support

multimodal transport. The government is

responsible for location specification,

announcing to public, making public

relation and allowing private sectors to

operate. Infrastructure development for supporting

IMH at Kamnun Song Rice Port, Nakhon

Sawan (Eastern bypass and Local Road to

IMH)

1,069 DLT road → rail - Establish factories with high efficiency rice

improvement in Nakhon Sawan.

- SRT should provide sufficient locomotives

and carriages and reliable timetable

Development of distribution center at Khon

Kaen, and Nakhon Ratchasima

N/A DLT road → rail

Development of distribution center at Surat

Thani

N/A DLT road →

rail, coastal

- The private sectors and the government

should collaborate to create freight transport

database of each commodity and also

create market and announce to public in

each region.

- Offer privileges for service users as the

incentives for modal shift from road transport






Construction of water freight station (river

port) at Phra Nakhon Sri Ayutthaya and Ang

Thong

751 MD road →

inland

waterway

to railway, waterway, and coastal transport.

- Monitor and evaluate the freight transport

data passing connection nodes, and

manage transport system with high

efficiency and low costs. RoRo ship service between Songkhla, Surat

Thani, and Laem Chabang Port

Private

sector's

budget

MD, TMN,

Private

Sector

road →

coastal

- The government and the private sector

should join to solve shortage problem of

RoRo ships. In the short run, the

government should allow the private

organizations, who are experts in transport

management, and marketing to operate

and expand services. Water channel dredging at Surat Thani Port

and Songkhla Port

Depending on

dredging

volume

MD road →

coastal

- Government support budget.


Note : * is the estimate value by consultant team




Project for transport infrastructure action plan in 2006-2017, which has a plan to connect

missing links, creates short cut for transportation, and begins de-bottleneck, has details as

the following.

1. Missing link connection. It will provide links to gateways and destination stations such

as

Project for rail construction linking from Trang province to Pak Bara port.

Project for construction of bridge cross Mae Khong River at Chiang Khong - Huai Sai.

2. Shortcut for transportation. It will reduce time for transport such as

Project for deep sea port development at Pak Bara, Satun province.

Project for Construction of bypass at Satun province.

Project for construction of motorway.

Project for construction of three chord lines at Chachoengsao station, Kaengkhoi

junction, and Ban Phachi junction.

Project to service by RoRo ships between southern region and the Laem Chabang

port.

3. De-bottleneck project. there is a need to de-bottleneck it by increasing routes capacity,

enhancing route physical stock, decreasing intersection between road and road, and

road and rail, and increasing facilities for improving the efficiency of services such as

Project for construction of 4-lane main road.

Project for double tracks.

Project for railway improvement stage 4, 5, and 6.

Project for construction of Flyover at Patompon, Chumphon province.

Project for development of port facility in the Ranong multipurpose port.

Project for development of the Laem Chabang port 2nd stage (Basin 2).

Project for signal system improvement (train transport).

Project for water channel dredging at the Surat Thani port and the Songkhla port.

Project for maintenance of 50 locomotives

Project for construction of freight terminal.

Project to enhance pipeline transport usage.


Development of Multimodal Transport System and Logistics Supply Chain Management for Action Plan Implementation


TTaabbllee 2244:: TTrraannssppoorrtt iinnffrraassttrruuccttuurree aaccttiioonn ppllaann ffoorr tthhee yyeeaarr 22000066 -- 22001155

Project Plan Principle and Rationales Related

Organization Period of

Time

Budget (Million

Baht) 1. New trade lanes to Middle East, Africa, and Europe through Andaman Sea for supporting trade expansion of neighboring countries Pakbara deep seaport development project, Satun province Andaman gateway to South Asia, Middle East and

Europe

MD 2008-2010 9,225

Port facility development in Ranong Multipurpose port Promote Ranong port to be the Andaman gateway PAT 2007-2009 330

Road and rail construction projects linking to Pakbara port

- Highway No. 4137 – Highway No. 406 junction

- Highway No. 4145: Ban Khlong Ngae – Ban Thungtamsao

- Highway No. 416: Ban Chalung – A. La Ngu

- Highway No. 416: A. Palien – A. Thungwa – A. La Ngu - Satun bypass - Preliminary design study of railway construction linking to Pak Bara port, A. La Ngu, Satun

province

To enhance intermodal transport to Pakbara port

To efficiently connect freight transport network to

Pakbara port which is the Andaman gateway

DOH, DOR, SRT

DOH DOH

DOH DOH DOH

SRT

2007-2011

2008-2010

2008-2010

2007-2009

2009-2011

2007-2008

2007

2,600

540

900

200

860

70

30

Road construction linking to Ranong multipurpose port

- Pathomphon interchange, Chumphon province - Highway No. 4: Chumphon – Kraburi section

- Highway No. 4: Kraburi - Ranong section

- Feasibility study for railway construction to Ranong multipurpose port

To facilitate intermodal transport to Ranong port DOH, DOR, SRT

DOH

DOH

DOH

SRT

2005-2009

2007-2009

2007-2009

2008-2010

2008

1,715

300

950

450

15






Time

Budget (Million

Baht) 2. Development of logistics network integration for both domestic and international network

2.1 Increase efficiency of existing main gateways (Laem Chabang port and Suvarnabhumi airport)

Development of the Laem Chabang port 2nd stage (Basin 2) (Berth C0, C1-C2, D1-D3)

To increase potential of main deep seaports and

to be regional and sub-regional center of sea

transport

PAT 2007-2011

N/A

2.2 Development of transport network Double track construction on Chachoengsao – Laem Chabang section Develop and support bulky transport, increase

efficiency of the Laem Chabang port and transport

system from port

SRT 2004-2010 5,235

Double track construction on the eastern railway line, Chachoengsao – Khlong Sibkao –

Kaeng Khoi section and construction of chord lines at Chachoengsao station, Kaeng Khoi junction, and Ban Phachi junction

Increase capacity of roads on section Chachoengsao -

Khlong Sibkao - Kaeng Koi so that rail transport from

northeastern and north region becomes more

convenient and rapid

SRT 2008-2011 7,648

Double track construction on necessary sections - Lopburi – Nakhon Sawan

- Nakhon Pathom - Nong Pla Duk Junction

- Map Kabao – Nakhon Ratchasima

- Kaeng Khoi - Laem Chabang

- Petchaburi – Hua Hin

- Prachuap Khiri Khan - Chumphon

- Ban Thung Pho Junction - Ban Na (Surat Thani)

Reduce delay , increase average speed, and

support railway access to other hubs and spokes

and the Laem Chabang port

SRT 2007-2015

2007-2011

2007-2011

2007-2011

2007-2011

2007-2011

2007-2011

2007-2011

147,551*

12,540*

2,970*

8,910*

19,580*

6,600*

18,260*

4,070*






Time

Budget (Million

Baht)

- Khao Chum Thong Junction - Cha-Uat (Nakhon Si Thammarat)

- Laem Tanot – Ban Ton Don (Phatthalung) - Nong Pla Duk Junction - Petchaburi - Hua Hin - Prachuap Khiri Khan

- Chumphon - Ban Thung Pho Junction (Surat Thani)

- Ban Na (Surat Thani) – Khao Chum Thong Junction (Nakhon Si Thammarat)

- Cha-Uat (Nakhon Si Thammarat) – Laem Tanot (Phatthalung)

- Ban Ton Don (Phatthalung) – Padang Besar

2007-2011

2007-2011

2012-2015

2012-2015

2012-2015

2012-2015

2012-2015

2012-2015

2,750*

3,630*

11,000*

9,833*

15,927*

16,081*

2,640*

12,760* Improvement of railway signaling system Enhance rail operation and reduce accident SRT 2005-2011 13,861 Track rehabilitation- Phase 4, 5 and 6 Strengthen the rail track, which is very old, for

transport safety and punctuality SRT 2006-2011 30,204

Highway construction to support Laem Chabang port and Map Taput port

- Chonburi bypass (Highway No. 3)

- Laem Chabang Industrial Estate interchange (Highway No. 3)

- Junction to Laem Chabang – Highway No. 36 (Highway No. 331)

- Nikom Phattana – Highway No. 344 (Highway No. 3191 & 3245)

- Laem Chabang – Highway No. 331

- Flyover in Amphoe Ban Bueng (Highway No. 344)

- Flyover at Ban Bueng Phattana Junction (Highway No. 344)

- Prachinburi – Kabinburi section 1 (Highway No. 33)

- Kabinburi – Wang Namkeaw (Highway No. 33)

Develop linkage between the Laem Chabang port

and Map Taput port

DOH 2005-2009

2005-2007

2005-2007

2006-2008

2006-2008

2005-2007

2005-2007

2005-2007

2006-2008

2005-2009

10,344

700

200

430

555

671

80

150

700

1,928






Time

Budget (Million

Baht) - Kabinburi – Sra Kaeo

- Sra Kaeo – Aranyaprathet (Highway No. 33)

- Intercity Motorway on Pattaya - Map Taput section (Highway No. 7)

2006-2008

2005-2007

2008-2010

630

200

4,100

Intercity motorway construction

- Bangyai - Nakhon Pathom (Highway No. 81)

- Saraburi - Nakhon Ratchasima (Highway No. 6)

- Nakhon Pathom – Samut Songkham (Highway No. 8)

- Bang Pa In - Saraburi (Highway No. 6)

- Samut Songkhram – Cha-Am (Highway No.8)

- Cha-Am - Chumphon (Highway No.8)

- Nakhon Pathom - Kanchanaburi (Highway No. 81)

- Bang Pa In – Ang Thong (Highway No.5)

- Lampang – Lamphun - Chiangmai (Highway No.5)

- Saraburi - Bangpakong (Highway No.91)

To extend service capability on main road

connected to regional areas DOH 2006-2011

2006-2008

2007-2009

2008-2010

2008-2010

2009-2011

2012-2015

2009-2011

2009-2011

2009-2011

2009-2011

172,560

12,200

20,600

16,000

3,800

18,000

19,550

6,410

12,000

27,500

36,500

Widening of Bangkok – Chonburi intercity motorway for the Suvarnabhumi airport – Chonburi

and Chonburi – Pataya sections (widen to 8 lanes)

Extend future network capability linking to the

Laem Chabang port and the Suvarnabhumi airport DOH 2006-2008 5,600

Four-lane highway widening project (2nd phase)

- Nakhon Sawan - Phitsanulok – Denchai – Phrae – A. Ngao (including Phrae – Nan)

- Mae Sot – Tak – Sukhothai – Phitsanulok – Lomsak – Chumpae - Khon Kaen – Kalasin - Mukdahan

- Saraburi – Petchabun – Lomsak - Loei

- Pinthong - Nakhon Nayok – Prachinburi – Aranyaprathet – Thai-Cambodia Border

- Nakhon Pathom – Suphanburi – Pamok - Saraburi (including Kanchanaburi – Suphanburi)

Linking regional transport and logistics system,

especially in direction of east-west economic and north-south economic corridors

DOH 2006-2011

2007-2011

2006-2011

2006-2011

2006-2011

2007-2011

51,770

3,000

9,310

1,830

1,140

1,950






Time

Budget (Million

Baht) - Nakhon Sawan – Chaiyaphum – Banphai – Mahasarakham - Roi Et – Yasothon - Ubon

Ratchathani – Chong Mek

- Sattahip – Phanom Sarakham - Kabinburi

- Surat Thani - Nakhon Si Thammarat – Songkhla - Hatyai (including Songkhla – Chana)

- Phuket - Phang Nga – Krabi – Trung - Phattalung (including A. Huay Yod - Nakhon Si

Thammarat)

- Loei – Udon Thani – Sakon Nakhon - Nakhon Phanom

- Other route network

2006-2011

2006-2011

2006-2010

2006-2010

2006-2011

2007-2011

7,680

10,040

3,030

3,400

6,260

4,130

Highway construction linking to the Suvarnabhumi airport

- Bang-na – At Narong Expressway (Third Stage Expressway, southern route, section S1)

- Construction of road connecting to passenger terminal of the Suvarnabhumi airport (south)

and Burapha Withi expressway

- Construction of expressway to the Suvarnabhumi airport (section M1-1)

- Construction of expressway, Bangphi – Suksawas section (Bangphi – Bang Khunthien)

- Construction of road, Kingkaew – Rattanakosin 200 years section, Sumut Prakan Province

- Construction of road, Ruam Phattana – Highway No. 34 section, Sumut Prakan Province

To solve traffic problems at Bangna and

neighboring areas and increase convenience and

mobility to travel among Bangkok, Samut Prakhan,

the Suvarnabhumi airport, and eastern region

ETA, DOR

ETA

ETA

ETA

ETA

DOR

DOR

2005-2011

2006-2008

2006-2008

2005-2010

2004-2007

2007-2009

2008-2011

51,397

2,711

2,277

11,624

24,685

1,980

8,120

2.3 Development of freight hub and spoke

Development of distribution center (DC) in Nakhon Sawan (IMH), Khon Kaen, Nakhon

Ratchasima, and Surat Thani

To be the hub and spoke of the northern, north-

eastern, and southern regions

SRT 2007-2009 N/A

Construction of eastern bypass in Nakhon Sawan and local road from the Kamnun Song Rice

port (IMH) to link with eastern bypass To facilitate intermodal transport for international multimodal transportation and logistics hub (IMH)

and reduce traffic problem on Decha Tiwong bridge

DOH 2007-2011 1,069






Time

Budget (Million

Baht) Construction of truck terminal at Mae Sot, Tak province To support Thailand -BIMSTEC trade DLT 2010-2011 N/A

Construction of truck terminal at Chiang Khong, Chiang Rai province To support Thailand - Laos – South China trade DLT 2010-2011 N/A

Construction of truck terminal at Amphoe Muang, Nong Khai province and Amphoe Muang, Mukdahan province

To support Thailand - Laos – Vietnam/South China trade

DLT 2010-2011 N/A

Construction of Mae Khong River bridge at Chiang Khong - Huai Sai To support Thailand - Laos – China trade

(Chiang Rai – Luang Namtha – Kunming)

DLT 2007-2011 N/A

3. Support transport management for energy saving to reduce transport cost in both firm and national levels 3.1 Development of water transport infrastructure

Capability strengthening of Songkhla port by supporting private sector to buying gantry

crane Support for coastal transport and Songkhla port

utilization by increasing handling rate at quay yard Treasury

Department and

Private Sector

2006-2009 N/A

RoRo ship service between southern region and the Laem Chabang port Enhance the coastal transport for automobile and

container on potential route among the Laem

Chabang port – Songkhla port - Surat Thani port

MD, Thai

Maritime

Navigation, and

Private Sector

2007--2008 N/A

Construction of waterway freight station in Phra Nakhon Sri Ayutthaya and Ang Thong Enhance the development of inland waterway

transport among ports in the Chao Phraya River

and Pasak River to Sri Racha port and the Laem

Chabang port, which reduce traffic problems in

Bangkok and its vicinities, including energy saving

MD 2007-2011 751






Time

Budget (Million

Baht) Water channel dredging at the Surat Thani port and the Songkhla port Maintain water channel for ship to navigate

conveniently and safely, as well as support coastal

transport among southern, eastern and central

regions

MD Depend on

water

channel

N/A

3.2 Development of rail transport infrastructure

Procurement of 13 electrical locomotives and 284 container bogeys Enhance the modal shift from road transport to rail

and water transport SRT 2007-2009 2,100

Maintenance program of 50 locomotives To make locomotives adequately and efficiently available for service

SRT 2007-2010 1,863

3.3 Development of road transport infrastructure

Feasibility study for truck route construction, Saraburi - Nakhon Ratchasima section (select 20

– 50 kilometers for pilot section) To develop the convenient freight transport and also

support longer combination vehicles (LCV) for cost

reduction

DOH 2007-2008 N/A

3.4 Development of pipeline transport infrastructure

Encourage pipeline transport for Rayong Refinery, Map Taput -> Lam Lukka -> Saraburi To fully utilize the pipeline transport which

enhances economical transport, reduces energy

consumption, decreases pollution, as well as

lessens traffic congestion from fuel transport by

trucks

Ministry of

Energy, PTT, and

THAPPLINE

2007-2008 N/A


Remark: * primary estimation by consultant




1100.. TTHHEE DDEECCRREEAASSIINNGG LLOOGGIISSTTIICCSS CCOOSSTT

The logistics cost is mostly compared of two levels: macro and micro. In macro level, it is a

comparison of the cost per GDP, which shows the national logistics cost. Nowadays, the logistics

cost per GDP of Thailand is at least 19 percent. In micro level, it is one of the costs per sales, which

will display the industrial logistics cost. The logistics cost per sales of Thailand is around 12.27

percent (not include international transport, retail transport, wholesaler transport in construction

industry and other commodity expect 52 goods) as shown in Figure 33.

Transportation Cost7.8%Inventory Cost

8.8%

Adm inistration Cost2.3%

Logistics cost per GDP (macro level) ≥ 19%

Transportation Cost2.83%

Inventory Cost4.90%

Adm inistration Cost4.54%

Logistics cost (% of sales) (micro level) = 12.27%

FFiigguurree 3333:: LLooggiissttiiccss ccoosstt ooff TThhaaiillaanndd iinn mmaaccrroo aanndd mmiiccrroo lleevveell




The infrastructure development for the multimodal transport as suggested by this study can be

predicted in results that during next 5-years, the logistics per GDP will decrease from 19 percent to

17 percent. For logistics cost per sales will also decrease from 12.27 to 8.71 percent as presented in

figure 34. However, the cost in each industrial group might decrease differently, depending on the

development and management of the individual groups.

FFiigguurree 3344:: MMiiccrroo llooggiissttiiccss ccoosstt ooff tthhee iinndduussttrryy sseeccttoorr iinn TThhaaiillaanndd

iinn 22000066 aanndd 22001111 ((pprreelliimmiinnaarryy))


Notes: Group 1 includes weaving and polyester products

Group 2 includes sea food products

Group 3 includes fruit

Group 4 includes agricultural products

Group 5 includes fertilizer, mineral products, and cement

Group 6 includes the prime substance for plastics and external tires

Group 7 includes rubber, paper, and wood furniture

Group 8 includes steel and aluminum

Group 9 includes machines, vehicles and its components, and moulds

Group 10 includes computers and its components, and transformers

Group 11 includes medical devices, circuit boards, and jewelry

Group 12 includes petroleum crude oil and fuel

Group 13 includes fresh orchids.




1111.. TTHHEE EEFFFFEECCTTSS OONN EECCOONNOOMMIICC CCOOSSTT OOFF TTRRAANNSSPPOORRTT

Based on the economic cost of each transport mode (truck, rail and river/coastal transport) as

presented in table 3, it indicates that the lowest VOC belongs to barge transport cost, i.e., 0.17

baht per ton-km, the highest VOC belongs to truck transport cost, i.e., 0.88 baht per ton-km, and

rail transport cost is at the intermediate figure, i.e., 0.68 baht per ton-km. Besides, the total of

barge transport cost is almost three times higher than its VOC, i.e. the total cost of rail and truck

transport are almost double than their respective VOCs. Such increase is the result of high costs

of intermodal transport and cargo transfer that the barge transport needs. However, the total cost

of barge transport is still the lowest, which is about 0.50 baht per ton-km, while the total cost of

rail transport and truck transport are 1.27 baht per ton-km, and 1.71 baht per ton-km,

respectively.

TTaabbllee 2255:: EEccoonnoommiicc ccoossttss ooff eeaacchh ttrraannssppoorrtt mmooddee ((ccoonnssttaanntt ccoossttss iinn 22000055))

UUnniitt:: BBaahhtt ppeerr ttoonn--kkmm

Truck Rail Barge

Vehicle Operating Cost (VOC) 0.8794 0.6766 0.1731

VOC and other costs including intermodal transport

cost, value of time, handling cost, and pollution cost 1.7076 1.2755 0.4898

Fuel cost 0.4802 0.1029 0.0346


The multimodal transport development that focuses on using rail and barge transport as the main

transport and using truck transport as a substitute will not only reduce the total economic cost, but

also reduce traffic congestion and increase vehicle speed. Moreover, this will make VOC

decreasing because the increasing of vehicle speed will reduce the consumption of gas, time, and

car maintenance cost.

The suggested plan projects of consultant group from this study will decrease VOC of road

transport around 53,000 million baht in 2016 when compared with do nothing case. Also it will

improve vehicle speed from 65 to 73 kilometer per hour. Therefore, the recommendation of

consultant group from this study is able to reduce VOC and also increase vehicle speed.




The freight transport by road, rail and water transport will shows that the total freight transport cost

under recommended case is lower than do-nothing case by decreasing VOC around 1,900 million

baht in 2016. The reason is the double tracks development will reduce the usage of road transport

and increase the usage of rail transport which leads to increase in quantity of cargo (ton-kilometer)

transported by rail from 3.3% in 2005 to 9.7 % in 2016. It also decreases the quantity of cargo (ton-

kilometer) transported by truck from 90% in 2005 to 83% in 2016. However, the quantity of cargo

(ton/kilometer) transported by barge will be remained constant at about 7%.

From the changes above, it shows the improvement of transport efficiency by using the transport

mode which causes lower economic cost and reduces energy consumption. Following this study

recommendation case, it is expected that the fuel costs of transport sector within the next 10 years

will be decreased by 3,900 - 5,200 million baht (or about 4.85%) compared with do-nothing case.

The recommended case will make VOC per unit (ton-km) decrease by 1.5% when compare with do

nothing case. Although 1.5% does not seem a large figure, the recommendation plan is still able to

maintain the same quantity of cargo as do-nothing case, but it is capable of reducing the cost.

Also, the plan will make highway transport more efficient. These offer economic benefits which will

lead to a better result in the general production and investment sectors.

However, the development of multimodal transport system and logistics management by simply

improving basic infrastructure would not reduce logistics costs significantly. It must be supported

by other equally important factors such as law and regulation adjustments, draft law enforcement,

and issue a law. Additionally, logistics electronic market should be developed and be able to link

with relevant system, both government agencies and the private organizations and also allow users

to use these information for making plans for low cost. The important thing is knowledge

improvement and developing human resources to meet the demand in short and long terms.




1122.. TTHHEE IIMMPPLLEEMMEENNTTAATTIIOONN OOFF TTHHEE MMUULLTTIIMMOODDAALL TTRRAANNSSPPOORRTT DDAATTAABBAASSEE SSYYSSTTEEMM

In order to achieve the efficient multimodal transport system development, it should be supported

by factors including reliable and up-to-date database. At this time, there is not a central database

system for planning and management. However, during this study project, the Management

Information System (MIS) and Geographic Information System (GIS) were developed, which allow

interested persons to access database through internet and intranet. The data in this database

comprise the following.

Import-export statistics

Commodity flows

Origin-destination transport statistics

Logistics nodes

GIS

FFiigguurree 3355:: MMuullttiimmooddaall ttrraannssppoorrtt ddaattaabbaassee ssyysstteemm




IImmppoorrtt--EExxppoorrtt SSttaattiissttiiccss

The import-export statistics are the collection of data on import-export goods; including goods

value data, goods weight data and organize in spreadsheet file. The level of data will classify by

harmonize code in four digits. The example of import-export goods data is presented in Figure 36.

FFiigguurree 3366:: TThhee eexxaammppllee ooff iimmppoorrtt--eexxppoorrtt ggooooddss ddaattaa

CCoommmmooddiittyy FFllooww

The commodity flow is the collection of data on selected products and selected commodity flows;

including gateways data, trading country data and the growth rate of selected products date.

Besides, users are able to search goods what they want by choosing product type or gateways

and year. The example is shown in Figure 37.




FFiigguurree 3737:: TThhee EExxaammppllee ooff sseelleecctteedd pprroodduuccttss ddaattaa aanndd sseelleecctteedd ccoommmmooddiittyy fflloowwss..

OOrriiggiinn--DDeessttiinnaattiioonn TTrraannssppoorrtt SSttaattiissttiiccss

These data are annual commodity flow volume of cargos, classified by type, origin and destination

of cargo and related details separated by transport modal choices, i.e. road, rail, river, coastal and

air. The example is shown in Figure 38.




FFiigguurree 3388:: TThhee eexxaammppllee ooff ccoommmmooddiittyy ffllooww vvoolluummee ooff ccaarrggooss ssttaattiissttiiccss bbyy oorriiggiinnss aanndd ddeessttiinnaattiioonnss

LLooggiissttiiccss NNooddeess

These data consist of location, general nodal characteristics as well as service potentials such as

airports, river ports, coastal ports, train stations, truck terminals, customs houses, industrial estates,

warehouses and container freight stations (CFSs). In addition, there are data on volume of cargo

coming in and going out of transport terminals such as annual import/export volumes at airport. The

example is presented in Figure 39.




FFiigguurree 3939:: TThhee eexxaammppllee ooff ttrraannssppoorrtt nnooddeess ddaattaa

GGIISS

The transport database system can link through website to GIS for represent in raster format by

Map Server; consisting of road network, selected products transport routes and geographic

position. The example is shown in Figure 40.

FFiigguurree 4040:: TThhee eexxaammppllee ooff GGIISS




However, this project has started development of the multimodal transport database system, there

were obstacles both on data standard form and data usage while studying project, for example

The way to cluster goods of each institute is different.

The level of data at each statute was not standard (in province level, amphur level and

station).

Time of survey was dissimilar (year and month)

Unit of data was various (ton and container)

To develop central database system with complete usefulness for both the government and the

private sector which relate to transport and logistics, it should develop and adjust database system

to conform and able to use together. This will be useful for the government and the private sector,

especially transport and logistics planners.

1133.. TTEECCHHNNIICCAALL SSUUPPPPOORRTTSS

During this study project, the consultant team had been entrusted by Office of Transport and

Traffic Policy and Planning to deal with reports and manuals that relate to the development of

multimodal transport and logistics management for technical support. This will be useful for the

government agencies and interested people. Reports and documentations from the study are as

follows.

- Demand of Freight Transport Towards Logistics System in Thailand (Thai and English versions)

- The Study of Transport Network and Logistic Facilities Potential in Thailand and Guidelines for

Intermodal Connection (Thai and English versions)

- Technical Papers

1) Intermodal Transport Development for Freight Facilitation of Ranong Multi-Purpose Port

2) Guidelines to Support the Delivery of Motor Vehicles Assembled in the Eastern Seaboard

Industrial Estate by RoRo Ship from Laem Chabang Port to the South of Thailand and Export to

Other Countries

3) Intermodal Transport Development for Freight Facilitation of Pakbara Port in Satun province

4) Incentive Measures of Modal Shift to Waterway, Railway, and Multimodal Transport




5) Development Framework of Truck Route in Thailand

6) Best Practices of Multimodal Transport in Other Countries

7) Development of Multimodal Transport and Logistics Hub in the Lower Northern Region of Thailand

- Final Report (Thai and English versions)

- Executive Summary (Thai and English versions)

- Database User Manual

- Model course manuals for Transport System Management and Multimodal Transport comprises:

1) Instructor’s Manual

2) Learner’s Manual

Additionally, this study project has provided seminars on transport management and multimodal

transport as shown in Table 26.

TTaabbllee 2266:: SSeemmiinnaarr ccoonndduucctteedd ttoo ddiissccuussss tthhee ffiinnddiinnggss ooff tthhee ssttuuddyy aanndd ddiisssseemmiinnaattee tthhee oouuttccoommeess

Seminar Topic Period Location Number of Registers

Demand of freight transport

towards logistics system in

Thailand

5 September

2005

Plaza Athenee Royal

Meridien Hotel

119

The development of network

transport for reserve multimodal

transport

6 January 2006 Office of Transport and

Traffic Policy and Planning

(OTP)

160

Multimodal transport database

system

21 February 2006 OTP 105

Draft final report 3 April 2006 Amari Watergate Hotel 178




1144.. KKNNOOWWLLEEDDGGEE AANNDD TTEECCHHNNOOLLOOGGYY EEDDUUCCAATTIIOONN

To educate, enhance knowledge and create understanding among the people who are involved in

transport management and multimodal transport both in the government and the private sector, the

project provided knowledge and technology education avenues in the form of training and

observation/study trips that are relate to multimodal transportation such as;

River ports (Phra Nakhon Si Ayutthaya province and Ang Thong province) and Ta

Kaao Gam Nan Song (Nakhon Sawan province)

Laem Chabang Port and ICD Latkabang

Ranong Port

Warehouse for air transport

Thai-Laos-Vietnam-China logistics strategic route survey.

Their details of the training courses and study/observation trips are shown in Table 27.

TTaabbllee 2277:: KKnnoowwlleeddggee aanndd tteecchhnnoollooggyy eedduuccaattiioonn

Courses Schedule Location Number of participant

Module Title

ASEAN – JAPAN

Transport Policy

Officials Training

Project

12-25

February

2006

Japan 2 Transport policy in Japan

ASEAN-Japan transport cooperation

EU-East Asia economic cooperation

Railway policy

Transit cargo transport

Port Policy

Air transport policy

Freight transport network of East Asia

Road transport policy

Management system for vehicle

technique in Japan

Japan transportation training project

Japan financial support policy

Warehouse business in Japan

Water transport policy

Experience in freight transport system

development in Asia




TTaabbllee 2277:: KKnnoowwlleeddggee aanndd tteecchhnnoollooggyy eedduuccaattiioonn ((CCoonntt’’dd))


Module Title

Multimodal

Transport and

Logistics

Management

Training

26

February–

5 March

2006

United

State

21 Feasibility study on defining policy and

plan, and managing transport and city

plan of SCAG (Southern California

Association of Governments)

Feasibility study on multimodal transport

and ICD management of LAWA (Los

Angeles World Airport), POLA (Port of

Los Angeles), and POLB (Port of Long

Beach)

Feasibility study on transit cargos and

management system of border trade by

using IT of SANDAG (San Diego

Association of Government)

Feasibility study on Logistics Park,

which private sectors rent in long run

from government for motor industry and

Hi-tech industry

Thai-Laos-

Vietnam-China

logistics strategic

route survey

8-13 May

2006

Thai-Laos-

Vietnam-

China

23 Data exchange in commerce and

transport field

Coordination base on logistics

development strategy

To gather data to analyze transport cost

for revealing current situation and

efficiency

To coordinate and exchange data in

commerce and transport field with Laos,

Vietnam, and China

Training for Trainer

(first course)

24-25

April 2006

OTP 32 Training fundamentals

Multimodal transport

Practical aspects of multimodal

transport

Legal aspects




TTaabbllee 2277:: KKnnoowwlleeddggee aanndd tteecchhnnoollooggyy eedduuccaattiioonn ((CCoonntt’’dd))


Module Title


(second course)

8-9 May

2006




transport

Legal aspects


(third course)

15-16 May

2006




transport

Legal aspects

MIS and GIS

Training

27-28

April 2006

OTP 36 Multimodal transport information system

Geographic information system for

transportation

Cube Cargo

Program Training

17-18 May

2006

OTP 49 Freight transport and transport system

National Model (NAM) and Cube Cargo

Program

How to use Cube Cargo Program

How to apply Cube Cargo Program

preface - otp.go.th · preface “the development of multimodal transport and logistics supply...

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