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THAILAND:
ASEAN’S
LOGISTICS HUB
THAILAND:
ASEAN’S LOGISTICS HUB
Thailand sits in the center of mainland Southeast Asia, bordering Myanmar,
Lao PDR, Cambodia, and Malaysia. It is this central location that makesThailand
well suited to take on the role as ASEAN’s Logistics Hub. Besides bordering
most of the mainland Southeast Asian nations, Thailand has access to the
Mekong River as well as plenty of coastline along the Gulf of Thailand and
Andaman Sea, thus offering logistic opportunities that few, if any, other ASEAN
countries can compete with. Thailand’s share of regional logistics is bound to
grow, especially with its linkage to Cambodia, Lao PDR, and Myanmar, states
whose growing economies are catching the eyes of investors worldwide.
Thailand is one of Southeast Asia’s top performers in the logistics field.
Currently, Thailand ranked 35th out of 160 countries in the World Bank’s
Logistics Performance Index (LPI) and ranked 3rd among ASEAN countries
listed in the index.This is clear evidence thatThailand is competitive at a global
level.
The actual breakdown of Thailand’s score compared to other Southeast Asian
nations provides a more accurate picture of Thailand’s core strengths in
logistics. By examining the breakdown of each component of the World Bank’s
LPI, it is clear that Thailand scores exceptionally well when compared to all
other ASEAN countries and why Thailand is capable of becoming the logistics
hub of ASEAN.
Six Key Concerning Areas of LPI, 2014
Country Customs Infrastructure
International
Shipments
Tracking and
Tracing
Logistics
Quality and
Competence
Timeliness
Singapore 4.01 4.28 3.70 3.90 3.97 4.25
Malaysia 3.37 3.56 3.64 3.58 3.47 3.92
Thailand 3.21 3.40 3.30 3.45 3.29 3.96
Viet Nam 2.81 3.11 3.22 3.19 3.09 3.49
Indonesia 2.87 2.92 2.87 3.11 3.21 3.53
Philippines 3.0 2.60 3.33 3.00 2.93 3.07
Cambodia 2.67 2.58 2.83 2.92 2.67 2.75
Lao PDR 2.45 2.21 2.50 2.20 2.31 2.65
Myanmar 1.97 2.14 2.14 2.36 2.07 2.83
Brunei N/A N/A N/A N/A N/A N/A
Source: World Bank LPI Report 2014 (Score range is 1-5 with 5 being the best possible score)
Thailand’s scores in the next LPI will be higher as government policies
supporting the logistics industry and investment plans aiming to build world
class infrastructure begin to see results.
Singapore
Malaysia
Thailand
Viet Nam
Indonesia
Philippines
Cambodia
Lao PDR
Myanmar
Brunei
0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
Source: World Bank LPI Report 2014
Logistics Performance Index (LPI), 2014
GOVERNMENT POLICIES &
INITIATIVES
Thailand has been actively executing new policies that will transform all
aspects of Thailand’s transportation infrastructure into globally competitive,
first tier systems. The new administration recently passed a new Infrastructure
DevelopmentPlan(2015-2022)worthUS$75billion(THB2.4trillion)torevamp
Thailand’s infrastructure. The targets of this new Infrastructure Development
Plan are illustrated below.
The massive scope of this plan is designed to maximize capacity and
efficiency of every element of Thailand’s national transportation systems.
This infrastructure development plan will greatly benefit logistics providers.
Upgraded railways will expand the capacity of Thailand’s railroads while
minimizing transit durations. Expanded four way highways betweenThailand’s
arteries of commerce will minimize transit times. Expanded seaports will
welcome even greater volumes of cargo as Thailand cements its position as
ASEAN’s logistics hub. Expanded and enhanced airports across Thailand will
increase capacity while upgraded air traffic systems will improve efficiency.
Thailandwillnotonlymaintainitssuperiorpositioninthelogisticsindustry,but
will also guarantee that Thailand will become the premier center for logistics
in Southeast Asia. The chart below depicts Thailand’s Logistics Development
Strategy for achieving the goals listed by 2017. It shows in greater detail how
the 3 missions and 7 strategies will work in harmony to accomplish the above
listed goals of improving competiveness, co-prosperity, and sustainability, as
well as improving overall quality of life in the region.
New Transportation Development Strategies 2015-2022
1. Inter-city rail
network
Railway Road
Network
Mass Transit
in Bangkok &
Vecinity
Water and Air Transport
2. Capacity
enhancement for
highway network to
link with key areas
in the country and
with neighboring
countries
3. Public
transportation
network
development
plan for Bangkok
metropolitan region
4. Air transport
capacity
enhancement
5. Maritime
transport
development
• Upgrade rail
infrastructure
and overall
system
• Build double-
track in 6 main
rails with their
extension to
respecive
borders
• Develop 4 lane-
road networks
linking
Thailand’s
key economic
regions and
border areas
• Construct new
motor ways
• Develop
facilities along
the main roads
such as
container yards
• Extend mass
transit railway
system in
Bangkok and
vicinity
• Improve quality
of service and
safety of mass
transit bus
as well as to
enhance its
environment
standard
• Improve seaport on both Thai gulf and
Andaman sea
• Enhance capacity of airports to be the
regional center of air transportation
• Establish the aviation industial estates
Source: The Office of the National Economic and Social Development Board (NESDB), Aug 2014
Furthermore, below is a chart explaining the Manufacturing Logistics
Development Master Plan (2015-2017). The plan aims to enhance Thailand’s
logistic and supply chain management in order to increase the overall
competitiveness of the manufacturing logistics sector. This plan targets
maximizing efficiencies in the logistics sector, nurturing skilled human capital,
and utilizing technology to make Thailand’s logistics sector more competitive.
The ultimate goal of the plan is for Thailand to increase its competiveness in
the aspects of cost, time, and quality by the year 2017, making it a key driving
force in Southeast Asia logistics.
Source: The Office of the National Economic and Social Development Board (NESDB), Jun 2014
Thailand’s Logistics Development Strategy 2013-2017
Ultimate Goals
Trade Facilitation and Supply Chain Management for Competitiveness
Strategic
Positions
Strategic
Objectives Competitiveness,
Sustainability, and
Quality of life
1. Increase competitiveness in supply chain
management and potential business
3. Develop
transport
services and
logistics
networks
4. Improve
facilitation at
gateways
6. Develop human resource development system
7. Develop monitoring system for self improvement
5. Promote
services
improvement
and expand LSPs
network
2. Promote business related to trade and
services in border town areas
Logistics efficiency and
responsiveness, value creation,
and regional inclusive growth
Trade and service hub
of GMS, and gateway to Asia
Triangle of
Achievement
3 Missions
7 Strategies
Efficiency &
effectiveness
1. Supply chain
competitiveness
1. Strategic plan
2. Issue based
3. Green society
4. Private
paticipation
2. Trade
facilitation
enhancement
3. Capacity
building
and policy
driving factors
Source: Bureau of Logistics, Ministry of Industry, 2014
Manufacturing Logistics Development Master Plan 2013-2017
Thai industries attain efficient logistics and supply chain management with
strong collaboration creating value chain sustainable competitiveness
1. Engender Business Logistics Professional
2. Creating Suppy Chain Competitiveness
1. Industrial logistics cost/GDP is decreased by 15% within the year 2016
2. Efficiency of industrial logistics performance in 3 aspects including cost,
time, and quality is increased 10% by the year 2016
1. Creating logistics management professional in industrial business by
providing consultancy, coaching and training personnel, promoting
technology, and furnishing enhancing
2. Promote collaboration and connectivity throughout the supply chain
with information sharing and linking, and standardization for SC
synchronization alignment
3. Support enabling factors to enhance national SC competitiveness from
upstream suppliers to LSPs with sufficient effective infrastructure and
amended regulations
VISION
OBJECTIVES
GOALS
STRATEGIC
AGENDAS
EXCELLENT
INFRASTRUCTURE
World Class Airport
Thailand’s world class international airports see heavy amounts of traffic due to
Thailand’s central location in ASEAN.With Don Mueang Airport reopened as an
international airport in 2011, along with the world-renowned Suvarnabhumi
InternationalAirport,Bangkokhasseenasignificantincreaseinbothpassenger
movement and aircraft movement volume.These volume increases still do not
account for future expansion plans for both airports that will undoubtedly
allow for even greater volume growth.
According to the Ministry of Transport (MOT), Suvarnabhumi Airport’s
expansion goal is to accommodate 120 million passengers and 6.5 million
tons of cargo per year in the future. Furthermore, to facilitate the movement
of arrival, departure, and transfer freight with less customs regulation, a Free
Zone complex has been established in the northwest area of the airport that
will allow for duty exemption, zero rate value added tax (VAT) calculation,
excise duty exemption, and no time limit for storage in the zone’s warehouse.
For Don Mueang International Airport, Airports of Thailand Public Company
Limited (AOT) under the MOT, expects to expand the airport further
to better serve the rapidly growing volume of passengers and cargo. The
current project consists
of the following: the
modification of Terminal 2
for domestic passengers,
the modification of South
Corridor and Pier 5, the
modification of the car park, the modification
and expansion of the existing domestic terminal, the modification of Pier 6,
the expansion ofTerminal 1 for international passengers, and the modification
of the airport in order to accept an increase of cargo intake.
Thailand’s airport infrastructure will see massive upgrades as a result of the
Infrastructure Development Plan. The following five airports were selected in
the plan for development:
1) Suvarnabhumi Airport
2) Don Mueang Airport
3) Phuket Airport
4) Betong Airport
5) Mae Sot Airport
Besides enhancing airport facilities, the plan is investing in enhancing
Thailand’s airport traffic systems and establishing aviation industrial estates
for the purpose of becoming the regional center for air transportation.
Thailand Aircraft Traffic 2013
Airport
Total Movement % Change from 2012
Passenger
Aircraft
Movement
Passenger
Aircraft
Movement
Chiang Mai 5,172,742 41,295 19.34 16.09
Chiang Rai 1,053,863 6,882 13.77 3.12
Hat Yai 2,465,370 17,056 22.46 17.04
Phuket 10,979,537 70,198 19.85 18.17
Suvarnabhumi &
Don Mueang
66,463,450 423,992 20.65 16.45
Note: Data for fiscal years, Oct 2012 - Sep 2013
Source: Airports of Thailand
Regarding total passenger movement volume, all of Thailand’s airports have
positive growth trends. A combination of factors have led to these positive
growth trends including Thailand’s title as one of the most visited nations
in the world and its role as the hub of commerce for Southeast Asia. Aircraft
movement volume as well has seen positive growth trends across Thailand’s
airports.
Air Cargo
Air Cargo Traffic from 2010-2013
Airport
Total Cargo Throughput (Ton)
2010 2011 2012 2013
Chiang Mai 20,641 20,528 21,480 18,451
Chiang Rai 2,682 3,775 4,893 4,565
Hat Yai 13,464 14,826 16,201 14,773
Phuket 25,921 27,587 31,731 34,032
Suvarnabhumi &
Don Mueang
1,280,271 1,341,352 1,360,879 1,249,340
Note: Data for fiscal years, Oct 2009 – Sep 2013
Source: Airports of Thailand
The information from the Airport
of Thailand’s annual report shows
that from 2010 to 2012, average
cargo volume across Thailand’s
airports saw healthy growth. As
Thailand’s airport infrastructure
continues to be enhanced, air
cargo volume will undoubtedly
see continued healthy growth
as logistics providers take
advantage of state of the art
facilities and newly upgraded
air traffic technology that will
increase efficiency of air cargo
transportation to and from
Thailand.
Excellent Seaports &
Coastal Ports
Thailand has access to the Gulf of Thailand and possesses two major deep sea
ports, Laem Chabang and Map Ta Phut Industrial Port.
The Port of Laem Chabang is Thailand’s largest port, located about 25
kilometers north of Pattaya and south of the city Chon Buri, the port
occupies about 2,572 acres. The port consists of several separate ports
with a total capacity of 11 million TEUs (20 foot equivalent units) and has a
berthing capacity that can accommodate ships weighing up to 50,000 DWT
(deadweight tonnage). The Infrastructure Investment Plan includes a Phase
3 development project for Laem Chabang. The project would expand TEU
capacity to 18 million and accommodate ships weighing over 100,000 DWT.
Besides expanding container capacity and accommodating a new generation
of super-sized container ships, a major roadway is planned that will connect
Laem Chabang Port to Map Ta Phut Industrial Estate.
Map Ta Phut Industrial Port is located on the east coast of the Gulf of
Thailand, about 220 kilometers from Bangkok, and is an industrial harbor
owned by the Industrial Estate Authority of Thailand (IEAT). Map Tap Phut
port is a multi-purpose port that has dedicated facilities for storing gaseous
and liquid chemicals including natural gas and petrochemicals. The port can
accommodate several sizes of ships including ships weighing up to 120,000
DWT. Map Ta Phut Port is composed of two types of berths:
1) Public Berths that are opened to provide services to customers who consist
of Thai Prosperity Terminal Co., Ltd. and Thai Tank Terminal Ltd.
2) Specific Berths, which are only used by investor groups and their customers,
consisting of National Fertilizer Co., Ltd., Rayong BulkTerminal Co., Ltd., Star
Petroleum Refining Public Co., Ltd., PTT Global Chemical Public Co., Ltd.,
Maptaphut Tank Terminal Co., Ltd., GLOW SPP3 Co., Ltd., BLCP Power Co.,
Ltd., PTT LNG Co. Ltd., PTT TANK Co., Ltd, and Rayong Terminal Co., Ltd.
Other than the main deep sea ports, Thailand has a number of
coastal ports that could be assets for logistics applications.
• The Port of Bangkok is located on the Chao Phraya River in the KhlongToei
District of Thailand’s capital city.
• The Port of Chiang Saen is located on the Mekong River in Chiang Rai
Province near the border of Lao PDR in the very north of Thailand. It is
mainly used for trading between Lao PDR, China, and Myanmar.
• The Chiang Kong Port is also located on the bank of the Mekong River in
Chiang Rai, but is much smaller than Chiang Saen. It contains one berth
port with a width of 24 meters and a length of 180 meters.
• ThePortofRanongislocatedontheKraBuriRiver,neartheMyanmar
border, and is the port located nearest to the Indian Ocean. Originally
approved by the Port Authority Thailand in 2003, its purpose is to act
as a cargo hub for the West Indian Ocean and Andaman Sea areas.
Recognizing the importance of seaports in Thailand’s role as ASEAN’s
logistic hub, the Infrastructure Development Plan has targeted
significant enhancement to Thailand’s seaport capabilities. Thailand
will improve its port capabilities in both the Gulf of Thailand and the
Andaman Sea. The plan also calls for building container centers to
maximize container capacity at Thailand’s ports.
Sea Cargo
Sea Cargo Traffic from 2010-2013
Seaport
Total Cargo Throughput (Ton)
2010 2011 2012 2013
Bangkok 17,996,623 18,680,979 17,923,334 21,207,443
Chiang Saen
and Chiang
Khong
134,610 192,249 142,569 365,903
Laem Chabang 52,994,634 60,391,472 64,629,784 66,034,037
Ranong 48,973 42,335 80,207 134,536
Note: Data for fiscal years, Oct 2009 – Sep 2013
Source: Port Authority of Thailand
Information from the Port Authority of Thailand (PAT) shows that shipping
freight volume has seen a significant increase over the past 4 years. From 2010
to 2013 Thailand’s Sea Cargo Traffic had an annual compounded growth rate
of 7%. Thailand’s top tier port facilities and vital role in the global supply chain
have made Thailand a top destination for cargo.
Land Linkages
Road Network
Compared to other mainland Southeast Asian nations, Thailand is more
strategically located for logistics purposes. Thailand is virtually ASEAN’s
crossroad; it shares over 5,500 kilometers of borders with its four neighboring
countries with 30 provinces physically connected to neighboring states.
Myanmar shares the longest land linkage with Thailand, with a total length of
about 2,096 kilometers and borders 10 of Thailand’s provinces in the northern,
central, and southern regions ofThailand.These provinces include: Chiang Rai,
Chiang Mai, Mae Hong Son, and Tak in the North, Kanchanaburi, Ratchaburi,
Phetchaburi, and Prachuap Khiri Khan in the West, and lastly Chumphon and
Ranong in the South.
Lao PDR ranks second in shared land linkage with Thailand, with a total
length of roughly 1,835 kilometers and borders 12 provinces in the Northern
and Northeastern regions. These regions include: Chiang Rai, Phayao, Nan,
Uttaradit, and Phitsanulok in the Northern region, and Loei, Nong Khai, Nakhon
Phanom, Bueng Kan, Mukdahan, Amnat Charoen, and Ubon Ratchathani in
the Northeastern region.
The third longest connection is Cambodia, which shares a length of roughly
803 kilometers with Thailand and borders 7 provinces in the Northeastern and
Eastern regions.
Lastly, Malaysia shares about 506 kilometers with Thailand and borders 4
provinces of the southern region of Thailand, namely Satun, Songkhla,
Narathiwat, and Yala.
ThailandisutilizingitscentrallocationinSoutheastAsiatoconductvariousland
transport development projects with its neighbors to maximize cross border
road freight opportunities. According to the Thailand Development Research
Source: Ministry of Transport & Thailand Development Research Institute, 2014
Current and Extended Road Infrastructure Projects
Thailand
Laos
Viet Nam
China
Myanmar
Malaysia
Cambodia
1
2
3
5
7
8
9
10
11
12
13
21
22
23
14
15
16
17
18
19
20
Thai-Laos (8 projects)
1. Road construction between
Huay-Sai-Luang Naam Tha-Bo
Tent
2. Bridge construction between
Khong River, Chiang Kong
across Huay Sai
3. Road construction between
Huay Kon-Pak Bang
4. Road construction north route
number 13-Sankhalok in Luang
Phra Bang
5. Bridge construction between
Nam Hueng Thali District Loie
Province
6. Road construc tion link
between Ban Wern Tai Pier-
Laos Super Highway route 13
7. Bridge construction over
Khong River 3rd location at
Nakorn Phanom
8. Bridge construction over
Khong River 2nd location at
Mukhdaharn
Thai-Cambodia (3 projects)
9. Road construction route number 67 Chong Sagam-Anlong Veng-Siemreap
10. Road construction route number 68 Chong Chom-Krolan
11. Road construction route number 48 Ko Kong-Srae
Thai-Malaysia (5 projects)
12. Bridge construction across Kolok River at Tak Bai District
13. 2nd Bridge construction between Kolok River at Sungai Kolok District
14. Bridge construction between Kolok River at Ban Bu Ke Ta Waeng
15. Road construction Na Thawee/Baan Prakob/Durian Burung-Alor Setar
16. Road construction Satun Route-Wang Prachan/Wang Klian-Perlis-Ton-Khuansator-Wang
Prachan
Thai-Myanmar (7 projects)
17. Road construction Kanchanaburi route-Tawai-Khon Baan Phu Naam Ron-Thai/Myanmar
border (Baan Mae Ha Mee)
18. Road construction Baan Mae Ha Mee-Tawai
19. Bridge construction Thai-Myanmar Friendship bridge at Mae Sot District, Tak Province
20. Road construction Myawaddy route-Tenasserim Range (Km.18)
21. Road construction Tenasserim Range-Kawkareik
22. Road construction Thai-Myanmar-India route between Kawkareik-Tha Ton
23. Bridge construction over Sai River 2nd location at Mae Sai District, Chiangrai Province
Institute (TDRI), Thailand currently has 23 cross-border land infrastructure
projects in various stages of completion.The following graphic maps out these
23 different projects.
Thailand is not only upgrading cross boarder land infrastructure, the
Infrastructure Development Plan calls for massive upgrades to Thailand’s
highway system. In order to minimize transit time between Bangkok and
other major cities, expanded four - lane highways will be built. Thailand’s Main
Corridor, the major artery of road based commerce, will see 235 projects on 12
major routes spanning 2,162 km.
According to the Ministry of Transport, the road conditions for routes
between Thailand to Myanmar and Thailand to Viet Nam via Cambodia will be
significantly improved in the future to accommodate the continuing growth of
inland truck cargo throughout the region. The map above depicts the Greater
Mekong Sub-Region road networks. By observingThailand’s central location in
every route of the network, one clearly sees that Thailand has the potential to
be the hub for the region’s inland freight transport.
The Greater Mekong Sub Region Road Networks Map
Thailand
Laos
Viet Nam
China
Myanmar
Malaysia
Cambodia
Northern Corridor
North-South Corridor
Western Corridor
East-West Corridor
Eastern Corridor
Central Corridor
Northeastern Corridor
Southern Corridor
Southern Coastal Corridor
Road Freight
Trucking Freight by Main Borders to Neighboring Countries
Imports 2010-2013
Country
Trading
With
Main Border
Thailand Imports (US$)
2010 2011 2012 2013
Cambodia
Aranyaprathet,
Sa Kaeo Province
108,608,141 159,045,414 190,643,806 151,739,083
Lao PDR
Nong Khai,
Nong Khai Province
89,059,344 80,688,156 107,133,969 105,979,688
Malaysia
Sadao,
Songkhla Province
4,224,750,000 4,518,098,750 4,560,661,250 5,454,339,375
Myanmar
Mae Sot,
Tak Province
34,679,594 26,705,656 36,331,594 78,449,688
Note: Data for fiscal years, Oct 2009 – Sep 2013
Source: The Customs Department
Trucking Freight by Main Borders to Neighboring Countries
Exports 2010-2013
Country
Trading
With
Main Border
Thailand Imports (US$)
2010 2011 2012 2013
Cambodia
Aranyaprathet,
Sa Kaeo Province
852,093,662 1,022,767,403 1,300,450,149 948,011,142
Lao PDR
Nong Khai,
Nong Khai Province
1,102,191,750 1,295,939,719 1,860,844,906 1,745,981,250
Malaysia
Sadao,
Songkhla Province
4,607,250,000 5,071,053,438 4,555,694,375 4,237,528,577
Myanmar
Mae Sot,
Tak Province
896,033 546,610 1,061,519 1,295,904
Note: Data for fiscal years, Oct 2009 – Sep 2013
Source: The Customs Department
Trade with Malaysia currently makes up for roughly 20% of all intra-ASEAN
trade for Thailand. Thai-Malay trade has the highest value in terms of imports
and exports compared to the other three bordering countries due to the fact
that Malaysia has a much stronger economy. Thai border trade will continue
to see growth as Thailand’s new road infrastructure makes trucking freight
convenient and cost effective.
Rail Network
Railroad infrastructure development is a key aspect ofThailand’s Infrastructure
Development Plan. Thailand’s provincial railroad network will see upgrades to
its infrastructure and six main rails covering 887 km will become dual track rail
lines. The dual rail infrastructure will enhance the capacity of local trains and
make rail transport a more attractive option for logistics purposes.
The six double-track projects in the Infrastructure Development Plan are:
1) Nakhon Ratchasima – Khon Kaen (185 km)
2) Prachuap Khiri Khan – Chumporn (167 km)
3) Nakhon Pathom – Hua Hin (165 km)
4) Map Ka Bao – Nakhon Ratchasima (132 km)
5) Lop Buri – Nakhon Sawan (148 km)
6) Hua Hin – Prachuap Khiri Khan (90 km)
FURTHER INFORMATION
Thailand Board of Investment (BOI): http://www.boi.go.th
Airport of Thailand Public Company Limited (AOT): www.airportthai.co.th
Department of Civil Aviation (DCA): www.aviation.go.th
Thailand Ministry of Transport (MOT): www.mot.go.th
Thailand Office of the National Economic and Social Development Board:
www.nesdb.go.th
Office of Transport and Traffic Policy and Planning (OTP): www.otp.go.th
Thailand Marine Department: www.md.go.th
Port Authority of Thailand: www.port.co.th
Thailand Customs Department: www.customs.go.th
CONTACT US
HEAD OFFICES
OFFICE OF THE BOARD OF INVESTMENT
555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900
Tel: +66 (0) 2553-8111
Fax: +66 (0) 2553-8316, +66 (0) 2553-8222
Website: www.boi.go.th
Email: head@boi.go.th
ONE START ONE STOP INVESTMENT CENTER (OSOS)
18th
Floor, Chamchuri Square Building,
319 Phayathai Road, Pathumwan, Bangkok 10330
Tel: +66 (0) 2209-1100
Fax: +66 (0) 2209-1199
Website: osos.boi.go.th
Email: osos@boi.go.th
ONE STOP SERVICE CENTER FOR VISAS AND WORK PERMITS
18th
Floor, Chamchuri Square Building,
319 Phayathai Road, Pathumwan, Bangkok 10330
Tel: +66 (0) 2209-1100
Fax: +66 (0) 2209-1194
Email: visawork@boi.go.th
INVESTOR CLUB ASSOCIATION (ICA)
12th
and 16th
Floor, TP&T Building, 1 Soi Vibhavadi-Rangsit 19,
Vibhavadi-Rangsit Road, Lad Yao, Chatuchak, Bangkok 10900
Tel: +66 (0) 2936-1429
Fax: +66 (0) 2936-1441-2
Website: www.ic.or.th
Email: is-investor@ic.or.th
REGIONAL OFFICES
REGIONAL INVESTMENT AND ECONOMIC CENTER 1
CHIANG MAI OFFICE
Airport Business Park 108-110,
90 Mahidol Road, Amphur Muang, Chiang Mai 50100
Tel: +66 (0) 5320 3397-400
Fax: +66 (0) 5320 3404
Email: chmai@boi.go.th
PHITSANULOK OFFICE
3rd
Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Road,
Naimuang, Amphur Muang, Phitsanulok 65000
Tel: +66 (0) 5524-8111
Fax: +66 (0) 5524-8777
Email: phitsanulok@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 2
NAKHON RATCHASIMA
2112/22 Mitraphab Road, Amphur Muang, Nakhon Ratchasima 30000
Tel: +66 (0) 4421 3184-6
Fax: +66 (0) 4421 3182
Email: korat@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 3
KHONKAEN
177/54 Moo 17, Mitraphab Road, Amphur Muang, Khonkaen 40000
Tel: +66 (0) 4327 1300-2
Fax: +66 (0) 4327 1303
Email: khonkaen@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 4
CHONBURI
46 Moo 5 Laem Chabang Industrial Estate, Sukhumvit Road,
Toongsukhla, Sriracha, Chonburi 20230
Tel: +66 (0) 3840 4900
Fax: +66 (0) 3840 4997, +66 (0) 3840 4999
Email: chonburi@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 5
SONGKHLA
7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai, Songkhla 90110
Tel: +66 (0) 7434 7161-5
Fax: +66 (0) 7434 7160
Email: songkhla@boi.go.th
REGIONAL INVESTMENT AND ECONOMIC CENTER 6
SURAT THANI
49/21-22 Sriwichai Road, Makhamtia, Amphur Muang,
Surat Thani 84000
Tel: +66 (0) 7728 4637, +66 (0) 7728 4435
Fax: +66 (0) 7728 4638
Email: surat@boi.go.th
OVERSEAS OFFICES
BEIJING
Thailand Board of Investment, Beijing Office
Royal Thai Embassy, No.40 Guang Hua Road, Beijing 100600 P.R.C.
Tel: +86-10-6532-4510
Fax: +86-10-6532-1620
Email: beijing@boi.go.th
FRANKFURT
Thailand Board of Investment, Frankfurt Office
Investment Section, Royal Thai Consulate-General
Bethmannstr. 58,5.0G
60311 Frankfurt am Main,
Federal Republic of Germany
Tel: +49 (069) 92 91 230
Fax: +49 (069) 92 91 2320
Email: fra@boi.go.th
GUANGZHOU
Thailand Board of Investment, Guangzhou Office
Investment Promotion Section, Royal Thai Consulate-General,
No.36 Youhe Road, Haizhu District, Guangzhou, P.R.C. 510310
Tel: +86-20-8385-8988 Ext. 220-225
+86-20-8387-7770 (Direct line)
Fax: +86-20-8387-2700
Email: guangzhou@boi.go.th
LOS ANGELES
Thailand Board of Investment, Los Angeles Office
Royal Thai Consulate-General, 611 North Larchmont Boulevard,
3rd
Floor, Los Angeles CA 90004, U.S.A.
Tel: +1 (0)-323-960-1199
Fax: +1 (0)-323-960-1190
Email: boila@boi.go.th
MUMBAI
Thailand Board of Investment, Mumbai Office
Express Tower, 12th
Fl., Barrister Rajni Patel Marg,
Nariman Point, Mumbai, Maharashtra 400021
Tel: +(91 22) 2204 1589-90
Fax: +(91 22) 2282 1071
Email: mumbai@boi.go.th
NEW YORK
Thailand Board of Investment, New York Office
7 World Trade Center, 34th
Floor. Suite F,
250 Greenwich Street, New York, New York 10007, U.S.A.
Tel: +1 (0) 212 422 9009
Fax: +1 (0) 212 422 9119
Email: nyc@boi.go.th
Website: www.thinkasiainvestthailand.com
OSAKA
Thailand Board of Investment, Osaka Office
Royal Thai Consulate-General, Bangkok Bank Building, 7th
Floor,
1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan
Tel: +81 (0) 6-6271-1395
Fax: +81 (0) 6-6271-1394
Email: osaka@boi.go.th
PARIS
Thailand Board of Investment, Paris Office
Ambassade Royale de Thaïlande
8, rue Greuze, 75116 Paris, France
Tel: +(33-1) 56 90 26 00
Fax: +(33-1) 56 90 26 02
Email: par@boi.go.th
SEOUL
Thailand Board of Investment, Seoul Office
#1804, 18th
Floor, Koryo Daeyeongak Center,
97 Toegye-ro, Jung-gu, Seoul, 100-706, Korea
Tel: +82-2-319-9998
Fax: +82-2-319-9997
Email: seoul@boi.go.th
SHANGHAI
Thailand Board of Investment, Shanghai Office
Royal Thai Consulate-General, 15th
Floor, Crystal Century Tower,
567 Weihai Road, Shanghai 200041, P.R.C
Tel: +86-21-6288-9728-9
Fax: +86-21-6288-9730
Email: shanghai@boi.go.th
STOCKHOLM
Thailand Board of Investment, Stockholm Office
Stureplan 4C 4th
Floor, 114 35 Stockholm, Sweden
Tel: +46 (0) 8463 1158, +46 (0) 8463 1174-75
Fax: +46 (0) 8463 1160
Email: stockholm@boi.go.th
SYDNEY
Thailand Board of Investment, Sydney Office
234 George Street, Sydney, Suite 101, Level 1,
New South Wales 2000, Australia
Tel: +61-2-9252-4884
Tel: +61-2-9252-4882
Email: sydney@boi.go.th
TAIPEI
Thailand Board of Investment, Taipei Office
Taipei World Trade Center, 3rd
Floor, Room 3E 39-40
No.5 Xin-Yi Road, Sec. 5 Taipei 110, Taiwan R.O.C.
Tel: +886-2-2345-6663
Fax: +886-2-2345-9223
Email: taipei@boi.go.th
TOKYO
Thailand Board of Investment, Tokyo Office
Royal Thai Embassy, 8th
Floor, Fukuda Building West,
2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 Japan
Tel: +81 (0) 3-3582-1806
Fax: +81 (0) 3-3589-5176
Email: tyo@boi.go.th

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Thailand: ASEAN's Logistics Hub Gateway

  • 2. THAILAND: ASEAN’S LOGISTICS HUB Thailand sits in the center of mainland Southeast Asia, bordering Myanmar, Lao PDR, Cambodia, and Malaysia. It is this central location that makesThailand well suited to take on the role as ASEAN’s Logistics Hub. Besides bordering most of the mainland Southeast Asian nations, Thailand has access to the Mekong River as well as plenty of coastline along the Gulf of Thailand and Andaman Sea, thus offering logistic opportunities that few, if any, other ASEAN countries can compete with. Thailand’s share of regional logistics is bound to grow, especially with its linkage to Cambodia, Lao PDR, and Myanmar, states whose growing economies are catching the eyes of investors worldwide. Thailand is one of Southeast Asia’s top performers in the logistics field. Currently, Thailand ranked 35th out of 160 countries in the World Bank’s Logistics Performance Index (LPI) and ranked 3rd among ASEAN countries listed in the index.This is clear evidence thatThailand is competitive at a global level.
  • 3. The actual breakdown of Thailand’s score compared to other Southeast Asian nations provides a more accurate picture of Thailand’s core strengths in logistics. By examining the breakdown of each component of the World Bank’s LPI, it is clear that Thailand scores exceptionally well when compared to all other ASEAN countries and why Thailand is capable of becoming the logistics hub of ASEAN. Six Key Concerning Areas of LPI, 2014 Country Customs Infrastructure International Shipments Tracking and Tracing Logistics Quality and Competence Timeliness Singapore 4.01 4.28 3.70 3.90 3.97 4.25 Malaysia 3.37 3.56 3.64 3.58 3.47 3.92 Thailand 3.21 3.40 3.30 3.45 3.29 3.96 Viet Nam 2.81 3.11 3.22 3.19 3.09 3.49 Indonesia 2.87 2.92 2.87 3.11 3.21 3.53 Philippines 3.0 2.60 3.33 3.00 2.93 3.07 Cambodia 2.67 2.58 2.83 2.92 2.67 2.75 Lao PDR 2.45 2.21 2.50 2.20 2.31 2.65 Myanmar 1.97 2.14 2.14 2.36 2.07 2.83 Brunei N/A N/A N/A N/A N/A N/A Source: World Bank LPI Report 2014 (Score range is 1-5 with 5 being the best possible score) Thailand’s scores in the next LPI will be higher as government policies supporting the logistics industry and investment plans aiming to build world class infrastructure begin to see results. Singapore Malaysia Thailand Viet Nam Indonesia Philippines Cambodia Lao PDR Myanmar Brunei 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Source: World Bank LPI Report 2014 Logistics Performance Index (LPI), 2014
  • 4. GOVERNMENT POLICIES & INITIATIVES Thailand has been actively executing new policies that will transform all aspects of Thailand’s transportation infrastructure into globally competitive, first tier systems. The new administration recently passed a new Infrastructure DevelopmentPlan(2015-2022)worthUS$75billion(THB2.4trillion)torevamp Thailand’s infrastructure. The targets of this new Infrastructure Development Plan are illustrated below. The massive scope of this plan is designed to maximize capacity and efficiency of every element of Thailand’s national transportation systems. This infrastructure development plan will greatly benefit logistics providers. Upgraded railways will expand the capacity of Thailand’s railroads while minimizing transit durations. Expanded four way highways betweenThailand’s arteries of commerce will minimize transit times. Expanded seaports will welcome even greater volumes of cargo as Thailand cements its position as ASEAN’s logistics hub. Expanded and enhanced airports across Thailand will increase capacity while upgraded air traffic systems will improve efficiency. Thailandwillnotonlymaintainitssuperiorpositioninthelogisticsindustry,but will also guarantee that Thailand will become the premier center for logistics in Southeast Asia. The chart below depicts Thailand’s Logistics Development Strategy for achieving the goals listed by 2017. It shows in greater detail how the 3 missions and 7 strategies will work in harmony to accomplish the above listed goals of improving competiveness, co-prosperity, and sustainability, as well as improving overall quality of life in the region. New Transportation Development Strategies 2015-2022 1. Inter-city rail network Railway Road Network Mass Transit in Bangkok & Vecinity Water and Air Transport 2. Capacity enhancement for highway network to link with key areas in the country and with neighboring countries 3. Public transportation network development plan for Bangkok metropolitan region 4. Air transport capacity enhancement 5. Maritime transport development • Upgrade rail infrastructure and overall system • Build double- track in 6 main rails with their extension to respecive borders • Develop 4 lane- road networks linking Thailand’s key economic regions and border areas • Construct new motor ways • Develop facilities along the main roads such as container yards • Extend mass transit railway system in Bangkok and vicinity • Improve quality of service and safety of mass transit bus as well as to enhance its environment standard • Improve seaport on both Thai gulf and Andaman sea • Enhance capacity of airports to be the regional center of air transportation • Establish the aviation industial estates Source: The Office of the National Economic and Social Development Board (NESDB), Aug 2014
  • 5. Furthermore, below is a chart explaining the Manufacturing Logistics Development Master Plan (2015-2017). The plan aims to enhance Thailand’s logistic and supply chain management in order to increase the overall competitiveness of the manufacturing logistics sector. This plan targets maximizing efficiencies in the logistics sector, nurturing skilled human capital, and utilizing technology to make Thailand’s logistics sector more competitive. The ultimate goal of the plan is for Thailand to increase its competiveness in the aspects of cost, time, and quality by the year 2017, making it a key driving force in Southeast Asia logistics. Source: The Office of the National Economic and Social Development Board (NESDB), Jun 2014 Thailand’s Logistics Development Strategy 2013-2017 Ultimate Goals Trade Facilitation and Supply Chain Management for Competitiveness Strategic Positions Strategic Objectives Competitiveness, Sustainability, and Quality of life 1. Increase competitiveness in supply chain management and potential business 3. Develop transport services and logistics networks 4. Improve facilitation at gateways 6. Develop human resource development system 7. Develop monitoring system for self improvement 5. Promote services improvement and expand LSPs network 2. Promote business related to trade and services in border town areas Logistics efficiency and responsiveness, value creation, and regional inclusive growth Trade and service hub of GMS, and gateway to Asia Triangle of Achievement 3 Missions 7 Strategies Efficiency & effectiveness 1. Supply chain competitiveness 1. Strategic plan 2. Issue based 3. Green society 4. Private paticipation 2. Trade facilitation enhancement 3. Capacity building and policy driving factors Source: Bureau of Logistics, Ministry of Industry, 2014 Manufacturing Logistics Development Master Plan 2013-2017 Thai industries attain efficient logistics and supply chain management with strong collaboration creating value chain sustainable competitiveness 1. Engender Business Logistics Professional 2. Creating Suppy Chain Competitiveness 1. Industrial logistics cost/GDP is decreased by 15% within the year 2016 2. Efficiency of industrial logistics performance in 3 aspects including cost, time, and quality is increased 10% by the year 2016 1. Creating logistics management professional in industrial business by providing consultancy, coaching and training personnel, promoting technology, and furnishing enhancing 2. Promote collaboration and connectivity throughout the supply chain with information sharing and linking, and standardization for SC synchronization alignment 3. Support enabling factors to enhance national SC competitiveness from upstream suppliers to LSPs with sufficient effective infrastructure and amended regulations VISION OBJECTIVES GOALS STRATEGIC AGENDAS
  • 6. EXCELLENT INFRASTRUCTURE World Class Airport Thailand’s world class international airports see heavy amounts of traffic due to Thailand’s central location in ASEAN.With Don Mueang Airport reopened as an international airport in 2011, along with the world-renowned Suvarnabhumi InternationalAirport,Bangkokhasseenasignificantincreaseinbothpassenger movement and aircraft movement volume.These volume increases still do not account for future expansion plans for both airports that will undoubtedly allow for even greater volume growth. According to the Ministry of Transport (MOT), Suvarnabhumi Airport’s expansion goal is to accommodate 120 million passengers and 6.5 million tons of cargo per year in the future. Furthermore, to facilitate the movement of arrival, departure, and transfer freight with less customs regulation, a Free Zone complex has been established in the northwest area of the airport that will allow for duty exemption, zero rate value added tax (VAT) calculation, excise duty exemption, and no time limit for storage in the zone’s warehouse. For Don Mueang International Airport, Airports of Thailand Public Company Limited (AOT) under the MOT, expects to expand the airport further to better serve the rapidly growing volume of passengers and cargo. The
  • 7. current project consists of the following: the modification of Terminal 2 for domestic passengers, the modification of South Corridor and Pier 5, the modification of the car park, the modification and expansion of the existing domestic terminal, the modification of Pier 6, the expansion ofTerminal 1 for international passengers, and the modification of the airport in order to accept an increase of cargo intake. Thailand’s airport infrastructure will see massive upgrades as a result of the Infrastructure Development Plan. The following five airports were selected in the plan for development: 1) Suvarnabhumi Airport 2) Don Mueang Airport 3) Phuket Airport 4) Betong Airport 5) Mae Sot Airport Besides enhancing airport facilities, the plan is investing in enhancing Thailand’s airport traffic systems and establishing aviation industrial estates for the purpose of becoming the regional center for air transportation. Thailand Aircraft Traffic 2013 Airport Total Movement % Change from 2012 Passenger Aircraft Movement Passenger Aircraft Movement Chiang Mai 5,172,742 41,295 19.34 16.09 Chiang Rai 1,053,863 6,882 13.77 3.12 Hat Yai 2,465,370 17,056 22.46 17.04 Phuket 10,979,537 70,198 19.85 18.17 Suvarnabhumi & Don Mueang 66,463,450 423,992 20.65 16.45 Note: Data for fiscal years, Oct 2012 - Sep 2013 Source: Airports of Thailand Regarding total passenger movement volume, all of Thailand’s airports have positive growth trends. A combination of factors have led to these positive growth trends including Thailand’s title as one of the most visited nations in the world and its role as the hub of commerce for Southeast Asia. Aircraft movement volume as well has seen positive growth trends across Thailand’s airports.
  • 8. Air Cargo Air Cargo Traffic from 2010-2013 Airport Total Cargo Throughput (Ton) 2010 2011 2012 2013 Chiang Mai 20,641 20,528 21,480 18,451 Chiang Rai 2,682 3,775 4,893 4,565 Hat Yai 13,464 14,826 16,201 14,773 Phuket 25,921 27,587 31,731 34,032 Suvarnabhumi & Don Mueang 1,280,271 1,341,352 1,360,879 1,249,340 Note: Data for fiscal years, Oct 2009 – Sep 2013 Source: Airports of Thailand The information from the Airport of Thailand’s annual report shows that from 2010 to 2012, average cargo volume across Thailand’s airports saw healthy growth. As Thailand’s airport infrastructure continues to be enhanced, air cargo volume will undoubtedly see continued healthy growth as logistics providers take advantage of state of the art facilities and newly upgraded air traffic technology that will increase efficiency of air cargo transportation to and from Thailand. Excellent Seaports & Coastal Ports Thailand has access to the Gulf of Thailand and possesses two major deep sea ports, Laem Chabang and Map Ta Phut Industrial Port. The Port of Laem Chabang is Thailand’s largest port, located about 25 kilometers north of Pattaya and south of the city Chon Buri, the port occupies about 2,572 acres. The port consists of several separate ports with a total capacity of 11 million TEUs (20 foot equivalent units) and has a berthing capacity that can accommodate ships weighing up to 50,000 DWT (deadweight tonnage). The Infrastructure Investment Plan includes a Phase 3 development project for Laem Chabang. The project would expand TEU capacity to 18 million and accommodate ships weighing over 100,000 DWT. Besides expanding container capacity and accommodating a new generation of super-sized container ships, a major roadway is planned that will connect Laem Chabang Port to Map Ta Phut Industrial Estate.
  • 9. Map Ta Phut Industrial Port is located on the east coast of the Gulf of Thailand, about 220 kilometers from Bangkok, and is an industrial harbor owned by the Industrial Estate Authority of Thailand (IEAT). Map Tap Phut port is a multi-purpose port that has dedicated facilities for storing gaseous and liquid chemicals including natural gas and petrochemicals. The port can accommodate several sizes of ships including ships weighing up to 120,000 DWT. Map Ta Phut Port is composed of two types of berths: 1) Public Berths that are opened to provide services to customers who consist of Thai Prosperity Terminal Co., Ltd. and Thai Tank Terminal Ltd. 2) Specific Berths, which are only used by investor groups and their customers, consisting of National Fertilizer Co., Ltd., Rayong BulkTerminal Co., Ltd., Star Petroleum Refining Public Co., Ltd., PTT Global Chemical Public Co., Ltd., Maptaphut Tank Terminal Co., Ltd., GLOW SPP3 Co., Ltd., BLCP Power Co., Ltd., PTT LNG Co. Ltd., PTT TANK Co., Ltd, and Rayong Terminal Co., Ltd. Other than the main deep sea ports, Thailand has a number of coastal ports that could be assets for logistics applications. • The Port of Bangkok is located on the Chao Phraya River in the KhlongToei District of Thailand’s capital city. • The Port of Chiang Saen is located on the Mekong River in Chiang Rai Province near the border of Lao PDR in the very north of Thailand. It is mainly used for trading between Lao PDR, China, and Myanmar. • The Chiang Kong Port is also located on the bank of the Mekong River in Chiang Rai, but is much smaller than Chiang Saen. It contains one berth port with a width of 24 meters and a length of 180 meters.
  • 10. • ThePortofRanongislocatedontheKraBuriRiver,neartheMyanmar border, and is the port located nearest to the Indian Ocean. Originally approved by the Port Authority Thailand in 2003, its purpose is to act as a cargo hub for the West Indian Ocean and Andaman Sea areas. Recognizing the importance of seaports in Thailand’s role as ASEAN’s logistic hub, the Infrastructure Development Plan has targeted significant enhancement to Thailand’s seaport capabilities. Thailand will improve its port capabilities in both the Gulf of Thailand and the Andaman Sea. The plan also calls for building container centers to maximize container capacity at Thailand’s ports. Sea Cargo Sea Cargo Traffic from 2010-2013 Seaport Total Cargo Throughput (Ton) 2010 2011 2012 2013 Bangkok 17,996,623 18,680,979 17,923,334 21,207,443 Chiang Saen and Chiang Khong 134,610 192,249 142,569 365,903 Laem Chabang 52,994,634 60,391,472 64,629,784 66,034,037 Ranong 48,973 42,335 80,207 134,536 Note: Data for fiscal years, Oct 2009 – Sep 2013 Source: Port Authority of Thailand Information from the Port Authority of Thailand (PAT) shows that shipping freight volume has seen a significant increase over the past 4 years. From 2010 to 2013 Thailand’s Sea Cargo Traffic had an annual compounded growth rate of 7%. Thailand’s top tier port facilities and vital role in the global supply chain have made Thailand a top destination for cargo. Land Linkages Road Network Compared to other mainland Southeast Asian nations, Thailand is more strategically located for logistics purposes. Thailand is virtually ASEAN’s crossroad; it shares over 5,500 kilometers of borders with its four neighboring countries with 30 provinces physically connected to neighboring states. Myanmar shares the longest land linkage with Thailand, with a total length of about 2,096 kilometers and borders 10 of Thailand’s provinces in the northern, central, and southern regions ofThailand.These provinces include: Chiang Rai, Chiang Mai, Mae Hong Son, and Tak in the North, Kanchanaburi, Ratchaburi, Phetchaburi, and Prachuap Khiri Khan in the West, and lastly Chumphon and Ranong in the South.
  • 11. Lao PDR ranks second in shared land linkage with Thailand, with a total length of roughly 1,835 kilometers and borders 12 provinces in the Northern and Northeastern regions. These regions include: Chiang Rai, Phayao, Nan, Uttaradit, and Phitsanulok in the Northern region, and Loei, Nong Khai, Nakhon Phanom, Bueng Kan, Mukdahan, Amnat Charoen, and Ubon Ratchathani in the Northeastern region. The third longest connection is Cambodia, which shares a length of roughly 803 kilometers with Thailand and borders 7 provinces in the Northeastern and Eastern regions. Lastly, Malaysia shares about 506 kilometers with Thailand and borders 4 provinces of the southern region of Thailand, namely Satun, Songkhla, Narathiwat, and Yala. ThailandisutilizingitscentrallocationinSoutheastAsiatoconductvariousland transport development projects with its neighbors to maximize cross border road freight opportunities. According to the Thailand Development Research
  • 12. Source: Ministry of Transport & Thailand Development Research Institute, 2014 Current and Extended Road Infrastructure Projects Thailand Laos Viet Nam China Myanmar Malaysia Cambodia 1 2 3 5 7 8 9 10 11 12 13 21 22 23 14 15 16 17 18 19 20 Thai-Laos (8 projects) 1. Road construction between Huay-Sai-Luang Naam Tha-Bo Tent 2. Bridge construction between Khong River, Chiang Kong across Huay Sai 3. Road construction between Huay Kon-Pak Bang 4. Road construction north route number 13-Sankhalok in Luang Phra Bang 5. Bridge construction between Nam Hueng Thali District Loie Province 6. Road construc tion link between Ban Wern Tai Pier- Laos Super Highway route 13 7. Bridge construction over Khong River 3rd location at Nakorn Phanom 8. Bridge construction over Khong River 2nd location at Mukhdaharn Thai-Cambodia (3 projects) 9. Road construction route number 67 Chong Sagam-Anlong Veng-Siemreap 10. Road construction route number 68 Chong Chom-Krolan 11. Road construction route number 48 Ko Kong-Srae Thai-Malaysia (5 projects) 12. Bridge construction across Kolok River at Tak Bai District 13. 2nd Bridge construction between Kolok River at Sungai Kolok District 14. Bridge construction between Kolok River at Ban Bu Ke Ta Waeng 15. Road construction Na Thawee/Baan Prakob/Durian Burung-Alor Setar 16. Road construction Satun Route-Wang Prachan/Wang Klian-Perlis-Ton-Khuansator-Wang Prachan Thai-Myanmar (7 projects) 17. Road construction Kanchanaburi route-Tawai-Khon Baan Phu Naam Ron-Thai/Myanmar border (Baan Mae Ha Mee) 18. Road construction Baan Mae Ha Mee-Tawai 19. Bridge construction Thai-Myanmar Friendship bridge at Mae Sot District, Tak Province 20. Road construction Myawaddy route-Tenasserim Range (Km.18) 21. Road construction Tenasserim Range-Kawkareik 22. Road construction Thai-Myanmar-India route between Kawkareik-Tha Ton 23. Bridge construction over Sai River 2nd location at Mae Sai District, Chiangrai Province Institute (TDRI), Thailand currently has 23 cross-border land infrastructure projects in various stages of completion.The following graphic maps out these 23 different projects.
  • 13. Thailand is not only upgrading cross boarder land infrastructure, the Infrastructure Development Plan calls for massive upgrades to Thailand’s highway system. In order to minimize transit time between Bangkok and other major cities, expanded four - lane highways will be built. Thailand’s Main Corridor, the major artery of road based commerce, will see 235 projects on 12 major routes spanning 2,162 km. According to the Ministry of Transport, the road conditions for routes between Thailand to Myanmar and Thailand to Viet Nam via Cambodia will be significantly improved in the future to accommodate the continuing growth of inland truck cargo throughout the region. The map above depicts the Greater Mekong Sub-Region road networks. By observingThailand’s central location in every route of the network, one clearly sees that Thailand has the potential to be the hub for the region’s inland freight transport. The Greater Mekong Sub Region Road Networks Map Thailand Laos Viet Nam China Myanmar Malaysia Cambodia Northern Corridor North-South Corridor Western Corridor East-West Corridor Eastern Corridor Central Corridor Northeastern Corridor Southern Corridor Southern Coastal Corridor
  • 14. Road Freight Trucking Freight by Main Borders to Neighboring Countries Imports 2010-2013 Country Trading With Main Border Thailand Imports (US$) 2010 2011 2012 2013 Cambodia Aranyaprathet, Sa Kaeo Province 108,608,141 159,045,414 190,643,806 151,739,083 Lao PDR Nong Khai, Nong Khai Province 89,059,344 80,688,156 107,133,969 105,979,688 Malaysia Sadao, Songkhla Province 4,224,750,000 4,518,098,750 4,560,661,250 5,454,339,375 Myanmar Mae Sot, Tak Province 34,679,594 26,705,656 36,331,594 78,449,688 Note: Data for fiscal years, Oct 2009 – Sep 2013 Source: The Customs Department Trucking Freight by Main Borders to Neighboring Countries Exports 2010-2013 Country Trading With Main Border Thailand Imports (US$) 2010 2011 2012 2013 Cambodia Aranyaprathet, Sa Kaeo Province 852,093,662 1,022,767,403 1,300,450,149 948,011,142 Lao PDR Nong Khai, Nong Khai Province 1,102,191,750 1,295,939,719 1,860,844,906 1,745,981,250 Malaysia Sadao, Songkhla Province 4,607,250,000 5,071,053,438 4,555,694,375 4,237,528,577 Myanmar Mae Sot, Tak Province 896,033 546,610 1,061,519 1,295,904 Note: Data for fiscal years, Oct 2009 – Sep 2013 Source: The Customs Department Trade with Malaysia currently makes up for roughly 20% of all intra-ASEAN trade for Thailand. Thai-Malay trade has the highest value in terms of imports and exports compared to the other three bordering countries due to the fact that Malaysia has a much stronger economy. Thai border trade will continue to see growth as Thailand’s new road infrastructure makes trucking freight convenient and cost effective.
  • 15. Rail Network Railroad infrastructure development is a key aspect ofThailand’s Infrastructure Development Plan. Thailand’s provincial railroad network will see upgrades to its infrastructure and six main rails covering 887 km will become dual track rail lines. The dual rail infrastructure will enhance the capacity of local trains and make rail transport a more attractive option for logistics purposes. The six double-track projects in the Infrastructure Development Plan are: 1) Nakhon Ratchasima – Khon Kaen (185 km) 2) Prachuap Khiri Khan – Chumporn (167 km) 3) Nakhon Pathom – Hua Hin (165 km) 4) Map Ka Bao – Nakhon Ratchasima (132 km) 5) Lop Buri – Nakhon Sawan (148 km) 6) Hua Hin – Prachuap Khiri Khan (90 km) FURTHER INFORMATION Thailand Board of Investment (BOI): http://www.boi.go.th Airport of Thailand Public Company Limited (AOT): www.airportthai.co.th Department of Civil Aviation (DCA): www.aviation.go.th Thailand Ministry of Transport (MOT): www.mot.go.th Thailand Office of the National Economic and Social Development Board: www.nesdb.go.th Office of Transport and Traffic Policy and Planning (OTP): www.otp.go.th Thailand Marine Department: www.md.go.th Port Authority of Thailand: www.port.co.th Thailand Customs Department: www.customs.go.th
  • 16. CONTACT US HEAD OFFICES OFFICE OF THE BOARD OF INVESTMENT 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900 Tel: +66 (0) 2553-8111 Fax: +66 (0) 2553-8316, +66 (0) 2553-8222 Website: www.boi.go.th Email: head@boi.go.th ONE START ONE STOP INVESTMENT CENTER (OSOS) 18th Floor, Chamchuri Square Building, 319 Phayathai Road, Pathumwan, Bangkok 10330 Tel: +66 (0) 2209-1100 Fax: +66 (0) 2209-1199 Website: osos.boi.go.th Email: osos@boi.go.th ONE STOP SERVICE CENTER FOR VISAS AND WORK PERMITS 18th Floor, Chamchuri Square Building, 319 Phayathai Road, Pathumwan, Bangkok 10330 Tel: +66 (0) 2209-1100 Fax: +66 (0) 2209-1194 Email: visawork@boi.go.th INVESTOR CLUB ASSOCIATION (ICA) 12th and 16th Floor, TP&T Building, 1 Soi Vibhavadi-Rangsit 19, Vibhavadi-Rangsit Road, Lad Yao, Chatuchak, Bangkok 10900 Tel: +66 (0) 2936-1429 Fax: +66 (0) 2936-1441-2 Website: www.ic.or.th Email: is-investor@ic.or.th REGIONAL OFFICES REGIONAL INVESTMENT AND ECONOMIC CENTER 1 CHIANG MAI OFFICE Airport Business Park 108-110, 90 Mahidol Road, Amphur Muang, Chiang Mai 50100 Tel: +66 (0) 5320 3397-400 Fax: +66 (0) 5320 3404 Email: chmai@boi.go.th PHITSANULOK OFFICE 3rd Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Road, Naimuang, Amphur Muang, Phitsanulok 65000 Tel: +66 (0) 5524-8111 Fax: +66 (0) 5524-8777 Email: phitsanulok@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 2 NAKHON RATCHASIMA 2112/22 Mitraphab Road, Amphur Muang, Nakhon Ratchasima 30000 Tel: +66 (0) 4421 3184-6 Fax: +66 (0) 4421 3182 Email: korat@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 3 KHONKAEN 177/54 Moo 17, Mitraphab Road, Amphur Muang, Khonkaen 40000 Tel: +66 (0) 4327 1300-2 Fax: +66 (0) 4327 1303 Email: khonkaen@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 4 CHONBURI 46 Moo 5 Laem Chabang Industrial Estate, Sukhumvit Road, Toongsukhla, Sriracha, Chonburi 20230 Tel: +66 (0) 3840 4900 Fax: +66 (0) 3840 4997, +66 (0) 3840 4999 Email: chonburi@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 5 SONGKHLA 7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai, Songkhla 90110 Tel: +66 (0) 7434 7161-5 Fax: +66 (0) 7434 7160 Email: songkhla@boi.go.th REGIONAL INVESTMENT AND ECONOMIC CENTER 6 SURAT THANI 49/21-22 Sriwichai Road, Makhamtia, Amphur Muang, Surat Thani 84000 Tel: +66 (0) 7728 4637, +66 (0) 7728 4435 Fax: +66 (0) 7728 4638 Email: surat@boi.go.th OVERSEAS OFFICES BEIJING Thailand Board of Investment, Beijing Office Royal Thai Embassy, No.40 Guang Hua Road, Beijing 100600 P.R.C. Tel: +86-10-6532-4510 Fax: +86-10-6532-1620 Email: beijing@boi.go.th FRANKFURT Thailand Board of Investment, Frankfurt Office Investment Section, Royal Thai Consulate-General Bethmannstr. 58,5.0G 60311 Frankfurt am Main, Federal Republic of Germany Tel: +49 (069) 92 91 230 Fax: +49 (069) 92 91 2320 Email: fra@boi.go.th GUANGZHOU Thailand Board of Investment, Guangzhou Office Investment Promotion Section, Royal Thai Consulate-General, No.36 Youhe Road, Haizhu District, Guangzhou, P.R.C. 510310 Tel: +86-20-8385-8988 Ext. 220-225 +86-20-8387-7770 (Direct line) Fax: +86-20-8387-2700 Email: guangzhou@boi.go.th LOS ANGELES Thailand Board of Investment, Los Angeles Office Royal Thai Consulate-General, 611 North Larchmont Boulevard, 3rd Floor, Los Angeles CA 90004, U.S.A. Tel: +1 (0)-323-960-1199 Fax: +1 (0)-323-960-1190 Email: boila@boi.go.th MUMBAI Thailand Board of Investment, Mumbai Office Express Tower, 12th Fl., Barrister Rajni Patel Marg, Nariman Point, Mumbai, Maharashtra 400021 Tel: +(91 22) 2204 1589-90 Fax: +(91 22) 2282 1071 Email: mumbai@boi.go.th NEW YORK Thailand Board of Investment, New York Office 7 World Trade Center, 34th Floor. Suite F, 250 Greenwich Street, New York, New York 10007, U.S.A. Tel: +1 (0) 212 422 9009 Fax: +1 (0) 212 422 9119 Email: nyc@boi.go.th Website: www.thinkasiainvestthailand.com OSAKA Thailand Board of Investment, Osaka Office Royal Thai Consulate-General, Bangkok Bank Building, 7th Floor, 1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan Tel: +81 (0) 6-6271-1395 Fax: +81 (0) 6-6271-1394 Email: osaka@boi.go.th PARIS Thailand Board of Investment, Paris Office Ambassade Royale de Thaïlande 8, rue Greuze, 75116 Paris, France Tel: +(33-1) 56 90 26 00 Fax: +(33-1) 56 90 26 02 Email: par@boi.go.th SEOUL Thailand Board of Investment, Seoul Office #1804, 18th Floor, Koryo Daeyeongak Center, 97 Toegye-ro, Jung-gu, Seoul, 100-706, Korea Tel: +82-2-319-9998 Fax: +82-2-319-9997 Email: seoul@boi.go.th SHANGHAI Thailand Board of Investment, Shanghai Office Royal Thai Consulate-General, 15th Floor, Crystal Century Tower, 567 Weihai Road, Shanghai 200041, P.R.C Tel: +86-21-6288-9728-9 Fax: +86-21-6288-9730 Email: shanghai@boi.go.th STOCKHOLM Thailand Board of Investment, Stockholm Office Stureplan 4C 4th Floor, 114 35 Stockholm, Sweden Tel: +46 (0) 8463 1158, +46 (0) 8463 1174-75 Fax: +46 (0) 8463 1160 Email: stockholm@boi.go.th SYDNEY Thailand Board of Investment, Sydney Office 234 George Street, Sydney, Suite 101, Level 1, New South Wales 2000, Australia Tel: +61-2-9252-4884 Tel: +61-2-9252-4882 Email: sydney@boi.go.th TAIPEI Thailand Board of Investment, Taipei Office Taipei World Trade Center, 3rd Floor, Room 3E 39-40 No.5 Xin-Yi Road, Sec. 5 Taipei 110, Taiwan R.O.C. Tel: +886-2-2345-6663 Fax: +886-2-2345-9223 Email: taipei@boi.go.th TOKYO Thailand Board of Investment, Tokyo Office Royal Thai Embassy, 8th Floor, Fukuda Building West, 2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 Japan Tel: +81 (0) 3-3582-1806 Fax: +81 (0) 3-3589-5176 Email: tyo@boi.go.th