New logistics plan will drive down costs, boost trade hub status
Thailand’s cabinet has approved a five-year logistics development plan, which will drive down national logistics expenditures by more than half while ensuring that the Kingdom sustains its role as the region’s premier hub for trade.
Thailand’s economy depends significantly upon trade and exports. Lowering logistics costs will make the Kingdom more competitive, helping the flow of goods rise as companies take advantage of more efficient processing, infrastructure and digital tracking. During the pandemic, the Kingdom’s supply chains remained largely up and running. With the new logistics plan, they should be even faster and more resilient.
According to the government’s Deputy Spokesperson Rachada Dhnadirek, Thailand’s logistics costs equal 13.8 percent of Gross Domestic Product (GDP). When the plan is realized that figure is expected to fall to 5 percent.
“The ultimate goal of the new plan is to reduce the national logistics costs to 5 percent of GDP by 2027 and inventory holding costs to 5 percent of GDP from 6.4 percent in 2021,” she said.
Rachada added that the plan will address the development of transport infrastructure and facilities, such as a comprehensive transport network and logistics system between ports, railways, roads and airports linked with economic zones, important industrial areas and border checkpoints.
In addition, improved customs clearance related to import-export procedures and facilitating international logistics through information links and the National Single Window system should speed the processing and shipment of goods.
The new plan will also emphasize green development. It will upgrade standards and add value to supply chains by improving logistics management and agricultural supply chains, while also creating ecosystems for the growth of industrial entrepreneurs and environmentally friendly operations.
Photo courtesy of https://www.nesdc.go.th/main.php?filename=logistics