Thailand opens up opportunities in logistics

New analysis from Frost & Sullivan, Executive Analysis of Thailand Logistics Industry, finds that the market earned revenues of US$71.7 billion in 2014 and estimates this to reach US$96.5 billion in 2019.

 

"Government plans to position Thailand as the trade and service hub of the Greater Mekong sub-region and as the gateway to Asia are opening up opportunities in the logistics and transport industry," said Frost & Sullivan Automotive and Transportation Senior Consultant Jeff Tan. "Thailand's road transport plays a key role in connecting the landlocked countries of Indochina."

 

Increasing foreign direct investment in Myanmar, Cambodia and Laos will support cross-border trucking activities and accelerate road network development in Thailand. Modernisation programs, including basic infrastructure improvements, new equipment installations, and security and hardware upgrades are underway in the country's two key ports. In addition, current policy focus on high-tech manufacturing will support growth in air services.

 

While new leadership is driving advancements in overall logistic capabilities, global uncertainties such as stagnation in the Eurozone and Japan pose a threat to Thailand's export outlook and could derail transportation and logistics projects. Possible delays in government spending and failure to invest optimally in logistics infrastructure can hamper freight movement and lower Thailand's productivity.

 

"Restructuring the supply chain and logistics framework to capitalize on industrial agglomeration will facilitate efficient logistics management," suggested Tan. "Moving forward, developing a holistic strategy encompassing network coverage, infrastructure setup, human resources and service quality will enable logistics service providers to strengthen their foothold in Thailand's logistics industry."