The Bangkok Port’s volumes increased 13%, reaching 1.54 million TEUs, and the Port’s volume limitation policy is again being raised. The PAT has proposed to the Ministry of Transportation to expand container capacity at the Bangkok Port from one million TEUs to 1.5 million TEUs. With last year’s new equipment procurement, the Port has effectively handled the increase in cargoes.

   Recently, the PAT prepared to implement an e-port system by 2008, with an investment of 770 million Baht. This initiative will support management and improve maritime transportation. Moreover, the system will be connected with the Customs Department, the Ministry of Commerce and the Ministry of Transportation to support import-export as a “single-window entry” service. The e-port implementation plan includes development of PAT’s information, communications and technology.

   The Ranong Port, to date, has had limited success. No container ships call at the Port since there is no large-scale industrialization around the region. Moreover, the location has geographical disadvantages such as the steep roads. Many marketing activities have been employed to attract shipping lines, including reduced fee promotions and facility investments to improve equipment.

   The ICD’s traffic has increased gradually from 1.30 million TEUs in 2005 to 1.53 million TEUs in 2006, an increase of 17.83%. The increasing number of cargoes and the expansion of the Laem Chabang Port emphasize the need to finish the double track railway project as quickly as possible.

   Earlier in June, a draft of the TOR for double track construction bidding was announced on the State Railway of Thailand (SRT)’s website for public hearing. The SRT is now considering comments from the public to determine whether the draft should be adjusted. If there are no any changes, the e-auction will begin in July. The project involves a 78-kilometer facility with an estimated investment of 5,850 million Baht over a 28-month construction period.

   It has been over a year (5 March 2006) since the ICD operator’s concessions expired. The renewal of the concessions still has not been finalized since both parties – the SRT and the operators – cannot reach agreement over the leasing rate. This situation makes it difficult for the ICD operators to plan future developments.

   The Customs Department has applied the 2007 Harmonized System, consistent with international standards, since 1 January 2007. According to the 2007 HS nomenclature, the 8-digit code will be used for all imported goods, eliminating the previous HS nomenclature that used a 6- or 7-digit code for non-ASEAN imports and an 8-digit code for ASEAN imports.

   In addition, the new HS disaggregates products in more detail, allowing Customs to further classify tariffs into 8,301 tariff lines (compared to 5,505 tariff lines in the 2002 HS). However, the 2007 HS does not affect import tariffs.

   Since 1 July 2007, the Customs Department had officially launched the full version of e-Export at Laem Chabang customs house. The e-Export has been preliminary tested since March 2006, at the same time the EDI system was gradually cast aside. Before that e-Container is officially cancelled on June 1st, 2007. The system is believed to increase opportunity and convenient in world trade competition.

   Logistics are what people are still the most concerned about. Lower logistics costs are a key component of the national agenda. The cabinet recently approved the Thailand Logistics Development Strategic Plan (B.E. 2550-2554) with an aim to decrease logistics costs from 19 percent per GDP to 16 percent by 2011.

   One factor that helps to reduce logistics costs is manpower. The Ministry of Labor has implemented a strategy plan to develop manpower related to logistics from 2006 to 2010 in line with the National Logistics Development Plan. During this period, the Ministry has targeted the development of 232,650 people – 68,500 needing to upgrade their skills, 162,950 working in the logistics field and 1,200 logistics trainers.

   According to the World Bank, 2007 exports are expected to grow at a slower rate than last year because Thailand is exposed to an unfavorable external environment. The weighted average growth rates for Thailand’s major trading partners are projected to slow down, and the appreciation of the Baht is likely to continue. These factors directly impact the competitiveness of Thai exports.

   Export prices are projected to increase but by less than they did last year as inflation in Thailand’s key export markets, namely the US, the EU and Japan, will decline. Importantly, the extension of the US Generalized System of Preferences (GSP) for two more years will benefit exports. Overall export volume growth in 2007 is projected to be 6 percent (compared to 9 percent last year), while export values in US dollar terms are likely to expand by 10 percent this year as compared to 17.4 percent last year.

   It is, therefore, critical that the BSAA’s members join hands to navigate through this tough period as we always do. Celebrating the upcoming 40th Anniversary of the BSAA highlights the solid efforts that we – Executive Committees, Sub-Committee members and the BSAA staff – have contributed on behalf of our members and the country.

   Sutham Chitranukroh
   BSAA Chairperson