Ayutthaya Port &

ICD

Date: 12 July 2012

national Business Trading Group and Crop Integration Business (Maize)

Thailands Current Logistics Issues

national Business Trading Group and Crop Integration Business (Maize)

Logistics cost accounted for 15% of National

GDP, and freight transport expenditure was the
greatest cost component.
Logistics Cost per GDP of Thailand

20
16.
17.
17.
17.
17.
1815.
16.
7
1
8
1
1
15.
15.
1 16 8
1
2
14 8.9
8.2
7.7 8.2
7.9
8
7.4
7.1
12
7.1 7.2
10
8
Logistics cost per GDP
6 7.6
7.2 7.2 7.3 7.6 8 7.8 7.3 6.6 6.7
4
2
1.6 1.5 1.5 1.4 1.6 1.6 1.6 1.6 1.4 1.3
0
18.1

Admin cost

Inventory cost

Transport cost

national Business Trading Group and Crop Integration Business (Maize)

Thailands freight transport cost is high

because it has relied heavily on road
transport
100.00%

In Terms of TonKilometers

90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2006 2007 2008 2009 2010

Air
Coastal
IWT
Rail
Road

2010
Mode

Road

95.9

Rail

1.3

IWT

1.1

Coasta
l

1.8

Air

0.02

national Business Trading Group and Crop Integration Business (Maize)

Thailands Modal Split of Domestic Freight Transport 2006

2010
(in terms2007
of ton-kilometers)
Mode
2006
2008
2009 2010

95.71 95.88
95.53% 95.56% 95.66%
%
%
Rail
1.40% 1.47% 1.34% 1.35% 1.27%
IWT
1.06% 1.10% 1.08% 1.06% 1.05%
Coastal
1.99% 1.86% 1.91% 1.87% 1.81%
Air
0.02% 0.02% 0.02% 0.02% 0.02%
Domestic Freight Transport Volume (in million tonRoad

Mode
Road

Rail
IWT

2006

kilometers)
2007
2008

2009 2010

183,4 185,8
184,006 186,174 181,452
29
83
2,688

2,857

2,533

2,582 2,455
5

Compared with selected developed

countries, the modal share of road transp
ort in Thailand is significantly larger.
Countries

Rail

Road

Austria
Belgium
France
Germany
Netherland
s
Thailand

35
13
15
22

61
71
81
66

Inland
waterway
4
16
3
12

61

33

97

Source: UNCTAD (2010), Review of Maritime Transport, United Nations Conference

on Trade and Development, Geneva. and from Calculation based on data collected
by Thai Ministry of Transport
6

national Business Trading Group and Crop Integration Business (Maize)

Thus, we are losing logistics

competitiveness in the global arena.
Country

LPI Rank
LPI Rank
LPI 2010
2010
2007

LPI
2007

Germany
1
4.11
3
4.10
Taiwan
20
3.71
21
3.64
Korea
23
3.64
25
3.52
China
27
3.49
30
3.32
Thailand
35
3.29
31
3.31
The Logistics Performance Index of Thailand fell
from 3.31 in 2007 to 3.29 in 2010, its rank also
dropped from 31 to 35 while our colleagues saw
7
improvement.
national Business Trading Group and Crop Integration Business (Maize)

To make the situation worse,

Thailands Existing road and rail
infrastructure is extremely overused

Road Utilization

Rail Utilization

As a result, a viable
solution is needed to
sustain our
competitiveness!!!
9

Inland Waterway Transport is the most costefficient and sustainable mode of transport
10

..and waterways are underutilized.

11

IWT is the most cost-effective mode of

transport
Because of the economies of scale
Intermodal Competition in Freight Transport in Thailand

6000
Break
Even
5000
Point Road v
4000
IWT
109.43
KM
3000

Total Transport Cost (THB)

2000

Column1
IWT

1000
0
Kilometers

The longer the haulage distance, the lower the

average transport cost per a unit of cargo. 12

IWT Consumes Fuel Only 23% that of

Road Transport
% of Fuel Consumption Compared with Road Transport

100
90
80
70
60
50
40
30
20
10
0

100

77
%
Le
ss

Road

33
Rail

23
Inland waterway

national Business Trading Group and Crop Integration Business (Maize)

13

IWT Emits CO2 90% Less Than Road

Transport
CO2 Emission in Grams per Ton-KM

120.000

107.375

100.000
80.000
60.000
88%

40.000
20.000
0.000

90%
10.250

13.375

Inland towing

Railroad

Truck

national Business Trading Group and Crop Integration Business (Maize)

Our solution is, to

expand our logistics
business to IWT to
reap the benefit.

15

The Importance of Port and

Logistics Operations to Business C
ompetitiveness
Create value-added to the product

national

Value-added/ Proft

The Smile Curve

Sales and Customer
Support

Concept/R&D
Branding
Design

Marketing

Distribution

Manufacturing

Stages in a value
Business Trading Group and Crop
Integration Business (Maize)
chain

16

The Importance of Port and

Logistics Operations to Business C
ompetitiveness
Efficient port operations will result in

Market Coverage

Sales Proft
Sales Volume
Investment Opportunities

Enhance companys
competitive advantage

national Business Trading Group and Crop Integration Business (Maize)

17

APICD is not just simply port business

but a crucial part of CP value chain and
supply chain
Inbound
Logistic
s

Operati
ons

Barges
Quality
Improv
ement
Factori
es

APIC
D

Outboun
d
Logistic
s

Service

General
Cgo. Vsl.

Containe
Barges
r
Terminal
s

Barges

Marketi
ng &
Sales

Distribu
tors

Custom
ers

Domesti
c Coastal
Ports

national Business Trading Group and Crop Integration Business (Maize)

18

Ayutthaya
Port
& ICD
Bangkok
Port

Destinations

Distance
(km.)

Time
(hrs)

Bangkok

142

15

LCB

237

22

Laem
Chabang
Port

55,000 m2
warehouses

ICD & Bonded Warehouses

M&R Facilities
40-Meter-Wide Road

Traffic Control
Tower

1 RMG
40-mt lifting capacity

1 Quay Crane
40-mt Lifting Capacity
Speed : 35 Lifts/ Hr.

Quay Length 276 Meters, 4.5-Meter Depth,

Reach Stackers, Tractors, Trailers, Emergency Electric Generator,
24/7 Security

Scope of Business and Operations

Phase I
Terminal &
Transport
1. Inland
Waterway
Transport
2. Port & Terminal
Operations
3. Land Transport
4. International
Freight
Forwarding
Phase II

Inland Container
Depot
1. Bonded
Warehouse
2. Cargo
Consolidation

Our Contribution to
National Economy and
Environment

22

Economies of Scale in IWT

6
5

Source: Actual Carrying

=1
Reduction in Road
Traffic
> 600,000
Trips of
Trucks per annum

At the full design capacity

% of Fuel Consumption Compared with Road Transport

100
90
80
70
60
50
40
30
20
10
0

100

Road

Fuel Saving
114 Million
Liters or
3,409 Million
Baht
per annum

33
Rail

23
Inland waterway

national Business Trading Group and Crop Integration Business (Maize)

24

At the full design capacity

CO2 Emission in Grams per Ton-KM

120.000
100.000
80.000
60.000

107.375

CO2
Reduction
>
200,000
mt.
per annum

40.000
20.000
0.000

10.250

13.375

Inland towing

Railroad

Truck

national Business Trading Group and Crop Integration Business (Maize)

25

At The Full Design Capacity

CO2
Reduction
> 200,00
mt.
per annum

Source: From
Calculation

Equivalent
Sequestrati
4.6on
km2
of Forest

Thank You
For Your
Attention

BACK UP
28

World Banks Global Logistics

Index 2010 LPI
Global LPIPerformance
ASEAN LPI
Rank
2
29
35
44
53
75
118
129
133

Rank
1
2
3
4
5
6
7
8
9

Country

Singapore
Malaysia
Thailand
Philippines
Vietnam
Indonesia
Lao PDR
Cambodia
Myanmar

(out of 5)
4.09
3.44
3.29
3.14
2.96
2.76
2.46
2.59
2.33

national Business Trading Group and Crop Integration Business (Maize)

29

Logistics Cost per GDP of Thailand

20
16.
17.
17.
17.
17.
1815.
16.
7
1
8
1
1
15.
15.
1 16 8
1
2
14 8.9
8.2
7.7 8.2
7.9
8
7.4
7.1
12
7.1 7.2
10
8
Logistics cost per GDP
6 7.6
7.2 7.2 7.3 7.6 8 7.8 7.3 6.6 6.7
4
2
1.6 1.5 1.5 1.4 1.6 1.6 1.6 1.6 1.4 1.3
0
18.1

Admin cost

Inventory cost
Transport cost

Transport cost
140 billion baht

7.2%

723 billion baht 6.7%

Total Logistics Cost in 2010 Inventory Cost
1.64 Trillion Baht
(15.2 % of GDP)
Admin cost
778 billion baht 1.3%
national Business Trading Group and Crop Integration Business (Maize)

IWT is the most cost-effective

mode of transport
Break-even points between different
modes of transport
Break-even point (Fuel Price = THB 30/liter)

Mode

KMBT
=0

KMBT
= 20

KMBT
= 30

KMBT
= 50

KMBT
= 100

Road/ Rail

61.24

91.03

105.93

135.73

210.23

Road/ Inland
waterway

67.17

95.34

109.43

137.61

208.05

Rail/ Inland
waterway

170.21

170.21

170.21

170.21

170.21

national Business Trading Group and Crop Integration Business (Maize)

31

Ayutthaya Port
& ICD
Bangkok
Port

Service
Route

From - To

Route

Distance

Avg.Speed

Time

River Port - Ayutthaya

Pasak River

22 (Kms.)

3-4 (Kts.)

4 Hrs.

Ayutthaya - BKK

Chao Phraya

120 (Kms.) 5-6 (Kts.)

BKK - Samutprakarn

Chao Phraya

20 (Kms.)

8 (Kts.)

2 Hrs.

Samutprakarn LCB Gulf of Thailand 75 (Kms.)

8 (Kts.)

5 Hrs.

Total

237 (Kms.) 6 (Kts.)

11 Hrs.

22 Hrs.

Laem
Chabang
Port

IWT is the most cost-effective

mode of transport
Because of the economies of scale
Intermodal Competition in Thai Freight Transport
6000
Break Even 5000
Point Road v
4000
IWT KM
109.43
3000
Total Transport Cost (THB)
2000
1000
0

Break
Even
Road v
Rail

KM
105.93

Rail v
170.2
Kilometers
IWT
1

Road

Rail

IWT

national Business Trading Group and Crop Integration Business (Maize)

33