Logistics of Thailand – Laos PDR and Need to Establish Closer Business Logistics Linkage

1. Logistics of Thailand – Laos PDR and Need to Establish Closer Business Logistics Linkage Speaker: Chackrit Duangphastra,PhD Director of Logistics Service Provider Promotion Group Department of Export Promotion Chackrit Duangphastra,PhD

2. Outline of Presentation • Development of Economies & Trade Logistics Project along EWEC • Opportunities & Threats for Trade Logistics Development • Roadmap of Logistics Integration of ASEAN • Need to Established Closer Dialogue and Linkages in Private and Public Sector • Concreted Work Plan on Individual Economic Corridor Chackrit Duangphastra,PhD

3. Development of Economies of Thailand & Laos PDR and Trade Logistics Project • Selected Development of Thailand – Laos Economies • GMS Scheme • ASEAN Economic Community • Access to WTO members • Trade Logistics Project in the Region • Road & Rail Transport Infrastructure • Cross Border Transport Agreement • Facilitation of border crossing formalities, transport of goods, exchange of traffic rights, Road standard & signal, institutional framework • Single Stop Inspection Initiatives Chackrit Duangphastra,PhD

4. Road Transport Network 2005 2015 Chackrit Duangphastra,PhD

5. Development Strategy of GMS PRC Chiang Rai Myanmar Develop Sister Cities as a production bases Lao PDR Mukdahan -Savannakhet MaeSod-Myawaddy Danang Yangon EWEC NSEC BKK. Vietnam Andaman Sea Cambodia SEC Trad- Koh Kong Hochiminh City Gulf of Thailand Chackrit Duangphastra,PhD

6. Opportunities & Threats for Trade Logistics Development in GMS Major Barrier include Transport Cost, Clearance & Transit Fee, import VAT Lack of integrated logistics service provider & work skill / delay Chackrit Duangphastra,PhD

7. Roadmap of Logistics Services Integration in ASEAN • Objectives of Roadmap • To create ASEAN single market by 2020 by strengthening economic integration through liberalization and facilitation measures in area of logistics services • To enhance competitiveness of ASEAN production base through creation of integrated ASEAN logistics environment • Measures will cover FREIGHT LOGISTICS and Related Services 1. Liberalization 2. Trade & Logistics Facilitation 3. Service Provider 4. Human Resource 5. Multimodal Transport Chackrit Duangphastra,PhD

8. Liberalization of Logistics Services in ASEAN in 2013 • Transport Services • International Maritime Transport • International Rail Freight Transport • International Road Freight Transport • International Air Freight Transport • Non Transport Services • Cargo handling services • Storage & warehousing services • Freight transport agency services • Freight inspection services • Customs clearance Chackrit Duangphastra,PhD

9. Trade & Logistics Facilitation in ASEAN • Trade & Customs Facilitation • Implement provision in WTO Agreement on Customs Valuation & WCO Framework • Promote electronic document / transaction (e-logistics) • Encourage implementation of 24x7 customs operations in selected border points • Development Single Window Approach for customs clearance • Facilitate cross border information sharing • Encourage business firm to develop interoperable supply chain management to link up planning solutions • Enhance cooperation between customs & business sector • Implement risk management practices Chackrit Duangphastra,PhD

10. Trade & Logistics Facilitation in ASEAN • Logistics Facilitation • Enhance transparency of regulation for logistics • Implement ASEAN Framework Agreement on Facilitation of Inter-State Transport • Implement Framework Agreement of Goods in Transport • Implement Framework Agreement on Multimodal Transport Agreement • Strengthen Intra Regional Maritime Transport • Enhance private participation in transport logistics infrastructure & services Chackrit Duangphastra,PhD

11. Other Initiatives in Roadmap • LSP • Adopt best practices in providing logistics services • Promote Regional Cooperation of LSP • Develop / Update database on logistics service provider • Human Resource Development • Upgrade skill through joint training & workshop • Encourage the establishment of regional center of excellence • Enhance Multi Modal Transport Infrastructure • Promote trade terms & practices related to multimodal transport including INCOTERMS Chackrit Duangphastra,PhD

12. Focusing Areas in Trade Logistics • Freight Distribution • Inventory / Warehousing • Sourcing • Trade Facilitation • Logistics Network • LSP Development • Utilization of Logistics Infrastructure Cost Saving Responsive Reliability/ Security Chackrit Duangphastra,PhD

13. Need to Established Closer Dialogue and Linkages in Private and Public Sector • Involving Logistics Industry • Freight Forwarder • Customs Clearance • Land transport services • Air transport services • Cargo handling • Warehousing services • Transshipment Center/ Logistics Center • Third Party Logistics (Logistics Integrator) • Packaging services • Vehicle & Cargo Insurance (more than compulsory insurance) • Interface between Logistics Service Provider & Users (importer / Exporter) • Business Partnership (Matching with Right Partners) Chackrit Duangphastra,PhD

14. Concreted Work Plan on Individual Economic Corridor • Example of R9 Project • Trade Facilitation • Harmonization of operating hours • Reduce burdensome cost (such as guarantee bond) • Admittance of motor vehicles • Minimize border cross clearance formalities • Cooperation on sanity & phytosanity measures & other inspection procedures • Mechanism for trade insurances and finance • Trade & Investment Cooperation • Promote closer business linkage and business matching in logistics • Integration of infrastructure such as free zone, distribution center, transshipment center • Capacity Building • Information Exchange • Logistics services database and trade regulations • Monitoring & Follow Up Mechanism Chackrit Duangphastra,PhD

15. Laos PDR & Thailand Stakeholders Need to Have Greater CollaborationThank you Chackrit Duangphastra,PhD