Logistics: Thailand Ports
Major Thai Ports and Maritime Projects
Source: Thailand Board of Investment's Investment Review Publication
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By Kornluck Tantisaeree
Maritime Transport Expansion to accommodate the steady and rapid increase of Thailand’s international seaborne trade over the past decade and into the future, the Port Authority of Thailand is implementing several major projects, particularly the expansion of Laem Chabang Port, Thailand’s most important international port.
Located on the Eastern Seaboard, the port has experienced a total TEU (Twenty-foot Equivalent Units) increase of 45% from 2000 to 2003. With the proposed addition of a second basin in 2007, the capacity of Laem Chabang would increase to almost 10.5 million TEU/year. “The expansion phase of Laem Chabang Port will enable the country’s shipping industry to remain competitive once the country kicks off its bilateral trade agreements with several major trading partners,” stated the Acting Director-General of the Port Authority, Yongyos Palanitisena. Currently there are approximately 122 ports, wharves and jetties able to accommodate sea-going vessels engaging in international trade.
Thailand's extensive inland waterways also contribute greatly to transportation in the country. In efforts to improve port efficiency and to strengthen its bid to become a major logistics center for ASEAN and South Asian countries, the Port Authority is proposing to open a logistics company, an asset management company and a regional port company.
The Port Authority also oversees four main ports to support regional linkages with neighboring countries: Chiang Khong and Chiang Saen in the north, Ranong in the southwest, and Songhkhla in the south.
Major Ports in Thailand:
- Bangkok - Port capacity approximately 1.3 million TEU. Its bonded warehouse now offers several value-added services such as online inventory account reporting, more equipment for lifting and moving goods, and expansion of storage areas.
- Laem Chabang - One of Asia’s leading ports and the most important commercial deep-sea port of Thailand. In 2003, TEU capacity was 3.04 million. After completion of its Phase 2 development (see article), which includes six new container terminals and a passenger terminal, it will have a total capacity of nearly 10.5 million TEU/year. The private sector will be invited to operate these terminals.
- Chiang Saen and Chiang Khong - Located in Chiang Rai province, these ports serve as Thailand’s gateway to Southern China, especially with Yunnan Province. Trade with Yunnan through Chiang Saen Port increased from THB 1.1 billion in 2000 to THB 3.2 billion in 2002. Chiang Rai’s ports service the Upper Mekong Subregion as part of the Quadrangle Economic Cooperation Project to link trade of Thailand, China, Laos and Myanmar. A second Chiang Saen Port is expected to be opened in 2006.
- Map Ta Phut - Located in Rayong Province, Map Ta Phut is primarily a petrochemical complex. Its Phase 2 development requires steel and petrochemical handling facilities which require private sector investment.
- Songkhla Port - The only international port on the Southeast coast with 150,000 TEU annually servicing transport to Malaysia. Its expansion plan includes modification of the three existing berths and construction of fourth and fifth container berths
- Phuket Port - With 86,000 TEU annually, it is currently the only international port on the west coast of the South. Its expansion plan covers construction of a passenger wharf and a container berth.
- Narathiwat - Located in the south, Narathiwat is planned to accommodate the AFTA Free Trade Zone and Export Processing Zone for halal food.
- Satoon on the Andaman Sea will serve the growing trade with countries west of Thailand and to handle break bulk cargo and containers.
- Ranong - Just opened in December 2003, its expansion plan forecasts completion within 2 years to accommodate increased trade in South Asia, the Middle East and Europe. Ranong will also provide links with Myanmar and other countries in the Indian Ocean.
LAEM CHABANG PORT - Upgrade Vastly Improved Efficiency for Exporters and Importer
By Alita Thomas
The recent commission of a 30-year concession to build and operate six additional container terminals in Laem Chabang will dramatically upgrade services at Thailand’s premier port. Hutchinson Port Holdings (HPH) entered into an agreement this October with the Port Authority of Thailand to improve shipping operations in Thailand in response to the growing needs of exporters and importers. A wholly-owned subsidiary of the multinational conglomerate Hutchison Whampoa Limited, HPH is the world’s leading port investor, developer and operator with interests in 17 countries throughout Asia, the Middle East, Africa, Europe and the Americas.
John Meredith, Group Managing Director of HPH said, “Thailand is experiencing double digit trade growth. Laem Chabang Port is linked to excellent road and rail connections to many industrial areas of Thailand, enabling the new container terminals to facilitate faster, more efficient movement of cargo to and from the hinterland. Laem Chabang is well positioned to become the region’s transport hub.”
Laem Chabang Port is strategically positioned on the Eastern Seaboard of the upper Gulf of Thailand, approximately 110 km south of Bangkok. This area is central to Thailand’s largest industrial zone, home to a wide array of manufacturing activities, petrochemical industries and a cluster of auto assembly plants. In the 1980s, the congestion and inability to serve large ocean-going container ships at Bangkok Port was having a disastrous effect on Thailand’s shipping trade. Laem Chabang Port began operations in 1991, with the goal of upgrading the basic infrastructure and logistics necessary to rejuvenate the sector. Since then, Laem Chabang has emerged as a key port on the Asia-North American and Asia-Europe shipping network and will likely become a major a distribution hub to South China and neighboring countries of Indochina.
Laem Chabang Port currently provides a comprehensive range of services to exporters and importers, operating 24 hours a day, 7 days a week. Services include cargo handling, warehousing, cargo distribution, railway and highway networks systems leading to all parts of Thailand. An industrial estate Export Processing Zone also offers a production and processing center. Critical to investors, Laem Chabang participates in the new co-operative effort between the Customs Department and the Port Authority of Thailand to clear exports and imports with proper documentation within one day, compared to present waiting periods of up to 7 days. The one-day clearance initiative is one of several aimed at improving the competitiveness and reducing current logistics costs.
The new state-of-the-art ‘C3’ terminal, expected to be operational by the end of 2004, will add an additional 800,000 TEU capacity to Laem Chabang. Furthermore, it will offer 500 meters of berth length, and combined with the B5 terminal, will be capable of serving two mother vessels simultaneously or up to 5 feeder vessels. The result is total flexibility berth window integrity, providing faster, easier and safer vessel movement during arrival and departure. The terminal will also provide increased ability to accept off-schedule vessels, a critical capability when other ports become congested as volume increases. This means more efficient shipment of cargo for current and potential exporters and importers to Thailand, reducing costs and saving valuable time.
For more information about Laem Chabang Port and the international terminal, please see www.laemchabangport.com and www.lcit.com. Laem Chabang Port is one of the top deep-sea ports in Southeast Asia, positioned as the most efficient gateway to Thailand and the greater Indochina region. Location: Approximately 110 km south of Bangkok, in Tungsukhla, Sriracha district and Banglamung district of Chonburi Province. Capacity: Laem Chabang presently operates 11 terminals to accommodate container ships, bulk carriers, pure car carriers and passenger liners of up to 120,000 displacement tons. Estimated capacity of the port will increase to 3.5 million TEU.
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