NAREERAT WIRIYAPONG
The government has instructed Thai Airways International to push ahead with its plan to set up a cargo airline to help sharpen the country's logistics competitiveness and ease the impact of high oil prices. Finance Minister Surapong Suebwonglee said THAI had been asked to set up a subsidiary to operate the new carrier to help increase the speed of exporting Thai-made goods to international markets.
The cargo airline would focus on shipments of computers, agricultural produces and perishable goods, he said.
''Amid the current high oil prices, the cargo airline is critical to help improve the efficiency of logistics and cut the costs of manufacturers,'' Dr Surapong said at a seminar held by Prachachart Turakit newspaper yesterday.
Thai Airways' new board of directors would finalise details of the cargo airline and decide when it would be launched, he added.
An executive of the national carrier said it had explored several options but the potential of the cargo business did not seem promising.
Thai Airways, majority-owned by the Finance Ministry, operated cargo-only flights in the past but stopped the service because it was not profitable, he said.
''Thailand has demand for air cargo only for outbound shipments of electronic goods and flowers but we have nothing for inbound shipments,'' said the executive. ''Thailand mostly imports machinery and capital goods that do not use air transport.''
According to Dr Surapong, air transport accounts for only 1% of the country's overall transport use, with marine and rail at 12% and 8%, respectively. The country relies heavily on less-efficient road transport, making up 86% of the total transport needs.
The cost of road transport is eight times higher than marine transport and three times higher than the rail system, he said.
Up to 35% of Thailand's annual energy costs of 1.2 trillion baht were used in the transport sector, 800 billion baht of which was refined oil, the minister added.
Logistics cost as a ratio of gross domestic product (GDP) is 19%, far behind the likes of such as Japan where the figure was only 8.7%, said Dr Surapong.
Arkhom Termpittayapaisith, deputy secretary-general of the National Economic and Social Development Board, agreed that air and marine transport should be increased under the agency's target to bring down logistics cost to GDP to 16% by 2011.
The NESDB aims to increase the share of rail transport to 20% by then.
''Both Don Mueang and Suvarnabhumi airports have yet to maximise their capability in terms of cargo movement,'' Mr Arkhom said.
The think-tank has estimated that 282 billion baht would be needed from 2008 to 2011 for transport and logistics infrastructure on top of the 380 billion baht proposed for mass-transit projects over the period.
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The government has instructed Thai Airways International to push ahead with its plan to set up a cargo airline to help sharpen the country's logistics competitiveness and ease the impact of high oil prices. Finance Minister Surapong Suebwonglee said THAI had been asked to set up a subsidiary to operate the new carrier to help increase the speed of exporting Thai-made goods to international markets.
The cargo airline would focus on shipments of computers, agricultural produces and perishable goods, he said.
''Amid the current high oil prices, the cargo airline is critical to help improve the efficiency of logistics and cut the costs of manufacturers,'' Dr Surapong said at a seminar held by Prachachart Turakit newspaper yesterday.
Thai Airways' new board of directors would finalise details of the cargo airline and decide when it would be launched, he added.
An executive of the national carrier said it had explored several options but the potential of the cargo business did not seem promising.
Thai Airways, majority-owned by the Finance Ministry, operated cargo-only flights in the past but stopped the service because it was not profitable, he said.
''Thailand has demand for air cargo only for outbound shipments of electronic goods and flowers but we have nothing for inbound shipments,'' said the executive. ''Thailand mostly imports machinery and capital goods that do not use air transport.''
According to Dr Surapong, air transport accounts for only 1% of the country's overall transport use, with marine and rail at 12% and 8%, respectively. The country relies heavily on less-efficient road transport, making up 86% of the total transport needs.
The cost of road transport is eight times higher than marine transport and three times higher than the rail system, he said.
Up to 35% of Thailand's annual energy costs of 1.2 trillion baht were used in the transport sector, 800 billion baht of which was refined oil, the minister added.
Logistics cost as a ratio of gross domestic product (GDP) is 19%, far behind the likes of such as Japan where the figure was only 8.7%, said Dr Surapong.
Arkhom Termpittayapaisith, deputy secretary-general of the National Economic and Social Development Board, agreed that air and marine transport should be increased under the agency's target to bring down logistics cost to GDP to 16% by 2011.
The NESDB aims to increase the share of rail transport to 20% by then.
''Both Don Mueang and Suvarnabhumi airports have yet to maximise their capability in terms of cargo movement,'' Mr Arkhom said.
The think-tank has estimated that 282 billion baht would be needed from 2008 to 2011 for transport and logistics infrastructure on top of the 380 billion baht proposed for mass-transit projects over the period.
Discuss
Add this link to...
Tell a friend
Bury
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