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2024-09-23

Dry Port in Khon Kaen: The Future Logistics Hub of the Region

“Dry Port in Khon Kaen: The Future Logistics Hub of the Region”

As the demand for cargo transportation from businesses rises, particularly in an era of increasing cross-border trade, Laem Chabang Port, a key trade gateway for Thailand, faces congestion issues. This has resulted in longer processing times and increased logistics costs.
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The development of the Dry Port project in Khon Kaen province has been studied and initiated to enhance the capacity of the cargo transportation system. It aims to accommodate growth stemming from the Laem Chabang Port Phase 3 expansion while supporting cargo transport between Thailand and the CLMV countries (Laos, Cambodia, Myanmar, and Vietnam).

A Dry Port functions like an inland port, facilitating cargo handling and allowing customs procedures to enhance convenience and speed. It connects various transport systems, primarily focusing on rail transport. This aligns with the Port Authority of Thailand (PAT)’s objective to promote the Shift Mode from road to rail transportation, as per government’s policy.
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Studies indicate that an area of approximately 700 rai near the Non Phayom Railway Station in Nam Phong District, Khon Kaen province, has strong potential for development as a Dry Port. Its geographic advantage allows it to serve as a key hub for cargo transportation in both upper and central northeastern regions. The area is economically viable and has urban planning that integrates with the ASEAN region.  It benefits from support of local industrial and agricultural goods.  The area can seamlessly connect transportation networks across road, rail, water, and air modes, enabling faster, more accurate, and more efficient cargo movement.


Additionally, this project is expected to create jobs, stimulate local economies, and develop public utilities such as electricity, water supply, and roads, thereby improving the quality of life for local residents.
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At present, the Dry Port development project in Khon Kaen has completed studies on engineering, economics, finance, and the appropriate investment model for the Port Authority of Thailand to ensure its commercial viability. The project will be presented to the Port Authority of Thailand’s board for consideration before being submitted to the Ministry of Transport for further approval.

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