Cross-border transport and logistics provide business opportunities for entrepreneurs and increase domestic income.
Currently, cross-border transport has become an increasingly popular commercial trend, providing an opportunity for entrepreneurs to upgrade from national to international level, as well as building up business challenges and increasing domestic income. With the fact that Thailand’s ports are located near main rivers and seas, they can act as distribution points for countries without direct access to the open sea and shipping routes to the third country.
Transport and logistics in Thailand’s land borders
Thailand has as many as four land borders neighboring Myanmar, Cambodia, Laos, and Malaysia, making the border trade a significant factor in boosting domestic income and encouraging national product competitiveness in foreign markets. The key borderlands for transport and logistics in the Thai border include:
- Thailand – Myanmar Border Trade The provinces with Thailand – Myanmar border trade potential consist of seven provinces: Mae Hong Son, Chiang Rai, Chiang Mai, Tak, Kanchanaburi, Prachuap Khiri Khan, and Ranong (Ranong Pier). The main export products are fuel oils, alcoholic and non-alcoholic drinks, fabrics and threads, and energy-drilling-related products. While the main import products are natural gas, oil crops, aquatic products, cows, buffalos, pigs, goats, sheep, wooden products, and goods with orders from the destination country.
- Thailand – Cambodia Border Trade Cambodia is Thailand’s neighboring country with many bordering provinces in Thailand including four in the north: Ubon Ratchathani, Si Sa Ket, Surin, Buri Ram; three in the west: Sa Kaeo, Chanthaburi, Trat; and the Gulf of Thailand in the south, as well as Thailand – Cambodia cross border trading points. The main cross-border trading point with the highest trade value is Rong Kluea Market in Sa Kaeo. Another trading point worth keeping an eye on is Klongyai Custom House in Trat, seeing that it has an all-year, continuously high export trade value on beverages, soda, and sweet drinks.
- Thailand – Malaysia Border Trade Thailand – Malaysia borderland has a land boundary across the Malay Peninsula and sea passages on the Straits of Malacca, the Gulf of Thailand, and the South China Sea. Malaysia is ranked first as Thailand’s trading partner among the ASEAN countries. The main export goods from Thailand include refined oils, automotive, computer equipment and components, chemicals, and rubber products.
Port Authority of Thailand pushes ‘Ranong Port’ to support Andaman and border trading
Port Authority of Thailand has prepared service infrastructure at Ranong Port with continuous port development plans for the areas, facilities, and labor-saving devices to truly enhance its potential. Furthermore, there is also collaboration support on the transportation route between Ranong Pier and foreign piers, by promoting the transport and logistics from China through Laos into Thailand’s border and shipping goods to the third country via Ranong Port, which will generate enormous national export value.
‘Chiang Sean Commercial Port’ is pushed to become the border trading hub for the Upper Mekong Basin.
Chiang Sean Commercial Port is promoted under the government policy on the international transportation network structure improvement to support water transportation in regards to the Agreement on Commercial Navigation on Lancang-Mekong River, in order to accommodate trade and investment, drive the country to be a trading center, and become the trading gateway in Greater Mekong Subregion.
Cross-border transport challenges
When transporting goods in large quantities across borders, the type of goods is needed to be accurately identified or classified. If the documentation process is inaccurate, the procedures will be delayed and there will be an unnecessary cost.
Factors to choosing a cross-border transport carrier are as follows:
- Safety. Cross-border transport requires a plan for the fastest and safest route for transporting goods in order to save delivery time. Transit insurance is also needed.
- Resources. The resources required for transport such as vehicles, goods tracking devices, and other technologies help control the delivery to be fast and seamless.
- Outsourcing a local company or agent. With agents experienced in customs clearance and local routes, problems will be swiftly and effectively resolved and possible delivery issues will be handled professionally.
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