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Lam Luk Ka hub taps regional demand
NAREERAT WIRIYAPONG
The Netherlands-based logistics group TNT has tripled its express service capacity in Thailand to tap into fast-growing demand for air freight in Asia. TNT yesterday inaugurated its new hub in Lam Luk Ka district, Pathum Thani. It is three times larger in terms of capacity than its previous hub in Klong Toey, which could handle 40 tonnes or 4,500 consignments per day.
By integrating the warehouse and distribution centre under one roof, TNT expects to reduce transit time by at least two hours, according to Onno Boots, regional managing director of TNT Southeast Asia.
Southeast Asia is the company's fast growing market with demand growing rapidly for shipments of equipment and machinery, high-tech and health-care products, said Mr Boots. Trade flows are not limited within the region but increasingly are being integrated with China, the rest of Asia and Europe.
Mr Boots said that TNT had committed total investment funds of 100 million over the next five years to meet freight service demand between China, Asia and Europe.
The freight market in Asia, he said, was expected to post 13% compound annual growth over the next five years to 11 billion.
Alan Miu, TNT Thailand's country manager, said global air freight traffic was anticipated to record average annual growth of 5.8% from 2007 to 2026. Asia would take the lead with intra-Asia trade forecast to increase at 8.6% per year until 2026, he said, citing figures from Airbus and Boeing's Global Market Forecast.
TNT has made an initial investment of 13 million baht to develop the Lam Luk Ka hub with a total area of over 3,000 square metres to house its international and domestic road hubs.
Mr Boots said that given TNT's vision to turn Thailand into the hub for the Indochina market, a significant amount of the 100 million would be invested to further expand facilities in Thailand including the existing 26 depots.
TNT's revenue generated from emerging markets including China, India and the rest of Asia is about 11.5 billion with growth of about 30% annually. Southeast Asia contributed 30% to sales from emerging markets with Thailand alone accounting for 20% of the Southeast Asian revenue.
Along with the new hub, Mr Boots said TNT had developed an integrated road network liking Singapore, Malaysia, Thailand, Vietnam and China. The network enables deliveries up to three times faster than sea freight and at significantly cheaper cost than air freight.
In order to improve Thailand's attractiveness to logistics service providers such as TNT, Mr Boots said authorities should invest further to develop infrastructure and more efficient customs procedures to expedite movements of goods for both domestic routes and cross-border links with neighbouring countries.
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