Yusen calls for better border process

Yusen calls for better border process

Underdeveloped roads and customs procedures in Thailand's neighbours remain a challenge for the country to expand its cross-border trade, says Japanese international freight forwarder Yusen Logistics.

Tomonao Iwasaki, assistant general manager for marketing and logistics at Yusen Logistics (Thailand) Co, said as everything has to be procured across the border, customs clearance is the most pressing challenge, followed by road conditions.

Tomonao Iwasaki, assistant general manager for marketing and logistics at Yusen Logistics (Thailand) Co, said as everything has to be procured across the border, customs clearance is the most pressing challenge, followed by road conditions.

"People still think that Cambodia is only 650 kilometres away [from Bangkok], so shipments can be delivered in two to three days. But due to road conditions and customs procedures, it usually takes longer," he said.

Cambodia's customs procedures are complicated. Invoice and export certificates have to be submitted to the Cambodian government before cargo can proceed, which takes at least a week or more, said Mr Iwasaki.

In Cambodia, Yusen Logistics is providing logistical support for the recently opened Aeon shopping mall in Phnom Penh.

"There is not much manufacturing in Cambodia, so Aeon needs to import products from Thailand if it wants to expand," Mr Iwasaki said, noting that road conditions are a concern.

On the Thai side of the border, roads are generally in good condition, but the one-lane road from the Poi Pet border crossing to Phnom Penh is poor. Also, driving in Thailand is on the left side of the road but in Cambodia it is on the right.

"Trucks needs to be switched, so we are trying to build connections there," said Mr Iwasaki.

The business-to-business integrated logistics provider has been in Thailand since 1969 and has 3,400 employees.

Yusen has 10 warehouses in Thailand with 11 custom brokerage offices, seven truck terminals and four container yards.

"The volume of shipments is a bit down because the economic downturn affected sectors such as the automotive sector. But in the long run it doesn’t affect us much," said Mr Iwasaki.

The Asean Economic Community, he said, would increase movements in the region and Thailand has advantages to support neighbouring countries in areas such as health care and medical services.

He said Thailand and the region need good logistics systems, so maybe the government should look into more investment.

"Thailand’s political stability is the main concern. Domestically, it may not be a big deal, but internationally it is different," said Mr Iwasaki.

Nonetheless, Yusen will keep expanding in Thailand, where it has been for 45 years and has become the largest logistics company in the country.

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