The Industrial Estate Authority of Thailand (IEAT) is calling on the government to develop Udon Thani Industrial City into part of a special economic zone under the state's Northeastern Economic Corridor.
Udon Thani Industrial City, which covers 2,170 rai of land, is the first industrial estate in the Northeast.
This estate is in a prime location with the potential to become a regional logistics hub because of the proximity between Udon Thani and Laos, said the authority.
"Thailand can serve as a gateway to Cambodia, Laos, Myanmar and Vietnam, as well as southern China. This could help with our economic development," said Veeris Ammarapala, governor of the IEAT.
The government previously announced a plan to develop the economy in the region, known as the Northeastern Economic Corridor, with the aim of making it a centre of bio-economy. Authorities plan to grow premium jasmine rice and produce high-quality processed agricultural goods.
The corridor covers parts of Nakhon Ratchasima, Khon Kaen, Udon Thani and Nong Khai, which borders Laos.
The IEAT earlier announced it had formed a joint venture with a local investor in Udon Thani to set up Udon Thani Industrial City to develop a dry port, facilitating land transport and creating a link with the Thai-Chinese rail system.
The government is building a 179-billion-baht Thai-Sino high-speed rail system linking Bangkok and Nakhon Ratchasima in the Northeast, spanning a distance of 253 kilometres.
There are eight companies operating food processing, metal and plastic factories, as well as a warehouse, in Udon Thani Industrial City.
Under the first phase of development, the IEAT plans to build facilities, including warehouses, a container yard and a customer service area to serve a logistics park, which is located near rail routes to Nong Khai and Bangkok.
In the second phase, the authority plans to build an inland container depot.