Local freight truck operators have claimed their businesses are being badly hurt by an influx of lorries from China and the operations of Chinese warehouses and freight companies using Thai nominees.
Land Transport Federation of Thailand (LTFT) chairman Thongyoo Kongkhan on Sunday called on the government to step in to protect local truck operators. He plans to send a letter requesting a meeting with Transport Minister Suriya Jungrungreangkit to find ways to deal with the problem.
Mr Thongyoo alleged that Chinese businessmen have built warehouses and operated “full-scale” freight truck businesses with the help of Thai nominees.
“The implementation of the Asean-China Free Trade Agreement (ACFTA) has led to an influx of Chinese exports to Thailand and that merchandise is transported by trucks imported from China. Nearly all of the trucks are owned by nominee companies,” the LTFT chaiman said.
“It’s estimated that the Chinese trucks account for 1% of total truck numbers in Thailand, about 10,000. The number is expected to continue to increase at an average of 1% per year.”
Mr Thongyoo said almost half of all the trucks owned by LTFT members have been parked due to higher diesel prices, a reduction in hiring rates and an increase of 3-9% in transport fees.
He was also concerned about price dumping for delivery service fees by the Chinese truck operators.
“If the government has not prepared but putting effective countermeasures in place, this will have a significant impact on local logistics and truck entrepreneurs. The federation will submit a letter asking for a meeting with officials in the transportation agencies.
"Other issues on the agenda will include the importation of trucks and the opening of full-scale warehouses by foreign entities which are becoming excessive. This will adversely affect the ten-wheeler operators in Thailand,” the LTFT chief added.
Compliance required
Meanwhile, the Department of Land Transport (DLT) issued a statement citing section 24 of the 1979 Land Transport Act which stipulates that any juristic person wanting to secure a licence to operate a non-fixed-route delivery trucks business must register under the Thai law and have its head office located in Thailand. No less than half of the board members must be Thai nationals, and no less than 51% of the company's capital must be held by shareholders who are Thai individuals. It said the licence applications have been strictly examined and approved in line with the laws.
As for concerns over Chinese warehouses or import and export businesses suspected of using Thai nominees, the DLT will ask the commerce and finance ministries to oversee and prevent any disadvantage in the business operations of local truck companies.
Regarding the issue of trucks from China operating in Thailand, the DLT clarified that the registration of freight trucks does not limit the country of the vehicles' manufacture, and they can operate if their specifications meet regulations and they are imported legally.
However, the department said that currently there are some 8,473 registered freight trucks from Chinese manufacturers, some of whom have established production bases in Thailand.
“The delivery firms can freely choose trucks from any manufacturer they find to suit their cost structure and business operations.” the statement said.
Under the memorandum of understanding (MOU) on the “early harvest” implementation of the cross-border transport facilitation agreement signed by transport ministers from six countries of the Greater Mekong Subregion (GMS), effective from April this year to the end of 2026, each member nation (except Myanmar) can issue a maximum 500 cross-border road transport permits for freight operators in their country.
Eleven Thai freight operators with a combined 458 trucks have applied for the permits and are expected to start operating next month, the DLT said.