SCG Logistics Unveils New Logistic Route with Laos-China Railway, Expanding Business Opportunities for Thai Entrepreneurs and Saving Costs Up to 20%
SCG Logistics Management, Thailand's leading provider of domestic and international integrated logistics services, unveiled its cross-border services. It is expected that the Thailand-Laos-China route will generate 650 million baht in revenue in 2022, with an emphasis on expanding business prospects for Thai entrepreneurs via rail transit that will lower transportation costs by up to 20% with door-to-door service. It also provides a one-stop customs clearance service for imports and exports.
Paitoon Jiranantarat, Managing Director of SCG Logistics Management remarked on the readiness of the Thai-Laos-China rail link route extension. He said that Thai-Chinese trade is now expanding gradually. In 2021, Thai exports to China surpassed 1.2 trillion baht. The total value of Thai-Chinese trade was 366,970 million baht, with imports totaling 172,150 million Baht and exports totaling 194,820 million baht via land, sea, air, and rail freight transport from Lao PDR's high-speed railway connecting China's Kunming with Vientiane. It is part of the Belt and Road Initiative (BRI) and covers total distance of 1,020 kilometers. The travel time between Chiang Rai and Kunming can be shortened from two days to about 10 to 15 hours compared to transport by car. And compared to sea freight, logistics costs can be cut by up to 20% to many destinations, such as Kunming, Chengdu, Chongqing, etc. Rail transport is also the mode of transportation with the lowest accident risk. Consequently, the railway line will boost Thai entrepreneurs' transportation capabilities and competitiveness.
SCG Logistics is also preparing to combine rail and road transport with door-to-door service. The process involves collecting empty containers from the Lao PDR to load goods in Bangkok and the vicinity before delivering them to the Nong Khai checkpoint. Then, at the Thabok-Thanaleng checkpoint, proceed with the return of the heavy container, as well as customs export clearance out of Thailand and customs import clearance into Lao PDR. The shipment will subsequently carry the goods by rail to China with a customs clearance service to deliver the containers to their destination. This way, SCG Logistics can distribute goods throughout China's provinces. SCG Logistics has entered into a joint venture with Jusda Supply Chain Management International, a subsidiary of Foxconn, to establish a joint venture with China ASEAN Supply Chain Management or CAS in 2019 to provide a comprehensive range of logistics services to the southern China region and connect to ASEAN countries. The Thailand-Laos-China rail route can service all type of products, including food, vegetables/fruits, consumer goods, construction materials, and others. The door-to-door service on the Thailand-Laos-China route starts at approximately 150,000 baht/FEUs. In addition to the Thailand-Laos-China route, SCG Logistics has developed a cross-border service network by establishing and expanding a network of logistic operators in Greater Mekong Subregion (GMS) countries, including Thailand, Myanmar, Lao PDR, Cambodia, Vietnam, and Southern China. This is to provide a comprehensive service that includes export customs clearance as well as transport vehicles in Thailand and surrounding areas.
Those interested in SCG Logistics service, please contact www.scglogistics.co.th or 02-586-6777 or Facebook: scglogistics.