The Development of Dry Ports of International Importance

Expert Group Meeting, Bangkok, 6-7 June 2017

Vision of the role of dry ports in the development of Thailand transport system Thailand Transport Strategy & related Policies

Transport Infrastructure Development Strategy 2015-2022

(Draft) Transport Systems Development Strategy 2017-2036 Special Economic Zones (SEZ) Eastern Economic Corridor (EEC): Enhance Thailand as Gateway of GMS

Role of Dry Ports

Reduce logistics costs per GDP to less than 15%

Promote modal shift: Road to Rail/Waterway

Support development of intermodal transport & logistics systems

Relieve congestion at ports

Improve domestic & regional freight transport efficiency 2

Intergovernmental Agreement on Dry ports

1. Lat Krabang Inland Container Depot (LICD),

Bangkok

2. Chiang Khong Intermodal Facilities,

Chiang Rai

3. Natha Container Freight Station,

Nong Khai

2. Chiang Khong

3.Natha

1. Lat Krabang

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Lat Krabang Inland Container Depot (LICD)

Location 30 km East of Bangkok by rail & 118 km from Laem Chabang Port.

Capacity 1,700,000 TEUs/yr, modal split of Rail: Road-30:70.

Current Operation Module Operators as a concessionaires. The new concession is in process.

Ownership Concessions to private sector to manage & operate ICD. State Railway of Thailand (SRT) is the administrator of concession with Module Operators as a concessionaires.

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LICD Container Transport Volume 2007-2016

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LICD Modal Split, Rail: Road 2007-2016

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Chiang Khong, Intermodal Facilities Location Chiang Khong, Chiang Rai (Next to Chiang Khong Border, 1 km from the 4th Thai-Lao Friendship Bridge)

Area 528,072 Square Metres

Capacity Max. 270,000 TEUs

Operations CFS, trailer& container switching, truck parking & rest area, plugs & socket for reefer containers, one stop service for export & import, container stacking yard & warehousing.

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1st Phase (June 2017-May 2019) Trailer and container switching

area Central administration zone Common control area (CCA) Container freight station (CFS) #1 Bonded warehouse , Custom

warehouse

2nd Phase (Depends on railway construction plan)

Connect with railway network Container yard Container freight station (CFS) #2 Operation office

Trailer & Container Switching Area

Denchai-Chiang Rai-Chiang Khong Railway Line

Chiang Khong, Intermodal Facilities

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Natha Container Freight Station

Current status

- With careful consideration of return on investment, the development of Natha Container Freight Station will not be carried out.

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Future plans for Dry Ports development

Port Authority of Thailand (PAT)

State Railway of Thailand (SRT) - Conducting feasibility study on dry ports development, investment, operation & management

Eastern Economic Corridor (EEC)

- Considering development of ICDs to facilitate cargo from North Eastern, connecting Dawei Port & Cambodia

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Policy measures, legislation & solutions to support dry ports development

Development of hinterland/ inland area

- SEZ & EEC will generate higher demand for freight transport

Transport infrastructure development

- Double track rail /Highway

- Truck terminal/intermodal facilities

Legislation

- Multimodal Transport Act

- Cross Border Transport Facilitation Act

Policy measures

- Enforcement on truck weight restriction

- Incentives to investors/ transport operators

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Practical options for financing development & operation of dry ports

Public Private Partnership (PPPs)

- Concession

- Public sector invest in infrastructure & private sector invest in equipment operations

- Investment by State Enterprises & Private sector (Operation& management)

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Existing issues & challenges to successful development & operation of dry ports

Integration of policy, measures & plans

Seamless connectivity & services

Promote modal shift & integrated intermodal transport

Collaboration & cooperation between related agencies

Operationalization of cross-border transport

Provide viable options for private investors

Incentives (eg. tax reduction, subsidy, etc.)

Law, regulations & enforcement

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