Dr. Porametee Vimolsiri Senior Advisor

1. Infrastructure andLogistics Development Dr. Porametee VimolsiriSenior Advisor

2. Overview • Sufficiency Economy • Impacts on Development in the 10th plan • Development Strategies in the 10th plan • Infrastructure Development in the 10th plan

3. Sufficiency Economy Sustainability Harmony Security Ethics Cultural impact Material impact Moderation Globalization and Impact Immunity Reasonable Environmental impact Social impact Knowledge

4. Impacts on Development in the 10th plan Migrant & Labor Global Economic & Financial Change Technology 5 MAJOR CHANGES Social Change Natural Resource

5. Development Strategies in the 10th plan 1) Human and Society Development Strategy 2) Community and Society Strengthening Strategy 3) Economic Structure Modification Strategy 4) Bio-diversity, Resource Bases and Environment Quality Development Strategy 5) Good Governance Reinforcement Strategy

6. Infrastructure Development in the 10th plan Development of infrastructure and logistics services in order to support production structural adjustment 1 Improved energy efficiency and expediting alternative energy initiatives 2 A framework for fair distribution of infrastructure development 3

7. New Trade Lanes and Logistics Network Optimization Logistics ServiceInternationalization Trade Facilitation Enhancement Capacity Building Thailand Logistics Development Strategy (2006-2010) Vision To establish a world-class logistics system to support Thailand as Indochina’s trade and investment center 16%(2005) 13%(2010) 1 To enhance trade facilitation with an aim to increase cost efficiency and customer responsiveness of businesses, and also reliability and security of their logistics process) 2 To create economic value from the logistics and other supporting industries 1.5 Objective 1 7.3 Business Logistics Improvement 1 2 3 4 5 6 StrategicAgenda Implementation Principles 7.2 • Aim at the world-class technology and skills. • Focus primarily on strategic industries. • Any change management must be customer oriented. 6

8. Longshuanka Myitkyina Kunming Dali Mangshi Chuxiong Ruili Yuki Muse Mohei Yuanjiang Lashio Simao Hekou Thibaw Xiaomengyang Lao Cai Jinghong Mandalay Mongla Dalug Mohan Kangtung Loilem Boten Pak Mong Louang Namtha Hoa Binh Tachilek Haiphong Houayxay Leuang Phrabang Muang Pek Vang Vieng Vinh Pakkading Thakhek Dong Ha Muang Phin Hanoi Hua Khanthabouri Moulmein Mae Sai Chiang Khong Da Nang Pak Se Attapeau Nan Vientiane Dung quat Tavoy Sisophon Syung Treng Yangon Quy Nhon National Capital Poi Pet Siemreab Mae Sod City/Town Mabtaput Laem Chabang Port Myeik Proposed Container Yard Kampong Cham Krong Kaoh Kong Proposed Distribution Center Bangkok Aranyaprathet Inland Container Depot Tay Ninh Ho Chi Min International Boundary Vung Tau Kampong Saom Proposed Sub-regional Road National Railway Rach Gia Phnom Penh Proposed National Railway Ban Thung Pho River Quang Long Deep Sea Port Thung Song Borders/Logistics Center Kho Chum Tong Main Railway Station Ban Pashe Pak Bara Port Satun Business Logistics Improvement Raw material Producer wholesaler retailer customer • Applying Best Practice • Outsourcing • Encouraging Cluster • Developing Cold/Cool Chain Management Supply Chain Optimization

9. Longshuanka Myitkyina Kunming Dali Mangshi Chuxiong Ruili Yuki Muse Mohei Yuanjiang Lashio Simao Hekou Thibaw Xiaomengyang Lao Cai Jinghong Mandalay Leuang Phrabang Vinh Pakkading Inter-Customer Muang Pek Supplier Distribution center Thakhek Inter-Customer Gateway Supplier Dong Ha Muang Phin Customer Hua Khanthabouri Distribution center Manufacturing site Supplier Da Nang Customer Hanoi Pak Se Chiang Rai Attapeau Mae Sai Integrated Transport System Chiang Khong Dung quat Chiang Mai BuaYai Nan Nong Khai Vientiane Udon Thani Tak Phitsanulok Mukdahan Khon Kaen Nakohon Sawan Yangon Mae Sod Ubon Rachatani Nakhon Rachasima Buriram Sa Kaew Bangkok Aranyaprathet Chachoengsao Phetchaburi Trat Phnom Penh Surat Thani Nakorn Srithammarat Phuket Trang Songkla Mongla Dalug New Trade Lanes & Logistics Network Optimization Mohan Kangtung Loilem Boten Pak Mong Louang Namtha Hoa Binh Tachilek Haiphong Houayxay Vang Vieng เด่นชัย Ban Dara Moulmein Jira Kangkoi Tavoy Ban Pashe Sisophon Syung Treng Quy Nhon National Capital Poi Pet Siemreab City/Town Mabtaput Laem Chabang Port Myeik Proposed Container Yard Kampong Cham Krong Kaoh Kong Proposed Distribution Center Inland Container Depot Tay Ninh Ho Chi Min International Boundary Vung Tau Kampong Saom Proposed Sub-regional Road National Railway Rach Gia Proposed National Railway Ban Thung Pho River Quang Long Deep Sea Port Thung Song Borders/Logistics Center Kho Chum Tong Main Railway Station Ban Pashe Pak Bara Port Satun

10. Longshuanka Myitkyina Kunming Dali Mangshi Chuxiong Ruili Yuki Muse Mohei Yuanjiang Lashio Simao Hekou Thibaw Xiaomengyang Lao Cai Jinghong Mandalay Mongla Dalug Mohan Kangtung Loilem Boten Pak Mong Louang Namtha Hoa Binh Tachilek Haiphong Houayxay Leuang Phrabang Muang Pek Vang Vieng Vinh Pakkading Thakhek Dong Ha Muang Phin Hanoi Hua Khanthabouri Moulmein Mae Sai Chiang Khong Da Nang Pak Se Attapeau Nan Vientiane Dung quat • Encouraging Strategic Alliance Tavoy Sisophon Syung Treng Yangon Quy Nhon National Capital Poi Pet Siemreab Mae Sod City/Town Mabtaput • Developing Specialized LSPs and Related Logistics Business, ,esp. for SMEs / Agri. Produce; insurance, Multimodal Transport Operators Laem Chabang Port Myeik Proposed Container Yard Kampong Cham Krong Kaoh Kong Proposed Distribution Center Bangkok Aranyaprathet Inland Container Depot Tay Ninh Ho Chi Min International Boundary Vung Tau Kampong Saom Proposed Sub-regional Road National Railway Rach Gia Phnom Penh Proposed National Railway Ban Thung Pho River Quang Long Deep Sea Port Thung Song Borders/Logistics Center Kho Chum Tong Main Railway Station Ban Pashe Pak Bara Port Satun Logistics ServiceInternationalization End User Exporter End User Exporter Exporter Logistics Service Provider End User Information Flow Goods Flow Exporter

11. Longshuanka Myitkyina Kunming Dali Mangshi Chuxiong Ruili Yuki Muse Mohei Yuanjiang Lashio Simao Hekou Thibaw Xiaomengyang Lao Cai Jinghong Mandalay Mongla Dalug Mohan Kangtung Loilem Boten Pak Mong Louang Namtha Hoa Binh Tachilek Haiphong Houayxay Leuang Phrabang Muang Pek Paperless Vang Vieng Vinh Pakkading Thakhek One Stop Service Dong Ha Muang Phin Hanoi Hua Khanthabouri Moulmein Mae Sai Chiang Khong Da Nang Pak Se Attapeau Nan e-Transaction Vientiane Dung quat Tavoy Sisophon Syung Treng Yangon Quy Nhon National Capital Poi Pet Siemreab Mae Sod City/Town Mabtaput Laem Chabang Port Myeik Proposed Container Yard Kampong Cham Krong Kaoh Kong Proposed Distribution Center Bangkok Aranyaprathet Inland Container Depot Tay Ninh Ho Chi Min International Boundary Vung Tau Kampong Saom Proposed Sub-regional Road National Railway Rach Gia Phnom Penh Proposed National Railway Ban Thung Pho River Quang Long Deep Sea Port Thung Song Borders/Logistics Center Kho Chum Tong Main Railway Station Ban Pashe Pak Bara Port Satun Trade Facilitation Enhancement E-Logistics

12. Longshuanka Myitkyina Kunming Dali Mangshi Chuxiong Ruili Yuki Muse Mohei Yuanjiang Lashio Simao Hekou Thibaw Xiaomengyang Lao Cai Capacity Building Jinghong Mandalay Hanoi Mae Sai Chiang Khong Nan Vientiane Yangon Mae Sod Bangkok Aranyaprathet Phnom Penh Mongla Dalug Mohan Kangtung Loilem Boten Pak Mong Work forced in Production based Louang Namtha Hoa Binh Tachilek Haiphong Houayxay Leuang Phrabang Muang Pek Vang Vieng Work forced in LSPsBusiness Provide Training Vinh Pakkading Thakhek Production Improvement Dong Ha Muang Phin Hua Khanthabouri Moulmein Da Nang Pak Se Database Development Attapeau Dung quat Tavoy Sisophon Syung Treng Quy Nhon National Capital Poi Pet Siemreab Straighten Implementation Mechanism City/Town Mabtaput Laem Chabang Port Myeik Proposed Container Yard Kampong Cham Krong Kaoh Kong Proposed Distribution Center Inland Container Depot Tay Ninh Ho Chi Min International Boundary Vung Tau Kampong Saom Proposed Sub-regional Road National Railway Rach Gia Proposed National Railway Ban Thung Pho River Quang Long Deep Sea Port Thung Song Borders/Logistics Center Kho Chum Tong Main Railway Station Ban Pashe Pak Bara Port Satun

13. Thailand’s Logistics Development Strategy (2006-2010) 16 %/GDP 13 %/GDP Some Key Initiatives 7.2 Transport • Encourage the application ofBest Practice for logistics management at the firms level • Promote cluster cooperation • Develope-Logistics system • Support private sector’s investment in distribution and logistics business in strategic locations • Build up inter-city special express highway in order to increase transport efficiency -1.2% 6 • Promote firms to outsource their logistics functions • Encourage the establishment of Logistics Center in Custom Free Zone • Encourage business partnership and strategic alliance between Thai LSPs and between Thai LSPs and foreign LSPs • Increase public relation so as to make the firms’ executives better understand why and how to manage logistics operation more efficiently • Enhance the capability of logistics personnel at every level 7.3 Warehouse & Inventory 6 -1.3% • Develop comprehensive e-Logistics and Single Stop Inspectionat the border point • Enhance the capability of logistics personnel at every level • Promote firms to outsource their logistics functions • Encourage the firm to upgrade their information system 1.5 Admin. 1 -0.5% 2010 2005

14. THANK YOU