To beat market competition, shipping lines are using Super Post-panamax liners at a few major ports while Panamax ships are being used to provide Feeder services. Responding to current Port and Marine Transportation trends, the Port Authority of Thailand (PAT) has revised its development strategy in a bid to motivate major shipping lines to dock at Laem Chabang Port.
 

The deep-sea port at Laem Chabang will be developed into an Innovative World Class Port and Gateway to the Greater Mekong Sub-region, to accommodate long-term growth of intra-regional trade and economic activities.  To help achieve this, modern technologies will be installed to improve cargo loading/unloading and container management efficiency while ensuring maximum user convenience, safety and speed.
 

Due to its location, Laem Chabang is inaccessible to mega-ships - but it can still become a Transit Port and Gateway to neighboring countries as major transportation routes already link up to Thailand, Laos, Myanmar, Vietnam, Cambodia and China, explained Mr. Chalermchai Meekun-iam, Director General, PAT.
 

The idea of developing Laem Chabang into a Hub Port or Regional Transshipment Port is feasible because Thailand is Southeast Asia’s frontline state. Focusing on Thailand’s unique advantages, Phase III of the Laem Chabang development project will help strengthen national competitiveness and attract major shipping lines, thus benefiting local shippers and related activities.
 

Mr. Chalermkeat Salakham, Managing Director at Laem Chabang Port, praised PAT’s policy to develop Innovative Ports equipped with fully-automated docking systems.  The Green Port concept will be implemented simultaneously to preserve the environment, conserve energy, protect sanitation and the health of people living in nearby communities.
 

Recognizing that the national logistics development strategy aims to shift transportation modes from roads to railways and waterways, PAT has launched its Rail Transfer Terminal project at Laem Chabang, while Berth A has been re-designed to cater specifically for coastal feeders.  Construction of a dual railway system between Chacheongsao and Laem Chabang will be completed in 2012.  The new Rail Terminal located within the port precinct will further boost multi-modal cargo transportation.  On-going construction of the coastal feeder dock will not only promote mode-shift but also help to reduce user costs
 

Based on 2010 data, the transshipment of containers from Laem Chabang to various domestic destinations amounted to 5 million TEUs.  About 30% of total container volume or 1.5 million TEUs was dispatched to Lard Krabang by trucks, leaving 500,000 containers to go by rail.
 

From October 2009 to March 2010, containers passing through Bangkok Port totaled 593,436 TEUs, an increase of 77,385 TEUs or 15% compared to the same period last year.  Over the same period, containers passing through Laem Chabang Port amounted to 2,004,278 TEUS, an increase of 170,139 TEUS or 9.2%.
  

Although the growing volume of containers indicates healthy growth trends for cargo shipment, transport service operators need to manage costs more effectively to minimize possible risks related to oil prices, higher interest rates, inflationary pressures, and currency appreciation.  PAT’s policy to improve service efficiency and speed will support private sector cost saving efforts while safeguarding against undue fluctuation in container volume passing through local ports.
 

To achieve e-Port status, PAT has installed various modern IT systems such as the Container Terminal Management System which will link up to the Vessel & Cargo Management System (VCMS) by June/July 2010.  Laem Chabang Port’s e-Gate and e-Toll Collection System, to be launched in July 2010, will use Optical Character Recognition and Radio Frequency Identification (RFID) to monitor containers, personnel, vehicles, fees and destinations by transmitting data to other systems based on the ‘work smart’ principle.  Digital cameras installed at entry points will capture container data and transmit it to the Data Center within 30 seconds.
As the Data Center will hook up individual Terminal Operators to Customs Dept, Immigration and other government agencies, there will be a real-time exchange of e-manifest and Container Lists.  Year-end completion of the e-Port project will support the Customs Department’s project to launch a National Single Window system in the near future.

Domestic ports latest
“On-going development of individual domestic ports differs due to varying policies.  Constrained by an insufficient number of containers, Bangkok Port is upgrading its basic infrastructural efficiency to achieve e-Port status.  Laem Chabang focuses on continuous improvement to accommodate ever growing volume of containers.  As phase III of the Laem Chabang expansion plan will take at least six years to design and construct, PAT is currently working on phase 2,” Mr. Chalermchai added.

Urgent problems hindering development of regional ports include the plunging level of the Mekong River.  Although the water level has risen from 1.4 meters to 1.6, it is well below the normal navigable level of 2meters.  Accelerated construction of Chiang Saen Port II located 20 km from Chiang Khong will be completed in 2012.

Ranong Port, which could become a Gateway to BIMSTEC countries, is now slated to serve as the main support base for petroleum exploration and production on the Andaman coast.

An integrated ASEAN transportation system
The framework for Greater Mekong Sub-region Cooperation includes the development of basic infrastructures in seven areas, including transportation, telecommunication and energy, is one of the factors that boosts Laem Chabang’s claims to becoming a Sub-regional Gateway.

Economic Corridors linking Thailand, Myanmar, Laos, Cambodia, Vietnam and Southern China (Yunnan) will support trade and economic activities within this sub-region while enhancing Thailand’s role as a Sub-regional Hub for commerce and transportation and a Gateway to world markets via Laem Chabang Port.

Although its geographical location makes Laem Chabang less attractive than neighboring countries, Laem Chabang’s vast hinterland comprises four states which share borders with five more countries.  Backed by this, development of Laem Chabang Port should focus on its potential to serve as a Gateway Port to the hinterland rather than striving to emulate the Singapore model as a Hub Port for Transshipment.