"We expect to propose to the committee on logistics chaired by Prime Minister Abhisit Vejjajiva to consider the establishment of the institution soon," said Krirkkla Sonthimas, president of the federation. The committee is set to hold a meeting next month and will make the proposal then.

Now that the logistics industry is under the supervision of many ministries and state-related agencies, he said, it wanted a one-stop information centre that could provide logistics figures and useful information.

"We have to prepare ourselves to have more advantages than our rivals, or be able to co-exist with them," said Krirkkla.

Under the AEC, the logistics business will have to open to foreign shareholding among Asean members of not less than 70 per cent of total capital in 2013 and up to 100 per cent in 2015.

He said in the first stage, the federation would work with state agencies for five years before handing over to the private sector.

"A professional should be hired to run the body," he said. One of the pilot projects under the operation of the National Logistics Institution is the electronic-logistics programme, linking computerised customs-clearance procedures between corporations and third-party logistics services providers (LSPs), said Krirkkla.

In coordination with Kasikornbank, he said the institution would try to convince 20,000 of the bank's 60,000 small |and medium-sized enterprise clients to participate in the project through a business-to-government format.

This would create linkage between the SMEs, which are importers and exporters, the Customs Department and LSPs, via paperless Customs-clearance procedures, he said.

"This will help the government's e-single window project to move on," he said, adding there would be more trust among LSPs and |their clients, which are clients of the bank.

"There has been no action to enhance or regulate the logistics industry. More time is needed to draft the logistics law," he said.

He said the first draft of the logistics law was expected to be complete by the end of this month. It would then go through a public hearing, consultation by the Council of State, Cabinet screening and submission to Parliament, which was expected in September.

In principle, the logistics law is mainly aimed at enhancing the logistics business, with some |measures aimed at enhanced regulation.

Currently, Thailand has around 5,000 LSPs, mostly SMEs, and |the industry has 50,000 skilled workers.