ASEAN KEY DESTINATIONS
Logistics too expensive
Relative to Thailand's gross domestic product (GDP) logistics costs are expected to fall just one percentage point this year from 2009, due mainly to higher oil prices and interest rates, says the National Economic and Social Development Board (NESDB), the Thai government's planning agency.
The government's ambitious plan to expand the rail network and add high-speed trains, which will reduce logistics cost to GDP, will take a long time to materialise, he added.
The NESDB has set a five-year target to lower logistics costs from 19 percent of GDP to 15-16 percent by the end of the 11th national economic and social development plan in 2016.
The cabinet in April endorsed a rail system overhaul worth 1.7 trillion baht, including upgrading 660 kilometres of existing track and signalling infrastructure, buying more locomotives, and constructing five double-track routes to the northern, northeastern and southern regions, he said.
The logistics industry has potential to generate added value to the economy of about 300 billion baht a year, the NESDB estimates.
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