Thailand risking air express business
Thailand’s new international airport risks losing out on the opportunity to become a regional hub for air freight unless it establishes express cargo facilities, industry executives warn. The express warehouse and custom-free zone planned for Bangkok’s new Suvarnabhumi international airport will be about half a mile from the airside area with space of 1.5 million square feet, against 2.1 million at the current Dong Muang airport.
The Thai Association of International Air Express Operators says the lack of airside express sites will mean half-day delays of express shipments and one-day delays for transshipments.
Herbert Vongpusanachai, president of the trade group and managing director of DHL International (Thailand) Ltd., urged Airports of Thailand PLC to honor a pledge given last year to include airside express operations.
Thai express shipments totaled $80 million in 2003, with 8 million shipments on 36 express flights a week, the Bangkok Post estimated. The air trade group forecasts express flights could triple to more than 100 a week with adequate facilities at the new airport.
The group — which represents DHL Worldwide, FedEx Corp., TNT and United Parcel Service — notes that all the big four couriers operate centers at Singapore’s Changi, which offers 2.3 million square feet of space.
“The prospects for the industry to grow are excellent if we can get the facilities that Thailand deserves. Other airports such as Hong Kong and Singapore have rightly targeted express as a fundamental part of their business plan,” Vongpusanachai said. “They have provided express companies at their airports with airside facilities. So why would Thailand want to fall behind them?”
Singapore’s air express market totaled $350 million in 2003.
The government says it wants Thailand to be the regional manufacturing center for industries such as automotive, electronics, fashion and apparel. But as more sophisticated, high-tech products are manufactured, assembled and distributed, the need for integrated express services will grow, industry executives said.
