apicd presentation to visitors v 1.0.3 อยุธยาพอร์ต

1C.P. International Business Trading Group and Crop Integration Business (Maize)

Ayutthaya Port & ICDDate: 12 July 2012


Thailand’s Current Logistics Issues

C.P. International Business Trading Group and Crop Integration Business (Maize)

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16

18

20

1.6 1.5 1.5 1.4 1.6 1.6 1.6 1.6 1.4 1.3

7.6 7.2 7.2 7.3 7.6 8 7.8 7.3 6.6 6.7

8.98 7.4 7.1

7.9 8.2 7.7 8.27.1 7.2

Admin cost Inventory cost Transport cost

Logi

stics

cos

t per

GDP

18.1 16.716.1 15.8

17.1 17.8 17.1 17.1

15.1 15.2

Logistics Cost per GDP of Thailand

Logistics cost accounted for 15% of National GDP, and freight transport expenditure was the greatest cost component.


Thailand’s freight transport cost is high because it has relied heavily on road transport

In Terms of Ton-Kilometers

2006 2007 2008 2009 20100.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

AirCoastalIWTRailRoad

Mode %

Road 95.9

Rail 1.3

IWT 1.1

Coastal 1.8

Air 0.02

2010

5

Thailand’s Modal Split of Domestic Freight Transport 2006 – 2010 (in terms of ton-kilometers)

Domestic Freight Transport Volume (in million ton-kilometers)

Mode 2006 2007 2008 2009 2010Road 95.53% 95.56% 95.66% 95.71% 95.88%Rail 1.40% 1.47% 1.34% 1.35% 1.27%IWT 1.06% 1.10% 1.08% 1.06% 1.05%

Coastal 1.99% 1.86% 1.91% 1.87% 1.81%Air 0.02% 0.02% 0.02% 0.02% 0.02%

Mode 2006 2007 2008 2009 2010

Road 184,006

186,174

181,452

183,4

29

185,8

83

Rail 2,688

2,857

2,533

2,582

2,455

IWT 2,048

2,134

2,058

2,024

2,034

Coastal 3,834

3,631

3,615

3,586

3,504

Air 31

31

31

33

31

Total 192,606

194,827

189,689

191,6

54

193,8

76


Compared with selected developed countries, the modal share of road transport in Thailand is significantly larger.

Countries Rail Road Inland waterway

Austria 35 61 4Belgium 13 71 16France 15 81 3

Germany 22 66 12Netherlands 6 61 33

Thailand 1 97 1

Source: UNCTAD (2010), Review of Maritime Transport, United Nations Conference on Trade and Development, Geneva. and from Calculation based on data collected by Thai Ministry of Transport


Thus, we are losing logistics competitiveness in the global arena.

Country LPI Rank 2010 LPI 2010 LPI Rank

2007 LPI 2007

Germany 1 4.11 3 4.10Taiwan 20 3.71 21 3.64Korea 23 3.64 25 3.52China 27 3.49 30 3.32

Thailand 35 3.29 31 3.31

The Logistics Performance Index of Thailand fell from 3.31 in 2007 to 3.29 in 2010, its rank also dropped from 31 to 35 while our

colleagues saw improvement.

Road Utilization Rail Utilization

To make the situation worse, Thailand’s Existing road and rail infrastructure is extremely overused

9

As a result, a viable solution is needed to sustain our

competitiveness!!!

10

Inland Waterway Transport is the most cost-efficient and sustainable mode of transport

11

…..and waterways are underutilized.

12

2 18 34 50 66 82 98 1141301461621781940

1000

2000

3000

4000

5000

6000

Intermodal Competition in Freight Transport in Thailand

Road IWT

Kilometers

Tota

l Tra

nspo

rt C

ost (

THB)

IWT is the most cost-effective mode of transport

Because of the economies of scale

Break Even Point Road v IWT

109.43 KM

The longer the haulage distance, the lower the average transport cost per a unit of cargo.

13

Road Rail Inland waterway0

10

20

30

40

50

60

70

80

90

100100

33

23

% of Fuel Consumption Compared with Road Transport

77%Less


IWT Consumes Fuel Only 23% that of Road Transport

Inland towing Railroad Truck0.000

20.000

40.000

60.000

80.000

100.000

120.000

10.250 13.375

107.375

CO2 Emission in Grams per Ton-KM

88%

90%


IWT Emits CO2 90% Less Than Road Transport

15

Our solution is, to expand our logistics business to IWT to

reap the benefit.


The Importance of Port and Logistics Operations to Business Competitiveness

Create value-added to the product

Stages in a value chain

Valu

e-ad

ded/

Pro

fit

Concept/R&D

Branding

Design

Manufacturing

Distribution

Marketing

Sales and Customer Support

The Smile Curve


The Importance of Port and Logistics Operations to Business Competitiveness

Efficient port operations will result in

Enhance company’s competitive advantage

Market CoverageSales ProfitSales VolumeInvestment Opportunities

APICD is not just simply port business…but a crucial part of CP value chain and supply chain

C.P. International Business Trading Group and Crop Integration Business (Maize) 18

Inbound Logistics Operations Outbound

LogisticsMarketing

& Sales Service

Quality Improve

ment Factories

APICD

General Cgo. Vsl.

Container Terminals

Domestic Coastal Ports

Distributors Customers

Barges

Barges

Barges

Ayutthaya Port & ICD

Bangkok Port

Laem ChabangPort

Destinations Distance (km.)

Time (hrs)

Bangkok 142 15

LCB 237 22

40-Meter-Wide Road

Quay Length 276 Meters, 4.5-Meter Depth,Reach Stackers, Tractors, Trailers, Emergency Electric Generator,

24/7 Security

1 RMG40-mt lifting capacity

55,000 m2 warehouses

ICD & Bonded Warehouses

M&R Facilities

Traffic Control Tower

1 Quay Crane40-mt Lifting Capacity

Speed : 35 Lifts/ Hr.

1. Inland Waterway Transport

2. Port & Terminal Operations

3. Land Transport4. International Freight

Forwarding

1. Bonded Warehouse2. Cargo Consolidation

and Distribution

Phase ITerminal & Transport

Phase IIInland Container Depot

Scope of Business and Operations

22

Our Contribution to National Economy and Environment

Economies of Scale in IWT

Source: Actual Carrying Capacity

65 =1> 600,000 Trips of Trucks

per annum

Reduction in Road Traffic

24

At the full design capacity


Road Rail Inland waterway0

10

20

30

40

50

60

70

80

90

100100

33

23

114 Million Liters or

3,409 Million Baht per annum

Fuel Saving

% of Fuel Consumption Compared with Road Transport

25

At the full design capacity


Inland towing Railroad Truck0.000

20.000

40.000

60.000

80.000

100.000

120.000

10.250 13.375

107.375

CO2 Emission in Grams per Ton-KM

> 200,000 mt. per annum

CO2 Reduction

> 200,00 mt. per annum

CO2 Reduction

4.6 km2

of Forest

Equivalent Sequestration

At The Full Design Capacity

Source: From Calculation

Thank YouFor Your Attention

28

BACK UP

29

Global LPI Rank

ASEAN LPI Rank Country LPI

(out of 5)2 1 Singapore 4.09

29 2 Malaysia 3.4435 3 Thailand 3.2944 4 Philippines 3.1453 5 Vietnam 2.9675 6 Indonesia 2.76

118 7 Lao PDR 2.46129 8 Cambodia 2.59133 9 Myanmar 2.33


World Bank’s Global Logistics Performance Index 2010


2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16

18

20

1.6 1.5 1.5 1.4 1.6 1.6 1.6 1.6 1.4 1.3

7.6 7.2 7.2 7.3 7.6 8 7.8 7.3 6.6 6.7

8.98 7.4 7.1

7.9 8.2 7.7 8.27.1 7.2

Admin cost Inventory cost Transport cost

Logi

stics

cos

t per

GDP

18.1 16.716.1 15.8

17.1 17.8 17.1 17.1

15.1 15.2

Total Logistics Cost in 20101.64 Trillion Baht (15.2 % of GDP)

Transport cost 140 billion baht 7.2%

Inventory Cost 723 billion baht 6.7%

Admin cost 778 billion baht 1.3%

Logistics Cost per GDP of Thailand

31



Break-even points between different modes of transport

Mode

Break-even point (Fuel Price = THB 30/liter)

KMBT

= 0

KMBT

= 20

KMBT

= 30

KMBT

= 50

KMBT

= 100

Road/ Rail 61.24 91.03 105.93 135.73 210.23

Road/ Inland waterway

67.17 95.34 109.43 137.61 208.05

Rail/ Inland waterway

170.21 170.21 170.21 170.21 170.21

Ayutthaya Port & ICD

Bangkok Port

Laem ChabangPort

Service RouteFrom - To Route Distance Avg.Speed Time

Pasak RiverRiver Port - Ayutthaya 22 (Kms.) 3-4 (Kts.) 4 Hrs.

Chao PhrayaAyutthaya - BKK 120 (Kms.) 5-6 (Kts.) 11 Hrs.

Chao PhrayaBKK - Samutprakarn 20 (Kms.) 8 (Kts.) 2 Hrs.

Gulf of ThailandSamutprakarn – LCB 75 (Kms.) 8 (Kts.) 5 Hrs.

Total 237 (Kms.) 6 (Kts.) 22 Hrs.

33

2 15 28 41 54 67 80 93 1061191321451581711841970

1000

2000

3000

4000

5000

6000

Intermodal Competition in Thai Freight Transport

Road Rail IWT

Kilometers

Tota

l Tra

nspo

rt C

ost (

THB)



Because of the economies of scale

Break Even Point Road v IWT

109.43 KM

Break Even KM

Road v Rail 105.93

Rail v IWT 170.21

apicd presentation to visitors v 1.0.3 อยุธยาพอร์ต

Documents