Monday, August 6, 2007

Thailand set as logistics hub

YUTHANA PRAIWAN

Hong Kong-based Kerry Logistics aims to use Thailand as its integrated logistics service centre in Southeast Asia, says Somchai Kaewmanee, assistant general manager of Kerry Logistics Thailand Co.

Part of the Kuok Group _ an international conglomerate with interests in property, food and beverages, hotels and resorts, media, technology, venture capital, shipping and insurance, Kerry Logistics has built infrastructure that would enable it to offer a full range of logistics services, both import and export as well as nationwide transport and express distribution.

Logistics services would also be expanded to Singapore, Indochina and South China next year.

Mr Somchai said Kerry Logistics Thailand projected its revenue would grow by 30% to 1.3 billion baht this year.

Prospects for the logistics business remain promising because many manufacturers still lack expertise in logistics and inventory management. Many have unsuccessfully invested in in-house logistics departments that have proved to be expensive and inefficient. Outsourcing often allows multinationals to reduce costs and focus on core businesses.

Many major local companies and small businesses have experienced similar problems involving logistics and raw material and finished product management.

Kerry Logistics entered Thailand four years ago and has recently built offices to support its port and warehousing service at Si Racha and its Laem Chabang, distribution centre. Regional distribution centres were set up in Chiang Mai, Phitsanulok, Nakhon Ratchasima, Ubon Ratchathani, Udon Thani, Hat Yai, and Surat Thani.

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