EXECUTIVE SUMMARY
Over the period 2022-2024, the road freight transport industry is expected to enjoy growth rates that will average 3-5% per year. The industry will benefit from growth in manufacturing and trade, and from the increase in public-sector spending on infrastructure construction and the likely expansion in agricultural outputs. Beyond this, players will also gain from the ongoing strengthening of border/cross-border trade and the continuing rise in the popularity of e-commerce.
At the same time, price competition will intensify on the large and rising number of companies active in the market, higher labor costs, and the rising fuel cost from the war in Ukraine. New entrants to the market from overseas and large domestic players will also look to offer comprehensive and integrated transport services by increasing their operating efficiency, which they will accomplish by stepping up their investments in new technology and extending their partnership networks. As a result, smaller operators and those stranded outside extended business network will come under increasing pressure.
Krungsri Research view
Over 2022-2024, the outlook for road hauliers will gradually improve with stronger demand for goods on the domestic and export markets. However, stiff competition and the cost of transport fuel and labor will drag on profits, especially for smaller players and those that are not part of wider partnership networks.
-
Chilled and frozen transportation services: Revenue will tend to rise at levels that are close to those seen in 2021. Although higher yields and stronger demand will increase the need for the transport of agricultural goods, high costs and intensifying competition will weigh on profits.
-
Oil, gas and other liquids haulage services: Revenue will increase steadily, thanks to stronger domestic sales of gas and oil products for consumption by both the transport sector and individual households. At the same time, competition is not excessive, and this will provide players with the opportunity to continue to build profits.
-
Container transport services: For players in this segment, revenue will tend to continue rising on an increase in exports, manufacturing output, border and cross-border trade, and uptake of e-commerce services. Moreover, the government is actively supporting the transport sector (e.g., by capping diesel pump prices) and related industries (e.g., spending on the development of new wharves at Laem Chabang and Map Ta Phut ports and cross docking centers in SEZs).
-
General haulage services: For large players that are part of commercial networks, revenue will continue to grow thanks to these players’ ability to rely on stable demand for their services. They may also be able to add to their income through investment in related industries, such as offering consultancy, management, and packing services. However, the large number of SMEs and independent players means that it is difficult for these companies to expand their customer base and so they may see a worsening business environment. In the coming period, these players will therefore need to increase their competitiveness by forming new business partnerships.
OVERVIEW
Both domestically and internationally, the road transport industry plays a crucial role in distributing goods to markets, which they accomplish via their role moving goods through all stages of the supply chain, from upstream raw materials to midstream processes and the downstream distribution of finished products. The health of the industry thus rises and falls with the quantity of goods being transported, and this is in turn dependent on the state of the national economy (Figure 1).
Within Thailand, commercial shipping may be divided into five principal modes. (i) Road transportation naturally involves the use of a number of different types of trucks, including for example, pickups, and container and refrigerated trucks. (ii) Rail transportation relies on the country’s rail network and offers a range of different options, including the transportation of bulk, containerized, and industrial goods. In Thailand, there is a single rail service provider, the State Railway of Thailand. (iii) Distribution through pipelines is used for liquids, such as water, oil, natural gas, and some chemicals. (iv) Water-based distribution is typically used for heavier goods and for inland transport, this usually encompasses products such as cereals and bulk building materials. As regards inshore distribution, to support import-export activities, barges and feeder/cargo ships are used to transfer goods from smaller wharfs to the major, deep-sea ports. (v) Air transportation is typically reserved for high-value items, items requiring special care, smaller and lighter goods, and goods for which delivery is time-sensitive or which spoil quickly. Examples of these include jewelry and precious stones, electronic parts and equipment, vaccines, cut flowers, and fashion items.
Road transport accounts for 79.7% of all goods moved within Thailand (data as of 2020) (Figure 2). This dominance stems from the fact that successive Thai governments have pursued a policy of prioritizing the road system over the development of the infrastructure required for alternative transport networks, and this has had the result that at present, roads represent 91.6% of the total distance covered within the country by the different transport modalities (Table 1). Road haulage also offers the advantage of door-to-door transport [1], which means that shippers may move goods from source or origin to recipient in a single stage. The ease and completeness of these connections between sender and recipient cannot be matched by any of the alternatives and so in the case of distribution by rail, water or air, the use of some kind of ‘feeder’ road transport is still required to connect to the recipient on the final leg of the journey. For these reasons, distribution of goods by road has the major role to play in the overall national goods distribution network, and this is reflected in the fact that overall expenditure on road transport is consistently greater than that for other modalities (Figure 3).
Road transport benefits from the fact that distributing goods in a single stage involves no intermediate transfers as required by other modes, and this helps to reduce the loss or damage that would occur when transferring cargo between vehicles. However, with the exception of air transport, moving goods by road is typically more expensive than the alternatives due to the relatively high share that variable costs contribute to overall business expenses. The most important of these are: (i) fuel and lubricants cost, which account for an average of 49% of all variable costs (Figure 4); and (ii) labor cost, which represents a further 32% share of variable costs and has a rising trend due to the shortage of labor. Thai officials have thus made long-term plans to strengthen the logistics sector by decreasing costs and raising transport efficiency. This will be achieved by enhancing the capabilities of the nation’s rail and water transportation networks (e.g., through development of the dual-track and highspeed rail systems, and the development of Laem Chabang and Map Ta Phut deep-sea ports).
There are two main categories of vehicles used in the commercial road transport. These are (i) privately-owned truck, which are used for the transport of the owner’s own goods, and (ii) commercial truck by general haulage companies that are not running on fixed schedules. As of the end of 2020, a total of approximately 1.2 million trucks were registered in Thailand and of these, 0.82 million (68% of the total) were privately owned, with the total number of trucks operated by haulage companies coming to a further 0.38 million vehicles (32% of the total) (source: Department of Land Transport). Thai manufacturers thus tend to rely on in-house transportation facilities when distributing goods domestically. This has the advantage of giving manufacturers a greater degree of certainty and control over when their goods will be delivered, and also of reducing the risk of being faced with a sudden inability to access transport facilities.
Despite this, though, over the period from 2019 to 2021, the number of trucks registered with hauliers grew by 6.5% per year, compared to just 0.6% annual growth for privately-owned trucks (Figure 5). This thus reflects the move by businesses and manufacturers to gradually outsource these services, a move that helps companies to: (i) cut business costs, including overheads related to administration and management, and other costs arising from vehicle repairs, insurance, and drivers’ wages; (ii) take advantage of the specialist expertise and experience of commercial hauliers; and (iii) reduce the overheads involved in navigating the numerous official regulations governing the transport of goods. These include rules on the permissible weight of transported goods and of trucks, the maximum size of trucks and of their loads, and the permitted speeds and travel times of goods vehicles (which may vary depending on whether the vehicle is in an urban area or elsewhere)[2].
Road freight transport services or haulage services may be classified into a number of different groups according to the type of vehicles that they use [3]. Business conditions for operators offering each of these services may then vary considerably, depending on the demand for the transport of particular goods, the number of vehicles that the business operates, the number of other operators offering services in each segment, the types of vehicles that they use, and the kind of goods that they transport. Details of each of these are given below.
-
General trucks: This segment is marked by the large and growing number of players on the supply side. Revenue is dependent on the quantity of goods moved, regardless of their type or of the season. Hauliers may be hired to move agricultural goods during the harvest or general goods within particular areas, and they may also be contracted to provide general haulage services. This segment is thus under significant competitive pressure, and in 2021 there was a total of some 0.63 million general purpose trucks on Thai roads. This constituted 52.3% of all trucks in the country, and of these, 0.54 million, or 85.7%, were privately operated (Figure 6). This therefore represents a significant obstacle for smaller hauliers wishing to enter the market, and for those currently operating in the segment, this congested supply also puts downward pressure on profits.
-
Trailers: Within this segment, revenue is primarily determined by output of industrial, retail, and construction sectors. The goods that are transported in these vehicles are typically either large items, items moved in large quantities, or heavy bulk goods such as sugar, rubber and animal feed. These vehicles consist of a tractor unit or a truck attached to a trailer or container transporter, and these may be used to ship packages, industrial goods or inputs, large machinery, construction materials (e.g., long or rolled steel products) or containerized goods that are loaded and offloaded at wharfs, container depos, or container yards, while operators may sign long-term supply contracts to reduce uncertainty over income. In 2021, almost 0.33 million vehicles of this kind were registered in Thailand, these thus representing 28.1% of all Thai trucks. Of this total, 61% (or 0.2 million vehicles) were operated by hauliers, while 39% (0.13 million vehicles) were owned and operated by businesses engaged in other activities.
-
Commercial vehicles for the transport of liquid goods, dangerous goods, and goods that have special handling requirements: Operators in this segment typically have specialist knowledge in the transport of fuels, gasses, chemicals and other dangerous goods [4]. These players may also operate other specialist vehicles, such as cement trucks, mobile disease testing units, car transporters, and trucks used to transport waste. The market for these services is relatively stable, and long-term contracts for the provision of transport services are often agreed. Revenue is thus fairly secure, and players have some market power when setting rates, although turnover still fluctuates according to the state of the market for the goods being transported.
-
Box trucks: Revenue is broadly dependent on the outlook for the wholesale and retail sectors. Trucks in this category can be subdivided into two groups: (i) Temperature-controlled units/chilled and frozen containers are used for the distribution of fresh food and chilled and frozen prepared meals. The volume of goods shipped partly depends on the season and demand from particular consumer groups. (ii) General purpose trucks are used for the distribution of consumer goods and smaller loose items. Hauliers may operate regular lines or have established, repeat customers, which will then help to reduce uncertainty over fluctuating income, though they may also expand their business operations beyond traditional activities, which emphasize the transport of large items or a large quantity of goods, to include distribution services targeted at online retailers, which places a greater focus on the shipping of smaller, more numerous goods.
Only 9% of Thai road hauliers are mid- to large-size operations (a total of 376 companies) but these account for 68.5% of the industry’s income (data correct as of 2020) (Figure 7). These players enjoy advantages in terms of their greater ability to invest and their more efficient operations. These companies are also more competitive and have a stronger negotiating position thanks to: (i) the large vehicle fleets that they run; (ii) the extended commercial groups within which they operate or the business partnerships that they have formed, which allows them to offer comprehensive, integrated services that combine different transport modalities (e.g., road-rail, road-air, road-sea, and road-rail-sea operations); and (iii) their modern management systems and technological infrastructure. Given this, large players are better able to expand their market, the routes that they operate, and the transport services that they offer.
Players in this group can be subdivided into the following sub-groups. (i) Thai operators offering comprehensive haulage services, some of which are the logistics arms of large manufacturers and distributors: The majority of these are part of commercial groups that extend into other countries in the region, and notable examples include LEO Global Logistics, Kiattana Transport, Nim Si Seng 1988 Transport, Tiger Distribution and Logistics (part of the Sahapat Group), JWD Transport (Thailand) (part of the JWD Infologistics group), Sun Express (part of WICE Logistics), Sammitr Green Power Transport (part of the Sammitr Green Power Group), and PTG Logistics (part of PTGenergy). (ii) Thai operators that have launched joint ventures with overseas players [5]: The majority of these are integrated logistics service providers that offer a wide range of logistics services (transporting via land, water and air). These typically benefit from advantages in terms of their access to a large capital base, being part of extensive commercial networks, and of being able to provide comprehensive transport services. Important players within this group include Eternity Grand Logistics (with a Singapore-based player), Bangkok Marine Enterprise (Japan), and SCG Nichirei Logistics (Japan), a joint venture with SCG, and Toyota Transport (Japan). Alongside these major players, there are 3,867 small companies active in the industry (91% of the total), though these tend to serve a limited customer base or to operate in a restricted geographical area. They may therefore operate over only short distances or run local express delivery or last mile services in areas that are not served by the larger players. These companies are also usually handicapped by their inability to invest in technology or personnel and their limited access to working capital, and this may then result in insolvency.
In addition to offering distribution services to meet demand from the domestic market, operators have also had the opportunity to develop their businesses by distributing goods produced by Thai manufacturers to markets in neighboring countries. Several factors are helping to develop the export market, including: (i) trade liberalization and a greater degree of cooperation in the ASEAN zone, including the creation of the Greater Mekong Subregion (GMS) and the Indonesian-Malaysian-Thai Growth Triangle (IMT-GT), and the partial merging of regional economies within the ASEAN Economic Community (AEC); (ii) Thailand’s natural advantages in terms of its geographical location and its shared borders with a large number of Southeast Asian nations, including Laos PDR, Myanmar, Cambodia and Malaysia, combined with its ability to engage in cross-border trade by land with a further five countries, namely Vietnam, India, Bangladesh, China, and Singapore; (iii) progress on the development of transportation infrastructure linking Thailand to its neighbors, including the nine Asian Highways, the twenty-three ASEAN Highways, the three Greater Mekong Subregion Highways, the two highways linking Thailand and Malaysia, the seventeen border crossings, the border bridges (the Thai-Laos Friendship Bridge, the Thai-Myanmar bridge and the Thai-Cambodia bridge [6]), and the opening of the Lao-China railways (which connects via border bridge to Thailand); and (iv) the forming of business partnerships in neighboring countries, which makes cross border trade significantly more convenient.
SITUATION
Krungsri Research estimates that the volume of goods shipped by road increased 3-4% in 2021, having shrunk -6.6% in 2020 (Figure 8). Although the industry came under pressure from the spread of COVID-19 and the ensuing lockdown, which was notably strict in Q3,2021, road hauliers benefitted from a number of tailwinds. (i) Recovery in overseas markets lifted demand for the transport of import and export goods (in 2021, imports and exports jumped by respectively 23.9% and 19.2%) and for the shipping of manufacturing inputs. (ii) Rising sea freight charges encouraged exporters of some goods (e.g., fresh fruit and vegetables) to switch to road transport. This was particularly notable for exports from Thai to China of durian, mangoes, guava, and mangosteen. (iii) Agricultural outputs were boosted by more favorable climatic conditions. (iv) The government continued to press forward with its construction plans (overall, spending on construction rose 4.1%, split between a rise of 6.4% in the public sector and one of 0.9% in the private sector). (v) e-Commerce jumped by an estimated 20% in 2020 (source: The Electronic Transactions Development Agency). As a result of these factors, the relaxation of the lockdown, and the gradual reopening of certain parts of the country to foreign tourists during 4Q21, demand for road transport services steadily increased. Thus, the industrial freight index strengthened 4.9% YoY, the agricultural production index was up 1.6% YoY, and the construction investment index rose 4.1% YoY.).
Operators have responded to strengthening demand by expanding their fleets and overall, the number of new truck registrations rose 5.0% YoY in the year (Figure 9), with this expansion concentrated in the areas of general trucks and articulated/semi-trucks. Nevertheless, the industry faced headwinds in the form of rising fuel prices (across the year, the average cost of diesel rose 25.3% to THB 28.2/liter) and this therefore added to overheads. At the same time, strong competition between suppliers meant that the room for raising fees was limited.
Business conditions improved for all of industry segments relative to a year earlier [7]. A summary of the situation for each of these is given below (Figure 10).
- Hauliers moving general/miscellaneous goods: As of 2020, there were 3,761 companies active in this segment, and because entry to the market is relatively easy, 92% of these were small-scale operations. Over 2017-2018, an average of around 300 companies began operations each year (source: Department of Business Development.) However, stiff competition makes it difficult for players to raise their fees, and business was further undermined by weak consumer purchasing power (in the year, private-sector consumption edged up just 0.3%). Nonetheless, growth in e-Commerce has helped lift demand for express and retail delivery services.
-
Oil and gas tankers: High barriers to entry to this market that are attributable to its strict regulation and the need to exercise care in the transport of dangerous goods help to reduce competitive pressures for the 178 companies in the segment (83% of these are small operations). Income tends to rise in line with that of players in the oil sector (i.e., oil refineries, oil traders, and petrol stations.) However, in 2021 receipts were seriously affected by the imposition of lockdowns, and especially the tightening of these in the middle of the year. The latter included the closing of some areas, restrictions on travel between provinces, in and out of at-risk areas, and internationally. As such, overall demand for oil slipped -4.8% in the year (Figure 11).
-
Operators of temperature-controlled/chilled and frozen haulage services: Eighty players are active in this segment, most of which are small-sized operations. The segment is principally concerned with the transport of perishable goods such as fresh foods (fruit and vegetables, and dairy and seafood products), cut flowers, and chilled and frozen processed foods. However, the transportation of agricultural produce that is an input into the food-processing industry typically relies on producers’ or processors’ own transport. In 2021, this segment continued to grow on stronger sales on both domestic and export markets (over 2017-2021, exports of goods that need to be moved in temperature-controlled vehicles grew 12.6% CAGR). In particular, the distribution of chilled and frozen goods through online channels saw strong growth, while outputs of cereal crops benefited from better weather. However, outputs of seafood (from both fishing and aquaculture) and of cut flowers suffered under the impact of labor shortages (Figure 12).
-
Container haulage: There are 224 registered players in this segment and of these, around 90% are small operations (data correct as of 2020). Industrial and consumer goods form the bulk of the items that are shipped in containers, and so income within the segment moves with changes in manufacturing output, exports, and cross-border trade, as well as with improvements to infrastructure in both Thailand and in neighboring countries. In 2021, the segment was boosted by an 19.2% YoY surge in exports and a 30.0% YoY jump in the value of goods moving through border crossings. However, periodic shortages of containers, interruptions to the supply of some manufacturing inputs, and the COVID-19-driven suspension of work on construction projects all impacted demand for container haulage services.
OUTLOOK
Krungsri Research estimates that the volume of goods shipped by road will increase by 2-3% in 2022 and then by an average of 4-5% in each of 2023 and 2024. In 2022, growth will be limited by pressure from the prolonged Ukraine-Russia war, which is keeping crude prices elevated and through this, steadily pushing up the cost of transport fuels (these account for almost 50% of business overheads). Krungsri Research now believes that for all of 2022, the price of Dubai crude will average USD 98/BBL, up 42.0% from the close of 2021, and with the government abandoning price controls that capped diesel prices at THB 30/liter, pump prices have been escalating. Thus, as of July, diesel was 20.4% more expensive than at the start of the year. This gloomy outlook is being further darkened by the negative impact of the rising cost of living on consumer spending power. Nevertheless, the Ukraine crisis should ease in 2023 and 2024, and this will help to reduce the upward pressure on crude prices; prices for Dubai crude are expected to ease to USD 82/BBL in 2023 and then to USD 76/BBL in 2024 (Figure 13), and this will then improve the business environment relative to the situation in 2022. In addition, the following factors will positively affect the overall outlook for the road haulage industry over 2022-2024.
1) The Thai economy will gradually recover over this period, helped by the government’s announcement that COVID-19 is to be treated as an endemic (Krungsri Research sees the economy growing by 3.1% in 2022 and then by 3-4% in 2023 and 2024) and a likely acceleration of spending on megaprojects [8] that should help to attract greater private-sector investment targeting the development of industrial, commercial, and residential real estate. Thus, for the period 2022-2024, public- and private-sector spending on construction is expected to grow at annual rates of 5.0-6.0% and 3.5-4.5% respectively (Figure 14). This will then help to boost demand for transport services for the shipping of consumer products, construction materials and related industrial goods.
2) Trade will benefit from forecast 3% annual global economic growth (source: IMF), while border and cross-border trade [9] will strengthen on growth in the economies of Thailand’s neighbors that should average 4.0-5.0% per year (source: IMF). Beyond this, the signing of the Regional Comprehensive Economic Partnership (RCEP) will stoke additional demand for the transport services that will be needed to support stronger regional trade. At the same time, infrastructure development projects in the region (e.g., the highspeed Lao-China rail link) will also increase opportunities for Thai freight forwarders supporting road-rail interchange operations.
3) Government policy targeting the transport sector is encouraging investment in related industries (e.g., the development of cargo wharfs and cross docking centers), and this will help to create additional demand for trucking services to support multi-modal shipping (e.g., road-rail-ship transport).
4) Continuing growth in the e-commerce (expected to grow 22% in value between 2021 and 2024[10]) will underpin additional demand for B2B and B2C transport and for last mile delivery services (Figure 15).
Operators will tend to add to their vehicle fleets in the coming period as they replace aging trucks and move to meet recovering demand by expanding their service areas, and so having increased 6.0% in 2021, truck fleets will expand by an estimated 3-4% in 2022 and 4-5% in 2023 and 2024 (Figure 16). Operators will also meet stiffening competition from food delivery companies that are now offering express and same-day delivery services (e.g., ride-hailing and delivery companies such as Grab, Lineman, and Lalamove) as well as from overseas players that have partnered with local operations to expand into Thai and regional markets. The latter includes operators of online platforms, such as AirAsia’s Super App, which offers a comprehensive range of multimodal services covering the Asian region, and SMEs that work as subcontractors. Krungsri Research has assessed the outlook for individual segments against this backdrop, and this is given below.
-
General trucks: Business conditions will tend to improve with strengthening domestic consumption. Through 2022, consumers will remain cautious about their spending and so overall private-sector consumption will expand by just 3.8%, but this will increase to annual growth of 4-5% in 2023 and 2024 (Figure 17). Alongside this, worries over the spread of COVID-19 and an increase in working from home has supported growth in the uptake of online shopping services, and especially of consumer-to-consumer (or C2C) sales. This is then leading to stronger demand for express/small-package delivery services [11] across the country, which will in turn improve the outlook for players in this segment.
-
Oil and gas tankers: Activity in this segment will improve on an increase in domestic demand for oil and gas in the transport and household sectors. Overall, the transport sector will be boosted by a brightening outlook for manufacturing, trade and tourism (in 2022, 8.5 million foreign arrivals are expected, with this rising to 21 million in 2023 and then 35 million in 2024). In addition, the national vehicle fleet is forecast to expand by 2-3% annually, and combined, these factors will then support stronger demand for oil products, and especially for diesel, which is used principally in commercial activities, transport and agriculture. Thus, over 5M22, sales of diesel rose 12.4% YoY and having fallen -3.8% in 2021, for 2022, demand for refined products is expected to edge up by 2.5-3.5% and then by 3.5-4.0% in each of 2023 and 2024.
-
Temperature controlled/chilled and frozen transportation: Business conditions will strengthen with growth in demand for the shipping of fresh, perishable goods. (i) Agricultural outputs will expand on more favorable climatic conditions. (ii) Demand for medical goods and processed foods that need to be chilled (e.g., processed chicken, processed seafood, and chilled and frozen fruits and ready-made meals) (Figure 18) will increase, while many countries are also worrying about food security and this will boost export markets. (iii) Modern trade outlets are expanding their branch networks, and this will increase the volume of goods that are distributed in temperature-controlled environments.
-
Container haulage: Hauliers specializing in the shipping of containerized goods will enjoy an improving outlook that will move with rising demand for industrial goods. This will itself be lifted by recovery in the domestic economy, now that the country has fully reopened, and strengthening international trade (Thai exports and imports are forecast to grow by 7.5% and 17.0% respectively in 2022, with growth continuing into 2023 and 2024). Moreover, greater activity in the construction sector and ongoing expansion in e-Commerce will feed rising demand for the transport of, respectively, machinery and inputs, and smaller, miscellaneous goods. More broadly, government-funded infrastructure improvements will open for service, including the new wharves at Laem Chabang and Map Ta Phut ports and cross docking centers located in special economic zones, and the operation of these will support the development of extended multimodal (road-ship) transport services (Figure 19).
At the same time, a number of headwinds will blow against the industry. (i) Costs will tend to rise due to more expensive fuel and labor, more congested traffic, and longer wait times for weight checks and at border crossings. (ii) Investment costs will rise as companies are forced to increase their competitiveness by spending more on technology, for example on EVs, driverless vehicles that are managed by remote control technology (RCT), and robotic process automation that facilitates 24-hour a day operations. Alongside this, players will also tend to move towards more environmentally friendly operations by decreasing their consumption of fossil fuels, which may further add to costs. (iii) Greater uptake of rail freight services (road freight is around twice as expensive as rail freight) is increasing the importance of this modality. This is particularly important in the case of the new Lao-China link, which cuts transport times from two days by road to just ten hours by rail. (iv) Competition is intensifying with the entry to the market of large players. This is especially important in the case of overseas entrants since these enjoy benefits with regard to access to capital and technology and their extensive business partnerships. This pressure is being felt especially by smaller operators and those not in extended commercial networks. (v) The stricter enforcement of regulations may add to costs for companies that are in breach of rules covering, for example, the maximum weight of vehicles and drivers’ maximum working hours. These factors may then conspire to limit profits and put pressure on market share, though this will be most pronounced for SMEs since most of these face limitations in terms of their capital base, their service areas, their access to and use of technology, and their isolation from extended commercial networks. This will then make it difficult for SMEs to compete against large players.
[1] 2Door to door transport refers to transport that uses a single means to move goods from source to destination without the intermediate transfer of the goods or the use of any other transport modalities (i.e., without trans-shipping).
[2] The Land Traffic Act specifies speed limits for trucks that have a combined weight of vehicle and load of over 1,200 kilograms. The maximum speed limits are 60 kph in Bangkok, Pattaya and municipalities, and 80 kph elsewhere. For other types of goods vehicles, such as articulated lorries, that have a combined truck and load weight of over 1,200 kilograms, the speed limit is 45 kph in Bangkok, Pattaya and municipalities, and 60 kph elsewhere.
[3] The issuing of permits to operate as a haulier and the registering of commercial transport vehicles is under the purview of the Department of Land Transport (DLT), which operates within the Ministry of Transport. The Department of Land Transport organizes and regulates the operations of these vehicles as laid out in the Land Traffic Act.
[4] The laws on transporting dangerous goods, e.g., the Hazardous Substances Act, and certificates confirming the company’s ability to transport these specify that the transport of fuels is overseen by the Department of Energy, the transport of radioactive materials by the Office of Atoms for Peace, and the transport of explosives by the Ministry of the Interior and the Ministry of Defence.
[5] TThe ASEAN Free Trade Agreement on logistics specifies that overseas investors from ASEAN member states may own shares or engage in joint ventures up to a maximum of a 49% share of all registered capital for domestic companies. This is with the exception of Thai road hauliers engaged in international road transport, and ASEAN members may own up to a 70% share in these companies. For non-ASEAN members, this is limited to a 49% share.
[6] The Fifth Thai-Lao Friendship Bridge connects Amphoe Muang Bueng Kan with Muang Paksane in Bolikhamsai District in Lao PDR. The bridge is currently under construction but it should be open to the public in 2024.
[7] Source: Ministry of Commerce
[8] This includes work on: the Orange, Pink and Yellow MRT metro lines in Bangkok, the highspeed rail link connecting Suvarnabhumi, Don Muang and U-Tapao airports, the intercity motorway network, extensions to the national highway network, the next stage of the twin-track rail system, phase 3 of the Laem Chabang Port development, Khon Kaen Airport, and rest stations/cargo interchange points. In addition, work will be carried out on the repair and upgrade of many smaller roads by the Department of Highways and the Department of Rural Roads, extensions and upgrades to Don Muang and Suvarnabhumi airports, and on three other airports that are being upgraded to international status.
[9] Border/cross-border goods trade and transport allows trucks to stop off when traveling between Thailand, Lao PDR, Myanmar, Cambodia, Southern China, and Vietnam.
[10] Source: Krungsri Research paper, Social Commerce: The New Wave of E-commerce (September 2021)
[11] In 2020, an average of 10 million parcels were delivered by express services every day in Thailand. Research by Google, Temasek and Bain & Company indicates that the Thai e-Commerce sector reached a value of THB 270 billion in 2021 (source: e-conomy 2020).