Compendium of Best Practices and Benefits of National Logistics Associations in Selected APEC Economies

Second Workshop, Shangri-La Hotel Bangkok, 27 February – Friday 2 March 2012

Author: Somsak WisetruangrotOrganisation: TIFFA

Compendium of Best Practices and Benefits of National Logistics Associations

Purpose of Presentation

Objective: To share aspects of each NLA’s internal operations that may be useful to other delegates and to future APEC members who will refer to this project’s compendium.

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Compendium of Best Practices and Benefits of National Logistics Associations

Purpose of Presentation

The ‘Making a Difference Through National Logistics Associations’ case study:

“Operational Logistics Chain Disconnects or Chokepoints within and between Modes of Transport”

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Compendium of Best Practices and Benefits of National Logistics Associations

Background - the Making a Difference Through NLA Initiative / Project

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• Multimodal Transport Operation is become important issue not only in ASEAN or APEC but also all around the world.

• Agility in transportation is key element of transport logistics and supply chain

• Shorten cycle time in transportation requires facilitation of customs procedure

Compendium of Best Practices and Benefits of National Logistics Associations

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• Customs procedure for transshipment is needed to improve for faster mode shift.

• Procedure in Thailand to make mode shift may take from 3 days to 7 days depended on the situation.

• Power of Attorney and special entry form are required

CASE STUDY

Compendium of Best Practices and Benefits of National Logistics Associations

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• To become Multimodal Transport Operator in Thailand required Registration with Marine Department with

• Capital paid up 80,000 SDR• Hold Liability Insurance

CASE STUDY

Compendium of Best Practices and Benefits of National Logistics Associations

Strategy

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Choke point 1 : Association may push to

1. Amend Regulation of customs procedure for transshipment.

2. Approve legal status of NVO/MTO and Authorized to submit House Manifest

Compendium of Best Practices and Benefits of National Logistics Associations

Strategy

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Choke point 2 : Association may find solution for the industry

• Find out Group Liability Insurance

Compendium of Best Practices and Benefits of National Logistics Associations

Outcomes from the Initiative / Project

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• Outcome of first initiative will accelerate faster mode shift from one mode to another in transportation linkage.

• Outcome of second initiative will assist small freight forwarders to be able to handle multimodal transport operation

Compendium of Best Practices and Benefits of National Logistics Associations

A Description of the NLA’s Internal Operations that contributed / Created this

Outcome

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CASE 1 : Association approaches to Customs for Amendment and find support from other entities

CASE 2 : Association deals with Insurance Companies to provide Group Liability insurance for its members

Compendium of Best Practices and Benefits of National Logistics Associations

Economic Context

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• 1. Mode shift operation in multimodal transport will support country to become Hub in economic corridor and create national income

• 2. SMEs of freight forwarders can perform Multimodal transport Operation with less cost of insurance

Compendium of Best Practices and Benefits of National Logistics Associations

Challenges

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• 1. Understanding how to deal with Authorities is very important.

• 2. How to get best deal with Insurance companies

Compendium of Best Practices and Benefits of National Logistics Associations

Benefits

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• Shorter lead time of mode shift in Multimodal transport can be help cargo interests getting materials faster and produce goods with shorten cycle time to market. This is so called a part of Strength of Supply Chain

Compendium of Best Practices and Benefits of National Logistics Associations

Success Stories

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• TIFFA is the first association who dealt with insurance company and provide insurance policy to members under single umbrella.

Compendium of Best Practices and Benefits of National Logistics Associations

Lessons Learned

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• External factor like Authority has great impact to industry and hardly to change.

• External factor such as dealing/negotiating with Private Sector is hard but successful is higher potential.

Compendium of Best Practices and Benefits of National Logistics Associations

Next Steps

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• Dealing with international bodies such as ASEAN, such as CP-TFWG, TFWG through ASEAN Federation of Forwarders Associations

• Liaison with other entities such as USAID who are researching ASW for recommendation to ASEAN

Compendium of Best Practices and Benefits of National Logistics Associations

Conclusion

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• Key success factors to facilitate transportation are not only based on Ministry of Transport but also Ministry of Finance