Conclusions
Of all the alternative journeys between Vientiane and Rotterdam, the routeing
via Port Klang achieves the most competitive costs and transit time with a
reasonable confidence index. It must be noted that in reality, sea freight rates
are not stable and are adjusted for ``peak season’’ surcharge, or other types of
surcharges which may increase the freight rates compared to those obtained
during this study.
The ICDs in Lad Krabang also achieve significantly lower container
handling costs than port terminals. According to Beresford and Savides (1997),
this difference probably occurs because maritime terminals have more
sophisticated handling equipment and more complex infrastructure than
inland multimodal terminals.
Currently, Laotian exporters to Europe are not really aware of the
multimodal alternatives that are offered to them via Thailand. This might be
due to the fact that most of these garment exporters prefer to sell their product
FOB Thanaleng or FOB Bangkok, thus not controlling the transport chain. If
Laotian exporters want to benefit from the various route options that are
offered to them, then they will have to negotiate their international trade under
``delivered’’ trade terms. These ``delivered’’ trade terms will assist in the control
of the transport chain, as Laotian exporters will be able to nominate the main
carriers and choose the most suitable route.
When comparing the costs involved in these routes, sea transport is as
expected the cheapest per cost/km, rail is intermediate and road transport is the
most expensive (see Table VII). It is also worth noting that the various other
charges are still a burden to the competitiveness of Laotian exports. On certain
routes, such as via Bangkok, transit and local charges represent up to 10
percent of the total transport cost, with ``tea money’’ representing 2 percent. The
figure might not be very high, but this 2 percent does represent a loss in terms
of the Laotian trade competitiveness.
Multimodal transport corridors enable economies of scale within a
transportation system where modes are used in the most productive manner.
The globalisation of trade is largely dependent on transportation systems with
reliable transit times and costs. Exporters and logistics service providers must
re-evaluate their strategies for freight transportation as all modes and all
possible transfers between modes must be considered. With the development of
new modal and multimodal infrastructure in the region, Lao PDR has a
growing accessibility to the international market.
The paper has demonstrated that the best possible route for Laotian
garment exporters to Europe is via Port Klang in Malaysia, both on total
transport costs and transit time (see Table VIII). The only possible reservation
concerning such a route is the road haulage factor from Nongkhai to Lad
Krabang or Bangkok. This is due to the fact that most trucks are overloaded
and claims on road freight (damage, loss of goods, etc.) are excessively high for
some cargo. It might be possible to utilise the rail link between Nongkhai and
Lad Krabang or Bangkok but all this will depend on the frequency, reliability
Conclusions
Of all the alternative journeys between Vientiane and Rotterdam, the routeing
via Port Klang achieves the most competitive costs and transit time with a
reasonable confidence index. It must be noted that in reality, sea freight rates
are not stable and are adjusted for ``peak season’’ surcharge, or other types of
surcharges which may increase the freight rates compared to those obtained
during this study.
The ICDs in Lad Krabang also achieve significantly lower container
handling costs than port terminals. According to Beresford and Savides (1997),
this difference probably occurs because maritime terminals have more
sophisticated handling equipment and more complex infrastructure than
inland multimodal terminals.
Currently, Laotian exporters to Europe are not really aware of the
multimodal alternatives that are offered to them via Thailand. This might be
due to the fact that most of these garment exporters prefer to sell their product
FOB Thanaleng or FOB Bangkok, thus not controlling the transport chain. If
Laotian exporters want to benefit from the various route options that are
offered to them, then they will have to negotiate their international trade under
``delivered’’ trade terms. These ``delivered’’ trade terms will assist in the control
of the transport chain, as Laotian exporters will be able to nominate the main
carriers and choose the most suitable route.
When comparing the costs involved in these routes, sea transport is as
expected the cheapest per cost/km, rail is intermediate and road transport is the
most expensive (see Table VII). It is also worth noting that the various other
charges are still a burden to the competitiveness of Laotian exports. On certain
routes, such as via Bangkok, transit and local charges represent up to 10
percent of the total transport cost, with ``tea money’’ representing 2 percent. The
figure might not be very high, but this 2 percent does represent a loss in terms
of the Laotian trade competitiveness.
Multimodal transport corridors enable economies of scale within a
transportation system where modes are used in the most productive manner.
The globalisation of trade is largely dependent on transportation systems with
reliable transit times and costs. Exporters and logistics service providers must
re-evaluate their strategies for freight transportation as all modes and all
possible transfers between modes must be considered. With the development of
new modal and multimodal infrastructure in the region, Lao PDR has a
growing accessibility to the international market.
The paper has demonstrated that the best possible route for Laotian
garment exporters to Europe is via Port Klang in Malaysia, both on total
transport costs and transit time (see Table VIII). The only possible reservation
concerning such a route is the road haulage factor from Nongkhai to Lad
Krabang or Bangkok. This is due to the fact that most trucks are overloaded
and claims on road freight (damage, loss of goods, etc.) are excessively high for
some cargo. It might be possible to utilise the rail link between Nongkhai and
Lad Krabang or Bangkok but all this will depend on the frequency, reliability
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