SOUTH
east Asia export growth may be slowing, but regional DHL Global Forwarding boss Thomas
Tieber says it is still one of the world's fastest-growing markets
where trucking has yet to play an expected leading role.
LTL
and FTL services will tap into an acceleration of road freight growth in the
Asia Pacific because of the launch of the Asean Economic Community (AEC) and
China's 'One Belt, One Road" initiative, he said.
"A
lot of economies in south east Asia are export driven and still growing and
evolving," said Mr Tieber, DHL Global Forwarding CEO for ASEAN and South
Asia.
"Thailand
is a good example. It used to be low cost but now it's about 30 per cent
electronics and automotive - so it has a diverse base," he told Lloyd's
Loading List.
But
because south east Asia consists of divergent economies at different levels of
development, many challenges face attempts to serve the region's forwarding
needs.
"As
textile export companies have left Thailand in search of lower costs, they have
tended to relocate to Vietnam, Bangladesh or
Indonesia, but growth in Thailand has remained solid," Mr Tieber
said.
"Indonesia
lacks infrastructure and manufacturing tends to follow infrastructure. But in some
areas it's growing in double digits, and there are new ports, airports and
energy plants on the way.
"It
also has a huge population and growing middle class. It has high logistics
costs but reducing them is an opportunity. I think manufacturing will expand
there," he said.
Meanwhile,
Vietnam is booming - helped by legislation that is removing trade barriers and
boosting exports. "We're seeing lots of large hi-tech companies settling
near Hanoi," Mr Tieber said.
"The
import business is linked to export industries. Parts come in and finished
products such as mobile phones go out," he said.
"Then
there are exports by all modes, including into China on an overland land
bridge. Trucking has an important role."
Smoothing
truck flow is a priority, he said. Last year DHL introduced an integrated road
freight network linking five key Asian cities: Singapore, Penang, Bangkok,
Hanoi and Shenzhen.
"International
road freight is a good product and we have now connected 50 cities in
Asia," said Mr Tieber. "We've also established procedures through Cambodia
and we're looking at border crossings to Laos and how to connect Myanmar,
where customs is still cumbersome."
DHL's
cross-border trucking network will be greatly boosted if the trade benefits of
the AEC launched last year are realised.
"No
one expected it would work like the EU, but we'd like improvements to
international trucking so we can offer international standards. Thailand is an
obvious regional hub, but they need more focus on easing the burden of crossing
borders and transit procedures," Mr Tieber said.
Source
: HKSG.
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