23 Au Strategies for Developing Air Freight

23 Au

Strategies for Developing Air Freight Transportation & Logistics System @ Suvarnabhumi CHANCHAI SINGTOROJ Managing Director, 12 Sep 2006 Cargo and Mail Commercial

Customers Expectation • Speed • Quality Services – Keep promise – Safe delivery – Complete delivery – Dependable • Valued Added Services • Communication • Convenience

Improve Core Business • Offer direct services, reduce ground handling time • Improve quality of service to ensure reliability of service regarding time, loss and damage • Communication – Upgrade existing Tracking System • Convenience - Provide channel for direct contact with THAI

Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

1. Hardware Huge Facilities Area Management Modern & High Capacity Equipments

Cargo Project Locations INTERNATIONAL CARGO DOMESTIC CARGO MAIL Center

Top view Domestic Cargo International Cargo Terminal

- Located in Customs Free Zone (CFZ) - Handling Capacity : • 966, 000 tons/year ( 2006 -2009) • 1, 226, 000 tons/year (2010 -2014) THAI International Cargo Terminal

Cargo International Terminal Area Management EXPRESS CARGO AREA CUSTOMER AIRLINES AREA THAI CARGO & ALLIANCES LINE UP AREA PERISHABLE CARGO AREA

Equipments CUSTOMER AIRLINES Total Area THAI CARGO & ALLIANCES 25, 000 Sq m. 30, 000 Sq m. PERISHABLE CARGO AREA EXPRESS CARGO 9, 000 Sq m. 6, 000 Sq m. Equipments - X-ray Machine 3 3 2 3 - Floor Scale 5 5 4 5 - Elevated Transfer Vehicle 2 2 TV 1 - Mobile Work STN. 30 36 5 30 - Dock Leveler 3 3 2 3 - Strong Room 1 1 1 - Cool Room 2 2 2 - Cold Room 2 2 - Drive-in Cold room 4 2 4 - AS / RS 1 2 - Loading Deck 2 2 1 1 2

Speed & Space Saving Elevated Transfer Vehicle System (ETV) 4 units

Speed & Efficiency Transfer Vehicle System (TV)

Speed, Space Saving and Efficiency Automated Storage & Retrieval System (AS/RS) 4 Units-13 Cranes

Convenience - Safety – Space Utilization No build up cargo on ground Pallet Transporter Mobile Workstation

Safety & Quality Loading Pit are prepared for build –up / break down pallet for freighter

Security System Closed Circuit TV - CCTV Total Coverage all cargo terminal areas and Airside To Ensure max security.

Security System 100 % Screening X-ray Machine for ULD (Pallet and Container) Example X-ray Images HI-SCAN 180180 -300 k. V

Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

2. Software : IT systems Ø To comply with Customs Free Zone Regulations • Customs Reporting Systems - Cargo Movement Controls Systems (CMCS) Ø Enhance Efficiency Ø Communication with Customers

Cargo Movement Control Systems (CMCS) Customs Reporting System for Customs Free Zone – Report Customs on the movement of Cargo in and out THAI Cargo Terminal ( Import / Transit / Export ) through Air Cargo Community System (ACCS)

Enhance Efficiency • Barcode Systems • Upgrade Hardware • Plan to move to paperless environment

Communication with Customers • Tracking System for Cargo Agents and Customer Airlines at www. thaicargo. com • Cargo Agent Reservation (CARE) for THAI Appointed Forwarding Agents

THAI Cargo Business Plans at SBIA • Expand core business and offer value added services as the opportunity arisen from the Cargo Free Zone environment.

Expand Value Added Businesses to Cover More logistics Functions • New logistics Center for Electronic Parts • Perishable Distribution Center • Express Center

New Value Added Businesses 1. New logistics Center for Electronic Parts

New logistics Center for Electronic Parts • Distribution Center for Electronic Parts Concept : Involve suppliers in multiple countries at different stage of production process and redistribute the final product or partial product to third countries.

New logistics Center for Electronic parts • Located at Customs Free Zone area, SBIA • Joint Venture Company TG and ITOCHU • Services cover : – Distribution Center for electronic parts – Non-Resident Inventory Management – Assembling, Sorting, Repackaging – Transport the intermediate or final products to the third country

New Value Added Businesses 2. Perishable Center

Perishable Center • Temperature and humidity controlled area • Re icing / Re Oxygen for Transit Shipment • Perishable One Stop Service Export Center of Thailand • Perishable Distribution Center for Perishable items in this region

3. Express Center

Express Center Emergency Traffic • Aircraft Spare parts • Spare parts for the Oil Company • Suppliers who nearly miss its order commitment.

Express Center What TG can provide : – Uplift to final destination via TG own flight or interline arrangement for first available flight. (Mainly intend in market where TG has an extensive network) – Express ground handling services – Efficient and reliable tracking

Increase Transportation Capacity • Expand network and capacity through charters , partners and will operate our own freighters

Explore Other Business Expansion Expand Transportation Business to fulfill customers need in time definite product. from Airport to Airport Door to Door Business

Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

People-ware Experienced and dedicated Staffs Excellent Services

Thank you