Government considers cargo airline for farm goods

Thailand might set up its own cargo airline under the national carrier to expedite shipping of agricultural exports.

"I believe the cargo airline will get off the ground this year. It is very challenging for THAI to manage the cargo airline," Finance Minister Surapong Suebwonglee said.

Thai International Airways, which already offers a freighter service, could operate a new subsidiary to carry only farm products, the minister told a seminar yesterday on the country's logistics policy and market liberalization.

The national cargo airline might fly out of both Suvarnabhumi and Don Mueang airports and the government will soon work out the structure of its management, he said, adding that it would help speed up traffic, especially for agricultural products.

The government would also fine-tune regulations to support the private sector in building up the country's transportation and logistics system, he said.

Product transport in the country is 86 per cent by land and only 2 per cent via rail, and costs Bt1.2 trillion a year, of which Bt800 billion is for oil. Transportation accounts for 6 per cent of all product costs.

The government will invest in expanding the rail network to connect land, water and air transportation systems. IT would play a key role in supporting the development, he said.

Chaisawat Kittipornpaiboon, permanent secretary of the Transport Ministry and THAI's chairman, said the flag carrier is working on the plan to purchase or lease new aircraft to replace old ones.

The Nation, 06.06.2008

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