BSAA News is a quarterly publication of the BangkokShipowners and Agents Association.

It is distributed free of charge to exporters, importers,transportation and logistics providers and governmentagencies. To receive copies or inquire regarding advertising,please contact the BSAA’s office by telephone, fax or email.

Views expressed do not necessarily reflect those of theBSAA, individual members or Publisher.

Bangkok Shipowners and Agents AssociationBoonmitr Building, 12th Floor,138 Silom Rd., Suriyawong, Bangrak,Bangkok 10500Tel: 0 2634 4046-7 Fax: 0 2634 4048Email: bsaa@loxinfo.co.thWeb Site: www.thaibsaa.com

Produced by: PAPITPHUM LTD. Tel: 08 1327 7033

Welcome New BSAA Members

TRITON SHIPBUILDING (THAILAND) CO., LTD.421/135 Sathupradit Rd., Chongnonsi, Yannawa, Bangkok 10120Tel: 0 2673 5826Fax: 0 2673 5827Email: kosit@tritonships.comWeb Site: www.tritonships.com

DHIPAYA INSURANCE PUBLIC CO., LTD.63/2 Rama 9 Rd., Huaykwang, Bangkok 10310Tel: 0 2248 0059Fax: 0 2248 7891Web Site: www.dhipaya.co.th

⌦⌫⌦ ⌦ ⌫

⌦ ⌫ ⌦ ⌫

⌫ ⌦ ⌫

⌫⌫⌫ ⌦

Over 60 Year of Bangkok Port

⌫

3Interview

⌫

⌦⌫⌫ ⌫ ⌦ ⌫⌫

⌫ ⌫

⌫ ⌫ ⌫ ⌦⌫ ⌫ ⌫⌫ ⌫⌫

⌫ ⌫ ⌫

⌫⌫ ⌫

⌫ ⌦⌫ ⌫ ⌫

⌫⌦⌦⌫⌦ ⌫

⌫ ⌫ ⌫⌫ ⌫ ⌫

⌫⌫⌫

⌫ ⌫ ⌫ ⌫ ⌫⌦⌫

⌫ ⌦ ⌫⌫ ⌫ ⌦⌫ ⌫⌦⌫ ⌫ ⌫ ⌫ ⌦⌫⌫ ⌫⌫⌦⌫⌦⌫ ⌫ ⌫

⌫⌫⌫

⌫ ⌦ ⌫ ⌫⌫ ⌫⌫ ⌦⌫ ⌫⌫

⌫⌫ ⌫⌫ ⌫⌫ ⌫⌫ ⌫ ⌫ ⌦⌫ ⌫

4 Interview

The policy to construct an international port started in 1932.Later, a study to survey a suitable area for construction was conducted.The port was then constructed in 1938. However, the construction wassuspended because of World War II, but was later resumed andcompleted after the war ended.

In 1951, the government issued the Port Authority of ThailandAct, B.E. 2494 and established the Port Authority of Thailand (PAT), anautonomous body under the general supervision of the Ministry ofTransport and Communications, and transferred the operation fromthe Bangkok Port Office.

BSAA News recently interviewed Sub Lt. Viroj Chongchansittp,Managing Director of Bangkok Port (BKP), as the Port is the first state-owned port and the origin of PAT.

Since 1951, the port business has been growing continuously. At

first, BKP had only one terminal on the West Quay with nine berthsserving general and bulk cargo. Later around 1975-1977, containertransportation was introduced, so PAT constructed another terminalon the East Quay to be a multi-purpose and container terminal, whichhad been in operation since 1978.

During 1987-1988, the economy in Thailand expanded rapidly,causing severe port congestion. In response, PAT accelerated thedevelopment of the East Quay to be the container berth and installedseven gantry cranes, as well as improving the port area, procuringnew equipment and implementing IT in its operation services. Thecapacity of the Port reaches 1.3 million TEU a year.

For the short term, BKP improvements, including the quayside

and port areas, will be finished around mid 2012. The gantry cranerail on the quayside, which has been used for over 30 years, will bereplaced berth by berth. The current rail and quayside are meant tocarry only 400 tons, but the actual weight is 600 tons. So by replacingthe rail and repairing the quayside, the berth can handle more weight.

As part of e-port development, Bangkok Port has procured bothhardware and software to support the system, including back office(such as ERP, Office Automation, etc.) and front office (such as ContainerTerminal Management System, Vessel Cargo Management System, etc.)

Moreover, BKP is now installing e-toll and e-gate. The data willbe linked with e-Customs to serve the National Single Window system.

PAT has hired consultants to study and analyze the utilization of

existing PAT’s assets, B.E. 2551. At present, the report had already

been completed and was approved by the Ministry of Transport. Thereport has further been submitted to the Ministry of Finance forconsideration and to seek approval from the Cabinet. Meanwhile,PAT has a Master Plan to utilize the overall area which will serve as aclear-cut framework for developing existing areas, both inside andoutside Bangkok Port’s customs fence. The utilization plan includesdeveloping a container freight station at Transit Shed No. 1-6, aconstruction of Terminal 3 at Transit Shed No. 7-9, etc.

Congestion at Bangkok Port of the Port Authority of Thailand

(PAT) has been building up since the early part of this year, which hasled to some shipping lines having to implement Bangkok Congestionof 50 US dollars per TEU. There are two main reasons for suchcongestion, namely the closure of some berths (to reconstruct thecrane rail system and to install gantry cranes) and the long holidays(Songkran Festival and Visakabucha Day).

During the holiday periods, the Port was still open for ships toberth, while there were very little clearing of cargoes out of the port,leaving piles of containers in the port area. Moreover, port workerswere in a hurry to finish their job so that they could enjoy theirvacation early, which resulted in many containers being misplaced.When the causes of the congestion were identified, BKP immediatelyset up a war room to resolve the problem and finished the job withintwo weeks.

It can be said that the current congestion is only a temporaryphenomenon, caused by the workflow error, and is not crisis like tookplace years ago. In the future, when e-Port is implemented, it willprevent such problems from occurring because workflow will be setup more systematically.

Bangkok Port has set up a buffer area to expand the port capacity,

namely preserving Mooring Buoy for waiting-berth vessels and finish-loading vessels that wait for high tide, preserving berth at TransitSheds No. 8-9 and OB for vessels with deck-mounted cranes, arrangingquayside and the port area as well as equipment and other facilities,and preparing sufficient chassis and trailers.

Furthermore, in order to cope with the temporary closure ofarea at Block H with a capacity of 680 TEU, PAT has arranged to opena stuffing area with a capacity of 1,000 TEU. Regarding the closure ofthe reefer plugs area with a capacity of 180 plugs, PAT has preparedan open area adjacent to Transit Shed No.17, Empty Container Section,and Container Terminal 1 to replace the closure area. The port hasplan to rent a mobile generator should that become necessary.

5Interview

⌫⌦ ⌦⌫ ⌫ ⌦⌫⌫⌦⌦⌫ ⌫

⌫

⌦⌦ ⌫ ⌫ ⌫

⌫ ⌫⌫

⌫⌫

⌫⌦ ⌫⌫

⌫ ⌫ ⌫ ⌦ ⌫ ⌦ ⌫⌦⌫⌦ ⌦ ⌦

⌫ ⌫ ⌫ ⌦ ⌫ ⌦ ⌦

Thai Food Export Situation in 2011

6 Focus

⌫ ⌦⌫⌫⌫ ⌫ ⌦ ⌦⌫

⌫ ⌫ ⌫ ⌦ ⌫

⌫ ⌫ ⌦ ⌫ ⌫⌫⌦ ⌫⌫

⌫ ⌫ ⌫⌦ ⌦ ⌫

⌦

⌫ ⌦⌦⌦⌫ ⌫ ⌫⌫

⌦⌫

⌦ ⌫ ⌦ ⌫ ⌫⌫

⌫ ⌫ ⌫ ⌦ ⌫ ⌦ ⌫ ⌫ ⌫⌫⌫ ⌫ ⌦⌫⌦ ⌫

⌫

⌫⌫⌦ ⌫ ⌫⌦⌫ ⌫ ⌫ ⌦ ⌦⌫⌦

⌫ ⌦⌫ ⌫⌫ ⌫ ⌫

⌫ ⌫

⌫ ⌫⌫⌫

Generally, food export in 2011 continuesits growth, thanks to the economic growthand natural disasters around the world whichhave resulted in higher demands for food.Still, there are other threatening factorswhich include raw material scarcity,expensive raw materials, capricious weather,and higher production costs due to higherraw material and energy prices. In addition,inflation and the increasing interest rate arefactors that could lower customers’purchasing power.

Statistics by the Thai Food Processors’Association (TFPA) reveals that tuna and

7Focus

seafood are the largest export products, representing 50% of the totalTFPA food value (of which 87% is tuna 13% is seafood). Both fruits andvegetables share 32% of the total TFPA food value (consisting of 53%pineapple, 10% sweet corn, and 37% others). The last group is ready-to-eat food and food ingredients, accounting for the remaining 18% ofthe total TFPA food value. The main products of TFPA are tuna,pineapple, and sweet corn, sharing 64% of the total TPFA food value.

⌧ ⌧ ⌧ ⌧ ⌧ Food export related to TFPA members can be divided into six

categories, namely tuna, seafood, pineapple, fruits / vegetables, sweetcorn, and ready-to-eat food / food ingredients. During the first fourmonths of 2011, all categories of the food export had increased interms of both value and volume, except for sweet corn which wasquite stable, when compared with the same period in 2010.

Tuna export during the period was valued at 742 million USdollars, an increase of 20%, with a volume of 216,960 tons orrepresenting a 2% increase. The continuing growth is a result of anincreasing health conscious population, so people turn to eat morefish than other kinds of meat.

Seafood in the same period was valued at 106 million US dollars,an increase of 18%. The export volume was 35,405 tons, an increaseof 8%. However, shrimp export may be threatened by the US measureagainst Thai shrimp fishers for not using turtle excluder devices intheir nets. The bright side is that the oil leakage in the Gulf of Mexicohas caused hardship for fisheries, resulting in lower seafood supplyin the US. Thus, this could be an opportunity forthe US to import more shrimps fromThailand.

P r o c e s s e d p i n e a p p l eexport was valued at 289million US d o l l a r s ,soar ing by 34%. The

volume was255,588 tons,

an increase of14%. It is expected

that the productionand export should

increase due to the fact that competitors like the Philippines andIndonesia faced lower productivity.

Processed fruits and vegetables showed a total value of 203million US dollars, which is a 12% increase. The volume of export inthis category was 144,822 tons, representing an increase of 5%. It isexpected that the export volume this year will be fairly stable due tothe slowing down of canned fruits import from China, the US, andEurope. Thus, such products, particularly canned fruits, for the Asianmarkets should be focused on developing these products into otherforms of processed food.

The total export value of sweet corn products was 56 million USdollars, an increase of 10%. The export volume was 55,861 tons, aslight decrease from the same period in 2010. It is expected that afterthe free trade agreement, the export of such products will growcontinuously.

Ready-to-eat food and food ingredients have been expanding.The value of its export reached 301 million US dollars, a rise of 24%,whereas its volume grew by 10%, reaching 133,646 tons. Such growthshowed that Thai food is becoming more popular among overseascustomers because of its varieties. This is a value-added productcategory. Moreover, Americans recently have a tendency to cookmore by themselves and love to try new products.

One major problem of the food industry is a lack of

raw materials especially tunas. There is a fish-breedingproject which involves releasing juvenile fish to thesea, something that Australia has already started.Moreover, the barrier imposed by Europe on IllegalUnreported and Unregulated or IUU makes it moredifficult to find raw materials.

Regarding agricultural products, water scarcityis a major problem. The current irrigation systemcannot cover the agricultural area thoroughly,resulting in inefficient productivity. In addition, therehas been insufficient research in the field of rawmaterial development, which results in a lack ofquality seeds.

Another obstacle is a lack of labor, since mostThais are not fond of working in food factories. At thesame time, it is difficult to find legal foreign workersto fill the gap.

Such problems and obstacles require assistancefrom the government to overcome. Otherwise, someenterprises may have to move their production basesto other countries. As a matter of fact, some tunamanufacturers have already moved to Vietnam andChina.

8 Focus

⌫ ⌫ ⌫ ⌫ ⌫⌫

⌫ ⌫⌫ ⌦⌫⌫⌫ ⌫

⌫ ⌫⌫

The Bangkok Shipowners and Agents Association (BSAA) wasinformed by its members that there had been a circular announcementwith BSAA’s letterhead on the implementation of local charge “BangkokContingency Surcharge” (B.C.S.), indicating the amount of charge.

The Association has informed all parties concerned that thisdocument is fake and fraudulent, and was neither issued nororiginated from the Association. As per the regulation no.3 (F) on theobjectives of the Association, the Association will not involve in anyfreight charge or any surcharge issues. Freight increases or collectionof any surcharges and local charges are entirely independent actionsand decisions made by each shipping line.

The Association has already reported the case to police forinvestigation and to take legal action forthwith. Offenders will beprosecuted to the maximum extent of the law.

Phony BSAA Announcement

⌫ ⌫⌫ ⌫

⌫

⌫ ⌦

⌫⌫

⌫ ⌫⌫ ⌫ ⌦

⌫

⌫⌫ ⌫

The Permanent Representative of Thailand to the WTO reportedto the Department of Foreign Trade that the Ministry of Industry andTrade of Vietnam had issued a Notice on import procedures for wine,cosmetics, and mobile phones. Traders can only carry out theprocedures of import and clearance of such cargoes at internationalseaports, namely Hai Phong, Da Nang, and Ho Chi Minh City.

In addition, while submitting documents to the Customs whencarrying out the import procedures in accordance with the currentregulations, all businessmen must submit a Letter of Assignment orAuthorization as the distributors, importers of the genuinemanufacturing trading brand, or agents contract of such genuinemanufacturing trading brand. These papers are consularly legalizedby the Vietnamese diplomatic representative agency in foreigncountries according to the regulations of the law.

Such a measure is to protect consumers’ benefits and healthand prohibit illegal import of fake and low-quality goods as well asserving as a safeguard against commercial fraud.

This notice has already come into effect since 1 June 2011.

Vietnam Issued Notice onImport Goods⌫

9Maritime News

⌫ ⌫⌫ ⌫ ⌫ ⌫⌫

⌫ ⌫

⌫ ⌫ ⌦

Maersk Line Contracts Additional10 Triple-E Vessels ⌫⌫

⌦⌫ ⌫ ⌫⌦⌫ ⌦

⌫⌫⌫ ⌫ ⌦

⌫ ⌫

⌫⌫ ⌫ ⌫⌫ ⌫ ⌦⌫ ⌫ ⌦ ⌫⌫ ⌫⌫⌫ ⌫ ⌫⌫⌫⌫⌫ ⌫ ⌫

⌫⌫ ⌫ ⌫ ⌦⌫ ⌫⌫⌫⌫ ⌫⌫ ⌫

⌫⌫⌦ ⌫⌫ ⌫⌫ ⌦⌦

Maersk Line exercised its option withKorea’s Daewoo Shipbuilding & MarineEngineering Co., Ltd. to build an additional10 Triple-E ships, the world’s largest and mostefficient container vessels. The contractfollows Maersk Line’s order in February thisyear for 10 Triple-E vessels with two options- each for an additional 10 ships.

“These twenty Triple-E vessels underlineour strong commitment to the Asia-Europetrade and fit well with our current ambitionsand expectations for the future development

10 Maritime News

⌦ ⌫ ⌫ ⌦⌫⌦⌫

⌫ ⌦ ⌫⌫ ⌦ ⌫⌦ ⌫⌫⌫ ⌫ ⌦ ⌦ ⌦

⌫⌫ ⌦ ⌫ ⌫⌦⌫ ⌫⌫ ⌫ ⌫ ⌫⌫⌫⌫⌫

In competition with 50+ container terminals and a wide range of other companies withinmarine and transport services in APM Terminals’ global portfolio of activities, Thailand basedLCB1 Group (LCB Container Terminal 1 Ltd. and LCMT Company Ltd.) took the price of “BestBusiness Unit of the Year”, an award recognizing outstanding performance amongst APMTerminals’ global activities.

The award was given on basis of a very strong commercial performance. The terminal hassucceeded during 2010 to grow revenues while at the same time trimming unnecessary costsand significantly improve customer satisfaction. Importantly, the terminal has also succeeded inmaintaining a perfect score for a second year running with no Lost Time Incidents (LTIF) recordedas well as achieving to reduce CO2 emissions per TEU by 9.6% in 2010 over the previous year.Considering these many achievements, LCB1’s performance is truly world class.”

Mr. Niels Hansen, CEO of LCB1 Group said, “the honor of winning this award goes to the412 dedicated employees at our terminal in Laem Chabang. Without their constant commitmentto excellence and relentless daily efforts to improve we would not have won. The award is aclear demonstration that our organization in Thailand has reached a skill and efficiency levelwhich allows us to compete with - and beat - some of the very best maritime terminal companiesaround the world.”

LCB1 Group of Laem Chabang TakesGlobal Award

of the trade,” says Eivind Kolding, CEO ofMaersk Line.

Maersk Line expects demand on theAsia to Europe trade to increase 5-8% peryear during 2011-2015. By introducing theTriple-E vessels from 2013, Maersk Line willbe able to meet the increasing demand aswell as maintain its market share. The first10 vessels will be delivered in 2013 and2014; the second 10 vessels are scheduledfor delivery in 2014 and 2015.

Called the ‘Triple-E’ class for the threemain purposes behind their creation –economy of scale, energy efficiency andenvironmentally improved – the ships set anew industry benchmark for size and fuelefficiency.

Four-hundred metres long, 59 metreswide and 73 metres high, the Triple-E is thelargest vessel of any type on the water today.Its 18,000 TEU (twenty-foot container) capacityis 16 percent greater (2,500 containers) thantoday’s largest container vessel, EmmaMaersk.

The Triple-E will produce 20 percent lessCO2 per container moved compared to EmmaMaersk and 50 percent less than the industryaverage on the Asia-Europe trade lane. Inaddition, it will consume approximately 35percent less fuel per container than the13,100 TEU vessels being delivered to othercontainer shipping lines in the next few years,also for Asia-Europe service.

Unfor tunately, even if the Triple-Evessels are launched, such extremely largevessels are impossible to embark at LaemChabang Port due to the limitation of thePort’s infrastructure. Currently, the Phase Iand Phase II are constrained by the MarineDepartment’s regulation which allows shipsno longer than 300 meters to dock. If a shipis larger than that, permission is needed ona case-by-case basis.

Currently, the Phase III (Terminal E andF) is conducting a feasibility study. This posesan opportunity for the Port’s infrastructureto be studied so that it can serve largevessels, thus increasing the Ports’ efficiencyand its ability to respond to thetransportation demand in the future.

11Maritime News

⌫ ⌫ ⌫ ⌫⌫⌫ ⌫

⌦⌫ ⌫ ⌫ ⌫ ⌫⌫ ⌫ ⌫ ⌫

⌫⌫

Laem Chabang Port (LCP) is prepared to implement an electronictoll collection system (e-toll) in July. Drivers and business visitorshave to obtain an electronic individual pass, whereas trucks, personalvehicles, and passenger cars engaged in cruise ships must have anelectronic vehicle pass. Documents, which need to be submitted tothe Financial Division of LCP, to arrange for the pass are as follows:

For entrepreneur and corporate register, documents are copiesof the certif icate of company register, commercial registration,registration of value added tax, and certification of authorized officer’ssignature. For individual, documents are copy of HouseholdRegistration and Identity Card with signatures on them.

To obtain an electronic individual pass, only a copy of the identitycard is required. On the other hand, to obtain an electronic vehiclepass, a copy of the vehicle registration is required.

Laem Chabang Port toImplement E-Toll in July

⌫

12 Maritime News

⌫ ⌫ ⌫⌫ ⌫⌫ ⌦ ⌫ ⌫⌫ ⌦

⌫ ⌫ ⌫ ⌦ ⌫ ⌫ ⌫⌫

⌫ ⌦ ⌦⌫

⌫ ⌦ ⌦⌫⌫⌫ ⌦

⌫ ⌫⌫ ⌦

⌫ ⌫⌫ ⌦

⌫ ⌫ ⌫ ⌦⌫⌫

⌫ ⌫ ⌫

⌫ ⌫ ⌫ ⌫⌫

⌫⌫ ⌫⌫⌫ ⌫ ⌫ ⌫⌫ ⌫⌫ ⌫⌫

⌦ ⌦⌫⌫ ⌫⌫ ⌫ ⌫⌫

13Maritime Law

General Average (GA)⌫

⌫ ⌫⌫⌫⌫ ⌫ ⌦⌦ ⌫ ⌫⌫ ⌫⌫

⌫⌫⌫ ⌫⌫ ⌦⌦⌫ ⌦ ⌫⌫ ⌦⌫⌫ ⌫⌫ ⌫⌫⌦ ⌫ ⌫⌫⌫

⌫⌫

The fundamental principle of GA is a system of making good maritime lossesvoluntarily incurred for the safety of the common adventure, whereby extraordinarysacrifices or expenditures intentionally and reasonably made or incurred for the purposeof preserving the properties imperiled in a common maritime adventure are shared bythe contributing shipowners and cargo interests.

For the saved cargo of which the owner shall contribute to the GA, the valuation of thecontributory value shall be ascertained from the market value at the port of destinationor the port where the adventure ends. There may be questions, such as who is the cargoowner or cargo interest who shall have to furnish the value of the cargo, sign AverageBond, and arrange Average Guarantee (usually provided by the cargo underwriter or, inthe case of no insurance, deposit of cash or bank guarantee) before taking delivery ofcargo? The best way is to check the name of the shipper and the actual consignee andliaison with the agents at the other end to find out who has the title to the cargo at thatpoint in time.

Remark: Please also see General Average Act B.E. 2547

14 Shipping Knowledge

26 April 2011, BSAA organized aone-day training course on “General“General“General“General“GeneralKnowledge of Customs”Knowledge of Customs”Knowledge of Customs”Knowledge of Customs”Knowledge of Customs” at theRembrandt Hotel & Towers Bangkok.Ms. Chalida Phungravee,Ms. Chalida Phungravee,Ms. Chalida Phungravee,Ms. Chalida Phungravee,Ms. Chalida Phungravee,DirectDirectDirectDirectDirector of Tor of Tor of Tor of Tor of Tax Incentivax Incentivax Incentivax Incentivax IncentivesesesesesBureau, The CustomsBureau, The CustomsBureau, The CustomsBureau, The CustomsBureau, The CustomsDeparDeparDeparDeparDepartmenttmenttmenttmenttment was an instructor.

29 June 2011, BSAA hold a luncheontalk on the topic “SRT New“SRT New“SRT New“SRT New“SRT New

Developments on ICD andDevelopments on ICD andDevelopments on ICD andDevelopments on ICD andDevelopments on ICD andDouble TDouble TDouble TDouble TDouble Track Rail”rack Rail”rack Rail”rack Rail”rack Rail” at Ballroom 3,

the Royal Orchid Sheraton Hotel.MrMrMrMrMr. V. V. V. V. Voraoraoraoraoravuth Mala, Directvuth Mala, Directvuth Mala, Directvuth Mala, Directvuth Mala, Director ofor ofor ofor ofor of

Marketing, the State Railway ofMarketing, the State Railway ofMarketing, the State Railway ofMarketing, the State Railway ofMarketing, the State Railway ofThailandThailandThailandThailandThailand was an honorary speaker.

6 June 2011, MrMrMrMrMr.Suw.Suw.Suw.Suw.SuwatatatatatAsavathongkulAsavathongkulAsavathongkulAsavathongkulAsavathongkul was invited as apanelist on a topic “International“International“International“International“InternationalBusiness Direction and PBusiness Direction and PBusiness Direction and PBusiness Direction and PBusiness Direction and PAAAAAT’sT’sT’sT’sT’srole”role”role”role”role” at Exhibition Room, Building B,Port Authority of Thailand. Theacademic panel discussion was apart of PAT’s 60 AnniversaryCelebration Exhibition during 6-10June 2011.

15Activities