CLOSE

Overview of domestic logistics business whether or not it is still worth investing after the large operators have joined to take the shares of the cake.

The logistics businesses are considered a key component of product sales both offline and online channels because it is a delivery of products from the seller to the buyer and considered as a service that facilitates convenience for both the buyers and the sellers. Furthermore, it creates jobs and income for a great number of people. It can be seen that during Covid-19 pandemic, many new delivery services have emerged in the market in the form of product delivery, food delivery, purchasing services or taxi services both in Bangkok and other provinces, especially in the industrial parks. The cross-provincial transport business, whether or not it is normal transportation or transporting fresh, chilled and frozen food, is expected to grow further in the future due to changing consumer behavior and faster transportation. Since the business is becoming very popular, let’s take a look at some of the big logistics companies in Thailand right now.

Big companies competing in logistics and transportation business.
  1. BEST EXPRESS, one of the franchise businesses with a major shareholder like Alibaba, the world's leading e-commerce business from China, who has set a 5-year goal to build distribution points across the country and technology for analyzing logistics and transportation data.
  2.  SCG EXPRESS, a collaboration with SCG Yamato Express, with SCG Cement-Building Materials and Yamato Asia Pte., which is the number one transportation company from Japan. The Company opened for service in Thailand and is currently accepting partners to be a point of pick-up and distribution of products to cover the whole country.
In addition, Central Corporation has partnered with Frasers Company Limited, a subsidiary of Thai Beverage Public Company Limited, to create a logistics campus to support future product distribution to support online businesses to expand even further. This is beneficial to the business of renting warehouses or ready-made warehouses in industrial parks and industrial estates in response to the growth of the transportation business in the future.

What will the business outlook be after the large companies have taken their shares of the cake?
Transportation business opportunities are still open to new entrepreneurs. The startups can be costly, however, there is an option to be a part of this transportation business by either becoming a partner with a freight forwarder to be a distribution point or a warehouse to support the delivery of goods to different parts of the country, or supply cold storage warehouses for fresh food or frozen fresh food because many transport companies are still facing problems in delivering goods to other provinces, especially in different districts that are not on the main route of the transport company or the bus station. In addition, some have also encountered problems with delayed delivery in other districts. Therefore, for those interested in investing in the transportation business, you can contact to become a partner with a transport company, possibly focusing on industrial estates or industrial parks in provincial areas that do not have distribution centers for transportation business or in small quantities. The area in the industrial estate or industrial park is also very suitable for making a warehouse with the availability of transportation, buildings, ease of management, etc. The above are useful in facilitating entrepreneurs to run a transportation business to strengthen the logistics industry.

Information sources: