Update Q3/2014

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LOGISTICS & TRANSPORT The world in 2050: Deutsche Post DHL study reveals likely future scenarios

The Magical Night – GTCC Annual Gala Night 2014

New GTDEE section INSIDE!

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DEAR READERS As the establishment of the ASEAN Economic Community (AEC) nears, opportunities and challenges will arise for a number of industries in Thailand following its launch on 31 December 2015. In this issue, we look at logistics and transport, one of the fastest growing industries, on which other industries are significantly dependent.

Compared to fellow ASEAN countries, Thailand has a well-developed infrastructure in place. On a global scale, according to the World Bank’s Logistics Performance Index, Thailand was ranked 35 out of 160 nations in the Global Rankings 2014. It is also ranked higher than some other ASEAN member countries, namely, Indonesia, the Philippines and Viet Nam. Nonetheless, there is undoubtedly still room and potential to expand and strengthen linkages with the rest of the region more effectively, and thus strongly position Thailand as a leading logistics hub within the ASEAN region.

Various leading German players in this industry have shared with us further insights and views that you will find interesting. This includes, for example, a future scenario study, “Delivering tomorrow: Logistics 2050”, which was recently released by Deutsche Post DHL. Then, if you are wondering what will happen to road freight transportation after the official establishment of the AEC, have a look at the information that the Department of Land Transport of Thailand has shared with us.

On the activities side, GTCC has been as active as ever in keeping our members and the German business community in general engaged. In this quarter, we launched our first GTCC new member orientation event and received encouraging feedback and results. We also received overwhelming participation at our business luncheon with Mr. Vikrom Kromadit, CEO of Amata Corporation PCL, who outlined the opportunities that enhanced regional connectivity will bring as a result of the establishment of AEC. On the social side, we successfully hosted our second GTCC Annual Gala Night 2014 and delivered a Magical Night to more than 400 guests from the German-Thai business community. If you missed our Gala this year, make a note of the date for the next one on 29 May 2015!

In this issue of Update, we also introduce a new GTDEE section, which will keep you updated on what the project is working on. Have a look inside at the recent progress that our GTDEE team has achieved with partners such as BMW Group Thailand and Mercedes-Benz Thailand.

Apart from this, details are available inside this issue about the various trade fairs officially represented

by GTCC that are coming up toward the end of the year, including Chillventa, Bazaar Berlin, bauma and Alucast. In addition, our Chamber trade fair representatives will be delighted to help those of you who are interested in visiting or exhibiting at these events.

Last but not least, as you all know, one of GTCC’s biggest annual events, Oktoberfest Night 2014, is just around the corner. So let me take this opportunity to invite you to get your lederhosen and dirndl on, and join us at this laid-back and festive event on 31 October at the Hilton Millennium Bangkok!

Best regards,

Jörg Buck Executive Director Update is published quarterly by the German-Thai Chamber of Commerce and distributed free of charge to members and qualified non-members in Thailand and abroad.

Subscription is also available at an annual rate of US$75 (airmail). Payment can be made in cash or cheque to the German-Thai Chamber of Commerce, Empire Tower, 1 South Sathorn Rd., Bangkok 10120, Thailand. Tel: (+66) 02-670-0600. Fax: (+66) 02-670-0601. E-mail: info@gtcc.org.

Any opinions expressed in articles in this magazine do not necessarily reflect the views of the Chamber.

Update welcomes story and photo contributions from members and non-members alike. Articles may be reproduced with acknowledgement, except for those taken from other sources.

Circulation per issue: 2,000

Publisher/Editor-in-Chief: Jörg Buck Editor & Communications Director: Ratanaporn Bistuer Editorial Assistant: Pimwipa Vatanutanon Advertising Director: Pimtip Faktorngpan Design & Layout: Sorapol Liengboonlertchai Sub-Editor: Tony Oliver

Greater Mekong Subregion: Growing together CONTENTS

06

Thailand’s expansion as a regional trading hub

38 GTCC Joint Chambers Luncheon with Mr.Vikrom Kromadit

40 GTCC Annual Gala Night 2014

55 First GTCC new member orientation

64 bauma China 2014

LOGISTICS AND TRANSPORT

GTDEE INSIGHT

20 Scania guarantees highest service standards for

46 GTDEE already drawing student acclaim 48 Why the urgent need for an ‘Effective In-Company

trucks, buses with support by Wuerth

22 Freight transportation by road after the ASEAN Economic Community launch

24 Rhenus: ‘Flexibility crucial to success in partnering with industry, trade’

BUSINESS BRIEFS 31 Vileda launches ‘marketing blitz’ CHAMBER ACTIVITIES 34 Breakfast Talk on doing business in the Lao PDR 36 Eastern Seaboard networking events 37 GTCC live broadcast of 2014 FIFA World Cup Brasil

Vocational Training in the Mekong Region’ project?

MEMBER’S CORNER 50 Member2Member privileges 55 First GTCC new member orientation

TRADE FAIRS 58 Bazaar Berlin 2014 60 Chillventa 2014

61 ALUCAST 2014 62 CeBIT 2015 64 bauma China 2014

06 LOGISTICS & TRANSPORT

THAILAND’S EXPANSION AS A REGIONAL TRADING HUB Contributed by Dr. Waldemar Duscha, Germany Trade & Invest

logistics sector stands to benefit from the rapid industrial progress as well as the development of regional transport corridors, whereby small and medium-sized enterprises will in future increasingly become a target group of third-party logistics service providers (3PL).

Thailand's transport and logistics industry is increasing its initiatives for modernising and enhancing the efficiency of the sector.

The new strategies are based on the expectation of high trade dynamics in ASEAN, especially in the Greater Mekong Su b r egio n . B en e fi t i n g f rom t h e development are rail and road systems, e.g., the new double-track railway system.

For German supplier s of equipment, technology, know-how and services a wide range of market opportunities are developing.

Thailand has become a logistics hub in the region due to its central geographical position.

From 2016, this development can be expected to increase significantly through the intensification of cross-border trade in the Greater Mekong Subregion (GMS) as well as the establishment of the ASEAN Economic Community (AEC) in 2015. The

UPDATE 3/2014

The AEC will help to position Thailand as a regional production hub for a variety of products and services. The opportunities are strongly based on the country’s well-developed export industries such as those in the automotive, food, petrochemical, electronics and plastics sectors.

A new GMS strategic framework for 2012-2022 was adopted with assistance from the Asian Development Bank, in which the development concepts of three economic corridors (NorthSouth, East-West, and South) have generally been defined. The GMS programme covers the priority sectors such as energy, telecommunications, and the implementation of transport infrastructure and cross-border trade facilitation.

Thailand's trade balance has increasingly slipped into deficit in recent years. In 2013, exports of goods and services averaged US$ 228 billion, while imports of goods and services averaged US$ 251 billion, resulting in an average trade deficit of 8 per cent of the gross domestic product to US$ 22 billion. The major trend in trade flows during the past five years was that China rather quickly moved closer to the traditionally largest supplier country Japan. From 2009 to 2013, while Japan's share of trade flows dropped from 19 to 16 per cent, the Chinese share improved from 13 to 15 per cent. Among the ASEAN countries, Malaysia and Thailand are the most active contributors to intra-regional trade.

The Thai Board of Trade estimates that cross-border trade in 2014 with Cambodia, the Lao People’s Democratic Republic, Malaysia and Myanmar will grow by more than 7 per cent, i.e., significantly greater than the overall export growth. In 2013, cross-border trade amounted to almost US$ 30 billion, thereby already representing about 70 per cent of the total trade with these four countries. In order to become even more dynamic, the Thai Chamber of Commerce has recommended that the Government of Thailand authorise the private sector to establish border checkpoints, including the widening of access roads and a change from 10 temporary checkpoints to permanent crossing points. There are currently 34 permanent border points.

LOGISTICS & TRANSPORT 07

THAILAND’S MOST IMPORTANT LOGISTICS CENTRES IN 2013 Logistics centre/park

Remarks

Suvarnabhumi Airport

International airport of Bangkok Metropolis.

Klong Toey Port

Main port of Bangkok with a handling volume of 1.4 million TEU.

Laem Chabang Port

Thailand's largest port with a handling volume of 6.5 million TEU in south-eastern Bangkok.

Port

Main port for northern Thailand in Chiang Rai province for trade with China.

Kantang Port

Main port for southern Thailand in Trang province for trade with Malaysia.

Ayuthaya Port and ICD

Trans-shipment port and inland container depot for agricultural products in the central region.

Source: Marine Department.

SAHA Group, the largest manufacturing and trading conglomerate for consumer goods in Thailand, is exemplary in the expansion of trade. Before the AEC comes into effect, the SAHA Group plans to invest baht 2 billion in expanding its capacity in Thailand and regional markets (approximately Euro 45 million; Euro 1 = Baht 44.3). In addition, Saha Group expects to increase its business contribution in the AEC region from currently less than 10 per cent to 50 per cent in the next 10 years. Because Myanmar is now viewed as an important market for the future, SAHA has signed a joint-venture agreement to set up a company, Tiger Distribution & Logistics (Myanmar).

According to the Thai International Freight Forwarders Association, the turnover of the logistics industry should reach some US$ 30 billion while the market research company, Solidiance, estimates a value-added of approximately US$ 9 billion. The most important logistics service providers (LSPs) are foreign enterprises with high service standards and profit targets that are specified by the parent group, while national enterprises lag far behind in terms of technology, networking, capital resources and know-how.

The multinational LSPs achieved an increase in revenue of about 72 per cent in the second half of the past decade, but the revenue of the national enterprises grew at just 2.7 per cent during the same period.

A significant characteristic of the market is the growing trend of outsourcing transpor tation services and vehicle fleets to 3PL providers.

DHL, the largest logistics provider in Thailand, announced in mid-2013 further investment of more than Euro 140 million in enhancing its business in South-East Asia by 2015, of which Euro 50 million will be spent in Thailand. This is followed by Linfox, Schenker and Thai Eternity Grand Logistics with 450 transporters. The latter was taken over in 2011 by the largest Japanese 3PL provider, Hitachi Transport System, for approximately US$ 20 million. Other service providers with their own vehicle fleets and cross-border transportation are TNT Logistic for high-tech premium express, CEVA Logistic, Kerry Logistic, Yusen Logistic and Nippon Express.

http://thailand.ahk.de

08 LOGISTICS & TRANSPORT

THE MOST IMPORTANT LOGISTICS PROVIDERS IN THAILAND Providers

Offices*

Internet address

BMT Pacific

Bangkok, Samut Prakarn

www.bmtp.co.th

NCL International Logistic

Bangkok

www.nclthailand.com

V-Serve Logistics

Bangkok, Samut Prakarn

www.v-servelogistics.com

Agility

Bangkok, Suvarnabhumi Airport, Chonburi

www.agility.com

JWD Infologistics

Bangkok, Chonburi

www.jwd-logistics.com

Leo Global Logistics

Bangkok, Suvarnabhumi Airport, Chonburi

www.leogloballogistics.com

Schenker (Thai)

Bangkok, Chonburi, Chiang Mai, Songkhla

www.schenker.co.th

Fedex

Bangkok, Chonburi, Chiang Mai, Phuket

www.fedex.com

DHL Global Forwarding

Bangkok, Don Muang Airport, Chonburi, Chiang Mai

www.dhl.co.th

TNT

Bangkok, Suvarnabhumi Airport, Chiang Mai, Phuket

www.tnt.com

Maersk Thailand

Bangkok, Chonburi, Songkhla

www.maerskline.com

Fair & Easy

Makkasan, Ratchathevi

www.fairandeasy.co.th

Source: Department of Export Promotion. * Head offices, mostly in Bangkok.

Hemaraj Land & Development, the top industrial estate developer, has launched two major logistics parks. The largest is located between Laem Chabang Port and the Hemaraj Eastern Seaboard Industrial Estate on an area of 45 hectares and a warehouse area of 128,000 m2, with an investment of approximately US$ 32 million. Hi-Tech Nittsu, a joint venture between the Thai Industrial Estate Corporation and the Nippon Express Group of Japan, has already purchased almost one-third of the land in the park. The second logistics park, covering 15 hectares with 80,000 m2 of warehouse area and costing about US$ 24 million, is located in the Hemaraj Industrial Park itself.

A milestone in the transport infrastructure is the development of dual-track railways. Six routes covering a total of 1,364 kilometres, at a cost of Baht 900 billion, are on the agenda of the Ministry of Transpor t. The impor tant section between Bangkok and Laem

UPDATE 3/2014

Chabang Por t (118 km), at a cost of Baht 4.1 billion, was put into operation in 2012.

The Lat Krabang Inland Container Depot in Bangkok could therefore double its handling capacity to 800,000 containers per year. It is planned to improve the infrastructure of the Laem Chabang Port in order to increase its annual handling capacity by 2019 to 18.8 million TEU, up from the current 10.5 million TEU, in addition to 2.6 million tons of bulk cargo and 1.9 million vehicles. Another major project is the second development phase of the Suvarnabhumi and Don Muang airports.

According to the World Bank’s 2014 Logistics Performance Index, a benchmarking tool that compares trade logistics in 160 countries, Thailand was ranked as only thirty-fifth, the same as in 2010, and

LOGISTICS & TRANSPORT 09

lagging behind Singapore (5), Hong Kong (15), Taiwan (19), the Republic of Korea (21) and Malaysia (25), which was an improvement of just four positions in the ranking. However, this does not correspond with the index "Ease of Doing Business", in which Thailand at eighteenth position is shown as performing significantly better. On the other hand, under the heading "Border Trade" Thailand was ranked as only twenty-fourth.

to exper ts, in order to shift freight transportation from road to rail even more strongly in the long term, multimodal transportation terminals first need to be established in strategic locations with modern equipment for speedy container handling.

Likewise, vehicle standards need to be renewed with “smart” operation methods, better routing (GPS) or new transpor t technologies such as multi-deck palletising.

Thailand was able to improve its logistics costs from 18 per cent to 15 per cent of GDP within half a decade, but still lags behind Malaysia (13 per cent) and Singapore (8 per cent). The efficiency of logistics operations is enhanced through a range of government initiatives – in particular, the introduction of e-logistics, paperless customs procedures acro s s th e GM S b ord e r s a n d t h e establishment of a “One-Stop Export Service C en tr e ” w h er e 1 4 e x p o r t - re l a t e d organisations are located in one place in order to reduce the time required to obtain export documentation.

Thailand's high degree of industr ial competitiveness is based not least on the logistics strategy of lean production with s h or t - t e r m ("jus t-in-time ") d e live r y management. However, this also leads to cer tain risks, for example, the disastrous flooding in autumn 2011, which interrupt supply chains and bring production to a standstill. From the logistics perspective, the solution is to search for new strategies to prevent risk. The range of options is very wide and includes the temporary relocation of machinery to areas unaffected by flooding, the change of supplier, substitution with impor ts, an increase in stockholding or a broader regional dispersal of production sites.

The relatively high logistics costs derive mainly from the fact that 83 per cent of all cargo is transported by truck and only 2 per cent by train. Estimating logistics costs at around US$ 58 billion, transportation costs already amount 49 per cent, warehousing 42 per cent and logistics 9 per cent. According

To achieve closer integr ation with neighbouring countries, the Industrial Estate Authority of Thailand (IEAT) is looking for private developers to set up a total of 13

new industrial parks, resulting in a combined investment of around Baht 300 billion and an additional 4,800 hectares of industrial space. Regionally, most of the locations are in the North, North-East and East. Additionally, a logistics park located in Chiang Rai, close to the Laotian border, is planned. So far, IEAT has granted 48 licences to operate industrial estates across the country, of which 36 are in operation and 12 are under construction, with 11 operated by IEAT itself. The potential developers include, among others, major local players such as Nava Nakorn and Thai Industrial Estate.

Regarding intra-logistics, Germany-based SSI Schaefer Systems International is relying on the growing demand for automated warehousing solution services. In 2015, SSI hopes to see double-digit growth in revenue derived from potentially dynamic sectors such as food, automotive, pharmaceutical and construction materials. According to its own information, the warehouse service of SSI has a market share of 20 per cent to 25 per cent and total annual revenue of Baht 3 billion.

The company’s customers include Charoen Pokphand Foods, Heineken, Tops Supermarket, Tesco Lotus, CP ALL, L‘Oréal, Unilever and Tipco as well as the 3PL provider DHL, Schenker Stinnes Logistics and Ker r y Logistics.

http://thailand.ahk.de

10 LOGISTICS & TRANSPORT

CHALLENGES FACING PROJECT-FREIGHT-FORWARDING IN A CHANGING BUSINESS ENVIRONMENT Contributed by Juergen Kohnen, Hansa Meyer Global Transport Co., Ltd. When talking about transport and logistics, collocations that often come to mind include “supply chain”, “process optimisation” or “just-in-time delivery”. Mental pictures of containers, trucks as well as cardboard boxes and courier services, together with delivery processes to automotive factories, wholesalers, retailers or stocks of spare parts at car dealers in the neighbourhood, immediately pop up.

When a project forwarding company, such as Hansa Meyer Global, thinks about transport and logistics, everything is “reduced to the maximum”. Yes, of course, it is all about a supply chain and, yes, of course, it is all about process optimisation. However, all these word combinations are viewed differently when it comes down to single piece weights of, e.g., 500 tons, or packages of a house size, or volumes of 180,000 m3 to be shipped from all parts of the world within a limited time frame.

The “supply chain” is strongly influenced by availability of the infrastructure and differences in business cultures. “Process optimisation” is accompanied by numerous side-effects while just-in-time delivery is “Weather-permitting all going well”, as ship charterers say.

Once Hansa Meyer Global decided at the beginning of 2013 to strengthen its South-East Asian set-up and worked out a strategy for the region accordingly the focus was swiftly placed on Thailand. It was envisaged that the Bangkok subsidiary should act as the centre of regional operations. The bordering countries – Cambodia, the Lao People’s Democratic Republic, Myanmar and Viet Nam – should be monitored from the Bangkok-based office, which should closely co-operate with Hansa Meyer Global offices in China, India and the forthcoming ASEAN Economic Community (AEC), as a network.

UPDATE 3/2014

There is enormous demand for investments and development in the field of huge industrial plants, such as coal, gas or hydropower plants, the petrochemical industry, natural resources, pulp and paper as well as the oil and gas industry in South-East Asia.. Moreover, for the first time in the world’s history, people living in cities now outnumber the populations in rural areas, a trend that is gathering pace in South-East Asia and the ASEAN Community.

According to the World Health Organization, 7 out of 10 people will be living in cities by 2050, a stunning 3 billion more than today.

Metropolises and megacities cannot function without power plants; skyscrapers cannot be made without steel and cement; and roads cannot be built without huge machines and concrete. Such types of projects and related special, abnormal and oversized cargo are needed to foster successful progress in the future. At the same time, they constitute the market for an international freight forwarder with the corresponding services and concepts.

Some 25 years ago, when Hansa Meyer was founded, the decision makers of big engineering companies as well as engineering, procurement and construction companys (EPCs), and original equipment manufacturers were headquartered in Europe, often in Germany. In addition, the cargoes to be shipped had their origins mainly in Germany or neighbouring countries. Thus, it was a good time for establishing the headquarters in the seaport city of Bremen, Germany..

However, during the past decade, global supply chains for projects in the field of energy, infrastructure and industry have demonstrated a dramatic shift to new manufacturing sites and delivery hubs, among

LOGISTICS & TRANSPORT 11

others South-East Asia and China. Even in projects that are still being executed by EPC contractors based in Europe or the United States, logistics and shipping management are monitored by companies in the new industrialised countries. This is either because the EPC contractors have put local country managers in charge, or because they procure large modules and other project cargo under such terms and conditions that require local suppliers to organise the shipments. Moreover, a significant number of EPC contractors and manufacturers in South-East Asia do their business mainly in the South-East Asian region only.

In addition to the tremendous shifts of commodity flows from one region to another, demand patterns and requirements of project freight forwarders’ clientele have changed dramatically. In the past, the slogan “…someone to rely on”, expertise and well-proven know-how formed the basis of a good reputation that ensured further orders.

Nowadays, catchwords such as “method statement”, “standard operating procedure”, “risk assessment” and “code of conduct” are crucial, and their availability and plausibility are decisive for winning the bids.

Large industrial affiliated groups of companies are committed to ensuring the highest standards of transparency and compliance. Such ser vice providers, as internationally operating project freightforwarders, have to take this into consideration and introduce applicable processes, codes and directives. As a participant of the United Nations Global Compact, Hansa Meyer Global strictly follows its corporate governance guidelines.

However, it is not only corporate governance that has changed. As mentioned above, technical aspects and monitoring standards have also been drastically transformed. Procurement processes of decision makers are handled by project managers, who often have an engineering degree and support their commercial departments in the quotation analysis.

Engineering logistic excellence is not just a common collocation. More and more engineers are becoming part of project logistics. Hansa Meyer has a network of transport engineers in the key regions around the globe who provide all kinds of technical support that is essential to the company’s types of cargo and transport.

The challenges for developing and executing mega-projects, and thus the challenges that project logistic forwarders such as Hansa Meyer Global are facing, are immense. The world is spinning faster and faster, and customers’ requirements are changing under the impact of e-mail communication, social media and cloud computing. Traditional business such as forwarding, which deals with negotiable documents, trucks, vessels and aircraft, including multiple parties involved in multi-modal transportations, is facing these “real time application” demands.

The answers and solutions to these demands are manifold, and they are part of the expertise and the know-how of a project freight forwarder. Development of the South-East Asian region and APEC (Asia Pacific Economic Cooperation) goes along with responding to these challenges. Hansa Meyer Global can deliver them.

For further information, contact Juergen Kohnen, Managing Director Hansa Meyer Global Transport Co., Ltd. TP&T Tower, 19th Floor, 1 Soi 19 Vibhavadi Rungsit Road Chatuchak, Bangkok 10900, Thailand Phone: +66 (0)2-936-1597; Fax: +66 (0)2-936-1540 Mobile: +66 (0)93-574-7929 E-Mail: j.kohnen@hansameyer-th.com Homepage: www.hansameyer.com Skype: hego-jko

http://thailand.ahk.de

12 LOGISTICS & TRANSPORT

DB SCHENKER RAPIDLY EXPANDING ASEAN LOGISTICS AND TRANSPORTATION ACTIVITIES Contributed by Schenker (Thai) Ltd. DB Schenker stands for the transportation and logistics company of Deutsche Bahn (DB).

Of all globally active transpor tation and logistics services providers, DB's logistics sector holds second place when ranked by revenue and performance. In the 2013 fiscal year, 95,000 employees in more than 130 countries generated total revenue of Euro 19.7 billion.

With its Transportation and Logistics Division, DB holds top positions in the global air and ocean freight business, operates Europe's densest land transport network, and offers the rail expertise of the largest European rail freight company.

DB's logistics sector, which is present in more than 2,000 locations in all of the world's major economic regions, possesses a global network geared towards customer service, quality, and sustainability.

DB SCHENKER IN THAILAND DB Schenker has been present in Thailand as Schenker (Thai) Ltd. for more than four decades and celebrates its for tieth anniversary in Thailand this year. Keeping up

UPDATE 3/2014

with its high global standards, DB Schenker in Thailand holds a dominant market position as one of the leading providers of integrated logistics solutions and provides an array of services: Ocean freight LCL and FCL; Airfreight; National distribution and international trucking; Contract logistics management/SCM; Customs clearance; Exhibitions and events; Household removals and packing.

Supported by a strong global network and industry-specific focus, DB Schenker in Thailand also has the experience and know-how for catering to the most complex industry specific requirements. Some of the leading names in industries, such as automotive, consumer and electronics, use DB Schenker as their preferred service provider in this country.

In Thailand, too, DB Schenker has a strong and nationwide network for suppor ting its customers around the country, including 10 offices and more than 17 warehouses plus two branch offices in the Lao People’s Democratic Republic and Myanmar that are directly managed by a Thai management team.

Looking towards the future, the company has ambitious growth plans and plans to invest further in its network and services in order to support its customers’ ever evolving supply chains.

DOMESTIC AND INTERNATIONAL TRUCKING DB Schenker in Thailand already offers an extensive ser vice with a mix of own and subcontracted fleets that manage more than over 600 full truck deliveries every day.

LOGISTICS & TRANSPORT 13

The company is in the process of setting up hubs across the country in order to provide various value-added services such as packaging, consolidation and better track-and-trace visibility. The hubs will also enable the provision of flexibility and multiple pricing solutions to its customers.

In addition to enhancing its domestic capabilities, the company is rapidly expanding its cross-border trucking capabilities. With an eye on the upcoming ASEAN Economic Community (AEC) in 2015, customers are demonstrating an increasing interest in utilising the road transportation route. DB Schenker in Thailand has already well-established connections to and from most of the surrounding countries including Malaysia/ Singapore, the Lao People’s Democratic Republic, Cambodia, Viet Nam, China and Myanmar.

Through its global expertise, DB Schenker in Myanmar was able to develop capabilities from the ground up with support from the Thailand team as well as the Asia-Pacific regional team based in Singapore. The facility is already fully operational, supporting customers from the telecom and consumer sectors. As plans are underway to fur ther expand the warehouse and distribution capabilities in Myanmar, DB Schenker is sure to increase its footprint in the country in the near future.

GREEN TRANSPORTATION One of DB Schenker’s 2020 objectives is to be an eco-pioneer in its industry. A major part of this objective is the CO2 reduction across its operations by 20 per cent by 2020.

G lobally, th e E CO 2 P h a n t h a s b e e n implemented as a measure to show carbon reduction potential. .

Supporting its global initiative, DB Schenker in Thailand has also made substantial changes to its fleet by investing in natural gas vehicles (NGVs). Currently, the company operates 94 NGV trucks, which is equivalent to just 24 diesel trucks, thereby leading to a substantial reduction in its CO2 emissions.

EXPANDING IN MYANMAR Apar t from its Thai expansion plans, DB Schenker in Thailand is also strongly committed to expanding its services in the Lao People’s Democratic Republic and Myanmar. After successfully establishing a legal entity in the Lao People’s Democratic Republic during 2013, the focus this year has been on expanding its services in Myanmar, where DB Schenker has been present for the past 12 years through its own branch office.

DB Schenker in Myanmar recently opened its first logistics facility in Yangon with a total space of 5,500 m2. Opening this facility was not easy and brought its own share of challenges that companies face when engaging in emerging markets.

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14 LOGISTICS & TRANSPORT

LUFTHANSA: GOOD CONNECTIONS LEAD TO GOOD RELATIONS Contributed by Lufthansa German Airlines Thailand is attractive not only to tourists, who like to enjoy its rich culture and its natural beauty, but also among corporations.

The country is the most advanced economy in the Greater Mekong Subregion countries – Myanmar, Thailand, the Lao People’s Democratic Republic , Cambodia and Viet Nam – and is the major gateway to this region for leisure and business travellers alike.

Mobility is the key to economic growth.

Against the background of Thailand’s constantly growing trade integration with the Mekong region, a functioning infrastructure is required even more . In addition, the deve lo pme n t o f a cl o s e r e co n om i c par tnership between the for thcoming ASEAN Economic Community (AEC) in 2015 and the European Union will increase the demand for enhanced connectivity within the country, the Mekong Region and with Europe.

The Lufthansa Group has been contributing to this development for the past 55 years, mainly through connecting Thailand with Europe through air ser vices. What star ted as a 36-hour flight in 1959, including six stops, has turned into three daily non-stop flights to Frankfurt (Lufthansa German Airlines), Zurich (Swiss International Air Lines) and Vienna (Austrian Airlines).

Moreover, the Lufthansa Group has improved e-travel and transport opportunities by increasing its co-operation with major Asian airlines.

In par ticular, the Lufthansa Group has long enjoyed a strong par tnership with Thailand’s national carrier, Thai Airways. At the beginning of 2015, the Lufthansa Group and Thai Airways will celebrate 20 years of successful code-share operations, which has opened the wide networks for the benefit of the customers of both airlines.

In addition, due to bilateral interline agreements or so-called special pro rate agreements, not only with Thai Airways but also with Bangkok Airways, Lufthansa is able to offer smooth connections at competitive through fares. Thus, 11 cities in the Mekong region such as Yangon, Phnom Penh and Ho Chi Minh City are linked via Bangkok to the world, making it convenient to travel and transport goods in this area.

Tickets for these journeys can easily be purchased via the Internet as well as through the numerous Lufthansa partner travel agencies.

With the help of Lufthansa’s franchise partner – the Lufthansa City Centers – Lufthansa aims to be as close as possible to its customers.

UPDATE 3/2014

In recent years, the co-operation between Thai Airways and Lufthansa has intensified even further, especially since the foundation of the Star Alliance in 1997 when both carriers acted as founding members. This airline alliance is not only the first but, with 27 current members, also the largest of its type.

AFFILIATES CONTRIBUTING TO SUCCESS However, Lufthansa’s strength not only lies in the passenger service sector in the Mekong region. The group’s affiliates have also been working successfully for many years. Lufthansa Cargo, one of the leading providers of international scheduled airfreight services, started its operations to Thailand in 1969, with the continuing strong confidence in the significance of Bangkok as a hub for air cargo services in Asia. Since then, Lufthansa Cargo has become an important player in the country’s logistics industry, fur ther suppor ting the development of Thailand as both important business and industrial locations.

In addition, through the presence of LSG Sky Chefs, the world’s largest airline caterer, and Lufthansa Systems, which provides consulting and IT services for selected industries, Thailand is one of the largest locations for the Lufthansa Group in Asia. More than 1,100 employees currently support the Lufthansa Group in Thailand.

Other examples of the extensive development of Lufthansa in Thailand – which would not have been possible without the remarkable economic growth of the country – are Lufthansa Services Thailand and Lufthansa Global Business Services. Whereas the first company provides ground handling services such as check-in, baggage

LOGISTICS & TRANSPORT 15 tracing and load control for many airlines in Thailand and the region, the latter offers administrative services for all Lufthansa Group companies within Asia-Pacific, Middle East and North-Eastern Africa.

These two success stories – the first being the economic growth of Thailand and the Mekong region and the second concerning the growth of the Lufthansa Group in the region, which was built on that of the former – has not even been seriously affected by the various political events of the past. In addition, such events are not expected to stop Thailand’s ambitious plans for the future. With the establishment of the AEC in 2015, Thailand aims to become the transport and logistics hub for the ASEAN region. Lufthansa is following these developments with great interest as the success of the AEC will form the basis for Lufthansa’s future success in Thailand and the Mekong region.

ABOUT THE LUFTHANSA GROUP Deutsche Lufthansa AG as a global aviation group has an active engagement in the Asia-Pacific region, comprising five major business segments – passenger services, logistics, maintenance, repair and overhaul services, catering and IT services.

Headquartered in Germany and employing more than 118,000 staff worldwide, passenger transportation is the Group’s core business.

The airlines engaged in the passenger transportation business include Lufthansa Passenger Airlines (including Lufthansa Regional), Austrian Airlines, SWISS and Germanwings, plus a stake-holding in Brussels Airlines, JetBlue and SunExpress.

Operating through the Frankfurt, Munich, Dusseldorf, Vienna, Brussels and Zurich hubs, Lufthansa, Austrian Airlines, Brussels Airlines and SWISS jointly ser ve 301 destinations in 102 countries on four continents, carrying more than 103 million air passengers per year.

The Group fleet currently comprises 622 aircraft, with another 261 aircraft on order. With its ongoing investment in fleet renewal, the Group is consistently making the fleet more cost-efficient and its operations more environmentally friendly.

In addition, for the comfort of passengers, the fleet is constantly being upgraded. For example, the entire Lufthansa long-haul fleet has been refitted with a completely new Business Class. Its centrepiece is a seat that can easily be transformed into a comfortable, fully flat bed with a horizontal sleeping surface measuring 1.98 metres in length. From December 2014 onwards, the new Premium Economy Class will available on Lufthansa flights.

For further information, Lufthansa German Airlines, Q-House Asoke Building, 16th Floor, 66 Sukhumvit 21 (Asoke), North Klongtoey, Wattana District, Bangkok 10110, Thailand.

Tel: +66 (0)2-264-2391 E-mail: bkkgmsek@dlh.de Website: www.lufthansa.com

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THAILAND’S LOGISTICS SERVICES: PREPARING FOR THE ASEAN ECONOMIC COMMUNITY Contributed by Sebastian Häbler, Leschaco (Thailand) Ltd. Leschaco is one of the most storied and long-standing international logistics providers in the world. Founded in Germany in 1879, the company has expanded to 42 offices and more than 1,800 employees in more than 20 countries. Since its establishment in Thailand in 1999, Leschaco Thailand’s operations have steadily increased and currently comprise a team of more than 500 staff.

The foundation for the success of the company have been absolute attention to customers paired with high flexibility as well as Leschaco’s focus on niche businesses, such as customs clearance and specialised warehousing. This article presents Leschaco’s standpoint on the topic from the perception of a logistics service provider.

“AEC 2015” can be overheard in many discussions nowadays. Everybody wants to be prepared, but unfortunately very few details are known by most of the people concerned.

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Is the ASEAN Economic Community (AEC) hype or reality? What is AEC exactly? It is a strategic agreement promoting a single market and production base as well as competition in the region’s economies.

Of course, this is not a totally new idea. Still, many compar isons of AEC with other communities or unions (e.g., the European Union),, are flawed not only because of ASEAN’s specific history and the diversity of the AEC member economies, but also because of the lack of a central parliament executing implementation of the AEC. Among all the different theories and explanations of AEC, one fact is cer tain – it will come.

Whether it will be in 2015, or at least partly, is another question. Therefore AEC is, or rather will be, a reality.

Leschaco Thailand, which was previously a Customs Gold Card Broker, has already taken one important step towards AEC by

becoming one of Thailand’s first certified Authorised Economic Operators (AEO).

The AEO cer tificate replaces the former Gold Card. AEO is one milestone in the implementation of AEC in Thailand. Operators commit to integrity of personnel and data as well as secured access to the premises.

With more than 200 staff and 10 certified customs specialists, Leschaco’s Customs Clearance Department is a well-respected institution in the market.

Leschaco’s customers profit from the AEO certification through Green Line channels both for impor ts and for expor ts, which expedites the clear ance procedure .

Additionally, for cross-border transportation, Leschaco’s customers do not have to provide a bank guarantee for the import duty of the cargo. Leschaco’s AEO certification is its own guarantee to Thai customs authorities that Le s c hac o will hand le the pr oduct s appropriately and in full compliance with

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the regulations. Hence, these examples demonstrate that even though AEC is still a vague term, there are concrete advantages attached to it.

Thailand has a distinctive geographic advantage as the centre of ASEAN. With the implementation of the AEC it will therefore have not only a key responsibility but also an opportunity as a hub and transit country, similar to Germany in the European Union.

Thailand’s logistics hub concept has been discussed for years, and Government of Thailand and the private sector have been ver y active in promoting Thailand as the logistics hub of ASEAN. Thus AEC can be Thailand’s chance to finally and fully realise this hub ambition. In that regard, many operators are attentively following the revival of the rail infrastructure projects.

Likewise, the potential exists for becoming a road freight hub, based on statistics that indicate road transpor tation will form approximately 80 per cent or more of all logistics activities. These and many other circumstances could give Thailand and its logistics sector a strong competitive edge.

Leschaco Thailand recognised the huge potential of Thailand quite early on and established a Freezone Warehouse in 2009.

The Freezone model was another incentive to promote Thailand as a logistics hub. Since 2009, Leschaco Thailand has expanded its warehousing footprint to 25,000 m2 of Freezone and Non-Freezone. At the same time, Leschaco is able to store general cargo with hazardous goods at one and the same location. This is a unique advantage that gives Leschaco’s customers full flexibility.

However, several obstacles remain that hinder Thailand from achieving its full potential. For example, companies are faced with some unclear and partly contradictory statutes of different departments. In addition, foreign entrepreneurs who are looking at Thailand as their potential distribution hub,

and who are not yet established in Thailand, are always surprised to find that one needs a locally registered company to act as importer or exporter of record, even in a Freezone. Finally, land transportation across inner ASEAN borders is often difficult and expensive due to the fact that cargo, in most cases, has to be trans-loaded from one vehicle to another. That is the reason why there are expectations and hopes that the AEC will help to harmonise standards and thus create more attractive conditions for the market.

The growth of investment will also depend on the implementation of the AEC. Service companies such as Leschaco have been prohibited from holding 50 per cent or more of foreign shares in businesses in Thailand. There are only a few exceptions under several Acts (e.g., the Foreign Business Act and the Investment Promotion Act).

Nevertheless, one of the key factors in successful AEC implementation will be the measure of the free flow of services and goods that will be directly affected by the present limitation on foreign equity participation, such as foreign land ownership restrictions and licensing.

Under the AEC, it is planned to allow 70 per cent equity participation for the logistics service sector, which will be a major factor in consideration of foreign investment.

Correspondingly, the AEC blueprint states that as logistics is one of the priority services the target is to substantially reduce or remove all services restrictions and duties on products. That is, of course, another important point for any potential foreign investor. Hence, theoretically the AEC looks promising; however, only time will tell whether and when steps will be actually taken to overcome the present rather traditional mindset.

have alre ad y b e e n mad e , e . g . , t he implementation of the AEO scheme with its resulting benefits for impor ters and exporters. On the other hand, there are a few non-tariff barriers that need to be looked at, such as conflicting regulations, importer and exporter of record ruling, and cross-border land transpor t modalities.

However, the planned changes to various aspects of legislation in the AEC blueprint will increase the confidence of foreign investors. With the implementation of the AEC Leschaco sees a major opportunity for the region, and especially Thailand. Leschaco will therefore follow up all developments in order to further position itself strategically, and to offer all Leschaco customers the greatest possible advantages.

Contact details: Sebastian Häbler, Director, Logistics and Supply Chain Management, Leschaco (Thailand) Ltd., 3354/36-39 Manorom Building, 11th Floor, Rama 4 Road, Klongton, Klongtoey, Bangkok 10110 Thailand Phone: +66 (0)2-686-1017 Fax: +66 (0)2-671-6600 Website: www.leschaco.com

In summary, the AEC is an interesting and desirable concept for many operators in the logistics sector. Distinctive positive changes

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THE WORLD IN 2050: DEUTSCHE POST DHL STUDY REVEALS LIKELY FUTURE SCENARIOS Contributed by DHL Global Forwarding (Thailand) Ltd. Deutsche Post DHL recently released a future scenario study, “Delivering tomorrow: Logistics 2050”, which outlines five visions of the future and their impact on trade and business. The results of the study are based on the expectations and projections of 42 experts with a wide range of professional backgrounds. As Deutsche Post DHL’s Chief Executive Officer Mr. Frank Appel noted: “Only those who think about alternatives can devise robust strategies”.

In the study, Deutsche Post DHL takes a far-reaching look into the future of trade, business and society. The study examines five different scenarios of life in 2050. These five visions of the future are based on a detailed analysis of the most critical factors – including trade and consumption patterns, technological and social trends as well as climate change – and estimate their probable impact on people’s behaviour and values in 2050.

“The pace of change has rapidly accelerated in recent years,” Mr. Appel said at the presentation of the study in Berlin. “In this complex economic, political and social climate, it has become practically impossible to make linear forecasts. In a world that is becoming harder and harder to predict, we have to expand our horizon and think about alternatives. We can devise robust strategies and set the right course only if we have gained an understanding of different perspectives.”

The development of the study was supported by 42 highly respected experts. They included Klaus Töpfer (former German Environmental Minister and Director of the United Nations Environmental Programme), Fatih Birol (Chief Economist of the International Energy Agency) and Michael ten Hompel (Managing Director of the

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Fraunhofer Institute for Material Flow and Logistics) as well as leading representatives of such organisations as the World Economic Forum, Gesellschaft für Konsumforschung (GfK), Rocky Mountain Institute, Copenhagen Institute for Futures Studies, the World Business Council for Sustainable Development and Greenpeace International.

The central finding of the study is a comprehensive collection of five credible visions of the future. They outline how different the world could appear in 2050 in terms of the degree of globalisation, the extent of economic and social development, predominant technology standards and environmental conditions.

The study describes five far-reaching, occasionally radical, versions of life in 2050. All scenarios share a common element: the broadly transformed role of logistics. Overall demand for logistics services does indeed climb in most of the five alternative scenarios. However, the particular requirements placed on logistics providers and the special challenges they face vary widely from scenario to scenario.

The study, which is complemented by a series of multifaceted essays regarding various aspects of the future, is the third research project conducted in the group “Delivering Tomorrow” series. By publishing this groundbreaking series of studies, Deutsche Post DHL is striving to engage others in a dialogue about core issues that will shape the world in future decades.

“As the leading provider in this key global industry, we consider it part of our responsibility to intensively explore social and business issues that will shape the future,” Mr. Appel said in describing the rationale

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for the series of studies. The series began in 2009 with an examination of customer expectations in 2020. A year later, it delved into another important trend of the future – the shift to more sustainable logistics.

The methodological starting point for developing alternative scenarios of the future in this year’s study was an in-depth analysis of key factors and their links to those trends that could mould the world in future decades.

Scenario 3: Customised lifestyles This scenario describes a world where individualisation and personalised consumption are pervasive. Consumers are empowered to create, design and make their own products. Newly-developed 3D printers play a major role here. This leads to a rise in regional trade streams, with only raw materials and data still flowing globally.

Customisation and regional production are complemented by decentralised energy systems and infrastructure.

Unlike classic, isolated analysis and projection methods, the scenario technique used in this approach, with the help of the leading experts, outlines the possible directions that the most important parameters could take, and links them to scenarios. These possible directions were then discussed and evaluated during workshops. With this approach, it was possible to systematically and comprehensibly identify various development paths over the next four decades and several complex versions of the future.

The implications for logistics include a vastly reduced need for longdistance transportation of finished and semi-finished goods due to the localisation of value chains. Logistics providers organise the entire physical value chain. They also handle the encrypted data streams required for the transmission of construction and design blueprints for 3D printers. The decentralised organisation of production turns strong regional logistics capabilities and a high-quality, last-mile network into important success factors.

OVERVIEW OF THE FIVE SCENARIOS

Scenario 4: Paralysing protectionism This scenario describes a world where, triggered by economic hardship, excessive nationalism and protectionist barriers, globalisation has been reversed. Technological development is lagging. High energy prices and dramatic scarcity of supplies lead to international conflicts over resource deposits.

Scenario 1: Untamed economy – impending collapse The world is characterised by unchecked materialism and mass consumption. This non-sustainable way of life is fed by the relentless exploitation of resources, a development that stokes climate change and causes natural disasters to mount. In a world characterised by tumultuous growth, demand for logistics and transport services climbs sharply. A global transportation super-grid ensures a rapid exchange of goods between centres of consumption. However, as climate change advances, supply chains are increasingly disrupted, a development causing additional challenges for logistics companies.

Scenario 2: Mega-efficiency in megacities “Megacities” emerge as the world’s power centres. They are both the main drivers and beneficiaries of a paradigm shift toward “green” growth. To overcome the challenges of expanding urban structures, such as congestion and emissions, megacities have become champions of collaboration.

Robotics has revolutionised the world of production and services.

Consumers have changed their habits – products are now usually rented, instead of purchased. Highly-efficient traffic concepts have relieved congestion. A global super-grid with mega transporters that include trucks, ships and aircraft as well as space transporters has opened important trade connections between the megacities of the world.

The logistics industry has been entrusted to run city logistics, utilities and system services for airports, hospitals and shopping malls. “With the emergence of the ASEAN Economic Community (AEC), we will see fur ther up-grading of the infrastructure in the region and, therefore, a significant rise in transpor tation and related activity,“ according to Mr. Thomas Tieber, CEO of DHL Global Forwarding South Asia.

“As the global leader in logistics, DHL is committed to contributing to this growth in a sustainable manner. We are sure our ’Go Green’ services will suppor t the requirements of our customers in this region,” he added.,

The implications for the logistics industry include challenges posed by a decline in world trade and the resulting regionalisation of supply chains. Governments view logistics as a strategic industry. As relations between some blocs and countries become extremely strained, logistics providers in bloc-free countries act as intermediaries in international trade brokerage.

Scenario 5: Global resilience – local adaptation This scenario describes a world initially characterised by a high level of consumption thanks to cheap, automated production. However, due to accelerated climate change, frequent catastrophes disrupt supply chains and lean production structures, resulting in repeated supply failures.

The new economic paradigm is distinguished by a shift away from efficiency maximization to vulnerability mitigation and resilience. This radical move towards redundant systems of production together with a change from global to regionalised supply chains, allows the global economy to more easily weather troubling times.

The resilient world in 2050, with regionalised trade, relies on a logistics sector that ensures supply security as a top priority, with backup infrastructure to guarantee reliable transpor t in unstable and hazardous times. Instead of complex just-in-time delivery processes, huge warehouse structures located close to the manufacturer are seen as indispensable buffers.

For more information from the study, please contact Podchara Sangkhaboon at podchara.sangkhaboon@dhl.com.

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SCANIA GUARANTEES HIGHEST SERVICE STANDARDS FOR TRUCKS AND BUSES – WITH THE SUPPORT OF WUERTH Contributed by Wuerth (Thailand) Co., Ltd.

Scania and Wuerth co-operate on a global level in the supply of tools and workshop equipment. Accordingly, all Scania Service Centres in Thailand will be Wuerth-equipped with the same standards as those in Sweden. In the following interview, Scania’s Country Manager Mr. Phuriwat Rak-Int, and Wuerth (Thailand) Managing Director, Dr. Andreas Sturm, discuss their co-operation in Thailand.

GTCC: What is the history and current situation of Scania and Wuerth in Thailand?

Mr. Phuriwat Rak-Int: “After we entered the Thai market in 1986 via a dealership, Scania decided to open its own subsidiary in 2000.

Since then, we have continuously grown in the mainland South-East Asian markets. Currently, we run a local assembly plant in Chachoengsao that produces a large number of Scania trucks and buses. In parallel, we have built up a network of service centres in order to serve our customers in all parts of Thailand. We are proud of our focus on safety and high quality – there is no question about safety issues with our double-decker buses, for example.”

Dr. Andreas Sturm: “Wuerth entered the Thai market in 1990, and with our focus on top-quality tools and equipment for professional mechanics and engineers we were able to create a huge network of customers in different sectors, such as the automotive, construction and metal-working industries. We are especially proud to be able to help Scania to serve its customers worldwide with – what we feel – the best products available.”

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GTCC: What can a customer expect of Scania in Thailand and how can Wuerth support meeting such expectation?

Mr. Phuriwat Rak-Int: “Our customers know that they will get excellent products from us. However, in the worst case scenario of a breakdown, they expect us to provide top-quality ser vice and assistance as soon as possible. For that reason we have many service centres in the various regions of Thailand, with more to come in the near future. All of these service centres have, or will have, Scania Mobile Service Vans that are fully equipped by Wuerth.

This enables us to guarantee top service to our customers wherever they are, in the quickest and most efficient way. We do not want our customers to lose time and money on the road. Of course, we can only do that if we have professional crews with professional tools available and all ready to go. The Wuerth ORSY mobile system enables us to be well-organised and fully systematic, thus ensuring no time is lost because something is found to be missing in the middle of nowhere.”

Dr. Andreas Sturm: “Wuerth is famous for its C Parts Management Systems, not only on the road but also in its workshops. Mechanics know exactly where each tool is located, what needs to be used and, through training provided by us, how they can finish the work ver y quickly. Sometimes you can see on the road that some mechanics have everything spread out on the ground while trying to repair a truck. This results in the truck owner losing much money and time.

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Scania, on the contrary, has chosen to have all hand-tools professionally standardised by Wuerth. Time lost through missing or broken tools is therefore a thing of the past. This increases the productivity and the quality of the work. This fits perfectly with the belief of Scania that top quality after-sales service will sell the next truck or bus.”

Mr. Phuriwat Rak-Int: “Tools and equipment are ver y impor tant components of the effort to ensure success of the after-sales service.

A good mechanic cannot do anything without good tools. That is the reason why Scania chose Wuer th as its global par tner and defined all the standards and specifications accordingly. Therefore, we can provide the same level of service in Thailand as that which is available in Sweden and other countries around the world.”

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FREIGHT TRANSPORTATION BY ROAD AFTER THE ASEAN ECONOMIC COMMUNITY LAUNCH

Contributed by Raweekit Phutthithanakorn, Transport Technical Officer, Department of Land Transport, Thailand

Have you ever wondered what will happen to road freight transportation after the official establishment of the ASEAN Economic Community (AEC) on 31 December 2015?

O n e m ay imagin e t h a t a l l f re i g h t transportation will be able to freely move within the connected regions, especially between Cambodia, the Lao People’s Democratic Republic, Malaysia, Thailand and Viet Nam. Unfortunately, this is likely to remain just a wonderful dream as this article shows.

To ensure physical connectivity, the United Nations initiated the Asian Highway (AH) project, which is a master plan for Asian countries to build road connections between each other. Therefore, each country has to connect the Asian Highway “missing links” in order to achieve full connectivity. However, processing road freight transportation not only depends on the physical aspects, but also on institutional and people-to-people connectivity.

When discussing cross-border procedures, 9 out of 10 people would agree that the

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bottleneck in the overall system is the customs process. The Single Windows inspection scheme was introduced with the objective of eliminating this bottleneck.

Regarding institutional connectivity, the ASEAN framework to facilitate the transit (AFAFGIT) and shipment (AFAFIST) of goods, as well as the Greater Mekong S u b re g i o n Cro s s -Bo rd e r Tr ans p o r t Agreement (GMS-CBTA) are aimed at setting the direction of related agreements and Memoranda of Understanding (MoU) among the ASEAN member States.

The Master Plan for ASEAN connectivity encompasses a well-designed vision, goal, strategy and procedures for the three main dimensions mentioned above. In order to make the cross-border vision happen, bilateral agreements need to be made. The crucial problem observed by the author concerns the practical matters of related authority among ASEAN members.

The road to achieving the Master Plan is a long and winding one, due to the fact that only the government planning and diplomatic

units have been meeting; those officials responsible for the practical aspects have not yet had the opportunity to meet and share opinions and experiences with regard to eliminating the problem. This highlights the fact that the most impor tant issues for ASEAN members, excluding Singapore and Malaysia, are the lack of integration and poor communication between the government authorities concerned.

With regard to freight transpor tation by road, it is impor tant to bear in mind that trucks will not be able to cross borders whenever they want after the establishment of the AEC. Thai truck operators will need to keep updating their information with the Department of Land Transport of Thailand on the status of each AEC agreement and MoU. The following table illustrates the cur rent situation regarding freight transportation via road between Thailand and each of the other ASEAN member States.

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Country

Infrastructure and facilities

Agreement/Memorandum of Understanding

Problem faced by Thai truck service providers

Cambodia

• AH5 road is damaged • Heavy traffic congestion around customs house area.

Only 40 specific trucks and buses permitted to cross the border, which have to be registered with the Thai DLT.

No cross-border insurance system for goods.

Lao People’s Democratic Republic

Narrow roads in poor condition

Any Thai truck can freely enter the Lao PDR’s AH route, similar to the practice for Lao trucks entering Thailand.

• Some specific products are allowed to be carried only by specific operators who need to sign contracts with the Lao PDR Government.

• No cross-border insurance system for both vehicles and goods.

Myanmar

• Very steep and narrow roads in poor condition between Myawaddy and Kawkareik ().

• Few rest areas and petrol stations are available.

• Trucks cannot carry too much weight due to poor bridge conditions.

No agreement or MoU on freight transportation by road has been signed.

• No crane to facilitate container changing.

• Imbalance between inbound and outbound products.

• No cross-border insurance system for either vehicles or goods.

Viet Nam

Narrow roads and a speed limit of 40 km/h for trucks.

A total of 400 specific trucks permitted to cross the Thai-Lao PDR-Viet Nam borders, which have to be registered with the Thai DLT.

No cross-border insurance system for either vehicles or goods.

Malaysia

• Good road conditions.

• Heavy traffic congestion around the customs house area.

• No agreement on freight transportation by road.

• MoU only allows trucks carrying perishable goods to enter Malaysia with a weight limit of 30,000 tons per year.

In practice, Malaysian trucks drive more than 2 km from border to pick up and reload goods.

For further information, Mr. Raweekit Phutthithanakorn, Transport Technical Officer, Freight Transport Development and Promotion Group, Freight Transport Bureau, Department of Land Transport, Thailand.

Tel: +66 (0)2-271-8490 Website: www.thaitruckcenter.com

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RHENUS: ‘FLEXIBILITY CRUCIAL TO SUCCESS IN PARTNERING WITH INDUSTRY AND TRADE’ Contributed by Rhenus Logistics (Thailand) Ltd.

As a member of the Association of Southeast Asian Nations (ASEAN) Thailand is part of the fastest growing business region in South-East Asia. As the leading automobile production country among the ASEAN member States, the industry forms the backbone of the countr y’s economy alongside the well-developed semiconductor and electronics industry. This means efficient logistics are all the more impor tant, a fact that is fully understood by the Germany-based Rhenus Group that has been operating and expanding its wide range of transpor t and logistics services in Thailand for the past 20 years.

Thailand enjoys a reputation as an economically stable country, but one that has also been through various crises. The economy has boomed since the late 1980s, primarily due to strong underlying conditions. However even Thailand is not immune to challenges – the country has repeatedly had to adapt, for example during the occurrence of political change, the Asian financial crisis or natural disasters.

“It’s absolutely vital to be flexible as a logistics partner for industry and trade. Companies expect us to adapt to changes quickly and ensure that supply chains continue without interruption,” according to Mr. Tobias Gruemmer, who has been managing director of Rhenus in Thailand since the beginning of 2014; as such, he knows all about customers’ concerns and needs when it comes to speed and flexibility.

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This does not only apply to Thailand, but also around the world.

“If the planned route has to be changed because of external circumstances that we cannot influence, the customer needs a quick and safe alternative. We provide comprehensive advisory services for customers within the Rhenus Group, which can make use of a broad global network and multi-modal means of transport, and we offer alternative transport routes – e.g., overland or through other seaport terminals,” according to Mr. Uwe Oemmelen, a member of the Rhenus Board who has been based in Asia since 2012.

Rhenus makes use of what are known as “hand carries” when every minute counts, as in the case of spare parts. They are consignments flown to the customer and accompanied by a Rhenus employee, who delivers the goods directly to their point of use in person.

A stoppage on a production line at a factory is the greatest problem for industry, par ticularly in the electronics sector and among automobilem anufacturers. The flooding in the summer of 2011 brought many factories to a standstill for some time. “Even fairly small breakdowns can completely disrupt supply chains because these sectors use lean production methods. So we’ve developed special emergency plans for our customers,” Mr. Gruemmer explained.

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RAPID RESPONSE IN EMERGENCIES Rhenus proved how experienced it is in handling emergencies during the occurrence of a power outage on Koh Samui in December 2012.

A submarine cable, which links the main transformer substation on the island with the mainland, was damaged. Rhenus transported 14 mobile generators from Singapore to the island for a long-standing customer. This not only involved the generators, but also accessories and a mobile crane with a payload capacity of 50 metric tons. The complete consignment weighed 300 mt and was distributed on 17 trucks.

“Using low loader trailers and ferries, we were able to deliver the machines safely to Koh Samui where only fairly large hotels have their own generators. So we managed to ensure that the island had its Christmas lights on after all,” explained Mr. Carsten Peters, Rhenus branch manager in Laem Chabang. Once the repair work on the underwater electricity cables had been completed, the logistics specialist also handled the return transport operations.

The Eurasian logistics services provider started life in Thailand on a small scale in 1994 – with a par tner at the time – and is now benefitting from its many years of experience in the country. There are now several hundred employees at four offices and six warehouse centres throughout Thailand. Large and small items, ranging from computer chips to complete vehicles, pass through the hands of the Rhenus employees. In addition to services for the automobile and electronics sectors, Rhenus has customers in the packaging industry, the manufacturing sector, and the food and glass industries.

“Manufacturing is focused on the big cities and industrial centres in Thailand. That’s where we have our offices,” says Mr. Gruemmer. In addition to the company headquarters in Bangkok, Rhenus has business sites at the capital’s airport, the deep-sea port in Laem Chabang and at Khon Kaen in the north. Rhenus also has large-scale warehouse facilities at Bangpoo, Samut Prakarn, Bangna Trad km 22 and km 39 (Free Zones), Wang Noi and on the eastern seaboard – with space totalling almost 30,000 m2.

“Our warehouses meet the highest quality standards and have excellent equipment. We can also safely store hazardous goods in B an g po o an d B an g n a Tr a d k m 2 2 ,” Mr. Gruemmer noted. The latter location was only completed and certified in May 2014.

AEO CERTIFICATION However, business usually involves far more than just transporting and storing products.

Rhenus not only handles the consolidation and collection of goods for its customers, but also deals with customs clearance at the so-called “Free Zones” and industrial parks inland. The logistics specialist has AEO (Authorised Economic Operator) certification.

This means that customers benefit from

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simplifications in customs clearance. This certification also confirms the special levels of reliability and trustwor thiness that Rhenus enjoys in Thailand.

Rhenus in Thailand manages the import and export of goods around the world, but particularly in neighbouring countries such as Cambodia, the Lao People’s Democratic Republic, Malaysia and Viet Nam. Its customers include, for example, multinational corporations that produce microchips, or local suppliers who are often subject to strict requirements in terms of deliver y times. So it is essential to have a reliable logistics specialist.

CENTRAL SCHEDULING DEPARTMENT Many of the goods distributed by Rhenus are shipped as air or sea freight. However, trucks also play an impor tant role – both for domestic traffic and for the exchange of goods with neighbouring countries. As a result, Rhenus has its own fleet of trucks in Thailand and offers charter services within the country and to neighbouring States in South-East Asia.

“As demand is high, we have a central scheduling department that looks after the truck transport operations,” Mr. Gruemmer added.

For example, Rhenus offers groupage freight services by truck from Singapore to Bangkok via Malaysia in the case of goods for the electronics industry, chemical products, machinery and spare parts.

About half the 100 largest original equipment manufacturers in the world have production facilities in Thailand. Cars, vehicle parts and accessories represent the largest group of products exported by the country. Thailand is the largest single market in South-East Asia with 1.3 million new car registrations in 2013. In 2012, the Government of Thailand launched the so-called Eco-Programme, an incentive scheme for first-time buyers in order to encourage the production of eco-friendly vehicles with low emission and fuel consumption levels.

This triggered an extraordinary boost in production.

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Rhenus works for manufacturers as well as suppliers to the automobile sector in Thailand too. The services include deliveries to factories, picking up parts, storing tyres and handling returns. One of the leading manufacturers of vehicle interiors for the automobile industry is also a Rhenus customer.

“We offer this customer a cost-effective solution with our so-called buyer’s consolidation concept; this enables us to pool the individual consignments from different suppliers and ship them jointly in one container,” Mr. Peters said. The suppliers’ goods come from a wide variety of European countries. They are used in Thailand to manufacture complete interiors for cars.

BUYER’S CONSOLIDATION SCHEME Rhenus picks up the items from the relevant suppliers, transports them to Antwerp and then ships them to Thailand as sea freight.

Mr. Peters explained that “our branch in Laem Chabang acts as the co-ordination point for all the consignments to and from Thailand.”

In addition to the buyer’s consolidation programme, Rhenus transports complete containers to Thailand and handles air freight consignments.

Once the goods have arrived at Laem Chabang port, the truck travels about 45 kilometres to the factory on Thailand’s eastern seaboard.

The interiors are used for local vehicles, but some are exported to Europe – and Rhenus is then responsible for customs clearance.

“We also offer air freight for particularly urgent deliveries,” Mr. Peters added. Several consignments are flown from Bangkok to Germany each week, and urgently needed raw materials – e.g., from Mexico, India or the United States of America – are flown to Thailand, cleared with customs and delivered.

The automobile sector is not the only one to make use of the air freight services provided by Rhenus. Semi-conductors or electronic devices such as mobile phones and hard discs are often exported

LOGISTICS & TRANSPORT 19

from Thailand by cargo aircraft while computer chips are flown into the country. Most of the imported air freight consignments come from China, Hong Kong, the Republic of Korea, Singapore and Taiwan.

Rhenus in Thailand has recently launched its “Special Services” line of business – better known as the Copex brand in Europe. The services on offer include transporting refrigerated goods, perishable foodstuffs, medical products, diplomatic mail, live animals and high-value items, including jewellery, silver and gold bars. The family business has also made a name for itself with its subsidiary, Rhenus Mida Data, in the high-tech logistics market. Rhenus Midi Data serves the health sector from its head office in Singapore and handles the transportation and installation of medical devices, e.g., in Thai hospitals.

AEC PROMISES FURTHER GROWTH “Thailand is developing in a promising manner thanks to its solid industrial base and the increase in regional integration,” according to the German Trade and Invest (GTAI) forecast. Despite the political uncertainties, the economy is relatively stable and competitive in the international arena. Solid state funds and a stable banking sector are reinforcing this positive record. The country is therefore optimistic as it looks to the future, because it is hoping for positive effects from the ASEAN Economic Community (AEC), which will be launched next year. Ten countries – Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam,– will then form a joint customs-free market.

Rhenus aims to make full use of the AEC launch. “We are expecting a significant boost in internal ASEAN traffic from 2015 onwards. It will then be even more attractive for manufacturing industries to purchase raw materials from Asian neighbours, because this will trigger cost benefits,” Mr. Gruemmer emphasised. “In addition to the automobile industry, we are expecting growth in the chemical, engineering, construction, packaging, pharmaceutical and health-care sectors, where we already have a strong position as a logistics partner.”

Contact details: Rhenus Logistics Co., Ltd. E-mail: info@th.rhenus.com www.th.rhenus.com

http://thailand.ahk.de

28 LOGISTICS & TRANSPORT

LINDE BRINGS EUROPEAN QUALITY TO THAILAND’S INTRA-LOGISTICS SECTOR Contributed by Mr. Setthasorn Charoenphanich, Linde Material Handling (Thailand) Co., Ltd. Linde Material Handling (Thailand) Co., Ltd. the local source of the traditional German brand of handling equipment, is a relatively new player in South-East Asia. As one of the most important markets for forklift trucks in the region, Thailand is the location of several suppliers in this sector.

prepare a multi-layered offer for clients, ranging from new trucks, to faultless used trucks and rental programmes in order to meet peaks in demand.”

The sustained integration into this flourishing ground is a clear objective of the company’s Country Manager Mr. Setthasorn Charoenphanich. Accordingly, the Linde subsidiary, established in 2012 in Bangkok, is taking ambitious steps, driven by benchmarking quality from Europe as well as an innovative approach to the business.

Within this framework, products are simultaneously core items and defining elements. Increasing workloads and changing arrangements in logistics require not only low maintenance and reduced wear-and-tear in quality, but also a wide range of truck types that are able to meet individual working conditions. High demand exists among Thai customer s, for efficient electr ic counterbalanced trucks as well as for reach trucks.

OFFERING BESPOKE SOLUTIONS “In Thailand we have to meet multi-faced requirements. Due to increasing competitive pressure, companies need high performance, durable working equipment that they can count on,” according to Mr. Setthasorn. Combined with reliable service features, Linde Material Handling (Thailand) Co., Ltd. performs not merely as a supplier, but also establishes partnerships with customers. “In line with rising demands in the Thai market we have set ourselves the goal of selling more than just products. We offer solutions.”

Those solutions are in the form of a comprehensive portfolio of first-class handling equipment complemented by a wide range of services matched to individual customer needs. The benefit lies in the high level of flexibility, performance and reliability as much as in the sum of valuable add-on services, applied at every stage of use.

“We push for maximum operational efficiency by providing driving lessons for customers’ employees and a 24/7 technical suppor t network with extremely fast response times,” Mr. Setthasorn emphasises.

Apart from these features, the local market comprises further crucial issues that need to be addressed, such as affordability and alternative financing models. Mr. Setthasorn is well-aware about the importance of this topic. “Nowadays, businesses in the logistics sector need to

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EUROPEAN ROOTS Close ties to the parent company in Germany allow a rapid flow of information as well as the early implementation of innovative technologies and products. According to Mr. Setthasorn, the good relationship with Linde headquarters and its background of more than 100 years of experience in engineering have enhanced the approach of Linde Material Handling (Thailand) Co., Ltd. to the local market.

LOGISTICS & TRANSPORT 29

“With a clear focus on valuable products and services we will increase awareness of the quality of our services as well as Linde as premium brand in Thailand,” he points out.

international event in Asia for packaging and processing logistics, thus making it an ideal venue for aspiring companies in Thailand to make themselves known.

This objective has been approached in many different ways. The subsidiary’s opening in 2012 enabled the company to set up its fully-equipped workshop and office facilities, including a demonstration area and a comprehensive regional parts centre. The company is developing steadily, as highlighted by the growth in its number of staff members and its customer base.

Linde Material Handling (Thailand) Co., Ltd. is continuing to expand. By opening an Eastern Seaboard branch in November 2014, the young company reaches another significant milestone. Almost exactly one year after star ting business in Pathum Thani, the new subsidiary in Rayong symbolises the strong driving power and service orientation.

To push expansion further, Linde Material Handling (Thailand) Co., Ltd. not only sends personnel to the Singapore regional headquarters for intensive training sessions; it also hosted an International Sales Manager Conference in February this year with the aim of sharing expert knowledge of business partners and colleagues as well as holding discussions and workshops.

In addition, by participating in Propak Asia 2014, the company took another important step towards establishing its position in the market. With more than 36,000 visitors from more than 60 countries this year, the fair continues to be recognised as the leading

EASTERN SEABOARD BRANCH

“We ensure maximum contact with our customers by building up a closely co-ordinated service network”, Mr. Setthasorn says. To meet the rising economic growth and relevance of flexibility in logistics and transport, the development of sales and service channels will take on a key role. Accordingly, Linde Material Handling (Thailand) Co., Ltd. is developing partnerships with additional distributors, thus strengthening its presence throughout the country and beyond.

Thailand is a highly promising emerging market for this sector, especially with the approaching launch of the ASEAN Economic Community. With its young subsidiary, Linde is enhancing competitiveness both domestically as well as throughout South-East Asia. The focus on European quality standards and service orientation has been just the first step on the road to a strengthened position as a supplier of premium solutions in intra-logistics.

Contact details: Linde Material Handling (Thailand) Co., Ltd. 19/62 Moo 10 Phahonyothin, Tumbol Khlong Nueng, Amphoe Khlong Luang, Pathumthani 12120, Thailand Tel: +66 (0)2-832-5999, Fax: +66 (0)2-832-5998 Service Call: +66 (0)2-832-5900, Service Fax: +66 (0)2-832-5990 E-mail ID: info@linde-mh.co.th

http://thailand.ahk.de

30 BUSINESS BRIEFS

AAS OPENS EXPANDED AND COMPLETELY RENOVATED PORSCHE CENTRE BANGKOK AAS Auto Service (AAS), the sole authorised importer and distributor of Porsche cars in Thailand, has announced the opening of the new Porsche Centre Bangkok. AAS sales and after-sales services are now back in full operation.

The Porsche Centre Bangkok is located close to Don Mueang International Airport on Vibhawadi-Rangsit Road, one of Bangkok’s main arterial roads. AAS has invested more than 100 million baht in the expansion and transformation of the showroom. The space has been increased by more than double its former size, from 500 m2 to 1,200 m2, and includes a showroom area dedicated to displaying 15 cars, with Porsche Driver’s Selection area, a Porsche Fitting Lounge that is equipped with a Car Configurator and a workshop with 15 working bays.

As the saying goes, “there are no old Porsches, just new owners”. The Porsche Approved Pre-Owned Cars service has been integrated with

the new-look Porsche Centre Bangkok with the intention of providing owners and potential customers a broad choice between a new and a pre-owned Porsche Approved vehicle.

Most impor tantly, the Porsche Centre Bangkok has become the world’s first appointed Porsche Classic Partner. The trained team maintain direct communication with the Classic team in Germany, enabling AAS to offer the best available knowledge about classic Porsche cars as well as full know-how concerning maintenance and restoration.

AAS will continue to provide all types of comprehensive maintenance and repairs in accordance with Porsche standards. “We warmly welcome visits by Porsche owners and enthusiasts to view and enjoy our newly transformed Porsche Centre,” said Winthorn Bunnag, Managing Director of AAS Auto Service.

EURO-CENTER THAILAND CELEBRATES 25th ANNIVERSARY Euro-Center is a local gateway to a worldwide service and assistance network for travel insurance and assistance companies. The holding is a group with 40 years of a tradition of quality in claims handling and assistance services and, at the same time, is one of the most dynamically developing companies in this sector.

Euro-Center Thailand offers a claims service and a 24-hour, seven-day Service Centre assistance throughout South-East Asia, from Pakistan in the west to Indonesia in the south

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and the Republic of Korea in the east. Since its establishment in Thailand in 1989, Euro-Center has accumulated unique local know-how and experience to suppor t its service concept in the region and is proud to celebrate its 25th anniversary this year.

BUSINESS BRIEFS 31

VILEDA LAUNCHES ‘MARKETING BLITZ’ Vileda, a world-leading brand of home-cleaning tools, products and solutions, was officially launched in Thailand on 9 July 2014 at Central World Shopping Mall with a “marketing blitz” for modern Thai homes.

Vileda is part of Freudenberg Home and Cleaning Solutions, whose roots date back to 1849. With offices in more than 50 countries around the world, the brand is renowned for its high-quality, innovative products and cleaning solutions. Its entry into Thailand makes many new and exciting home-cleaning tools and other products available.

In partnership with the Franco-Thai Chamber of Commerce, the German-Thai Chamber of Commerce (GTCC) hosted a workshop on transforming mindset and behaviour for effective leadership – “Why and h ow to bo o s t ac c o u n t a b i l i t y, e n g a g e m e n t andcollaboration to strengthen competitiveness in AEC” – on 3 April at the Pullman Bangkok Hotel G.

“We see the cleaning solutions market in Thailand growing strongly in the future, thanks to the increasing population and the number of urban residencies, combined with the changing lifestyle of the Thai people”, Raphael Sachs, Vice-President, South-East Asia Consumer and International Sales Asia/Pacific Consumer, Freudenberg Home and Cleaning Solutions.

During the launch of the Vileda ‘marketing blitz', GTCC President Mr. Phongsakdi Chakshuvej wished Vileda a successful start to its aim of becoming the leading brand to ser ve the demands of Thai consumers of home-cleaning products.

Participating executives learnt how they could change the mindset and way of thinking of employees with the objective of enhancing their companies’ competitiveness in the AEC context. It was emphasised that employees’ behaviour must evolve towards more accountability, engagement and collaboration in order to achieve this goal.

More than 50 par ticipants received advice on practical action for driving their organisations’ culture towards the desired behaviour as well as enhancing competitiveness.

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32 BUSINESS BRIEFS

GERMAN STUDENT WHO LOVES LIFE, STUDIES AND WORK IN THAILAND Noomi Fessler is 24 and originally from Austria. She did her Bachelor studies in International Business, with a half-year exchange semester in Gurgaon, India. After her graduation, she moved to Germany and started her Master's in Management at the European Business School, in Oestrich-Winkel, near Frankfurt. She first came to Sasin as an exchange student for her later Master's semester.

Two months in Thailand turned out to be far beyond my expectations. My past studies in Germany and India were certainly interesting, but in the end I was happy to move back to Austria. In line with those experiences I expected Thailand to be the same – interesting, but only for some months.

However, my best expectations were blown away. I found so many aspects of studying and living here to be incredibly enjoyable; as a result, I decided to extend my stay and pursue a dual degree at Sasin.

My first two courses at Sasin were among the most insightful studies of my student life.

The professor s went far beyond the theoretical parts of the courses. In “Strategy”, the excellent professor from Berkeley enabled me understand many secrets of Asian culture and history, and their influence on Asia’s economy today. In “Project Management”, the required group work did not only make me apply tools practically, but also needed our highly multicultural and international group of four to work together ver y closely. We really struggled at the beginning, especially in communicating the right way. Overcoming our disputes along the way was really at the heart of what I have benefited from here, and I finished the course having learnt much more than just the tools we applied. We learnt the harder, crossculture “people aspects” ways of project management.

Second, I was amazed by the friendly and helpful classmates who have helped me to

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integrate from the very first moment. Many interesting talks are animated by cultural differences and similarities, and during class discussions I am happy to share insights about German business culture. On the other hand, I am learning a great deal from my classmates such as respect and humility as well as willingness to listen actively. I am learning from the Thai people to keep calm and think of my next steps rather than just panic.

I appreciate the fact that they tolerate me and remain patient with me even though foreigners – in this environment – can sometimes be regarded as rude.

Further, living in Bangkok is enjoyable. I feel comfortable with the fast and ongoing life surrounding me. The Bangkok buzz motivates and stimulates my productivity more than in Germany. I value the unobtrusive and friendly culture of people here, the diversity and high tolerance. Even though the city is buzzing, I think the mentality of people is a lot calmer than in Europe.

Another aspect that has impressed me is the enormous potential of Thailand and SouthEast Asia – especially from an economic point of view. I am fascinated by the fact that this is even noticeable in everyday life, and that I can see the constant growth and fast improvement everywhere. People here are more motivated to realise their own business ideas compared with Europe, and there is more entrepreneurial spirit among them.

I consider it as highly motivating be able to contribute to this impressive growth, and I

strongly believe in the high impor tance of South-East Asia to the world’s future economy. My amazement about Thailand and South-East Asia has not been just momentary or for a couple of months – I am already looking for opportunities to stay here on a long-term basis.

Overall, I believe cross-cultural experiences are valuable, and should be shared and promoted to help create more global leaders and international business people. I want to motivate Thai students to study abroad and utilise high-class universities that Germany has to offer, such as the European Business School (EBS), which is one of the best in Germany. EBS offers not only excellent courses, but also events with the top managers of Germany's industry and banking such as Henkel AG, J.P. Morgan and Deutsche Bank.

The private talks with the lecturing managers at EBS often last until late at night. Located in an old German castle, surrounded by rivers, wineries, and hills, EBS is truly a beautiful place to study. It is conveniently located in the hear t of Europe, close to Paris, Berlin, Amsterdam and many more cities within a few hours. I can only recommend students to take the opportunity to study in a good school, in a beautiful location with lots of opportunities to travel with friends from around the world.

World Class Jeweler Visit our Gallery on 150 Krungthonburi Road, Klongsan, Bangkok (near Peninsular Hotel) or our website www.narajoaillerie.com.

Tel: +662-438-4000 or +668-0999-6879

34 CHAMBER ACTIVITIES

CHAMBERS OF COMMERCE WORKSHOP IN THE LAO PDR

A workshop held by the European Chamber of Commerce and Industr y in the Lao People’s Democratic Republic (ECCIL) in co-operation with the Lao National Chamber of Commerce and Industry (LNCCI) and suppor ted by GIZ, took place in Vientiane from 10 to 11 June 2014. The objective of the workshop was to understand what service a chamber or association can develop.

The speakers included Mr. Jan Immel, German-Thai Chamber of Commerce, Mr. Henry Schumacher, European Chamber of Commerce of the Philippines, Mr. Lucas Boudet, Franco-Thai Chamber of

Commerce and a representative of the Vietnamese Chamber of Commerce and Industry.

In their presentations they showed the more than 15 participants from ECCIL, LNCCI and regional Chambers of Commerce in the Lao PDR various examples of how to develop and implement services at a Chamber of Commerce. The outcome of the workshop was a draft plan of specific tasks and activities to be undertaken by the relevant organisations.

BREAKFAST TALK ON DOING BUSINESS IN THE LAO PDR On 8 July 2014 the GTCC, in co-operation with the European ASEAN Business Centre in Thailand, the European Chamber of Commerce and Industry in the Lao PDR (ECCIL), and the Italian-Thai and Netherlands-Thai Chambers of Commerce, hosted a Breakfast Talk at the St. Regis Bangkok Hotel on “Laos – what you need to know about the economy and how to do business there”.

Dr. Ramon Bruesseler, ECCIL Executive Director, shared his knowledge with close to 100 par ticipants about the Lao People’s Democratic Republic’s economy and proved insights into doing business in that country. During his presentation, he touched on certain challenges such as the lack of vocational skills and the small domestic market; however, he stressed the strengths and oppor tunities such as the high economic growth rate, low wages, low competition in many industries and the privileged access to the European Union market. The presentation can be downloaded from the news section of the GTCC website at thailand.ahk.de.

In view of the high number of, and positive feedback from the participants as well as the general rise in interest in the Lao PDR, between 21 and 23 January 2015. GTCC and ECCIL will jointly organise a visit by a business delegation to Vientiane for Thai companies interested in doing business in the Lao PDR.

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CHAMBER ACTIVITIES 35

Photo shows (from left): JĂśrg Buck, GTCC Executive Director ; Hanh Ngoc Nguyen, DTCC Executive Director ; Jan Eriksson, TSCC President; Peter Bjork, TSCC Executive Director; and Adrian Brown, Chatrium Hotel Riverside Bangkok General Manager.

GTCC ICE BREAKER MEETS THE NORDICS GTCC joined hands with the Danish-Thai, Thai-Swedish and Thai-Finnish Chambers of Commerce to host its first joint chambers networking event with the Nordic nations on 12 June 2014. With the generous suppor t of the Chatrium Hotel Riverside Bangkok,

more than 100 guests enjoyed a great variety of delicious finger food and a chance to win several attractive gift vouchers kindly offered by the hotel.

Sponsor a GTCC Event and Get Optimum Exposure for Your Company!

GTCC Events Breakfast talk Business luncheon Seminar, workshop and conference Business networking events Site visit Contact us today and let’s tailor an event together!

Tel: +66 (0) 2 670 0600 ext. 2003 or 2004

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36 CHAMBER ACTIVITIES

EASTERN SEABOARD NETWORKING EVENTS The Australian-Thai Chamber of Commerce (AustCham), British Chamber of Commerce Thailand (BCCT) and German-Thai Chamber of Commerce (GTCC) took turns to host the ESB networking events held on 20 June at the Ocean Marina Yacht Club, 18 July at Dusit Thani Pattaya and 15 August at Centara Grand Mirage Beach Resor t Pattaya, respectively.

The three networking events welcomed an aver age o f 1 0 0 gue s t s , w h o h a d t h e oppor tunity to broaden their business relations across nations during a casual evening with appetising finger food and drinks.

The Eastern Seaboard networking scheme is a collabor ation between the GTCC , Amer ican Chamber of Commerce in Thailand (AMCHAM), AustCham and South Afr ican-Thai Chamber of Commerce (SATCC), each of which take turns to host the networ king evening each month throughout the year.

Don’t miss the next event to be hosted by GTCC under our own br and “Easter n Seaboard Stammtisch” on 17 October. Get the latest update at Thailand.ahk.de.

SITE VISIT TO AMATA B. GRIMM POWER The majority of the participants also joined GTCC for the Eastern Seaboard Stammtisch at Centara Grand Mirage Beach Resort Pattaya, which was hosted by GTCC that same evening.

More than 100 guests from all par tner ing Chamber s of Commerce were welcomed at the event.

On 15 August 2014, GTCC hosted its latest site visit at Amata B. Grimm Power in Amata Nakorn, a long-standing member of the Chamber.

Through the generosity of B. Grimm, close to 50 participants enjoyed an excellent lunch before continuing with the site visit at the power plant.

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Amata B.Grimm Power is a Thailand-based energy company that focuses on the development, financing, construction and operation of green-field power plants. The company currently operates three gas-fired combined cycle cogeneration power plants in Amata Nakorn Industrial Estate, Thailand, two gas-fired combined cycle cogeneration power plants in Amata City Industrial Estate, Rayong, Thailand, and a diesel power plant in Amata City Bien Hua Industrial Estate in Viet Nam. The total combined power-generating capacity of the three projects is 742 MW. Through the three projects, the company serves around 300 customers, including the Electricity Generating Authority of Thailand (EGAT) and Electricity of Vietnam (EVN).

CHAMBER ACTIVITIES 37

GTCC LIVE BROADCAST OF 2014 FIFA WORLD CUP BRASIL-GERMANY VS. USA To build up the excitement over the FIFA World Cup Brasil among Chamber members and the German-US community, GTCC organised a live broadcast of the kick-off match between Germany and USA on 26 June 2014 in partnership with AmCham, and the sponsorship of Mercedes-Benz and Bangkok Marriott Hotel Sukhumvit. More than 200 guests showed up to cheer for their favourite team while enjoying finger food and drinks.

Gift vouchers and items were given away to the lucky draw winners of the night, thanks to the generosity of Bayer (Thai) Co., Ltd. and Bangkok Marriott Hotel Sukhumvit.

GTCC LIVE BROADCAST OF 2014 FIFA WORLD CUP FINAL At an early hour of Monday 14 July 2014, GTCC had the great pleasure of hosting a live broadcast of the memorable 2014 FIFA World Cup final in which Germany claimed victor y against Argentina and became the world champion.

The live broadcast was made possible by the partnership and support of Lufthansa German Airlines and St. Regis Bangkok.

It welcomed more than 400 guests, who showed up full of excitement and high spirits, which helped to complete the enjoyment of this thrilling event.

The lucky winners of the lucky draw activity walked away with various lovely items and gift vouchers from Lufthansa German Airlines, St. Regis Bangkok and Bayer (Thai) Co., Ltd. To view the full photo coverage of the event, check GTCC Facebook: GermanThaiChamberOfCommerce and don’t forget to follow us there to learn about upcoming activities and events!

DID YOU KNOW...?

“The Adidas Brazuca”, the official match ball of the 2014 FIFA World Cup, is made up of only six panels of absolutely identical shape. The perfect symmetry is not only an outstanding geometric achievement, it also has major advantages – the more panels used to cover the surface, the more seams there are that can absorb moisture. Fewer elements mean that the ball is more durable and more resistant to the elements. The panels are bonded together using patented thermo-bonding technology. The manufacturers obtained optimal results under defined pressure and temperature conditions – and with a special, heat-activated adhesive based on Bayer’s Dispercoll® U raw materials.

Source: Bayer (Thai) Co., Ltd.

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38 CHAMBER ACTIVITIES

GTCC JOINT CHAMBERS LUNCHEON WITH MR. VIKROM KROMADIT INTERVIEW: GTCC: We learnt from your comment at the recent GTCC luncheon that Thailand will have huge opportunities after the launch of the ASEAN Economic Community (AEC). Can you share with us what AMATA is planning in order to benefit from those opportunities?

Khun Vikrom: Thailand is geographically located at the heart of ASEAN, which is a strategic position conducive to transportation network connectivity and representing the second largest economy in this region. Natural disaster risks are also relatively low compared with neighbouring countries. That’s why Thailand is an ideal place for trade and investment. AMATA is expanding into new businesses that will focus on research and development, high-technology industry and knowledge-intensive services such as Science City, Data Centre, Software Park and Education Town. They will create high economic value while also being environmentally-friendly.

In addition to Thailand, AMATA has realised the competitive advantages of Viet Nam, therefore Amata has been investing in that country and established our first industrial estate, AMATA City Bien Hoa, 20 years ago. At present, Viet Nam is one of the most attractive ASEAN countries. Its economic factors have been increasing steadily and the Vietnamese workforce is considered motivated, adaptable and entrepreneurial. Nowadays, Viet Nam is a major source of the world’s manufactured goods such as mobile phones.

With these circumstances in mind, we recently launched a new project in Viet Nam named AMATA City Long Thành, which will be developed into a “Perfect City” including a high-tech industrial park covering an area of 8,031 rai. We are also expanding AMATA City Bien Hoa by developing 4,000-6,000 rai to serve the increasing investment from the upcoming AEC.

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GTCC: Regarding foreign direct investment (FDI), how do we compare with Singapore with regard to differences in capital market regulations, average per capita income and the size of the countries?

Khun Vikrom: Thailand’s past success in achieving competitiveness relied on two factors.: FDI and low-cost competition. However, today our competitiveness has been eroded because neighbouring countries have been actively improving themselves. The decrease in FDI shows that Thailand has become less attractive compared to other countries in this region.

Although Thailand is totally different from Singapore in many aspects, such as the size of the countries, political stability, number of skilled labour personnel, average per capita income and language proficiency, it is possible to use Singapore as a benchmark. If Thailand would like to promote FDI, we need to find Thailand’s weakness by comparing ourselves to the highest FDI countries in ASEAN such as Singapore.

The weaknesses that obstruct foreign investment in Thailand, such as government policies, regulations and political uncertainty, should be improved or eliminated. If we don’t know what our weak points are or if we do nothing in this matter, Thailand will lose its competitive advantages to our neighbours very quickly after AEC is launched.

GTCC: What was the most important lesson you learnt while travelling through Asia? How can we integrate 600 million people into a single market?

Khun Vikrom: My objectives of each journey were to meet someone special, to see something awesome, and to explore a new world that we have not previously known. Travel enabled us to deeply understand our neighbours in the same region as well as understand our weaknesses and strengths that will help us to survive in the digital

CHAMBER ACTIVITIES 39

On 22 August 2014, GTCC successfully hosted a Joint Chambers Luncheon with Mr. Vikrom Kromadit, Founder and CEO of Amata Corporation PLC with participation of more than 250 guests from GTCC and 16 various chambers of commerce.

In his keynote address, on the topic of “Back to the Future of ASEAN 2015”, Mr. Vikrom pointed out the positive results of expanded transportation routes that will fully connect the ASEAN mainland region as well as the opportunities that such connectivity will bring and the impor tance of emerging Chinese purchasing power.

Moreover, he emphasised the fact that Thailand would need to focus on building peace and stability in order to achieve its economic potential. Togetherwith outward-looking policies and the new

world. My valuable three-year experience from the 100,000-kilometre caravan is that the world is larger than we thought. The world comprises a wide variety of cultures, economies, societies and ways of life, all of which create plenty of business opportunities globally.

The free flow of goods and services under AEC will further provide the member nations with greater access to markets at the sub-regional and regional levels. A large single market of 10 ASEAN countries will increase the bargaining power and make it look more attractive to the powerful nations including China, Japan, the United States of America and members of the European Union. Nowadays, China is making huge investments in the ASEAN region, especially in industry and agriculture. China is also focusing on transportation links between southern China and ASEAN, including the high-speed rail link from China to Singapore and the East-West Corridor road.

Infrastructure construction, such as deep-sea ports, and gas and oil pipelines, are among their priority interests too. These infrastructure construction projects will be finished very soon and will directly affect ASEAN and transform its economics and social life in the near future.

GTCC: How can AMATA help to eliminate corruption?

Khun Vikrom: Dependable, which is one element of Amata’s corporate culture and personnel policy called ‘DRIVE’ (D = dependable, R = responsible, I = innovative, V = visionary, E = efficient), includes trust in the sense of the unacceptability of corruption. As AMATA Corporation PCL is a listed company, we are very serious about conducting all our business in an honest and ethical manner. We are also concerned about ensuring trustworthiness and good governance in our business. AMATA has no policy of supporting fraud and bribery, including the abuse of intellectual property rights. The most important factor is our employees who must live and work with integrity and

Government’s goal of eliminating corruption, Mr. Vikrom said he foresaw Thai businesses and foreign entrepreneurs operating from Thailand increasing their competitiveness in the coming years.

The luncheon was made possible with the suppor t of GTCC member companies BASF (Thai) Ltd., BMW (Thailand) Co., Ltd. and Ruwac Asia, Ltd. Following the luncheon, GTCC had an excellent opportunity to interview Mr. Vikrom and seek his opinion on a number of crucial questions. His interesting answers given during the interview are shared here with our readers.

trustworthiness. Ethical employees will help us eliminate any corruption problems in our organisation.

Moreover, the AMATA Foundation has published five million copies of my books and distributed them throughout the country in order to educate people through my experiences as well as to share my thoughts and creative ideas as a form of social responsibility.

GTCC: What will you advise SMEs in Thailand to prepare for AEC? Khun Vikrom: The gross domestic product of the 10 ASEAN countries at present is US$ 2.4 trillion annually. In my opinion, after AEC is launched on 31 December 2015, the estimated ASEAN gross domestic product will increase in 2016 onwards by between 1 and 2 per cent, while FDI in the region will rise by between 1 and 3 per cent.

Export figures will increase by between1 and 3 per cent and regional trade can be expected to increase by 2 to 4 per cent.

Thai businessmen need to have more accurate and real knowledge in order to understand the world and ASEAN. They have to thoroughly understand the people and cultures in other countries.

The strengths and weaknesses found in each country will easily provide business opportunities. Then you can utilise your own competitive advantages to create your business. If you want to move forward more quickly, you need to have a partner who is a professional with direct expertise in that field. A joint venture will help you shorten your trial-and-error period. Trading or investing in neighbour countries that are still behind us by using our strengths and better competency will bring success.

http://thailand.ahk.de

40 CHAMBER ACTIVITIES

Front row, from left to right: Mr. Christian Knaack, STRABAG Industries (Thailand) Co., Ltd.; Mr. Thomas Chambers, Continental Automotive (Thailand) Co.,Ltd; Mr. Michael Grewe, Mercedes-Benz (Thailand) Ltd.; Mr. Dirk Grossmann, Lufthansa German Airlines; Mr. Piyathep Siwakas, Millennium Auto Co., Ltd.; Mr. Phongsakdi Chakshuvej, B.Grimm & Co., Ltd.; Mr. Joerg Buck, German-Thai Chamber of Commerce; Mr.Yuranan Pamornmontri, Panacee Medical Center; Mr. Helmut Beste, Thaivivat; Mr. Matthias Pfalz, BMW Group Thailand; Mr. Klas Ohman, FIPA Co., Ltd.; and Mr. Edwin Pinto, DHL Global Forwarding (Thailand) Ltd. Back row, from left to right: Mr. Patrick Secco, KSB Pumps; Mr. Michael Berger, InterGest (Thailand) Ltd.; Mr. Juergen Kohnen, Hansa Meyer Global Transport Co., Ltd;.

Mr. Frank Krings, Deutsche Bank AG, Bangkok Branch; Mr. Dirk Prellber, Decanter Club; Ms. Kanpitcha Kongsombat, Mr. Walter Kenneth, Danmark Co., Ltd.; and Ms. Ploy Naratusachan, Nara Joaillerie.

GTCC ANNUAL GALA NIGHT 2014 The GTCC Annual Gala Night 2014 – “The Magical Germany” – provided a memorable Friday night at the Grand Ballroom of the Shangri-La Hotel, Bangkok on 5 September 2014. The event attracted more than 400 guests, the majority of whom were executives and decision-makers from the German-Thai business community.

105,710 baht that was presented to Deutscher Hilfverein Thailand e.V. on 19 September.

The highlights of the event ranged from the opening ballet performance, a presentation of cer tificates to companies reaching their twenty-fifth anniversary of GTCC membership, an evening gown fashion show by ZuZa Fashion that also featured sophisticated jewellery by Nara Joaillerie, to a raffle with a Grand Prize of a return-trip ticket to Europe with Lufthansa German Airlines. The raffle ticket sale raised

Leading sponsors, whose suppor t made it possible to organise such a memorable and successful night, included Millennium Auto Co., Ltd., Panacee Medical Centre, Lufthansa German Airlines and Thaivivat. Special appreciation also goes to Danmark Co., Ltd., Decanter Club and Rhenus Logistics Co., Ltd., whose generosity enabled guests to enjoy authentic German beer and wine throughout the evening.

UPDATE 3/2014

The night did not end after all the highlight events for many of the guests, either, who took to the dance floor and rocked the night away with music presented by a DJ.

CHAMBER ACTIVITIES 41

Front row, from left to right: Helmut Beste, Thaivivat Insurance Public Co., Ltd., Martin Klose, Rรถdl & Par tner, Ltd., Michael Berger, InterGest (Thailand) Ltd., Dr. Peer Gebauer, German Embassy, Phongsakdi Chakshuvej, B.Grimm & Co Ltd., Jรถrg Buck, GTCC, Karl-Heinz Heckhausen, K.H. H. Consulting Co., Ltd., Dirk Grossmann, Lufthansa German Airlines

http://thailand.ahk.de

42 CHAMBER ACTIVITIES

Companies celebrating 25th anniversary of GTCC membership GEA Westfalia Separator (Thailand) Ltd., Kata Group Co., Ltd. (Resort Hotels), Logwin Air + Ocean (Thailand) Ltd., Rohde & Schwarz International Operations GmbH, Union Victors Co., Ltd.

UPDATE 3/2014

CHAMBER ACTIVITIES 43

Follow us on Facebook at GermanThaiChamberOfCommerce to view photos from the GTCC Annual Gala Night 2014 or see the press coverage by our media par tners, Thailand Tatler in the November issue and the Big Chilli in the October issue.

http://thailand.ahk.de

44 GTDEE INSIGHT

BMW AND KANCHANAPISEK TECHNICAL COLLEGE LINK UP WITH GTDEE The German-Thai Dual Excellence Education (GTDEE), the dual vocational education programme that emphasises learning at the higher vocational level hand-in-hand with practical experience in a technical setting, has definitely got off to a flying start.

In 2013, the German-Thai Chamber of Commerce (GTCC) and German International Co-operation (GIZ) introduced GTDEE to Thailand in co-operation with founding partner companies, B. Grimm, BMW Group, Thailand and Robert Bosch. GTDEE is also supported by the Thai Ministry of Education and the Embassy of the Federal Republic of Germany to Thailand.

In July 2014, GTDEE linked up with the BMW Service Apprentice Programme as two milestones were achieved. In the same month, two GTDEE milestones were reached. On July 18, a new batch of applications was interviewed by BMW Group Thailand. Then, on 29 July, a Memorandum of Understanding was signed by GTCC Executive Director Mr. Joerg Buck with Kanchanapisek Technical College Mahanakorn to train the college’s higher vocational students under the GTDEE programme with BMW. Mr. Wanich Uamsri, Deputy Secretary-General of the Office of Vocational Education Commission witnessed the ceremony.

Students in the project develop their theoretical knowledge from their lecturers at the college while also developing their technical skills under the guidance of their mentor at BMW. Students with GPAX 2.75

UPDATE 3/2014

or above good health can apply to the project. Selected students receive a 12,000 baht scholarship, a monthly salary plus an allowance of 5,000-9,000 baht in the first year, rising to 8,000-12,000 baht in the second year. In addition, students receive 2,000 baht insurance, 1,500 baht accommodation allowance as well as uniforms and extra training as required by the company.

Vocational education is a major development plan for Thailand to become more competitive. This programme offers a very good opportunity for Thai students to work with world-class companies while studying under German’s high standard and quality curriculum.

Graduates will receive three certificates – from their College, BMW and the GTCC – which will greatly expand their international career opportunities.

GTDEE INSIGHT 45

VOCATIONAL EDUCATION IS THE WAY: GERMANY, MERCEDES-BENZ INVEST IN TECHNICAL TRAINING If you want to know the current employment situation in Thailand, ask any recent Bachelor degree graduate how difficult it is to get a job. If they have actually managed to get one, ask them what type of company hired them, and how much salary they are receiving.

However, the technical Por Wor Sor (higher vocational) students, who are considered by many members of the public to be unruly and only cause trouble, are a very different story. Many are already gaining work experience with Mercedes-Benz while studying, and are being paid more than the minimum daily wage.

Mercedes-Benz Thailand, in corporation with Eastern Technological College (E.Tech) and Samut Prakarn Technological College (SAP) are working together in providing technical apprenticeships under the German-Thai Dual Excellence Education (GTDEE) programme that is co-ordinated by the German-Thai Chamber of Commerce (GTCC).

contributing to this success. He added that GTDEE was also a clear milestone in the effort to bring back the popularity of vocational education in Thailand, which would provide a considerable contribution towards ensuring Thailand’s success in the upcoming ASEAN Economic Community to be launched in December 2015.

Mr. Anuphong Likitprukpaisarn, President of the Dealers’ Council, emphasised that technical students were lucky because they had valuable skills, and could also progress to the managerial level later in their career, while business or management students had little or no opportunities to develop their technical skills. Therefore, he said, choosing a vocational education was a better option for the future.

GTDEE aims to promote the student learning process, both theoretically at college and practically by technical experts from Mercedes-Benz. They work under the theme, “Living the best”, which portrays continuity in high-quality performance, especially in after-sales service, as well as the high standard of the educational curriculum from Germany.

GTCC Executive Director Mr. Joerg Buck mentioned at the recent Automotive Mechatronics Technician Orientation and Parents Day that success comes from three factors: teamwork, talent and dedication. Ever y par ty involved in the GTDEE programme is For more information, please contact GTDEE at tel.: 02-670-0600 or visit http://thailand.ahk.de/en/gtdee/ for more information.

You can also get connected with GTDEE on facebook.com/Gtdeeproject.

http://thailand.ahk.de

46 GTDEE INSIGHT

GTDEE ALREADY DRAWING STUDENT ACCLAIM

Students participating in the German-Thai Dual Excellence Education (GTDEE) programme are now undergoing training with companies as well as continuing their college studies, thus enabling them to gain both practical training and theoretical knowledge under the dual vocational education system. Here are some comments from students about how they are doing and what they like about the programme.

Miss Benjamas Reun-nak, age19 years, College: Samut Prakarn Technological College (SAP), second year Company: Mercedes-Benz “I chose this dual education programme because someone told me that I will be sure to get a job after graduation. Now I am in my internship period at one of the Mercedes-Benz dealers in Lad Prao. I am the only girl in the first batch. In the second batch there are more girls. I think the programme is definitely becoming more popular.”

Mr. Supoj Daengkap, age19 years College: Eastern Technological College (E.Tech), first year Company: Mercedes-Benz “I took a one-month English language foundation course prior to arriving at the Mercedes-Benz training centre. I learnt basic conversation as well as some technical terms. Now I will be trained for five days per week here and study for only one day (Sunday) at the College. I have a vocational education background so I think I will be fine because I have a good foundation.”

Mr. Jessada Cheundee, age 19 years College: Chonburi Technical College Company: B.Grimm “I think studying here in the dual education programme is similar to starting a job already. My mother supports my joining this programme because she said it will help me increase my working experience, learn to take responsibility and be more grown up.”

Mr. Sarun Chuyingsakultip, age 20 years College: Chonburi Technical College Company: B.Grimm “I learn to actually do the work, to increase my skills as well as know-how for solving problems. It is quite difficult for me to learn and work at the same time, but it also gives me opportunities to encounter some real-life situations that I have never experienced before. This gives me advantages over students who are in normal programmes. Moreover, I have learnt that security is really an important issue.”

Mr. Kritsada Dokmaiwai, age 20 years College: Industrial Electronics, Eastern Technological College (E.Tech), second year BMAP Apprenticeship Company: Robert Bosch Limited “I chose this programme because I like to seek new experiences. It is an interesting programme because I have the opportunity to learn at the actual work site and I also earn some money during my studies. My parents are happy that I can relieve some of their burden and they worry less about me because I can support myself. I also like to work with foreigners so that I can improve my English and myself.”

Mr. Panuphong Banleu, age 19 years College: Second year, automotive technology, Kanchanapisek College Mahanakorn Company: BMW Apprenticeship Programme “I want to gain work experiences that come together with learning opportunities. This is a really rare opportunity for me because I will immediately have a job right after graduation. I also have possibilities to work abroad. It would be a pity if I missed this chance. BMW is a great car. My parents are very happy with this programme because I also received a scholarship and earn some income during studying.”

UPDATE 3/2014

STUDENT APPRENTICES PROGRAMME OPENING FOR NEW BATCH 2015 APPLY WITH US BEFORE DECEMBER 2014!

Be Competent. Be Distinctive. Be GTDEE

The GTDEE Project is a part of the Vocational Education and Training Network or VETNet, which is funded by the German Federal Ministry of Education and Research (BMBF) and supported by the Association of German Chambers of Industry and Commerce (DIHK), and covering 11 countries worldwide including Italy, Greece, Portugal, Spain, Slovakia, Latvia, Brazil, the Russian Federation, China, India and Thailand.

Examination & Certification Student Recruitment & Enrollment

Organize Training

Skill & Competence Competitions

GTDEE SERVICEPORTFOLIO

Public Relations & Marketing

Quality Assurance

E-Services Technical Seminars/ Workshops

GERMAN-THAI CHAMBER OF COMMERCE

Empire Tower 3, 25th floor, 1 South Sathorn Road, Yannawa, Sathorn, Bangkok 10120, Thailand Tel: +66 (0)2-670-0600 ext. 8001 to 8004 Email: gtdee@gtcc.org Gtdeeproject

Fax: +66 (0)2-670-0601 Website: http://gtdee.com

German Standard

48 GTDEE INSIGHT

WHY THE URGENT NEED FOR AN ‘EFFECTIVE IN-COMPANY VOCATIONAL TRAINING IN THE MEKONG REGION’ PROJECT? The Mekong region’s labour market is facing an increasing lack of technicians and skilled workforce, a situation that will inevitably worsen unless efforts are made to align labour market supply and demand. Despite government attempts at educational reforms, the discrepancy between skilled labour supply and demand still prevails, as a public-oriented approach is not usually tailored to accommodate specific demands of the private sector.

As a core partner of the GTDEE Initiative, the “Effective In-Company Vocational Training in the Mekong Region” project (BB-Mekong) aims to promote the German Dual Vocational Education System, stressing the role of the private sector in workforce development as an approach to tackling the skilled labour deprivation in the region.

Through the promotion of co-operation between vocational schools and companies, and the demand-oriented establishment of effective in-company training systems supplementing the in-school education, students graduating from vocational schools will possess skills that not only increase their employability, but also better match the demands of the industrial sector.

One of the project main objectives is the development of a Regional Minimum Standard for “In-Company-Trainers” in the Mekong region because qualified and competent trainers in companies play a crucial role in the quality of in-house knowledge transfer and training. This includes the development of regulations, training curricula and a certification concept for In-Company-Trainers as well as for trainers of In-Company-Trainers.

We are now in the process of developing the standard through the organisation of four workshops, in which stakeholders in the Mekong

UPDATE 3/2014

region – especially the private sector from Cambodia, the Lao People’s Democratic Republic, Myanmar, Thailand and Viet Nam – will contribute inputs, suggestions and comments on the desired competency and duty of In-Company-Trainers. The goal is to develop context-oriented and demand-based standards from the experience and expectations of participants.

Through these methods, which involve related stakeholders and ensure they are continuously contributing in providing inputs, reviews and comments, it is expected that the product – i.e., the In-CompanyTrainers – will not only be fully accepted by the public, but also become sustainably anchored in the workforce development system and thus contribute to the economic growth of the region.

CURRENT STATUS As of now, BB-Mekong is ready to launch the first In-CompanyTrainer Standard Development Workshop, scheduled from 10 to 12 September 2014, which is designed to involve all stakeholders, i.e., participants from the private sector, teachers, representatives from the public sector and existing In-Company-Trainers. The aim of the session is to gain input from these stakeholders on experiences and expectations they have regarding In-Company-Trainers.

Contact details: Christian Stüer, Regional Project Director, e-mail: chirstian.stueer@giz.de and Siriporn Parvikam, Regional Project Manager, e-mail: siriporn.parvikam@giz.de.

Imported by : Danmark Co., Ltd. Distributed by : Flow Inter Co., Ltd. 22 Chalermprakiat Rama 9 Soi 23 Nongbon, Prawet, Bangkok 10250 Tel. 02 361 6257-60, Fax. 02 747 2021 www.paulaner-thailand, E-mail : info@paulaner-thailand.com

Warning: Please drink responsibly

http://thailand.ahk.de

50 MEMBERS’ CORNER

S R E B M E M ONLY

Sponsored by

Name Last Name Company Name

Valid Thru

31 December 2016

As a GTCC member, we offer you the GTCC Membership Card to enjoy special discounts at GTCC’s events and consultancy services as well as a number of special discounts from participating GTCC members. Whether it is for your lunch/dinner business meeting or other services, we want to assure you, as our valuable member, enjoy special treatment from fellow GTCC members to strengthen

your business network and relations. The list of participating outlets and services is available on our webpage, thailand.ahk.de, together with corresponding benefits and discounts for members to explore!

For more information or submission of your offer/discount, please e-mail us at membership@gtcc.org

AAS AUTO SERVICE CO., LTD.

ANANTARA HOTELS, RESORTS & SPAS

Exclusive offers 20% discount on Porsche Driver’s selection.

20% discount on AUTOGLYM Products and Services.

Exclusive Thailand Offer Enjoy a special offer exclusively for GTCC members.

Book your Anantara experience and receive up to a 20% discount for luxury accommodation, food and beverage and spa journeys at any Anantara Hotel, Resort & Spa in Thailand.

Offer is valid from now - December 2014

Show or refer to your GTCC membership card to enjoy these special discounts!

ANANTARA GOLDEN TRIANGLE ELEPHANT CAMP & RESORT Exclusive Thai Resident All-Inclusive Package Enjoy breakfast, lunch and dinner, a mini bar (excludes alcohol) and one bottle of house wine per stay, as well as internet access and tickets to the Hall of Opium Museum, with rates starting from just THB 14,500 net per night for two persons staying in a Deluxe Three Country View Room.

Offer is valid from now - 23rd December 2014

Offer is valid from now - 31st October 2014

Tel: +66 (0)2-365-9110 Email: reserveanantara@anantara.com Website: www.anantara.com/GTCC

Tel: +66 (0)53-784-084 Email: goldentriangle@anantara.com Website: goldentriangle.anantara.com

BANGKOK MARRIOTT HOTEL SUKHUMVIT

JUMP DISTRIBUTORS (THAILAND) CO., LTD.

MISSION HOSPITAL, BANGKOK

Exclusive offers Enjoy 20% discount on food & beverages at The District Grill Room & Bar.

Exclusive offers Virobi autonomous navigation system it collects dust and hair on an electrostatic disposable pad by itself.

Fix cleaning pad to the soft base using Velcro Select cleaning program and let it clean by itself Dispose the cloth if necessary Ideal for all types of floors Only 1,790 THB plus Refill (Value 2,250 THB)

Exclusive Dental Promotional Offers Cosmetic Tooth Whitening - 6,000 THB. Dental Crowns - 10,800 THB. Dental Implants - 60,000 THB.

Offer is valid from now - December 2014

Offer is valid from now – December 2014

Tel: +66 (0)84-422-6249 Email: manutsavee.sumrannich@fhp-ww.com www.fhp-ww.com

Tel: +66 (0)2-282-1100 Email: callcenter.bangkok@mission-hospital.org Website: www. mission-hospital.org

Tel: +66 (0)2-522-6655 Email: marketing@porsche.co.th Website: www.porsche.co.th, www.autoglymthailand.com

Offer is valid from now - December 2014 Tel: +66 (0)2-797-0000 Email: suyash.kumar@marriott.com Website: www.marriott.com/hotels/travel/ bkkms-bangkok-marriott-hotel-sukhumvit/

UPDATE 3/2014

*Prices are not included for any complication. *Close on Saturday.

MEMBERS’ CORNER 51

M & S TELECOM CO., LTD.

NATURAL VILLE EXECUTIVE RESIDENCES

RICOH (THAILAND) LIMITED

Exclusive offers 10% Discount for usage on any country-specific Matrix SIM in the selected countries.

Europe Package – 1 SIM to use in over 40 countries in Europe. Package price: THB 4,500 – 30 min. calls to Thailand free/500MB data package

Exclusive offers Enjoy promotion price at 2,999 THB. Get free upgrade to Deluxe One-bedroom apartment 75 m2 Get free laundry 4 pieces per day, buffet breakfast and high-speed internet.

Unified Communication System

Offer is valid from now - December 2014

Offer is valid from now - December 2014

Offer is valid from now - December 2014

Tel: +66 (0)2-696-9598 Email: harsh.s@matrixsim.com www.matrixsim.com

Tel: +66 (0)2-250-7000 Email: info@naturalville.com Website: www.naturalville.com

Tel: +66 (0)2-762-4670 Email: hemwadee.sut@ricoh.co.th Website: www.ricoh.co.th

SAMITIVEJ HOSPITALS

SOFITEL SO BANGKOK

THE SUKHOTHAI BANGKOK

Exclusive offers 10% discount for medicine, laboratory work, X-rays for self-pay (Except vaccination, CT, MRI, ultrasound, dental, special devices, special medication, no discount on insurance and doctor’s fee.)

Exclusive offers 50% discount of Afternoon tea at MIXO from price THB 495++/person

Exclusive offers

Enjoy a unique afternoon tea set with an amazing view overlooking the skyline of Bangkok & Lumpini Park at MIXO, on 9th floor of Sofitel So Bangkok.

Discover Communicational Solution with Ricoh Mobile Video Conferencing Device, anywhere, anytime.

Compact size "A4" / Light weight.

Exclusive offers

Get special price at 65,000 THB, Free! monthly airtime 3 months (worthy 6,000 THB) Please call Khun Hemwadee for more information

“Sweet Deal” package offers an accommodation in a suite, Buffet breakfast for 1 person, Complimentary non-alcoholic beverage from the minibar, Complimentary 2 pieces of pressing service per day and so much more.

Executive Suite at THB 6,990++ per room/night Deluxe Suite at THB 7,990++ per room/night Garden Suite at THB 10,990++ per room/night

Offer is valid from now - December, 2014

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Offer is valid from now - 15th December 2014

T: +66 (0)2-711-8181 E: info@samitivej.co.th W: www.samitivejhospitals.com

Tel: +66 (0)2-624-0000 Website: www.sofitel-so-bangkok.com, www.sofitel.com

Tel: +66 (0)2-344-8888 Email: reservations@sukhothai.com Website: www.sukhothai.com

http://thailand.ahk.de

52 MEMBERS’ CORNER

NEW GTCC MEMBERS up to 30 September 2014

German-Thai Chamber of Commerce warmly welcomes 12 new members!

A.R.C. Window & Door Co., Ltd.

DB International GmbH

389/114 Moo 6, Sukhumvit Road, Naklua, Banglamung, Chonburi 20150 Thailand Tel: +66 (0)38-716-868 Fax: +66 (0)38-716-869 Email: info@arc-thailand.com Website: www.arc-thailand.com

184/129 Forum Tower, 22nd Floor, Rachadaphisek Road, Huaykwang, Huaykwang, Bangkok 10310 Thailand Tel: +66 (0)2-645-2481 to 2 Fax: +66 (0)2-645-2483 Email: oliver.schroeder@db-international.de Website: www.db-international.de

Activities: Produce Shueco aluminium window and door.

Chamber Representatives: Andreas Pfefferl and Raimund Bertsch

Bangkok Marriott Hotel Sukhumvit 2 Sukhumvit 57, Sukhumvit Road, Klongton Nua, Wattana, Bangkok 10110 Thailand Tel: +66 (0)2-797-0000 Fax: +66 (0)2-797-0072 Email: Bangkokmarriotthotel@gmail.com Website: www.bangkokmarriott.com Activities: At the brand-new Bangkok Marriott Hotel Sukhumvit, the top Marriott hotel Bangkok has to offer, you will discover a stunning, desirable location just a two-minute walk from Thonglor BTS (Sukhumvit Line).

Chamber Representatives: Rajat Chatterjee and Thomas Schult

Mrs. Doris E. Beger GTCC MEMBER 2014

The Grand, 24th Floor., Apart.No.331/332, 11 Soi Mahatlek Luang 2, Ratchadamri Road, Pathumwan, Bangkok 10330 Thailand Mobile: +66 (0)80-080-2230 Email: antorum@antorum.com Activities: Real Estate Broker.

UPDATE 3/2014

Activities: DB International works with its clients to provide solutions to these challenges worldwide. Our clients benefit from our extensive project experience and the application of modern railway technologies in more than 100 countries. In the fields of engineering and consulting, we offer the complete range of our services.

Chamber Representatives Oliver Schröder and Yaowalak Arrakwanich

IST METZ SEA Co., Ltd. Address: 1558/12 Baan Klang-Krung, Soi 4, Bangna-Trad Road, Bangna, Bangkok 10260 Thailand Tel: +66 (0)2-182-0043 Fax: +66 (0)2-182-0045 Email: info@th.ist-uv.com Website: www.ist-uv.com Activities: IST METZ develops, manufactures and sells systems for the environmentally-friendly curing of solvent-free inks, varnishes, silicones and adhesives. The focus of the business is on applications for the graphics industry, but UV systems from IST METZ are also used in the automotive industry and many other industrial applications.

Chamber Representatives: Oliver Thiele and Titaree Rattanachetakul

MEMBERS’ CORNER 53

Dr. Kai-J. Kuehlmann GTCC MEMBER 2014

555/18, Moo 12, Bangna Trad, Bangpleyai, Bangplee, Samutprakarn 10540 Thailand Mobile: +66 (0)81-142-0554 Fax: +66 (0)2-175-5917 Email: kai.kuehlmann@addcon.com Website: www.addcon.com

Johann Wolfgang Kraus GTCC MEMBER 2014

5/555 Panya-Inthra Road, Bang Chan, Klongsamwa, Bangkok 10510 Thailand Mobile: +66 (0)89-523-6769 Email: j.w.kraus@freenet.de, j.w.kraus@germanwatertechnologies.com

King Mongkut’s University of Technology North Bangkok (KMUTNB) 1518 Pracharat 1 Road, Wongsawang, Bangsue, Bangkok 10800 Thailand Tel: +66 (0)2-555-2000 ext. 1026 Fax: +66 (0)2-586-9007 Email: icop@gmail.com Website: www.kmutnb.ac.th Activities: King Mongkut’s University of Technology North Bangkok (KMUTNB) is a leading technology university in Thailand. The university established in 1959, under co-operation between Thai Government and the Federal Republic of Germany.

KMUTNB was established as the “Thai-German Technical School”.

Chamber Representatives: Prof.Dr.Prayoot Akkaraekthalin and Asst.Prof.Dr.Phongsak Keeratiwintakorn

Mitr Phol Sugar Corporation Ltd. 2 Ploenchit Center, 3 Fl., Sukhumvit Road, Klongtoey, Bangkok 10110 Thailand Tel: +66 (0)2-794-1000 Fax: +66 (0)2-656-8535 E: borwornnan.t@mitrphol.com W: www.mitrphol.com Activities: Mitr Phol Group's business originated from sugarcane plantations and was developed into the sugar producer and trader with an intention to develop a valuable downstream business from sugar to renewable energy, bio-plastic, particle board.

Chamber Representatives: Borwornnan Thongkalya and Prin Pitchayavijit

MAN Diesel & Turbo Malaysia Sdn. Bhd. (Representative Office Thailand) 1550 Thanapoom Tower, 23rd Floor, New Phetchburi Road, Makasan, Bangkok 10400 Thailand Tel: +66 (0)2-627-5860 Fax: +66 (0)2-627-5880 Email: Stefan.Langhein@my.man.eu Website: www.mandieselturbo.com Activities: MAN Diesel & Turbo is the world market leader for large diesel engines for use in ships and power stations, and is one of the leading suppliers of turbo machines. The company employs around 15,000 staff at more than 100 international sites. The head office is situated in Augsburg, Germany.

Chamber Representatives: Stefan Langhein and Ernst Geyer

Ricoh (Thailand) Ltd. 341 Onnuch Road, Prawet, Prawet, Bangkok 10250 Thailand Tel: +66 (0)2-762-1111 Fax: +66 (0)2-322-9870 Email: copier@ricoh.co.th Website: www.ricoh.co.th Activities: Distributor and service provider for office automation, equipment and electronics.

Chamber Representatives: Parul Poonthirakul and Khoamchit Tang-Ngamjittsriri

RWE Power Climate Protection Southeast Asia Co., Ltd. 388 Exchange Tower Level 42, Room No.4201-4204, Sukhumvit Road, Klongtoey, Klongtoey, Bangkok 10110 Thailand Tel: +66 (0)2-302-1420 Fax: +66 (0)2-262-1400 Email: philipp.weiss@rwe.com Website: www.rwe.com Activities: RWE Group’s regional hub for activities across Southeast Asia with particular focus on: carbon credit projects and carbon footprinting; wastewater and waste gas treatment; consultancy services for power generation and mining.

Chamber Representative: Philipp Weiss

http://thailand.ahk.de

54 MEMBERS’ CORNER

BECOME OUR MEMBER! The German-Thai Chamber of Commerce (GTCC) is one of the biggest bilateral Chambers in Thailand with the most extensive service por tfolio for members. More than 500 members have continued their role as strong suppor ters and active par tners for the community. Our membership

offers a variety of benefits, which allow you to contact and network with more than 500 prestigious and reputable companies in the German-Thai business community. Your main benefits include:

Regular networking with German – Thai community and Executives

Member-exclusive site visit at reputable member companies

Professional business advisory on market entry both in Germany and Thailand

Be informed on market and economic trend at our regular business luncheon and breakfast talk at special rate

Publish your profile in our annual handbook and online directory

Enhance visibility through article contribution or promote your member to member benefit in our publications and website

Want to know more about our membership and privileges?

E-mail us at membership@gtcc.org for more details.

We look forward to welcoming you in the near future as a new GTCC member!

UPDATE 3/2014

MEMBERS’ CORNER 55

Skywave Technologies (Thailand) Co., Ltd., Strabag Industries (Thailand) Co., Ltd., T&D Power Tech (Thailand) Co., Ltd., D3-Consulting Co., Ltd., soffico (Thailand) Ltd., IKN GmbH Representative Office, Ricoh (Thailand) Ltd., Hansa Meyer Transport Co., Ltd., M&S Telecom Co., Ltd. and N.C.C. Management & Development Co., Ltd.

FIRST GTCC NEW MEMBER ORIENTATION On 29 August, GTCC welcomed 14 representatives from new member companies to the first member exchange forum and GTCC’s services introduction.The first session was conducted by each department of GTCC’s team to give the overview of the range and activities of Chamber services. Subsequently, each participant had a opportunity to showcase their company’s potential in a three-minute business briefing.

The participation by several relevant industries provided an excellent opportunity to discuss and explore possible co-operation. GTCC as a team hopes to use this event to develop further member relationship events and activities.

"The GTCC New Member Orientation programme is very timely for the Queen Sirikit Convention Centre to meet new colleagues and lead us to new business opportunities. Thanks, GTCC, for organising such a great programme."

...................................................................................................................................

Fine Charernsook, Strategic Sales Manager N.C.C. Management & Development Co., Ltd.

"We, M&S Telecom, feel privileged to be a member of GTCC. With such events, we get an opportunity to be recognised by so many other member companies and, of course, get to know about them too and to network with them so that we can be of benefit to each other."

...................................................................................................................................

Harsh Sharma, Corporate Sales Manager M&S Telecom Co., Ltd.

"Many thanks to the GTCC active team for this great initiative for new members! They have created another interesting event for us with the New Member Orientation Programme, as it provides an opportunity to meet new business partners, introduce our services and learn more about the support that GTCC can give to its members. I enjoyed the nice atmosphere, and would highly recommend it to other newcomers. Skywave Technologies as a German IT company is very happy to be par t of the GTCC community!"

...................................................................................................................................

Anja Heck, Managing Director Skywave Technologies (Thailand) Co., Ltd.

http://thailand.ahk.de

German-Thai Chamber of Commerce Cordially thanks our sponsors for their support for the

Onegin, Stuttgart Ballet in Bangkok 25-26 October 2014 B.Grimm Airconditioning Ltd. B.Grimm Joint Venture Holding Ltd. B.Grimm Trading Co., Ltd. BASF (Thai) Ltd. Bayer Thai Co., Ltd. Carl Zeiss Co., Ltd. Commerzbank AG Deutsche Bank Dr. Chumpol Thiengtham Mr. Dusan Wilms Evonik (Thailand) Ltd. Häfele (Thailand) Ltd. Mr. Hagen E.W. Dirksen Deutscher Honorarkonsul KSB Pumps Co., Ltd. Linde (Thailand) PLC. Maquet Thailand Co., Ltd. Mercedes-Benz (Thailand) Ltd. Merck Ltd. Dr. Florian Kirschner Polipharm Co., Ltd. Rhenus Logistics Co., Ltd.

ONEGIN Rodenstock (Thailand) Co., Ltd. Rödl & Partner Ltd.

Sawadee Travel Co., Ltd. Siemens Ltd.

Thai Yarnyon Co., Ltd.

58 TRADE FAIRS

POPULAR IMPORT SHOP BERLIN WELCOMES 53nd BIRTHDAY AS BAZAAR BERLIN 12-16 November 2014, Berlin Launched in 1962 as Partners for Progress, each year sees the staging in November of the Import Shop Berlin, a major international bazaar.

More than 40,000 visitors of all ages visit the Berlin Exhibition Grounds, mainly from Berlin and Brandenburg, but also from other German federal States and abroad. More than 500 stands feature a wide range of quality goods from 60 countries. The products include quality handicrafts, clothing, home textiles, jewellery, natural goods, natural cosmetic products, contemporary art and design as well as Christmas decorations.

At last year’s bazaar, Thailand, the partner country, was the centre of attention. The positive reactions from visitors to the exotic shopping mall on the Berlin Exhibition Grounds speak for themselves. A total of 95 per cent were satisfied with their visit to the fair while the same percentage said they would recommend it to others and 94 per cent declared they would be back the following year. Eight out of 10 said the products on display at the Import Shop were “good” to “very good”.

This year, from 12 to 16 November 2014, the fair will debut under its new name, Bazaar Berlin. Thus, the atmosphere at this popular

event will be reflected in its name. There will also be an even greater emphasis on development policies, the aim being to strengthen exhibitors' home markets. With this in mind, one of the conceptual changes planned for 2014 is a section devoted to fair trade.

According to Mr. Stefan Grave, Director at Messe Berlin GmbH : “The atmosphere surrounding the forthcoming 53nd Import Shop Berlin has proved that our marketing strategy is right. The switch from Import Shop to Bazaar Berlin is going precisely to plan. The concept of functioning as a reliable and long-term partner in the market is integral to Messe Berlin’s trade fair strategy.”

Nine out of 10 visitors made purchases at last year’s Import Shop Berlin. Most bought jewellery, clothing, fashion items, food, fashion accessories and natural goods. One out of every two visitors in search of Christmas gifts with a difference found what they were looking for.

At around euros 140, the average spending per visitor was equal to the previous year’s figure, resulting in a turnover of euros 5.6 million for the exhibitors.

“I was particularly pleased that more than 23 per cent were first-time visitors to the fair (last year)”, said Barbara Mabrook, the project manager of Import Shop Berlin. “Our experience is that after coming here once, visitors return on a regular basis. That is because of the wide range of goods on display, their individual nature and the quality they offer, and because of the special atmosphere here that exhibitors from around the world repeatedly praise.”

More details are available online at www.bazaar-berlin.de/en/.

For further information, please contact GTCC’s official representative for Messe Berlin GmbH in Thailand, Ms. Patamaporn Wasuwat, at tel: +66 (0)2-670-0600, ext. 4010 or by email at berlin@gtcc.org.

UPDATE 3/2014

60 TRADE FAIRS

CHILLVENTA - LEADING TRADE FAIR FOR ENERGY EFFICIENCY, HEAT PUMPS, AIR-CONDITIONING AND REFRIGERATION INNOVATIONS 14-16 October 2014, Nuremberg Chillventa, the international trade fair for refrigeration, air conditioning, ventilation and heat pumps, is the industry’s most important platform for showcasing its latest innovations. As in its previous events, Chillventa 2014 will offer a comprehensive programme for all industry specialists from 14 to 16 October 2014 in Nuremberg.

Chillventa, which is held biennially to suit the development cycle of the industry, reflects the trends in the segments of refrigeration, air-conditioning, ventilation and heat pumps for the benefit of exhibitors and visitors alike. During the exhibition, the world’s leading suppliers present a compact display of their components and systems, such as compressors, heat exchangers, fans, ventilation systems, air conditioning systems, insulation, and control and instrumentation, plus services for these sectors, which are focused mainly on commercial and industrial applications.

Chillventa is an event organised by experts for experts. This is where trade, industry, plant construction, users, training and research meet to discuss the latest trends, make important contacts and do business.

More than 900 exhibitors will be available for exchanges of specialist knowledge at the highest level.

The varied programme of Chillventa Congressing, which stands for well-founded specialist knowledge, covers the subjects of energy efficiency, refrigerants, heat pumps, air-conditioning and much more.

It takes place on 13 October, the day before Chillventa opens.

Chillventa specialist forums offer (during the exhibition) pooled specialist knowledge by experts for experts on current issues and developments in the industry.

UPDATE 3/2014

Computing centres, heat pumps and the energetic inspection of air-conditioning and ventilation systems are brought to the fore in special areas.

The figures from 2012 clearly show Chillventa’s role as the industry’s most important platform for showcasing the industry’s latest innovations and expertise. A total of 97 per cent of the more than 28,000 visitors said they were satisfied with the information and contact opportunities available on the stands, while 50 per cent of the visitors wanted information about new products, 32 per cent wanted to extend their knowledge and 35 per cent used Chillventa as a venue for exchanging views and transfers of knowledge.

Don’t miss this opportunity to experience the latest innovations and new perspectives at Chillventa 2014. Further information about the trade fair can be found online at http://www.chillventa.de/en/.

For visitor tickets or fur ther information, please contact GTCC’s official representative for NürnbergMesse GmbH in Thailand, Ms. Tidarat Singsuphan at tel: +66 (0)2-670-0600, ext. 3003 or by email at nuernberg@gtcc.org.

TRADE FAIRS 61

ALUCAST 2014 is India’s biggest platform for the aluminium castings industry, which is held every alternate year. The sixth staging of this international conference and exhibition is to be held this year from December 4-6, 2014 in Bangalore India.

This biennial event has emerged as an important venue for numerous stakeholders across the aluminium industry. The accompanying training programmes and high-level conferences evoke a great deal of interest.

During the past decade, the Indian die-casting industry has seen rapid modernisation and increasing production capacity. The industry has grown phenomenally and is touted as the global supply hub for all auto giants.

This puts the industry in an enviable position for achieving quantum growth in the coming years.

ALUCAST 2014

4-6 December 2014, Bangalore, India

THE EXHIBITOR PROFILE COVERS A WIDE RANGE, INCLUDING: Aluminium die casting Aluminium recycling Automation of casting process Melting practices and metal treatment Post-casting operations Heat treatment specialists Instrumentation and control Software systems integration/rapid prototyping Die-casting machinery manufacturers Die manufacturers Machine tools Government bodies and associations Environmental regulations Health and safety Human resource management.

THE VISITOR PROFILE COVERS: Casting purchasers (OEMs, Tier 1 and Tier 2) Consultants Educational Institutes Government officials Investors and promoters Key mechanical and electrical instruments, toys and others Product personnel of core and allied industries including automotive, electronics, electrical appliances, and service users Technology suppliers and buyers Tool room centres Trade associations.

More details are available online at http://www.alucast2014.com/ index.html.

For fur ther infor mation, please contact GTCC’s official representative for NürnbergMesse GmbH for Thailand, Ms. Tidarat Singsuphan at +66 (0)2-670-0600, ext. 3003 or by email at nuernberg@gtcc.org.

http://thailand.ahk.de

62 TRADE FAIRS

CeBIT 2015 LATEST IT TRENDS AND PRODUCT INNOVATIONS FROM AROUND THE WORLD 16 to 20 March in Hannover, Germany CeBIT 2015 will offer unique benefits, including an IT show and a conference programme for professionals. CeBIT defines the latest IT trends, presents talks by highcalibre speakers and forward-looking panel discu s s io n s , an d s how ca s e s p ro d u ct innovations from all over the world.

CeBIT 2015 will feature a vastly extended offering for company founders, developers and investors from the international IT sector, making it Europe’s largest event for newlyestablished IT firms. The entire ecosystem focusing on start-ups will be presented under the title “CeBIT SCALE 11” from 16 to 20 March in Hannover, Germany.

The event’s display categor y is aimed specifically at bringing young entrepreneurs together with major corporations, potential accelerators and investors. Its primary goals are to: (a) highlight the creative potential of start-ups; (b) extend networks between new and established companies; and (c) stimulate investment by financiers.

CeBIT has a long history as a mission-critical business development hub for many new companies in the IT industr y. It is where exhibitors can test their business ideas on

UPDATE 3/2014

the market, find their first customers and team up with investors who will provide extra finance for further growth.

The German-Thai Chamber of Commerce, together with the Small and Medium Industrial Institute (SMI) cordially invites Thai IT start-ups to exhibit at CeBIT 2015 with funding support under the SMEs’ Pro-active Project from the Department of International Trade Promotion.

For more information regarding the SMEs’ Pro-active Project, please visit www.smi.or.th/index. php/2012-09-07-08-49-25/1319-cebit-2015. For CeBIT information visit www.cebit.de/.

For exhibitor inquiries or more detailed information, please contact GTCC’s official representative for Deutsche Messe in Thailand, Ms. Kamolchanok Nantaburom at tel: +66 (0)2-670-0600, ext. 4004 or by e-mail at hannover@gtcc.org.

FREE

basic space plus standard booth (maximum value of 200,000 baht per exhibitor),

UNDER THE SMEs PRO-ACTIVE INITIATIVE

with support from the Department of International Trade Promotion, Ministry of Commerce of Thailand.

What will you get from your participation?

Enhanced opportunities in business negotiations with targeted clients and international enterprises.

Increased potential in expanding export markets and diversity in client base.

Broadening of market perspective in the international arena to ensure your products and services are on a par with international competitors.

The opportunity to meet operators in the same and related industries.

64 TRADE FAIRS

BAUMA CHINA 2014 RECORD NUMBERS, IMPRESSIVE QUALITY

25-28 November 2014, Shanghai With 2,718 exhibitors from 38 countries and 177,080 trade visitors from 141 countries, bauma China - the international trade fair for construction machinery, building material machines, construction vehicles and equipment - set new records in 2012. This figures represented a 46 per cent increase in exhibitors and a 16 per cent rise in the number of visitors However, this major biennial international industry gathering is not just notable because of the remarkable numbers it attracts. The quality of its exhibitors and visitors is also impressive. With 300,000 m2 of exhibition space – comparable to 42 football fields – the SNIEC enabled bauma China 2012 to deliver impressive proof of its status as the biggest and most important sector event in Asia.

All the international key players present their machines and products at bauma China 2012, which was held from 27 to 30 November 2012.

A total of 93 per cent of all visitors are decision makers who are looking specifically for new solutions; they include CEOs, managers, investors and buyers from around the world, and especially from Asia’s major growth markets.

This year, bauma China will take place from 25 to 28 November 2014 once again at the Shanghai New International Expo Centre (SNIEC) in Shanghai. The SNIEC features 17 indoor halls covering a total of 200,000 m2, an outdoor area of 100,000 m2, three main entrance halls, seven parking areas with space for 4,730 cars, 20 loading bays for trucks directly unloading at the halls, and 51 meeting rooms suitable for middle/small meetings, forums and cocktail parties. These excellent facilities ensure convenient service and smooth operations.

This year’s show will again take up the entire 300,000 m2 of exhibition area. Nearly 3,000 exhibitors from about 40 countries/regions are expected to showcase their latest products to almost 200,000 visitors from 150 countries/regions. The show statistics will once again underline the position of bauma as the number one trade show in Asia, especially as it will facilitate enterprise restructuring and upgrading.

UPDATE 3/2014

OUTLOOK FOR BRAND BAUMA The aim of bauma China is to provide exhibitors and visitors alike with an efficient platform for exchanging first-hand views and news about the latest products and technologies, and for discussing and solving the common problems of current development as well as facilitating the growth of the Chinese construction machinery market.

As for the future, bauma China will strengthen its exhibition service to make it more intelligent, and expand marketing promotions via new media and various channels. At the same time, bauma China will even closer links with its customers, to ensure a clear picture of their interests and requests, via social communication tools and surveys.

This will prove valuable in adjusting planning strategy and ensuring sustainable success in supporting the construction machinery industry.

For this year’s bauma China the chamber is organising a business delegation to China. If you are interested in participating in this event, please contact GTCC’s official representative for Messe Muenchen in Thailand, Ms. Suvichanee Panpeng at tel: +66 (0)2-670-0600, ext. 4006 or by e-mail at muenchen@gtcc.org.