The Truck Terminal Project in Sa Kaeo Province: Implications of Border Trade between Thailand and Cambodia

Abstract

Thailand has recently put in place a logistics development plan for a network of road transport. Included among several projects is one for setting up truck terminals in border cities to act as centers for the pooling and distribution of goods. Sa Kaeo is considered a promising border city. This study investigates the impacts of a truck terminal project in Sa Kaeo province on border trade between Thailand and Cambodia using secondary data and in-depth interviews that are analyzed under the SWOT Matrix. The analytical results have led to several recommendations, as follows: The Thai government should complete the project at Ban Nong Ian as soon as possible by including it in the formation of a special economic zone in the province. The reason is that Aranyaprathet Customs House, the existing check point, is no longer able to serve the major increase in border trade. However, there are certain concerns about an insufficient distribution of benefits to the general public in the province. It is therefore suggested that investment in the animal feed industry should be promoted in Sa Kaeo for export to Cambodia. Also, there are some concerns that Cambodian enterprises may be reluctant to transfer their products to the new customs house as they may have to bear more expenses. In this regard, the Thai government may offer temporary remedies for Thai entrepreneurs within a certain limit of time through a subsidy against the margin to maintain export prices at competitive levels to motivate Cambodian entrepreneurs to adapt their operations.