Logistics & Transportation

Vietnam - Vietnam and US to renew air transport agreement

Source: Intellasia, 15 August 2009

The renewal of the US-Vietnam Air Transport Agreement which has been in place since January 2004 is neared completion after less than one year of talks between Vietnam and the US. The agreement would consist of changes based on a deal clinched by Vietnam and the US about 10 months ago to liberalise their bilateral civil aviation relations through an Open Skies accord for all-cargo services.

The agreement is expected to expand the already strong trade and tourism links between the US and Vietnam, as well as provide benefits to American and Vietnamese cargo carriers and to shippers. The new air transport agreement would almost remain unchanged in terms of passenger services. For example, Vietnam still limits granting the fifth freedom or approval for American airlines to let their guests disembark or board their flights at stopover destinations in the northeast of Asia.

Asia - China and Thailand to open air and sea routes

Source: Procurement Online, 17 August 2009

China and Thailand will be opening direct air and sea routes to boost inter-trade relationships. The main aim is to lower logistics costs and expand co-operation in trade and investment within the two nations. Both countries had agreed to open a direct flight between Thailand and Nanning city, the capital of Guangxi, on top of a Thai Airways International flight between Thailand and Guilin, a tourist city in Guangxi.

They have also agreed to promote road transport, especially on the R9 Highway linking Mukdahan province, Laos, Vietnam and Southern China, and the R12 Highway linking Nakhon Phanom, Laos, Vietnam and Southern China. China is ready to facilitate transport of Thai farm exports such as fruits and rice on the two highways. In addition, both countries will push for a sea route between Thailand and Guangxi to reduce logistics costs and shorten the route.

Singapore - Role as transhipment hub boosted with new centre for perishables

Source: Business Times Singapore, 19 August 2009

Singapore Airport Terminal Services (SATS) has unveiled plans for a S$12 million (US$8.3 million) on-airport facility, the Coolport @ Changi centre, to handle perishable cargo such as live seafood, pharmaceuticals, flowers and fresh produce. The centre, which will start operating in the first quarter of 2010, will comprise three multi-tier zones with temperatures ranging from -28 deg C to 18 deg C.

Despite the global air cargo traffic having taken a hit in the past nine months due to the economic downturn, perishable air cargo has held up because of factors such as greater market awareness of food safety and stronger demand for fresh produce. SATS is already handling 180,000 tons of perishable cargo a year through Changi Airport and this could double over the next three to five years. Coolport will also strengthen Singapore's role as a transhipment hub.

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