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Strategies for Developing Air Freight Transportation & Logistics System & Logistics Suvarnabhumi CHANCHAI SINGTOROJ Managing Director, Cargo and Mail Commercial CHANCHAI SINGTOROJ Managing Director, Cargo and Mail Commercial 12 Sep 2006

Customers Expectation SpeedSpeed Quality ServicesQuality Services – Keep promise – Safe delivery – Complete delivery – Dependable Valued Added ServicesValued Added Services CommunicationCommunication ConvenienceConvenience

Improve Core Business Offer direct services, reduce ground handling time Improve quality of service to ensure reliability of service regarding time, loss and damage Communication – Upgrade existing Tracking System Convenience - Provide channel for direct contact with THAI

Potential of THAI Cargoto Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

Potential of THAI Cargoto Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

Huge Facilities Area Management Modern & High Capacity Equipments 1. Hardware

Cargo Project Locations INTERNATIONAL CARGO DOMESTIC CARGO MAIL Center

International Cargo Terminal Domestic Cargo Top view

THAI - International Cargo Terminal THAI - International Cargo Terminal - Located in Customs Free Zone (CFZ) - Handling Capacity : 1,226,000 tons/year ( ) 1,226,000 tons/year ( ) 966,000 tons/year ( ) 966,000 tons/year ( )

EXPRESS CARGO AREA CUSTOMER AIRLINES AREA THAI CARGO & ALLIANCES PERISHABLE CARGO AREA Cargo International Terminal Area Management LINE UP AREA

CUSTOMER AIRLINES Equipments Total Area 25,000 Sq m. Equipments - X-ray Machine 3 - Floor Scale 5 - Elevated Transfer Vehicle 2 - Mobile Work STN Dock Leveler 3 - Strong Room 1 - Cool Room 2 - Cold Room 2 - Drive-in Cold room - AS / RS 1 - Loading Deck 2 30,000 Sq m THAI CARGO & ALLIANCES PERISHABLE CARGO AREA 9,000 Sq m. 2 4 TV EXPRESS CARGO 6,000 Sq m. 3 5 TV

Elevated Transfer Vehicle System (ETV) 4 units Speed & Space Saving

Transfer Vehicle System (TV) Speed & Efficiency

Automated Storage & Retrieval System (AS/RS) 4 Units-13 Cranes Speed, Space Saving and Efficiency

Convenience - Safety – Convenience - Safety – Space Utilization Pallet TransporterMobile Workstation No build up cargo on ground

Loading Pit are prepared for build –up / break down pallet for freighter Safety & Quality

Closed Circuit TV - CCTV Total Coverage all cargo terminal areas and Airside To Ensure max security. Security System

X-ray Machine for ULD (Pallet and Container) Security System 100 % Screening Example X-ray Images HI-SCAN kV

Potential of THAI Cargoto Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

 To comply with Customs Free Zone Regulations Customs Reporting Systems - Cargo Customs Reporting Systems - Cargo Movement Controls Systems (CMCS) Movement Controls Systems (CMCS)  Enhance Efficiency  Communication with Customers 2. Software : IT systems

Cargo Movement Control Systems (CMCS) Customs Reporting System for Customs Free Zone – Report Customs on the movement of Cargo in and out THAI Cargo Terminal ( Import / Transit / Export ) through Air Cargo Community System (ACCS)

Barcode Systems Barcode Systems Upgrade Hardware Upgrade Hardware Plan to move to paperless environment Plan to move to paperless environment Enhance Efficiency

Tracking System for Cargo Agents and Customer Airlines at Cargo Agent Reservation (CARE) for THAI Appointed Forwarding Agents Communication with Customers

THAI Cargo Business Plans at SBIA Expand core business and offer value added services as the opportunity arisen from the Cargo Free Zone environment.

New logistics Center for Electronic Parts Perishable Distribution Center Express Center Expand Value Added Businesses to Cover More logistics Functions

1. New logistics Center for Electronic Parts New Value Added Businesses

Distribution Center for Electronic Parts Concept : Involve suppliers in multiple countries at different stage of production process and redistribute the final product or partial product to third countries. New logistics Center for Electronic Parts

New logistics Center for Electronic parts Located at Customs Free Zone area, SBIA Joint Venture Company TG and ITOCHU Services cover : –Distribution Center for electronic parts –Non-Resident Inventory Management –Assembling, Sorting, Repackaging –Transport the intermediate or final products to the third country

2. Perishable Center New Value Added Businesses

Perishable Center Temperature and humidity controlled area Re icing / Re Oxygen for Transit Shipment Perishable One Stop Service Export Center of Thailand Perishable Distribution Center for Perishable items in this region

3. Express Center

Express Center Emergency Traffic Aircraft Spare parts Spare parts for the Oil Company Suppliers who nearly miss its order commitment.

Express Center What TG can provide : – Uplift to final destination via TG own flight or interline arrangement for first available flight. (Mainly intend in market where TG has an extensive network) – Express ground handling services – Efficient and reliable tracking

Expand network and capacity through charters, partners and will operate our own freighters Increase Transportation Capacity

Expand Transportation Business to fulfill customers need in time definite product. from Airport to Airport Door to Door Business Explore Other Business Expansion

Potential of THAI Cargoto Potential of THAI Cargo to Fulfill Customers Expectation 1. Hardware : Facilities & Equipments 2. Software : IT Systems 3. People-ware

Experienced and dedicated Staffs Excellent Services People-ware

Thank you