Optimal Route in International Transportation of Thailand – Guangxi (China)

Abstract

Objective - This study examines the selection of international transportation routes from Thailand to Guangxi Zhuang Autonomous Region (Guangxi), People's Republic of China. Guangxi has been designated a significant role as the gateway to ASEAN and has several land borders and seaports connecting to countries in ASEAN. Methodology/Technique - In this work, we studied 6 connecting routes, 3 of which are road routes, namely routes R8, R9, and R12 and 3 other multimodal (road-sea) routes operating from/to Laemchabang port and Nanning of Guangxi, route through Haiphong port of Vietnam, route through Qinzhou port of China, and route through Guangzhou port of China. We analysed the data using the Cost/Time Distance Model, in combination with surveys and in-depth interviews, to investigate the limitations and benefits of each route. Findings - Base on costs in 2017, we found that sea routes have much lower costs than the land routes in general; the lowest cost is route through Qinzhou port. On the other hand, the time used in transportation is much shorter for the land routes; the shortest route is the R12 route. Furthermore, in terms of limitations and benefits, we found that the Qinzhou route has many limitations such as long custom processes for fruit and agricultural products and no backhaul cargo. Meanwhile, the limitations for route R8 include crossing Mekong river on truck ferries and the presence of very steep mountain roads in the Lao People's Democratic Republic. Route R12 winds down the mountain both in Vietnam and Laos, whereas route R9 is advantageous; most of that route has a flat terrain and is operated under the Cross-Border Transport Agreement (CBTA). The route through Haiphong port is also advantageous with a direct highway from Haiphong to Hanoi of Vietnam. In conclusion, it is suggested that road transportation is more efficient than sea transportation. Novelty - Further consideration among road routes and, with emphasis on costs and time, the best route is then route R12. However, if one is concerned with risk of damage to products, then route R9 is the best. The optimal route from Thailand to Guangxi depends on the conditions and decision criteria of the stakeholders. Type of Paper - Empirical. Keywords: International Transportation; Multimodal Transportation; Cost/time Distance Model; Guangxi (China); Road Transportation; Sea Transportation. JEL Classification: F02, F10, F19.