Laem Chabang upgrade aims to capture global supply-chain shift

Thailand targets supply-chain shift

Thailand is pushing to modernise Laem Chabang Port into a world-class logistics gateway as global companies shift supply chains, diversify suppliers and look for more resilient trade routes, with the Transport Ministry moving to simplify transshipment rules, tackle congestion and speed up port expansion.

The move comes as DP World’s Global Trade Observatory Annual Outlook Report 2026, released by the World Economic Forum, shows that global businesses remain broadly optimistic about trade growth despite policy uncertainty, geopolitical tensions and transport-route disruptions.

The report, based on a survey of more than 3,500 senior supply-chain and logistics executives worldwide, found that 54% expect trade growth this year to be faster than last year, while 40% expect it to remain stable. At the same time, 53% expect high or very high policy uncertainty in 2026.

Supplier diversification drives new trade strategy

The DP World report found that supplier diversification is the top strategic shift planned by companies in 2026, selected by 51% of executives.

Executives said they were diversifying supply chains to enter new markets, adopt new enabling technologies and increase agility and resilience.

The report also found that the top three growth drivers for companies over the next one to three years are new markets and consumers, cited by 46%; artificial intelligence adoption, cited by 43%; and improvements in transport infrastructure and capacity, cited by 42%.

Laem Chabang positioned as Thailand’s main gateway

Deputy Transport Minister Sapphet Boonyamanee said Laem Chabang Port is Thailand’s main trade gateway and the most important part of the country’s logistics system.

He made the remarks after chairing talks with the Cargo and Container Terminal Operators Association, or TICTA, to hear private-sector proposals and set development plans for the port.

Sapphet said cooperation between the government and private sector is intended to help Laem Chabang grow sustainably and reach world-class port standards.

Port charges set for review

The meeting considered a proposal by the Port Authority of Thailand to adjust Laem Chabang port charges by an average of 16% to 29%, depending on container type and size.

The proposed increases cover container loading and unloading charges, port-use charges, container handling charges and container storage charges.

Officials said the revised rates are intended to reflect current operating costs, while remaining within the ceiling approved by a Cabinet resolution in 1991.

Transshipment rules to be simplified

The Transport Ministry is also moving to address the decline in transshipment cargo at Laem Chabang.

The meeting was told that transshipment cargo fell from 1.0% of total volume in 2019 to only 0.7% in 2025, even though total container volume grew by more than 25%.

The main causes were legal restrictions and complex permit procedures. The Port Authority of Thailand is seeking amendments to 17 related laws, with six key laws being prioritised in the first phase.

The planned reform would shift the process from a permission-based system to a notification-based system to reduce duplication. The proposal is expected to be submitted to the Cabinet by September 2026.

Port expansion nearly 69% complete

Acting Port Authority of Thailand director Rattakorn Khieophisan said the Laem Chabang Port Phase 3 development project was 68.89% complete overall.

Marine construction under Contract 1 was 95.57% complete, while building and utilities work under Contract 2 was 19.82% complete.

Railway systems and machinery procurement and installation under Contracts 3 and 4 are still in the procurement process, with construction expected to begin in late 2027.

The merger of the B-side terminals, covering B1-B2 and B3-B4-B5, is expected to enter the private-sector selection process in 2027, with contracts to be signed with a new private operator in 2028.

Congestion and long-stay containers targeted

Sapphet said more than 22,000 trucks enter Laem Chabang Port each day during peak periods.

He has instructed the Port Authority of Thailand to manage a buffer zone of more than 127 rai as a truck holding area before vehicles enter the terminals, reducing queues on main roads.

Terminal operators have also been told to maintain a vehicle-flow standard of at least 50 trucks per hour through sub-gates and to use the SRTO area to handle outbound containers in order to ease congestion in private yards.

The port also plans to address 1,248 long-stay containers by developing an additional five rai of storage space with a budget of 26 million baht. The project is expected to handle up to 1,000 TEUs of long-stay containers per year and be completed in fiscal year 2027.

Smart Port push to boost competitiveness

A traffic-management working group will integrate officials, port operators, the Customs Department, the Department of Highways, local authorities and police around the clock.

Technology will also be used to improve port traffic management, including truck queue booking and Smart Port systems.

The Transport Ministry said it will seriously consider private-sector proposals and coordinate with relevant agencies to deliver concrete results.

The goal is to improve service efficiency, raise safety standards, strengthen competitiveness, build investor confidence and support Thailand’s ambition to become a sustainable regional transport and logistics hub.