time, reliability of service, and safety of service. Cost refers to net logistics cost (e.g.
transportation, tax, logistics service costs, etc.). Time stands for total travel time (e.g.
transportation time, idle time, custom processing time, etc.). Reliability of service
means ability to delivery on-time. Safety of service refers to chance of damaging or
defecting of packages due to transportation.
Access to data in the ASEAN region is quite difficult, particularly in the border
zones (Banomyong, et al., 2002). According to the nature of data sources and limited
assessment, this study measures the data in both quantitative and qualitative ways.
Figure 10: A Network Model of Bangkok-Kunming Logistics Infrastructure
Table 2: Examples of Logistics Performance for Each Channel
Remark * Subjective Assessment
For the continental link, variability of cost is relatively high, particularly in the
part of border and China sections. The cost typically depends on marketing mechanism
and bargaining power (e.g. volume of order and relationships between customer and
providers). For example, the cost of Mekong transportation will be high during the dry
season. Variability of delivery time is tentatively high too, typically logistics service
providers (LSPs) put high contingency time for their customer. Normally variability
locates at custom or any logistics service processes. For the Mekong river, time
variability is very high during the dry season.
Analysis and Results :
According to the study assessment, the characteristics of each alternative
channels are shown in Figure 11. Cost and time are quantified and normalized. For the
reliability and safety of service, Eigenvector method is used to determine the relative
ranking of alternatives (Saaty, 1990). The higher the value, the better the performance.
Figure 11: Logistics Performance Assessment of Each Alternative Channel
If the characteristics of logistics demand are cost-oriented (e.g. bulk
commodities), the Bangkok-R3E-Kunming and Seaway routes give the highest score,
respectively, as shown in Table 3. However, if the characteristics of logistics demand is
time-oriented (e.g. flower and handicraft), the Airway and Bangkok-R3E-Kunming
routes give the highest score, respectively, as shown in Table 4.
Table 3: Examples of Logistics Performance for Each Channel: Cost-Oriented
Table 4: Examples of Logistics Performance for Each Channel: Time-Oriented
Figure 12 and 13 shows examples of stochastic perspectives of the logistics channel analysis. Time and cost variability are included. In terms of cost-oriented, the
Bangkok-R3E-Kunming route gains higher score than the others; however, it cannot
dominate anyone (Figure 13). In terms of time/quality-oriented, the Airway and
Bangkok-R3E-Kunming routes are the first two dominant routes.
Figure 12: Examples of Logistics Performance for Each Channel: Cost-Oriented
Figure 13: Examples of Logistics Performance for Each Channel: Time-Oriented
This study illustrates the basic information of the Bangkok-Kunming routes. A
network model of the logistics system between these two cities is also formulated. A
quantitative methodology, named Analytical Heretical Process (AHP), is used to
evaluate the potential of these routes. Deterministic and stochastic examples are also
presented. According to the assumptions, the results indicate that the Kunming-
Bangkok will play an importance role as a new logistics channel for connecting between
the main economic cities of Thailand and Yunnan, China. Once the Kunming-Bangkok
expressway project is accomplished, This expressway is expected to be a capstone of
logistics breakthrough in this region.