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Border Truck Transportation from Mae Sot-Myawaddy to Yangon View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by ExcelingTech102 Publishing Company (E-Journals) Int. J Sup. Chain. Mgt Vol. 4, No. 4, December 2015 An Investigation and Evaluation of Cross- Border Truck Transportation from Mae Sot-Myawaddy to Yangon Kesinee Saowadee 1, Suthep Nimsai 2, Pairach Piboonrungroj 3 School of Management, Mae Fah Luang University Chiang Rai, Thailand [email protected] 3 [email protected] Chiang Mai University Chiang Mai, Thailand 2 [email protected] Abstract — This study investigates both direct and instant foods, steels, cosmetic products, and indirect factors that affected to cross-border truck construction products while the products that transportation from Mae Sot-Myawady to Yangon. The Myanmar exported to Thailand were natural gases, study used 200 respondents for collecting data, live animals, woods, wooden products, minerals, employed the SEM model and used Confirmatory metals, and fertilizers [3]. Moreover, cross-border Factor Analysis (CFA) to figure out factors loading. development between Thailand and Myanmar has From the result, it found that the reliability of transportation service provider was the most important played an important role in the Mainland Southeast factor, which effected to cross-border truck Asia. Therefore, cross-border truck transportation transportation; the factor loading was equal to 0.92. operated between Thailand and Myanmar became Even though, traders and transport participants who more crucial and necessary for trading products. used Mae Sot-Myawaddy to Yangon route concerned Similarly, an economic booms and labour shortage other related factors due to instability and minority crisis in Thailand was created the pull conditions conflicts in Myanmar, this study could be a potential that made a rapid growth of border activities in advantageous guideline for forming competitive terms of flowing goods and people, which led to a advantages and strategy development of using cross- development of transportation infrastructure and border truck transportation. transportation facilities. Also, Mae Sot-Myawaddy Keywords — Cross-border, Truck, Transportation, cross-border transportation was practically became factor, Ease-West Economic Corridor, Thailand, a principle element of doing business with Myanmar Myanmar. 1. Introduction In additional, the route from Mae Sot-Myawaddy to Cross-border development has become a trigger of Yangon was a part of East-West Economic substantial economic growth. Myanmar was Corridor, which considered as the most considered as a burgeoning country, which has an advantageous economic corridor [12]. It was only attractive demand and abundant of natural 441 kms from Myawaddy to Yangon and only 15 recourses. The volume of cross-border trade hours by heavy truck. The Border cities, Mae Sot between Thailand and Myanmar was increased and Myawaddy were considered as potential border sharply every year since 2009 [17]. As the result towns of Thailand and Myanmar in many decades. from trade statistic show that cross-border trade Both of border cities shared similarity of cultures, was acquired more than 80% of total trade foods, and living styles. Likewise, most of Thai (241,387 baht million in year 2014) and most of people who lived in border area were able to speak products that Thailand exported to Myanmar were Myanmar language while Myanmar people could diesel and benzene fuels, alcohol beverages, non- speak Thai. alcohol beverages, cloths and threads, palm oils, Mae Sot was the biggest border city known as the ___________________________ ___________________________________ most economic border city, located in the western International Journal of Supply Chain Management part of Thailand, shared the border with Myanmar, IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/) and separated land by Moei River. In the 103 Int. J Sup. Chain. Mgt Vol. 4, No. 4, December 2015 historically, the first settlers of the town were the 2. Literature Reviews Karen (The major tensions ethnic group in Myanmar), from those reasons, it made the town Based on reviewing of the literatures, there were more distinct from other border towns in Thailand many researchers that studied on the advantages of [8]. Even, Myawaddy was a smallest city of transportation, the affecting of transportation, and Myanmar but the city was recognised as an transportation factors. Most of trade and important trading and economic city of Myanmar. transportation facilitation were focused on Myawaddy was located in the south-eastern part of reducing, eliminating, hindering barriers and Myanmar and most of Myawaddy people were circulating transportation flows which helped to Karen. In trading term, the city was considered as stimulate transportation activities [5]. Managing “Sister Cities” with Mae Sot. That was the reason transportation mainly focused on manufacturers, why Myanmar government had settled and distributors, and third-party logistics providers for established Myawaddy Border Trade Zone, which improving efficiency of the whole supply chain [2]. was around 1,164 acres and imitated the city from Moreover, transportation can be define as a group form Muse 105 th Mile Border Trade Zone in Muse- of elements, which includes the interaction of both Ruili borders-located between Myanmar and The demand trading in the area and the preparation of Republic of China. the transportation service provider, which were able to fulfil the demand requirement [2]. In From Mae Sot-Myawaddy to Yangon, the route additional, transportation was not only a cost was a part of Asian Highway 1 Road (AH1). There expenses because it also generated time and place were many foreign countries that noticed and utilities as considered as important elements in intensively invested in facilitating support i.g. trade satisfaction [4]. Japan and Chinese. Moreover, the way from Myawaddy to Yangon connected to the route from At the same time, the selection of the transportation Kyondoe to Mawlanyine where Dawei deep seaport was commonly based on cost and time; the factors project was located. Hence, all of the roads generally depend on the type of industries, construction projects were intensively constructed, purposes, and often look in alternative ways for in order to support the Asian Community. shipping products even in the similar location and Therefore, the road infrastructure projects were destination [11]. Efficiency of the transportation stimulated cross-border truck transportation flows system was developed from the nations. It could be and generated an increasing of trade volume. affected to the economy. Lacking of transportation development limits the extension of the market [1]. However, the level of transportation’s complexity A high quality of transportation system was a major was shaped cross-border activities , which component that generated a potential economy and depended on the impact of management i.g. society. It also generates competitiveness of difference of driving rules, the weight loading production location [16]. capacity of the bridges, The limit bearing capacity of the bridge was only 25 tons while most of Thai The factors that affected to transportation were trucks weight were over, lacking in quality of road influenced by 3 factors; cost, time, and reliability infrastructure and the size of the lane, which wide [7]. And transport operation factors can be only 2.5 meters, traffic in some part of township separated into external and internal factors. The areas that could lead to the lowering the speed of external factors includes basic infrastructure, trade transportation, non-transparent of the toll fee barriers, export control, licenses, law and taxation, collecting, which have more than 15 collecting fee service, economic condition, communication points and controlled by Karen, the a minority system, climate, and culture [15]. group. In the other hand, transportation was also based on The objectives of this study were to investigate a range of other factors, which includes physical cross-border truck transportation factors and apply geography, distribution, transportation networks, the research finding to develop the strategies in the structure of economy and governments’ order to sustain cross-border truck transportation on policies, investment and taxation [13]. Generally, Mae Sot-Myawaddy to Yangon route. when traders made decision for transportation, it based on the perception of service availability [10] 104 Int. J Sup. Chain. Mgt Vol. 4, No. 4, December 2015 and the service level was more important than cost composed by transportation infrastructure and of transportation[9]. facilities. If there was no transportation infrastructure and facilities, the transportation From the literature reviews, the researchers service provider would not be able to operate their developed a conceptual framework of cross-border activities because those components were truck transportation system as it showed in Figure considered as major supplies of service provider. 1. It can be clarified interaction between Also, transportation performance was an indicator transportation system and activity system. The of the service performance of supplier or transportation system consisted of demand and transportation service provider, which includes supply as the major components. In the conceptual cost, time, and reliability. model, the demand was driven by trade demand; depending on the purposes and destination
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