New Delhi, May 2 (UNI) The ASEAN third party logistics (3PL) market is expected to generate revenues of 14.84 billion dollars this year and estimates set to reach 27.85 billion dollars in 2012, according to a recent study by Frost&Sullivan consulting company.
The ASEAN logistics market is expanding immensely due to the growth of consumer markets, liberalisation of trade and low-cost offerings of the region, it says.
''The lifting of trade barriers in the region will help 3PL service providers offer more comprehensive and integrated services as well as encourage multinational companies to increase investment in the region.'' The demand for 3PL in ASEAN also looks set to increase as companies cut costs and focus on core competencies.
Among the top industry challenges facing the ASEAN 3PL market include inadequate infrastructure, lack of skilled manpower and technology, surging oil prices and a highly diversified market.
The region is not only highly diversified in terms of geography, culture and economy but custom regulations also vary among the countries which creates complications in the function of custom brokerage for service providers.
''The efficiency of services provided by 3PL providers is dependent on the infrastructure such as roads, communications, ports and airports,'' the study said.
''A well-established, integrated transport system would help promote ASEAN as a single market and allow free movement of goods, services, capital, and labour which could boost the logistics industry.'' Communication is another infrastructure component that needs improvement in the less-developed nations in southeast Asia for the 3PL industry to flourish.
Frost&Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. Its industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities.
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