Lao People's Democratic Republic
Lao People's Democratic Republic - 3.2 Transporters
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Transporters 

According to the latest statistics from the Ministry of Planning & Investment (Statistical Year Book, 2018), Lao PDR has experienced continuous growth in the domestic trucking industry – from about 44,000 in 2014 to more than 56,335 in 2017. This is in line with the general growth in all registered vehicles – from 1,586,545 in 2014 to a total of 1,979,789 in 2017 – with motorcycles accounting for 76% and trucks only 3%.  

The trucking capacity, however, still remains poor, as the truck fleet is aged and much of the freight is carried on own-account vehicles. Trucking services is entirely provided by private companies, although most have only small fleets. Truck associations have been established in all provinces as trade associations, with some government involvement. Some of the associations provide guidance on rates, but the industry appears to be generally competitive. 

The Lao International Freight Forwarder Association was established by Ministerial Decree in 2001 as a trade association to upgrade professional knowledge and promote investment in the business of freight forwarding and transport. Transport businesses operating for-hire services (as well as vehicle repair, freight forwarding, warehousing, and depots) are required to obtain a business license from provincial departments of public works and transport (DPWTs) or, for companies with foreign ownership and for companies making large investments, from the Ministry of Public Works and Transport (MPWT). 

WFP currently has 16 registered transporters for inter-warehouse (warehouse to warehouse) deliveries and 18 from WFP warehouses to final delivery points (schools, health centres, and villages). 

Transporters typically used larger trucks (20-35 mt) for inter-warehouse deliveries (all on all-weather paved roads). Delivery to final delivery points is mostly subcontracted – with larger trucks picking form the warehouses to districts on secondary roads and smaller trucks (0.5 – 3 tons, tuk-tuks, 3 wheelers, and hand trackers) on smaller and paved tertiary roads to the villages. 

WFP makes separate tenders for the dry season and the rainy seasons. Transport rates are higher for the rainy season and efficiency is poor due to the poor road conditions and obstacles (landslides and broken bridges). To mitigate these constraints, WFP endeavours to make early deliveries (June- before the rainy season) for the second first semester (starting September) and spreads out capacity to engage more transporters (through counter offers) to avoid allocating volumes exceeding transporter’s capacity. 

For more information on transport company contact details, please see the following link: 4.8 Transporter Contact List.

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

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