In a significant step towards strengthening trade ties with China, Thailand has successfully exported 24 tonnes of frozen shrimp from Songkhla province to China, employing a pioneering combination of truck and railway transport. This innovative logistics approach, which cuts transportation time by an impressive 14 days, marks a new chapter in the Thai fishery industry’s efforts to expand its footprint in one of the world’s largest markets.
The shipment, facilitated through the Mohan railway checkpoint on the China-Laos border, underscores the growing importance of rail connectivity in South East Asia. Bancha Sukkaew, Director-General of Thailand’s Department of Fisheries, hailed the export as a “good example of transportation between Thailand and China,” highlighting how such methods are opening up new markets for Thai frozen fishery products. With China’s voracious appetite for seafood—shrimp being a key commodity—this development could herald a transformative boost for Thailand’s economy, particularly in its southern provinces like Songkhla, a hub for fishery production.
Cold Chain Logistics: A Game-Changer for Quality and Reach
Central to this export success is Thailand’s adoption of cold chain logistics, a system that maintains the quality of perishable goods like shrimp during transit. By ensuring that products remain frozen at optimal temperatures, this technology addresses a critical challenge in exporting seafood over long distances. According to Bancha, the system not only preserves the integrity of the products but also aligns with consumer demand in China for high-quality imports. This is particularly vital as Thai exporters compete with regional players like Vietnam and India, both of whom have established strong presences in the Chinese seafood market. 
The use of railway transport further amplifies these advantages. Unlike traditional sea freight, which can take weeks, rail offers a faster and more reliable alternative, connecting Thailand to multiple cities across China. This efficiency reduces costs for exporters and ensures fresher products reach consumers—a key selling point in a market increasingly focused on quality and sustainability. As Bancha noted, railway transportation is proving to be “an effective way” to penetrate deeper into the Chinese market, potentially unlocking opportunities beyond coastal hubs to inland regions.
Strengthening Ties Through Bilateral Agreements
The export milestone coincides with preparations for a significant diplomatic event: a signing ceremony for a protocol on fishery product inspections, scheduled to take place in China this month. The agreement, between Thailand’s Ministry of Agriculture and Cooperatives and the General Administration of Customs of the People’s Republic of China, aims to streamline inspection processes and enhance trade in fishery products. Bancha expressed optimism that the protocol would further solidify fishery trade relations between the two nations, providing a framework for consistent quality checks and regulatory alignment.
This forthcoming agreement is part of a broader push by the Thai government to elevate its fishery sector on the global stage. The Department of Fisheries has committed to improving manufacturing standards and export potential, ensuring that Thai products meet stringent international benchmarks. This focus is not just about volume but also about value—by enhancing product quality and market access, Thailand aims to position itself as a premium supplier of seafood, particularly to high-demand markets like China.
Economic Implications for Thailand
The fishery sector is a cornerstone of Thailand’s economy, contributing significantly to both employment and export revenue. According to data from the Thai Ministry of Commerce, seafood exports were valued at over £4.5 billion in 2023, with shrimp accounting for a substantial share. China, as one of Thailand’s top trading partners, represents a critical market for growth. The successful implementation of rail transport and cold chain logistics could pave the way for increased export volumes, potentially boosting local economies in fishery-dependent regions like Songkhla.
However, the benefits extend beyond immediate economic gains. Enhanced trade with China through initiatives like the Mohan railway checkpoint aligns with Thailand’s broader participation in regional connectivity projects, such as the Belt and Road Initiative. By leveraging rail infrastructure, Thailand is not only improving its logistics capabilities but also reinforcing its geopolitical ties with China—a relationship that has grown increasingly strategic in recent years. If sustained, this could lead to further investments in infrastructure and trade facilitation, amplifying Thailand’s role as a key player in South East Asian trade networks.
Challenges and Opportunities Ahead
Despite the optimism, challenges remain. The Thai fishery industry has faced scrutiny in the past over sustainability practices and labour conditions, issues that have occasionally strained trade relations with key markets. While the Department of Fisheries has made strides in addressing these concerns—through stricter regulations and international certifications—maintaining consumer trust in China will require ongoing vigilance. Any lapses in quality or ethical standards could undermine the gains made through innovations like rail transport.
Moreover, competition in the Chinese seafood market is fierce. Countries like Vietnam, which shares a land border with China and has well-established export routes, pose a significant challenge. Vietnam’s shrimp exports to China have grown steadily, supported by lower transportation costs and proximity. For Thailand to carve out a larger share, it must continue to differentiate itself through quality, efficiency, and strategic partnerships—elements that the new rail transport system and upcoming protocol aim to address.
There is also the question of scalability. While the export of 24 tonnes of shrimp is a promising start, expanding this model to handle larger volumes will require significant investment in infrastructure, both in Thailand and along cross-border routes. Coordination with Chinese authorities on customs processes and rail scheduling will be crucial to avoid bottlenecks. If successful, however, this could set a precedent for other perishable goods, diversifying Thailand’s export portfolio to China beyond fisheries.
A Broader Vision for Thai Exports
The Department of Fisheries’ commitment to the industry is clear. Beyond this specific export, the department is focused on a multi-pronged strategy that includes supporting entrepreneurs, expanding market access, and promoting Thai fishery products internationally. This aligns with Thailand’s national economic goals, which prioritize export-led growth as a driver of post-pandemic recovery. By targeting high-growth markets like China, Thailand is positioning itself to capitalize on shifting global trade dynamics, particularly as demand for seafood continues to rise in Asia.
The integration of rail transport into Thailand’s export strategy also reflects a forward-thinking approach to logistics. As South East Asia becomes increasingly interconnected through rail networks—thanks to projects like the China-Laos Railway—countries that adapt quickly stand to gain the most. For Thailand, this could mean not only stronger trade ties with China but also enhanced connectivity with neighbouring Laos and beyond, creating a ripple effect of economic opportunities.
Looking Forward
The export of frozen shrimp via rail to China is more than a logistical achievement; it is a symbol of Thailand’s ambition to modernize its trade practices and deepen its economic engagement with one of the world’s largest economies. As the signing of the fishery inspection protocol looms, the coming months will be critical in determining whether this initial success can translate into a sustained partnership.
For now, stakeholders in Thailand’s fishery sector have reason to be optimistic. If the combination of rail transport, cold chain logistics, and bilateral agreements can be scaled effectively, it may well redefine how Thai products reach global markets. In Songkhla and other fishery hubs, this could mean more jobs, higher incomes, and a stronger foothold in international trade—a prospect that underscores the transformative potential of this initiative.
While uncertainties remain—around competition, sustainability, and infrastructure capacity—the direction is clear. Thailand is betting on innovation and collaboration to elevate its fishery industry, and with China as a willing partner, the rewards could be substantial. For a sector that has long been a backbone of the Thai economy, this marks a promising step towards a more connected and prosperous future.
