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Title: An Analysis of the Performance of the Express Transportation Organization of Thailand
Authors: Suriyu Muangkhunrong 
Issue Date: 1995
Publisher: University of the Thai Chamber of Commerce
Source: Suriyu Muangkhunrong (1995) An Analysis of the Performance of the Express Transportation Organization of Thailand.
Abstract: The express Transportation Organization of Thailand (E.T.O), a financial self-supported organization, was established as a government enterprise under the Ministry of Transport Communication with the responsibility for providing domestic and international goods and freight transportation service for government units, other state enterprise as well as the private sector and general public. The service fare is regulated by the committee of Central land Transportation, in which operating costs are the major criteria for the decision. In order to achieve the established goals and be competitive, E.T.O. consequently, should take into consideration the efficiency of its service in relation to the operating costs. The study has two major objectives: (1) to compare the per kilometer operation costs of the E.T.O. land transportation with the per kilometer operating costs complied by the Department of Land Transport, and (2) to investigate the E.T.O. operating performance during the years 1988-1992 in comparison to that of the private sector. The findings are as follow:1. Per kilometer cost of Transportation The per kilometer cost of Transportation in the student includes the running costs and office expenses. The finding is that the E.T.O. per kilometer costs are higher than those which are budgeted by the Department of land Transport in the followings aspects: 1.1 Running costs. It is found that the running costs where the variance is significant. The difference depends on the numbers of kilometer freighted per year of the particular transportation work. 1.2 Administrative expenses. The E.T.O. administrative expenses compiled by the Department of Land Transport are underestimated. They were estimated to be only 10 percent of total costs when,in actuality,the expenses are 30 percent of the total costs. It is concluded that, in spite of the low per kilometer running costs in certain types of transportation work, when such expenses are summed with the administrative expenses the E.T.O.'s per kilometer transportation costs for all kinds of work are higher than those compiled by the Department of Land Transport. 2.Performance It is found that the operation of E.T.O.,from its establishment in 1947 through 1992, to a certain extent has been in accordance with the policy set forth by the government concerning basic public utility services in transportation with the fixed transportation prices. The services provided by E.T.O. utilize all modes of transportation services in its domestic and international operation, and thereby reflect positively on its capacity to provide full service to the business community. Private organizations, by contrast, cannot perform nationwide as does E.T.O. as they are lacking in size and capital investment essential for this kind of management network. However, from the standpoint of operating profits which is an essential for the survival of all business in the private sector, it is found that the management of the E.T.O. has not been successful. Even though the E.T.O. is in debt and accumulating significant loss, it does not require direct subsidies from the government. Assistance is needed, however, in the form of some privileges and loan guarantees. At present, the operations of E.T.O. are still considered to be beneficial both the republic and private sectors and hence,deserve further government assistance. Nevertheless, E.T.O. urgently has to solve its current financial crisis and make some alteration of its administrative, management, service nature, and other related internal problems. The E.T.O. should operate as a business enterprise, that is, efforts should be made to reduce redtape, increase work flexibility and widen profitable channels of services while controlling expenses to lower operating costs. With some redesign of its organizational structure to archive strategic objectives and improved tactical management in such area as planning, organizing, staffing, and controlling, it is anticipated that E.T.O. will be able to solve its financial problems and become a more viable organization fully capable of competing with those of the private sector.
Rights: This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
Appears in Collections:GS: Theses / Independent Studies

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