Storage Assessment
Although agriculture employs 85% of the national workforce, it only accounts for 15.71% of the GDP (Statistics yearbook 2018, Lao PDR). Rice accounts only 27% of the total crop production and most of farming households grow rice for their own use. Agriculture remains predominantly subsistence and commercial trade in agricultural products remains at a small scale and not well documented. Agricultural marketing in Laos has short marketing channels and is generally small-scale. This has limited the need and growth of the commercial storage sector.
Limited farmer access to marketing opportunities has also constrained the growth of wholesale trading activities. Farmers usually sell their produce directly to retail traders at the farm or at roadsides where some farmers display their goods. While rice mills have large warehouses for paddy and milled rice, there are very limited storage facilities for other agricultural produce.
Trading of fish and other perishable products usually requires cold storage facilities; these are presently very limited number in all areas. Currently, fresh fish and meat products are sold at retail markets within 12-24 hours of slaughter or capture. For products with stable demand such as vegetables, pigs and fresh chickens, some farmers within proximity to urban areas have fixed-price supply agreements with retailers and directly deliver the commodities to retailers on a daily basis.
As a result, the available medium to large scale storage facilities are mainly sate owned plus a growing capacity of medium scale commercial millers and wholesalers concentrated in urban areas.
However, Laos is immediately adjacent to at least 200 million Thais, Chinese and Vietnamese. Industrial development is accelerating rapidly in these countries and so is the demand for food products. This is creating great opportunity for Laos and has led to a significant increase in investment in agro-based initiatives – and thus increasing the demand for supply chain capacity and potential growth of this sector.
Commercial storage is very expensive and not sustainable; private storage is typically less costly (lower establishment and maintenance costs) and there is a possibility of operational efficiencies; cash reserve funds are cheaper than physical storage with the main cost being having the cash tied up in an account; call option contracts and regular trade are the cheapest options, although they involve additional uncertainties and challenges.
For more information on storage company contact details, please see the following link: 4.6 Storage and Milling Companies Contact List.
Commercial Storage
The country has seen a rise in the number of warehouse facilities due to the growing trade and foreign investment from Thailand, China, and Vietnam. The warehouse is classified as a modest to large space suitable for commercial use. The majority of these buildings are small to medium-sized and lack proper structures. Some of them even lack basic amenities like fence or parking spaces. The majority of these structures were initially built by business owners for their personal use. However, over time, they were made available for rent.
Thanaleng Dry Port and Savan Logistics offer warehouse rental services in addition to general warehouse services for cargo. These services are intended to store products awaiting subsequent shipment and delivery to the customer, and offer a capacious warehouse designed to meet the most stringent customer requirements. Its warehouse capacity can accommodate a wide variety of products, including consumer commodities, food items, and oil and gas industry products. The complex also provides document processing, IT systems, and personnel services. The other commercial warehouses are owned by the logistics companies that could provide the per-square-meter-per-day service rate charge.
Location |
Owner |
Available for Rent |
Capacity (MT / m² / m³) |
Type [1] |
Access [2] |
Condition [3] |
---|---|---|---|---|---|---|
Vientiane Capital |
Thanaleng Dry Port Sole Co.,Ltd |
Yes |
6 x 5,000m2 |
Concrete |
flat |
Good condition |
Savannakhet Province |
Savanlogistics Co.,LTD
|
Yes |
22,000m2 |
Concrete |
Flat |
Good condition |
Vientiane Capital |
CS Transport Sole Co., Ltd
|
Yes |
1,170m2 |
Concrete |
Flat |
Good condition |
Vientiane Capital
|
Exim Sole Company Limited
|
Yes |
800m2 |
Pre-fabricated |
Flat |
Good condition |
VientianeCapital |
Oudomsith Sole Co., Ltd
|
Yes |
4000m2 |
Concrete |
Flat |
Good condition |
Storage Used by Humanitarian Organizations
The storage capacity of the humanitarian sector is very limited – with only WFP and Lao Red Cross having facilities outside the capital. The current capacity adequately fulfils the requirements of the humanitarian sector, and occasionally, it might be temporarily utilized the commercial storages. WFP and government partners had established the Mobile Storage Unit Strategy, which allowed for temporary storage during an emergency in the crucial provinces of Laos.
The total warehousing capacity for WFP's Laos Country Office is about 8,250MT; Vientiane (4,200 MT), Oudomxai (2,500 MT), Pakse (1,550 MT) – storing both food and non-food items.
The Vientiane warehouse facility is an in-kind contribution from Ministry of Labour and Social Welfare. The Provincial Educationl departments of Educations in Oudomxai, and Pakse is renting facility
All WFP food commodities received, through local, regional, or international purchases are received at Vientiane warehouse and then despatched to the 2 strategically located provincial warehouses in Pakse (South) and Oudomxai (North)
The Pakse warehouse caters for FDPs in the southern provinces of Saravane, Sekong and Attapue, and Champasack while Oudomxai warehouse despatches to FDPs in Oudomxai, Luangprabang Pongsaly and Luangnamtha provinces. The strategic warehouse in Vientiane will serves for FDPs in the central provinces. Each of these warehouses is managed by staff located in the respective locations.
WFP has Mobile Storage Units available for emergency preparedness located in each warehouse, each with a capacity of 500 MT. The Wikhalls are prepositioned as follows, 2 Units at Oudomxai, 1 Unit at Pakse, and 4 Units at Vientiane
Location |
Organization |
Sharing Possibility
|
Capacity (MT / m² / m³) |
Type [1] |
Access [2] |
Condition [3] |
---|---|---|---|---|---|---|
Oudomxai Province |
WFP |
Yes |
2,500mt |
Concrete |
Flat |
Good |
Vientiane Capital |
WFP |
Yes |
4,200mt |
Concrete |
Flat |
Good |
Champasak Province |
WFP |
Yes
|
1,550mt |
Concrete |
Flat |
Good |
[1] Warehouse Type: Open storage, container, rub-hall, silo, concrete, other, unspecified
[2] Warehouse Access: Raised-siding, flat
[3] Warehouse condition: Appears intact, appears damaged, under construction/repair
Public Sector Storage
The available public sector warehouse is owned by the government's Ministry of Labour and Social Welfare, which is located in both the provincial and district levels of Vientiane.
Location |
Ministry / Agency |
Use Possibility |
Capacity (MT / m² / m³) |
Type [1] |
Access [2] |
Condition [3] |
---|---|---|---|---|---|---|
Oudomxai Province |
Provincial Department of Labour and Social Welfare |
No |
20 m³ |
Temporary |
Flat |
Good |
Luangprabang Province |
Provincial Department of Labour and Social Welfare |
No |
432 m³ |
Concrete |
Flat |
Good |
Xayyabuly Province |
Provincial Department of Labour and Social Welfare |
No |
150 m³ |
Using office's space |
Flat |
Good |
Bolikhamxay Province |
Provincial Department of Labour and Social Welfare |
No |
9,000 m³ |
Concrete |
Flat |
Good |
Savannakhet Province |
Provincial Department of Labour and Social Welfare |
No |
504 m³ |
Temporary |
Flat |
Good |
Sekong Province |
Provincial Department of Labour and Social Welfare |
No |
504 m³ |
Temporary |
Flat |
Good |
Champasack Province |
Provincial Department of Labour and Social Welfare |
No |
605 m³ |
Concrete |
Flat |
Good |
Attapeu Province |
Provincial Department of Labour and Social Welfare |
No |
18,900 m³ |
Concrete |
Flat |
Good |
[1] Warehouse Type: Open storage, container, rub-hall, silo, concrete, other, unspecified
[2] Warehouse Access: Raised-siding, flat
[3] Warehouse condition: Appears intact, appears damaged, under construction/repair
Cold Chain
Cold chain operations in the Lao People's Democratic Republic (PDR) are predominantly in their nascent stages. There is a limited number of cold chain storage facilities accessible in the country. The proper storage of medicine is essential for businesses affiliated with the Ministry of Health. There are still challenges associated with cold chain management for both food and vaccines.
Location |
Organization / Owner |
Type [1] |
Cooling / Power [2] |
Quantity |
Total Capacity (m³) |
Condition |
---|---|---|---|---|---|---|
Vientiane Capital |
Ministry of Heal |
Cold Room Negative, Refrigerator, Freezer, |
Compression |
2 |
N/A |
Good |
[1] Cold Room Positive, Cold Room Negative, Refrigerator, Freezer,
[2] Compression, Absorption, Solar, Other, unspecified