Eastern Seaboard Report July 2014 – Prepared by Mark Bowling, Chairman ESB
The National Council for Peace and Order (NCPO) has approved two high-speed train projects at a total cost of 741.4 billion baht. The two routes approved are intended to serve as a transport link between Thailand and Southern China. Permanent secretary for transport Soithip Traisuth said the trains would be operated on the new routes, between Nong Khai and Map Ta Phut and between Chaing Khong and Ban Phach. A study would be carried out to explore ways to bring the construction cost of the dual-track rail system from about 500-600 million baht per km to a range of 350-400 million baht per km, she said. The high-speed train dual track standards will be maintained even though the maximum speed of the trains will have to be lowered from 200km/ph to 160km/ph. This is to allow a possible shift to a higher speed train system at a later date after more investment in the future,” said Ms Soithip after meeting the military about the country’s infrastructure development scheme. The Nong Khai-Map Ta Phut route will be 737km in length and cost 392.5 billion baht while the Chiang Khong-Ban Phachi route will be 655km long and cost 348.8 billion baht. Japanese car maker Toyota has cut its local sales forecast to only 330,000 vehicles this year from 400,000 projected earlier even though it admits Thailand’s political situation has become more stable. For the overall market, Toyota also cut its forecast for domestic car sales this year to only 920,000 vehicles, down from 1.15 million projected earlier. It would be the first year Thailand’s domestic automotive sales fall below 1 million vehicles after selling 1.33 million last year and 1.43 million in 2012, driven by the government's first-time carbuyer scheme. PTT is considering to organise a Bt10 billion fund-raising for establishing an endowment fund to support long-term operations of the Rayong Advanced Institute of Science and Technology, Thailand's first S&T research-intensive university designed to leapfrog the Kingdom into a new technological frontier. Modelled on the Korea Advanced Institute of th
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Science and Technology (KAIST), Dr. Pailin Chuchottaworn, president and chief executive of the energy conglomerate, said RAIST, scheduled to be formally inaugurated by Her Royal Highness Princess Maha Chakri Sirindhorn next July, would also fulfil a vision to turn Thailand's Eastern Seaboard area to become a "Silicon Valley" of the Kingdom. The Thailand Convention and Exhibition Bureau has announced a strategic plan to turn Pattaya into an international meetings, incentives, conferences and exhibitions destination. It aims to do that through the 1st Domestic MICE Mart in Pattaya - an event that was held at Pattaya Exhibition and Convention Hall yesterday as a domestic MICE business promotion platform for local operators and corporate buyers. Recently, Pattaya hosted major national and international MICE events including ADFEST 2014, the IPSC General Assembly and International Range Officer Seminar and the Asia Petrochemical Industry Conference 2014. The private sector plans to ask the junta to lift martial law in key destinations in order to lure international tourists back to the Kingdom. Pornthip Hirunkate, vice president of the Tourism Council of Thailand, said the private sector would ask the military rulers to lift martial law in tourist destinations such as Pattaya, Hua Hin, Cha-am, Samui and Phuket. Other areas can follow later. She said tourism had suffered since the coup in late May. Many tourists are waiting to see how the situation develops, and they may eventually go to other countries instead. Jesters Care for Kids Charity Drive 2014 - Please remember our events are coming up fast: Children’s Fair, Sunday, September 7th, at Regent’s International School Pattaya and Gala Party Night, Saturday, September 20th at Amari Ocean Pattaya. Contact Deborah Philbrook for further details and tickets: vicechairperson@care4kids.info Following news reproduced with kind permission SATCC
Business owners on Koh Samet island are suing a state-owned petroleum enterprise for the oil spill that polluted the resort island's beaches last year. More than 50,000 litres of crude oil leaked from pipeline operated by PTT Global Chemical in July 2013 and blackened several beaches on Koh Samet island, prompting many tourists to leave the area. Others cancelled their trips to the island, resulting in a sharp drop in revenue for many businesses. Pitsanu Khemaphan, president of the Restaurant and Hotel Association on Koh Samet, arrived at Rayong Provincial Court with his lawyer today to file a lawsuit against PTT Global Chemical for the incident, demanding 300 million baht in compensation. The suit was co-filed by owners of Nimmanoradee Resort, Samet Cabana World Resort, and Heaven Resort, who say their businesses were severely affected by the oil spill. The case has been accepted by court officials for further procedure. Hemaraj Land and Development Plc (HEMRAJ), a SET-listed industrial estate and property developer, says it sold and leased 297 rai in the first half of this year, down sharply from 1,190 rai in the same period of 2013, but insists that prospects are improving. There were 20 contracts signed over the period, with 13 new customers and seven expansions by existing ones. Of the total contracts, half were with Japanese companies and 25% in the automotive industry. Firsthalf sales and rentals accounted for only 18.6% of the full-year projection of 1,600 rai. However, president and chief executive David Nardone said the figure was a reasonable start for 2014, considering the political turmoil and lack of a main board on the Board of Investment (BoI) earlier this year. th
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Under an NCPO order, the 76th in the NCPO order series since the military took power on May 22, a new committee was set up to oversee and streamline efforts to tackle environmental problems that have plagued the Map Ta Phut Industrial Estate over the last few years. More than 20 people were rushed to hospitals in Si Racha district of Chon Buri province on Thursday after falling ill when they inhaled gas from a leak at Laem Chabang port. The leak reportedly came from an imported container at the B3 terminal. German luxury car and motorcycle manufacturer BMW has added a second bike to its motorcycle production line in Rayong. BMW Group Manufacturing Thailand Rayong will commence production of the BMW F 800 GS, which joins the BMW F 800 R as the second motorcycle assembled in the country. The BMW facility in Rayong is the only BMW production site globally to assemble vehicles for all three BMW brands: BMW, Mini, and BMW Motorrad. The Board of Investment has given the green light to 15 projects, including one for eco-cars, totalling Bt51.53 billion. BOI secretary-general Udom Wongviwatchai said the board, chaired by junta chief General Prayuth Chan-ocha, yesterday approved investment promotion privileges for 15 projects including AutoAlliance (Thailand)'s Bt9.73-billion plan for production of ecocars at Eastern Seaboard Industrial Estate, Rayong. AAT's is the first-eco car project promoted by the BOI. According to its plan, local content worth more than Bt10 billion per year will be utilised with a development and technology transfer plan for Thai makers of auto parts and moulds. Top SPP's Bt12.5-billion electricity and steam project with capacity of 246.5 megawatt-hours in Chon Buri and Amata B Grimm Power (Rayong) 5's Bt5.6-billion electricity and steam project with capacity of 142MWh in Rayong have also been approved. Other projects receiving investment promotion privileges include Chaiyaphum Wind Farm's Bt6.06-billion wind-farm project, CP Ram's Bt1.45-billion bakery project, Asahi Kasei Sponbond (Thailand)'s Bt1.76billion non-woven fabric project, and Thai Beverage Energy's Bt798-million biofuel and steam power project. ZF Friedrichshafen - commonly known as ZF Group - is looking to expand its footprint in AsiaPacific due to the growth of the region's automotive-parts industry, and sees Thailand as an important strategic location for its expansion in the commercial-vehicle and services segments. The Germany-based ZF is a worldwide automotive supplier for driveline and chassis technology complete with after-sales service, which in total generated revenue of 16.8 billion euro (Bt735 billion) last year, with income of 3.18 billion euro in Asia-Pacific. Capital expenditure amounted to 123 million euro. The company is looking to expand its overall revenue to 20 billion euros next year, and to 40 billion euros by 2025. It made a profit of 756 billion euros last year and has a presence in 11 Asia-Pacific countries, including component supplier ZF Limited in Bangkok and suspension-assembly plant ZF Lemforder in Rayong. To meet its growth target, the group has set aside 1 billion euros for investment in the coming years. Bangkok Dusit Medical Services, one of the largest hospital networks in Southeast Asia, plans to increase its portfolio from 35 to 50 hospitals by the end of 2015. Chatree Duangnet, BDMS vice president and chief operating officer, said the group would open seven multi-brand hospitals in Thailand and one in Cambodia this year. The new Thailand hospitals will be located at Chinatown in Bangkok, Khon Kaen, Phuket, Rayong, Pattaya, Rangsit, and Nakhon Pathom. The Thailand Convention and Exhibition Bureau has announced a strategic plan to turn Pattaya into an international meetings, incentives, conferences and exhibitions destination. It aims to do that through the 1st Domestic MICE Mart in Pattaya - an event that was held at Pattaya th
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Exhibition and Convention Hall yesterday as a domestic MICE business promotion platform for local operators and corporate buyers.It was held in conjunction with the introduction of the International Congress and Convention Association's hybrid meetings, which the TCEB believes will help drive Pattaya as a world-class MICE destination of the East. Sansiri plans to launch 13 projects worth Bt23.6 billion this second half of the year to boost presales to Bt30 billion this whole year after logging only Bt4 billion in the first half. Eight of the 13 new projects will be condominiums and the other five will be low-rises - detached homes and townhouses. One condo project will be in Chon Buri's Sri Racha district and one townhouse project in Phitsanulok. Erawan Group will open an extension of Holiday Inn Pattaya in early August and three HOP INNs in 3Q14. In 4Q14, it plans to open Mercure Pattaya. BURITARA DEVELOPMENT CO has set aside an investment budget of Bt2 billion to develop condominium projects in tourist destinations in Thailand, Myanmar and Laos this year and next. Half of that will be spent this year to develop three projects in Bang Saen and Pattaya, and the rest in 2015 to develop condo projects in Chiang Mai, Phuket, Myanmar and Laos. Onyx Hospitality Group, one of the biggest Thai hotel-management firms, plans to raise its presence among global players by operating 15 more hotels domestically and overseas over the next three years. According to its three-year plan (2014-2016), the group is scheduled to operate 15 more hotels: six Amari, three Shama, four OZO, and two in The Mosaic Collection (TMC). The group also plans to increase its total property portfolio to 81 by 2018, from 37 currently. This year, in Thailand alone, Onyx is set to take over operation of OZO Pattaya. Next year, it will operate Amari Residences Jomtien in Pattaya, Pattaya Bay Resort, and Nova Residence Pattaya. Onyx Group currently operates 37 hotels with a total of 5,990 rooms in Thailand and four other countries, namely Sri Lanka, the United Arab Emirates, Qatar, and China, including Hong Kong. Onyx owns some of these properties, and manages some that are owned by others. Amari Phuket is scheduled for renovation and additional rooms by the end of 2016. Amari Samui will be closed for a year for a major renovation. Refurbishment of Amari Orchid in Pattaya is to be complete next year. THE THAI unit of Marks & Spencer, a leading UK-based retailer of clothing, food and home products, yesterday launched its first trial standalone food concession at CentralWorld Plaza in Bangkok. Marks & Spencer has 13 stores in Thailand at the moment. They plan to open their first provincial outlet in Pattaya in October.
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