Eastern Seaboard Report July-August 2017 – Prepared by Mark Bowling, Chairman BCCT Eastern Seaboard •
Kerry Express Thailand expects its parcel delivery business to turn a profit for the first time in 2018 after 13 years of losses since its inception, says executive director Alex Ng. The company may break even by 2018, Mr Ng said, but the express courier can put profitability on the back burner thanks to its deep cash reserves and investment from Kerry Logistics Network (its Hong Kong-based parent company). The company will inject an additional 1 billion baht in 2018 in order to develop its infrastructure and human resources. Mr Ng said most of this money would be coming from Kerry Logistics Network, and Kerry Express's own cash reserves. The Eastern Economic Corridor (EEC) may represent an important component of Kerry Express's top-line growth moving forward. "We are different from manufacturing companies, we don't do yearly investment plans and then stick to them. We are ready to make investment decisions day-to-day in order to capture business opportunities, Mr Ng said. "If our partners choose to locate themselves in the EEC, I can assure you we will be there." Kerry Express Thailand has more than 400 offices near the EEC, which it can easily scale in very little time, Mr Ng said.
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SET-listed Apex Development Plc plans to spend 6.25 billion baht to develop three hotels and a plaza in Phuket and one hotel in Pattaya. In Pattaya, the developer will spend 1.5 billion baht to renovate Sigma Resort Pattaya, a 15-storey hotel with 246 rooms on 10.5 rai at Jomtien Beach. Apex acquired that resort last year from LP Land and Housing Development Co. The Pattaya hotel will be run by international chain Sheraton. The property will be renamed Four Points by Sheraton Pattaya and have 306 rooms. The renovation will start this year year and end in late 2019. "We are in talks with developers from Beijing and Hong Kong to have a joint venture in a condotel project worth 950 million baht on the same plot as Sigma Resort," Mr Pongphan said. "They will bring us the Chinese buyers. The deal will be finalised by the end of the year."
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New infrastructure projects, the Eastern Economic Corridor (EEC), smart city development in major provinces and senior living trends will help drive the growth prospects for the country's residential development, says Deputy Finance Minister Wisudhi Srisuphan. One of the key drivers will be the EEC, which will draw new investment in residential and commercial property in three provinces: Chon Buri, Rayong and Chachoengsao.
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SET-listed B.Grimm Power Plc, the power-generation arm of the B.Grimm conglomerate, is in talks with several operators on possible mergers and acquisitions (M&A) to gain capacity in the coming years. Executive vice-president and chief financial officer Nopadej Karnasuta said B.Grimm is in talks with five operators, each with power plants in the range of 100-500 megawatts capacity. Most are involved in combined-cycle generation and renewable power in Asean and domestically. President Preeyanart Soontornwata said the company recorded a total revenue of 15.61 billion baht in the first British Chamber of Commerce Thailand, 7th Floor 208 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel: 085 2828 120 Email: mwbowling1970@gmail.com www.bccthai.com
half of this year (January-June), an increase of 15% from the previous year. Additional power generating capacity from new power plants contributed the largest proportion of revenue, which included Amata B.Grimm Power 5 in Amata Nakorn Industrial Estate and B.Grimm Power (WHA) 1 in Hemaraj Industrial Estate. Apart from M&A plants, B.Grimm is also conducting a feasibility study on green field development for another 2,500MW, ranging from fossil fuel to renewable power at home and across ASEAN. •
Koh Chang-based developer Siam Royal View Group plans to develop a mixed-use project worth 4.5 billion baht on a 270-rai plot on Koh Mak and will spend 600 million baht to build a hotel and new condominium on Koh Chang to capitalise on the government's much-touted Eastern Economic Corridor (EEC). Chief executive Roland Steiner said major tourist islands in Trat will benefit from the EEC, the government's flagship initiative, as there will be investment in new infrastructure projects to support the eastern provinces' business and industrial activities. One of them will be the development of Sattahip pier, with a ferry terminal to Koh Chang's ferry pier. U-tapao airport is being upgraded and scheduled for launch by the end of the year. Its capacity in the next decade will equal Suvarnabhumi airport's today, Mr Steiner estimated.
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The latest feasibility study on building a high-speed train to link the three airports of Don Mueang, Suvarnabhumi and U-tapao in nearby Rayong province has been completed. The 280-billion-baht project is due to open for bidding later this year or in early 2018. Kanit Sangsubhan, secretary-general of the Eastern Economic Corridor (EEC) Office, said the project will be operated under the publicprivate partnership (PPP) model, with private firms investing 200 billion baht to build the train and other infrastructure. The EEC is a flagship special economic zone designed to gather next-generation industries with digitised modern technologies. The project covers 30,000 rai in the eastern provinces of Rayong, Chonburi and Chachoengsao. These are due to play home to new cities with designated industrial estates, educational institutes, financial districts and new residential areas.
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PATTAYA – Safety, the economy and infrastructure topped the wish list as Pattaya began work on its next three-year development plan. Deputy Mayor Vichien Pongpanit chaired the Aug. 15 meeting on the 2018-2021 development plan with the Office of Strategy and Budget, other city officials and the public. City employees stressed the need to make the city safe for all, boost the economy, make Pattaya a business hub, improve the quality of life for residents and foster good governance. The public was a bit more practical, calling on the city to fix the roads, sewage system, electricity grid and traffic.
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Friday, August 25 was a day many motorists had been waiting for as the long haul Pattaya Klang tunnel finally opened up for public use.The grand opening ceremony to mark the occasion drew several senior public dignitaries including Akom Thermpitttayapaisit from the Ministry of Transportation, Pakaratorn Tienchai, the governor of Chonburi, and Pol. Maj. Gen. Anan Charoenchasri, the mayor of Pattaya. Locals commuters will be more than aware that traffic snarl-ups have become a major issue in Pattaya in recent times and the underground tunnel is seen as a remedy to the many logjams created by vehicles pouring in and out the Pattaya Klang/Sukumvit Road intersection. The 1,900meter long tunnel has four lanes with each being 3.5 meters wide. There is a traffic island separating the lanes, with interior decorations and an ornamental dolphin installed as another landmark for the city. The security and safety system is fully packed, with air vents along the tunnel walls and cameras installed in case of any accidents.
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The Ministry of Tourism and Sports (MOTS) has introduced the rebranding of the eastern region as a venue for sports and tourism to help raise incomes in local areas. Tourism and Sports Minister Kobkarn Wattanavrangkul said the MOTS plans to promote the new concept of tourism in the eastern region to combine sports and tourism, which will contribute to the development of the Eastern Economic Corridor (EEC) project. Sports and tourism activities will be held during 15-19 November 2017, while the Air Race 1 World Cup 2017 will take place sometime this year at U-tapao airport, which will be the first time in Asia. The air race would promote aviation and engineering industry in Thailand and distribute income to the country, she said. She said the eastern seashore cluster receives the most income from tourism-related activities by 43.4 billion baht in the first half of 2017, mostly from Thai tourists’ spendings attending activities and fairs such as food and fruits fairs which helped distribute incomes to farmers and local villagers. •
A new shopping and entertainment area has been announced to start in November and will run along the stretch under the PATTAYA sign on Bali Hai overlooking the marina. Businesses will include many international dining, drinking and retail outlets. Enquiries are now being taken for available space on 093-8373664
British Chamber of Commerce Thailand, 7th Floor 208 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel: 085 2828 120 Email: mwbowling1970@gmail.com www.bccthai.com