CP group's Ayutthaya port to help exporters slash transport costs

       Exporters in the North and Northeast will be able to export their goods more easily and at lower cost thanks to CP Trading Group's inauguration of the Kingdom's first river port, linking inland industries through waterways.

       Wholly owned by the company, Ayutthaya Port & ICD (inland container depot) will begin commercial operation next month. The Bt700-Bt800-million investment will have four cranes and other advanced facilities with total loading capacity reaching 450,000 twenty-foot-equivalent containers per year.
       The company's second phase of investment of another Bt700 million will focus on establishing its depot on the 300 rai of land on the opposite site of the port at Nakhon Luang, Ayutthaya. The project will start construction next year.
       The investment is aimed not only at facilitating the company's business transportation but also at creating public services and reducing air pollution. It will directly benefit to inland industries and farm crop exporters by connecting road with marine transportation through Laem Chabang Seaport.
       Prasit Damrongchietanon, chief executive officer of the group, said that export by marine transportation will reduce cost by an average of 10-20 per cent.
       Of the company's total loading capacity, 20-30 per cent is designed for its export and the remainder is set for public service. Ayutthaya Port & ICD's staff has already approached potential clients, including manufacturers in industrial estates not only in Ayutthaya but also nearby provinces.
       It is expected that the loading will reach more than 20,000 containers in the first year.
       "We've planned for our future to create related businesses with bigger scale operations through our consolidation strategy including manufacturers and buying agents," Prasit said, adding that the strategy would also encourage the group entering into the freight-forwarding business as well.
       The river port will draw customers from the North and the Northeast to take their goods by road to Ayutthaya and transfer them to ships there.
       Ships will reach Laem Chabang within 22 hours. Traditional barges take 48-52 hours to reach the seaport.
       Prasit pointed that this port also set up reduce traffic problem of Lat Krabang ICD, which now handle a total of 1.6 million containers per year. In addition, demand for containers to serve the country's imports and exports grows by 600,000-700,000 containers per year.
       The new river port and ICD will allow the company to connect all means of transportation: road, marine and rail freight.
       Roads now carry 88-90 per cent of the Kingdom's goods, and marine shipments only 4-5 per cent. In addition, logistics costs account for 20 per cent of the country's gross domestic product compared with 12 per cent in developed countries.
       Besides exporters and buying agents, the company has already proposed its business plan to major carriers, such as Hanjin, APL, "K" Line, Evergreen, Yang Ming and others.
       "Having the services (river port and ICD) will encourage the government plan to promote Thailand as a regional trade hub and international distribution centre," said Prasit.
       Prasit stressed that the group also looked forward to link transportation networks to the South of China, Burma and Laos.