In preparation for increased demand for logistics space in Thailand, Knight Frank (Chartered) Thailand recently sold 30 rai factory to Chinese integrated logistics provider Sinotrans, whose new warehouses will have a total capacity of 12,600 sqm when it becomes operational in March 2013.
Marcus Burtenshaw, Director of Commercial Agency for Knight Frank Chartered (Thailand), said:” Sinotrans has joined the ranks of the few foreign third party logistics service providers who have applied to the Board of Investment for promotion privileges that allows them to purchase the freehold interest in land to set up a new International Distribution Center, even though the parcel is located outside of a logistics park or industrial estate.”
Burtenshaw added that in the run-up to the formation of the AEC in 2015, his company expects to see demand for logistics space accelerate, especially in strategic locations such as Samut Prakarn, the Eastern Seaboard, and despite recent flooding in areas such as Wang noi.
The completion of the new warehouse at Bangna-Trad Km 19 will mean an almost doubling of Sinotrans workforce, demonstrating the importance of this area for the integrated logistics industry.
Pornthep Kraisakdawat, Managing Director of Tip Holding, the project’s developer, said: “Located on Lieb Klong Suvarnabhumi Road, this project is in a newly developed area which benefits from a direct flyover from Bangna-Trad Km. 19, making it an ideal location for factories and distribution centers. Moreover, the area is quite safe from floods since the irrigation canal along this road is equipped with four concrete volute pumps and a large flume to push water out to the Gulf of Thailand.”
The suggestion that Thailand could become ASEAN’s regional logistics hub is becoming a very realistic prospect, as Jianchao Yan, General Manager of Sinotrans Thai Logistics explained: “We chose Thailand as the location for this new IDC because the country has a unique advantage in its geographical location, as it is contiguous with countries such as Laos, Cambodia, Malaysia and Myanmar, and can provide easy accessibility to all the major ports in the vicinity including Japan, China and India. The formation of AEC’s unified production base in 2015 will enhance the integration and competitiveness of ASEAN, which represents an excellent opportunity for the logistics service industry in Thailand due to the country’s booming industrial activities and excellent geographical location.”
He added: “We expect that the combination of policies enacted by the Royal Thai Government such as the formation of Thailand’s Logistics Development Strategy, and the establishment of the National Logistics Committee with Thailand’s geographic advantages will lead to enhancement of the country’s competitiveness, both in terms of efficiency in total logistics cost and economic value-added creation in the logistics service business. Knight Frank helped us to find this great location for our new IDC, which is within reach of Suvarnabhumi Airport and the estates of the Eastern industrial zone, allowing us to extend our service offering to even more customers helping us move towards
Pictured from left to right: Jarunat Sachapongdeth – Knight Frank, Nivat Eno – Knight Frank, Pornthep Kraisakdawat – Managing Director, Tip Holding, Jianchao Yan – General Manager, Sinotrans Limited, and Marcus Burtenshaw – Director, Knight Frank.
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