Ticon Logistics moves its focus away from east to north
Last year's devastating flood crisis has prompted Ticon Logistics Park to change is expansion strategy and focus more on the East instead of the North, especially as their customers' vision is moving away from risky areas like Ayutthaya. It has already
Ticon Logistics Park, Thailand’s largest provider of serviced factories for rent, had previously purchased more than 1,000 rai in Ayutthaya and Rayong. Now, however, it has decided to suspend its expansion plans in these two areas and focus on the East instead.
The company plans to set up businesses in four locations in the East, namely Laem Chabang, the Eastern Seaboard, the Hemaraj Industrial Estate and Map Ta Phut, occupying a total of 400 rai. It has put its plans for Ayutthaya, including the 600 rai it has bought in Wang Noi, on the back burner until the government announces its flood-prevention plans.
“Manufacturers and investors in industrial estates in Ayutthaya and nearby areas are still in panic after last year. They are queuing up to set up new plants in the East, where they will face other problems such as water and labour shortage,” Patan Somburanasin, general manager Ticon Logistics Park, said. However, he added, many people will return to Ayutthaya once they are convinced about the safety.
Patan explained that the company was expanding to the East in order to serve new investors in the automotive industry, electronics, import-export companies as well as new businesses that have been granted investment privileges from the Board of Investment,
So far, the company has been managing warehouses in 13 locations both in Bangkok and its outskirts, offering a wider range of space, from 20 to 450 rai, to serve different needs.
Over the past eight years, the company decided to take advantage of the opportunities the warehouse business offered as the manufacturing and modern trade sectors started growing. It realised the need for well-designed warehouses equipped with advanced technology and located close to a highway in order to not just facilitate easy transportation, but also cut down on operating costs.
Patan noted that the company was also looking into expanding in the Northeast where farmers have more disposable income, which is attracting operators of convenience stores and modern trade to invest.
In addition, the company is preparing for the launch of the Asean Economic Community in 2015 and looking into entering new markets in Laos, Myanmar and Cambodia. Ticon’s expansion plans are also focusing on the regional high-speed train line and seaports.
“Both AEC and the high-speed train project will encourage business thanks to seamless trade in terms of tariff elimination and faster transportation,” Patan said.
Ticon reported total revenues of Bt1.23 billion, up by Bt177 million from last year. Of this, big companies contributed 80 per cent and small and medium-enterprises the rest.
