Triple I foresees volatility in logistics industry amid wobbly global economy

Triple I recently released the operational results of each business within the group for the first half of 2012. Maritime transport, including both inbound and outbound traffic, amounted to more than 16,000 TEUs (twenty-foot-equivalent units). The group’s export traffic grew by 20 per cent, higher than the average growth rate of container export transport for the country as a whole, which in the first half of 2012 showed a 1-per-cent decline from the same period in the previous year.
Triple I’s increased transport came from the expansion of maritime shipping to Asean countries and India and included the increased freight of South Korea’s CK Line, which the group represents.
Currently, the group is the representative overseeing cargo in Cambodia for All Nippon Airways (ANA), Turkish Airlines, Israeli Airlines and Jeju Airlines of Korea. Triple I is also the representative looking after cargo in Macau for ANA. Logistics and related services in the first half posted revenue growth of 36 per cent. This growth was mainly due to the increase in storage at the company’s warehouses by customers who were affected by last year’s flood and also an increase in storage of chemicals and hazardous products. The group previously increased its warehouse capacity by more than 7,000 square metres.
Another growing business is the container depot on King Kaew Road. Its capacity is 5,000 containers. In the first half, the group was able to expand to facilitate more new customers. In addition, it opened a new container depot in Laem Chabang in the second quarter of this year, which covers 17 rai (2.7 hectares).
Chief financial officer Viraj Nobnomtham said the operational revenue of Triple I Logistics Group in the first six months of 2012 was Bt1.025 billion, representing 19-per-cent growth from the same period of 2011.
International transport, both maritime and air traffic, grew by 17 per cent. Revenue for maritime transport was Bt340 million, while that for air transport was Bt560 million. Revenue from logistics and related services was Bt125 million, representing a growth rate of 36 per cent, higher than the expected 33 per cent.
“The growth in the past six months resulted from the expansion of business lines and the service sector, including domestic and international markets, especially in Asean. Total revenue for 2012 is still expected to amount to Bt2.2 billion,” Viraj said.
He said a decline in exports in the first half would have an impact on the sea-freight business during the rest of the year, making freight rates volatile, particularly for shipping to and from European countries. However, the sea-freight rate in the Asia market has more potential than others, so the company decided to double freight space to accommodate 600 containers per week, up from 300.
He said the group this year would also focus on its business expansion in transport of chemicals and dangerous products by setting up a joint venture with a partner, Haschem Logistics Management (Singapore), in the city-state. This is aimed at providing a one-stop logistics service for chemicals and dangerous products in the Asean market.
“We expect the group can increase its warehouse service from 7,000sqm to 10,000sqm in the second half of this year,” Viraj said.
Tipp said Thailand’s imports grew by 10 per cent in first half of this year while imports via container shipping grew 14 per cent, driven by machinery and consumer products. THE NATION