Laem Chabang port revamp faces new contract hurdle

Thailand is preparing to renegotiate parts of the Laem Chabang Port Phase 3 contract after the handover of reclaimed land to the private partner was delayed by almost six months, raising concerns over the timetable for one of the Eastern Economic Corridor’s key infrastructure projects.

The Laem Chabang Port Phase 3 development is a major infrastructure project under the Eastern Economic Corridor (EEC), designed as a green port to strengthen Thailand’s competitiveness against other regional ports. The public-private partnership contract was signed on November 25, 2021, between the Port Authority of Thailand (PAT) and GPC International Terminal Ltd (GPC). GPC is responsible for Terminal F under a 35-year PPP contract, while PAT is responsible for land reclamation.

GPC is a joint venture comprising Gulf Energy Development Plc with a 40% stake, PTT Tank Terminal Co Ltd with 30%, and CHEC Oversea Infrastructure Holding Pte Ltd with 30%.

PAT has been carrying out sea reclamation work to prepare the site for handover to GPC. The handover was originally scheduled for November 2025, but has been delayed due to differing interpretations of reclamation requirements under PAT’s reclamation contract and the bidding terms for the Laem Chabang Phase 3 development.

Deputy Transport Minister Sanphet Boonyamanee told Nation Group that on April 30, 2026, he would give policy direction to PAT on water transport development to support the economy.

On the Laem Chabang Phase 3 contract issue, Sanphet said he had discussed the reclamation problem with the acting PAT director. PAT and the private concessionaire will negotiate the specifications of the sand used in the reclamation work, as well as possible amendments to the joint investment contract. He said any solution must not affect the overall port opening timeline.

The EEC remains a priority for the government, with Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn overseeing both the EEC and transport infrastructure development.

Land handover delayed by almost six months

A PAT source said the authority has still been unable to hand over the F1 and F2 terminal areas to GPC. Under the contract, PAT was due to hand over the reclaimed F1 area in November 2025 so GPC could begin construction of buildings, facilities and port systems ahead of the planned opening of Terminal F in 2028.

The delay stems from differing technical interpretations of the reclamation requirements. PAT must conduct further technical checks because the issue involves two contracts. The contract under which PAT hired the CNNC joint venture for reclamation requires the reclaimed land to be compacted, with settlement over 30 years not exceeding 20 centimetres.

PAT and GPC race to find a solution

The joint investment contract between PAT and GPC, meanwhile, sets requirements for the density and strength of materials such as sand. PAT, GPC and the Eastern Economic Corridor Office (EECO) are therefore reviewing the reclamation work and negotiating the details.

PAT has already held talks with GPC to interpret the contract and seek a joint solution. If necessary, additional strengthening work may be required, possibly through piling.

“The most feasible solution at this stage is additional piling. If this option is chosen, it must be submitted to the PAT board for approval, but no board has yet been appointed,” the source said.

The source said that if PAT, GPC and EECO can agree on additional piling to strengthen the structure, the matter could be handled under the existing contract. If no agreement can be reached, the issue would have to be submitted to the EEC Policy Committee and the Cabinet for approval to amend the joint investment contract. That route would take longer and could have a greater impact on the project schedule.

New PAT board and director needed

PAT is assessing the impact of the current problem while waiting for joint technical consideration with GPC and the appointment of a new PAT board. The Transport Ministry plans to complete the board appointment by May 2026, after which the process to recruit a new PAT director will begin.

The issue could affect the handover of the site to GPC and delay the start of the private construction work. It may also affect the planned 2028 opening of Terminal F1, which could be pushed back to open together with Terminal F2 in 2030.

Construction progress on the first contract, covering sea reclamation and coastal works worth THB21.32 billion, is more than 90% complete. The contractor is the CNNC joint venture, comprising N.T.L. Marine Co Ltd, a subsidiary of Prima Marine Plc, Nathalin Co Ltd and China Harbour Construction Group Co Ltd. The work is scheduled to be handed over to PAT in mid-July.

The second contract, covering road systems, buildings, utilities, coastal berths, service berths and domestic cargo network links to support rail access behind the quay, is worth THB7.298 billion and is more than 11% complete. The contractor is CHEC (Thai) Co Ltd, part of China Harbour Engineering Co Ltd.