The greening of Laem Chabang Phase 3
Business and the environment often clash but with climate change and global warming becoming more evident by the day, the two unlikely partners are now being promoted together.
Krungthai Compass Research Center recently completed an analysis of potential business opportunities of the Laem Chabang Phase 3 infrastructure development focusing on the 'green port' environment-friendly concept to draw electric truck and battery production industries worth at least 18 billion baht.
It could also provide opportunities for companies related to the solar cell industry, such as businesses engaged in photovoltaic installation and construction, with an additional income of approximately 600 million baht from 2024 to 2035.
According to deputy government spokesperson Ratchada Thanadirek, the government is seeking to speed up infrastructure projects in the Eastern Economic Corridor (EEC) in line with the plan to demonstrate Thailand's readiness to support future investments in infrastructure.
The infrastructure development of Laem Chabang Phase 3 seeks to align with the Green Port trend which aims to reduce the use of fossil fuels and carbon dioxide emissions in three areas.
- Use of electric trucks and battery-swapping technology: If Laem Chabang Port switches to using electric trucks, about 10% or approximately 1,000 tonnes per day of diesel consumption can be saved, resulting in fuel cost savings of around 800 million baht per year and a reduction of approximately 48,000 tonnes of CO2 emissions per year.
- Use of solar power: The demand for solar power at Laem Chabang Phase 3 is projected to increase by an average of 11.1% CAGR by 2036, with an estimated investment of around 600 million baht. This would lead to a reduction of approximately 4,900 tonnes of CO2 emissions per year.
- Changing cargo transport systems to railways: The development plan for Laem Chabang Phase 3 includes the establishment of a Single Rail Transfer Operator (SRTO) for cargo transport by railway, enabling the port to handle up to 6 million TEUs (twenty-foot equivalent units) per year, reducing transportation costs by around 1.2 billion baht per year and CO2 emissions by approximately 790,000 tonnes, similar to the government's plan for the port's rail transport development.
For the Laem Chabang Phase 3 development project, a public-private sector partnership is being pursued, with a total project value of about 110 billion baht, divided into approximately 50 billion baht invested by the state and about 60 billion baht by the private sector. The private sector includes GPC International Terminal Co Ltd, a joint venture between Gulf Co with 40% of the shares, PTT Tank Terminal Co with 30% and CHEC Oversea Infrastructure also with 30%. The timeline for the project has been delayed by about 2 years due to complications in the process of land reclamation.
The development direction of Laem Chabang Phase 3 is also aiming to be green, using the Rotterdam Model to implement clean energy, renewable energy, and further develop Green Hydrogen production and usage, making Laem Chabang Phase 3 the first 100% Green Port in Thailand. Various technological innovations will also be utilised to manage traffic and waste from port activities.
Investing in large-scale sustainable infrastructure not only means having a Green Port in Thailand but also benefits all other components of the economy, contributing to sustainable and collective growth.
