PAT told to consider service fee cut at Klong Toei Port

The Transport Ministry has ordered the Port Authority of Thailand to consider reducing service fees at Klong Toei Port in a bid to ease shippers' costs and increase customer numbers.

Deputy Transport Minister Kuakul Danchaiwijit yesterday said he had also asked the PAT to devise measures to cut its operating costs and boost revenue during the economic slowdown.

Among the service fees the state authority collects from users are those for lifting containers and leasing port space.

The PAT is expected to suffer a 10-per-cent decline in its net profit this year, due to a drop in import and export traffic.

Acting director-general Sunida Sakulrattana confirmed her state agency was studying the possibility of a service-fee reduction and that it looked possible to offer some kind of incentive package to port-users. Study results are expected next month.

The present fees are in line with the minimum and maximum ceilings approved by the Cabinet. Reducing them further will require Cabinet permission.

The state agency pours 60 per cent of its net profit into state coffers each year. This year it is expected to achieve revenue of Bt9.365 billion, down from Bt9.934 billion last year. Its gross profit is expected to be Bt3.324 billion, down from Bt4.083 billion last year, while this year's net profit should be Bt1.471 billion, a sharp decline from Bt2.29 billion.

The PAT predicts vessel traffic at Klong Toei Port will reach 2,467 shipments with a combined 1.29 million 20-foot equivalent units (TEUs), down from 2,795 shipments with 1.46 million TEUs last year. Laem Chabang Port expects 8,335 shipments with 5.38 million TEUs this year, up from 8,118 shipments with 5.24 million TEUs last year.