Logistics firm builds Asean network, targets 20% sales jump

Triple i Logistics Group, a fully integrated and non-asset-based logistics firm, has been building up its Asean sales network and increasing its service offerings with the aim to drive its sales up 20 per cent this year.

Chief executive officer Tipp Dalal said yesterday that the company would continue its aggressive strategy, focusing on its core air/sea freight and logistics businesses and overseas expansion through its general sales agent network and logistics services for chemical and dangerous products.

Its main markets will remain the Asean Economic Community (AEC) and Thailand's major trade partners such as Japan, China and South Korea.

This year the company will emphasise providing shipments between Thailand and AEC members.

"We're preparing to offer more services for large machinery cargo, which will have specific skills and special equipment different from general cargo, in a bid to serve higher demand for investment expansion," Tipp said.

Over the past few years, the company has expanded its network by winning general sales agent awards for air freight from three airlines - Thai AirAsia, Lan Cargo and Hainan Airlines - covering 12 countries in the region.

"This year, we will expand routes and expect to be appointed as a general sales agent by three to five more airlines to provide air-freight services on main routes in the region and emerging markets in Latin America and India," he said.

For the logistics services and related businesses, the company plans to increase its warehouse capacity by installing a distribution system with advanced technology. It will add 5,000-10,000 square metres of storage for chemical and dangerous products and open a second yard next month on 12 rai (about 2 hectares) in Chon Buri's Laem Chabang district capable of carrying 8,000 containers. The first container yard is on Bang Na-Trat Road.

"Hazchem Logistics, a logistics subsidiary for chemical and dangerous products of Triple i Logistics Group, will form a joint venture with a Singaporean firm to provide one-stop services for such products in the region," he said.

The company sees rising demand for shipments to and from Burma. After opening its first representative office there last year, it plans to open another one this year.

Viraj Nobnomtham, chief financial officer of Triple i Logistics Group, said the company's sales rose 21 per cent to Bt1.83 billion last year, breaking through the target of Bt1.8 billion.

Its sea-freight business last year grew by 16 per cent to Bt623 million, air freight by 20 per cent to Bt1 billion and logistics and related services by 46 per cent to Bt203 million.

The sales target this year is Bt2.2 billion, up 20 per cent from last year.

The country's exports last year surged 21 per cent, thanks to higher product prices. But in terms of volume, sea freight last year was up only 5 per cent while air freight was down 1 per cent, resulting in demand for freight falling behind supply.

Rates for both air and sea freight last year slumped by 25-30 per cent, but the company has witnessed an improvement in the first two months of this year, signalling a freight-rate recovery.