Published on September 13, 2006 - The new airport is expected to create a host of openings in logistics and related businesses that have previously gone to other Asean cities

The opening of Suvarnabhumi Airport is drawing new business opportunities for logistic and export operators.

Amata Corp is developing its Perfect Town on 30,000 rai in the Eastern region, while the tourism body urged the operator and government to prepare human resources as the King-dom will face Asean Free Trade Agreement deadlines in 2010.

These items and more were on the agenda at “The Offensive Strategy of Suvarnabhumi Airport” seminar, organised by Nation Multimedia Group and Airports of Thailand (AOT), yesterday at the Novotel Suvarnabhumi Hotel.

The seminar attracted more than 600 people from the private sector and various government bodies.

Somhathai Panichewa, Amata’s vice president for business development, said the new airport would help the group expand more businesses.

Amata plans to develop a financial street in its Perfect Town estate, consisting of banks and financial institutions.

Moreover, the group is working with Vibhavadi-Ramkhamhaeng Hospital to build a high-end hospital to serve expatriates working in industrial zones.

“Apart from the hospital, the group will develop an International Medical Course in order to give better services to foreigners,” Somhathai said.

The group also planned to add a hypermart to support residential developments, she said. Another project would be developing a logistics park. This would feature high technology manufacturers.

“In the future, the group aims to have 3,000 factories. Of these, there will be more high-tech factories that need to use airport facilities rather than sea ports,” she said.
Amata is looking for total investment of about Bt40 billion for new projects. Thus it has urged the government to solve major problems that hinder the logistics business, and to enhance customs clearance and transparency.

Somhathai said customs and other problems had caused some major firms, such as the Seagate group, to invest in Malaysia instead. And Vietnam had attracted more high-tech companies by providing investors with more privileges.

Meanwhile, the King Power International Group, which runs the King Power Duty Free shops, has invested in a massive project at the new airport.

With many world-class products and state-of-the-art facilities King Power expects to earn Bt17.2 billion in revenue after one year of operation.

The group will manage all duty-free space and commercial activities at the new airport.
“We strongly believe King Power Suvarnabhumi will attract more than 50 per cent of travellers and reach Bt17.2 billion in its first year of operation,” an executive told the seminar.

Apichart Sankary, president of the Association of Thai Travel Agents (ATTA), said the country was facing tough competition from Singapore, Hong Kong, Vietnam as well as China.

“Despite the claim that we have a new airport that is expected to attract more tourists, it won’t happen with poor services,” Apichart said.

He said if the country wanted to be a centre for tourism, the government should prepared people with skills such a foreign language and able to give quality service.

The government and operators were required to have proven financial management, as the country must meet full free-trade agreement obligations from 2010.

Apichart noted that the new airport should allow transit passengers to travel into town while waiting for connecting flights, and this would bring more tourists into the capital.

Suchart Chantaranaka-racha, president of the Thai Federation on Logistics, said Suvarnabhumi Airport had the potential to become not only the regional hub of cargo but also air passenger services.

The new airport should accommodate about 45 million travellers a year, if facilities function as expected.

“During the first few days of operation, Suvarnabhumi Airport might be hampered by certain problems, but problems are normal. Once they are solved, a smooth operation can be ensured,” Suchart said.

The Department of Land Transport (DLT) director-general Piyapan Champasut said taxis and limousines operating at the Suvarnabhumi Airport would face penalties if travellers were not given fair service.

“Taxi drivers are not allowed to refuse passengers transport, or to ask for a flat rate instead of using the meter,” Piyapan said.

Transport Minister Pongsak Ruktapongpisal said: “Thailand is still the best location to be the regional aviation hub.”

He said Bangkok’s new airport would service up to of 40 million passengers by the end of 2007 – up from 38 million at Don Muang airport.

And the new airport would serve more than 100 million passengers in the future.
Chotisak Asapaviriya, president of AOT, said the new airport could also service low-cost airlines that are now emerging in the region.

The AOT plans to build a budget terminal especially for budget carriers.

Chotisak said Don Muang would become a maintenance centre, and serve charter flights, plus be open for emergency landings, after the new airport opens.

“We are thinking of establishing an aviation college in Bangkok to produce labour for this growing industry,” he said.

The Transport Minister said that any entrepreneur or taxi driver who requested an unfair rate or was found to have been involved in fraudulent service at the new airport would face penalties.

Taxi drivers are required to register with officials in order to operate from the new airport. Any driver caught violating airport regulations would have their operating licences revoked, Pongsak warned. About 2,500 taxis have been registered.

Groups attending the seminar yesterday included Amata Corp, Thailand’s leading industrial estate developer, the Association of Thai Travel Agents (ATTA), duty-free operator King Power International, DHL Express International (Thailand), Thai Airways and related aviation associations.

Suchat Sritama
The Nation