Memo inked to link EEC to China through U-tapao, Zhengzhou airports

[Jonathan Fairfield]

Memo inked to link EEC to China through U-tapao, Zhengzhou airports

By PHUWIT LIMVIPHUWAT
THE NATION

 

 

The U-tapao airport will establish a cargo route with Zhengzhou airport as a gateway to expand shipment of Thai goods to Europe and greater China. 

 

On Thursday the Eastern Economic Corridor (EEC) and the Zhengzhou Airport Economy Zone (ZAEZ) of China signed a memorandum of understanding (MoU) for strategic cooperation between the two economic zones. 

 

“The MOU agreement includes commitments by both parties to establish cargo routes from U-tapao Airport to Zhengzhou Airport, which will act as a gateway to distribute Thai goods to Europe and greater China,” said deputy prime minister Somkid Jatusripitak at the ceremony. 

 

The ZAEZ is set to carry 515,000 tonnes of cargo per year within three years, accounting for 60 per cent of China’s cargo shipments, said Ma Jian, director of the ZAEZ. 

 

Known as the “Aerotropolis of China”, ZAEZ also has business ties, shipping a significant portion of its cargo to Europe as well as acting as a hub for smartphone and e-commerce businesses, he added. 

“If we are able to successfully establish cargo routes between U-tapao Airport and Zhengzhou Airport, the cargo route can act as a gateway for Thai goods to be shipped to Europe and the rest of China,” Somkid said. 

 

The two sides have established a working team to discuss cargo connectivity between the two airports. A timeline for the establishment of the cargo route as well as the development of the cargo industry in U-tapao will be released in three months, according to Kanit Sangsubhan, secretary-general of the EEC Office of Thailand.

 

The MoU also includes agreements on joint investments between the two special economic zones.

 

The ZAEZ enjoys budgetary autonomy from the Chinese government, enabling them to make investments in local businesses in Zhengzhou as well as in the development of the cargo industry at U-tapao Airport, Kanit said. 

 

Kanit will join Somkid in seeking opportunities to attract businesses in Zhengzhou to invest in the EEC and so expand the diversity of businesses to be established in Thailand's flagship regional economic zone. 

 

This represents part of a wider effort by the Thai government to woo foreign investors into the EEC. In October, Somkid will travel to Guangdong and Shenzhen provinces of China to talk to Chinese investors and invite them to invest in the EEC. 

 

Finally, the MoU commits both parties to the exchange of knowledge and know-how in developing the Aerotropolis, as the EEC officials intend to use Zhengzhou as a model to develop to the EEC further, as well as the exchange of expertise on recruiting local talent. 

 

“Like Zhengzhou city, the EEC which spans from Chon Buri to Rayong province covers a similar area of 400 kilometres squared,” Kanit continued. “We will use Zhengzhou’s model of developing the airport city along with encouraging business growth and urban planning through seamless integration to develop the EEC in the upcoming years.

 

“The development of the cargo industry in U-tapao can go hand in hand with other developments of the airport such as maintenance, repair and overhaul (MRO),” he said, revealing that Airbus and THAI have finalised their agreement on those developments and the project is about to enter the Public-Private Partnership Act. 

 

“We are confident that the EEC will make Thailand a key node of connectivity between China’s Belt and Road Initiative (BRI) and the rest of Southeast Asia,” Somkid claimed. 

 

Ma concurred. “Our hope is that the EEC and the BRI can synergise to increase the connectivity between Thailand and China. Zhengzhou’s model can be used to further develop the EEC through improving U-tapao’s cargo industry as well as making efficient urban planning and attracting businesses,” he said.

 

The MoU between ZAEZ and the EEC will last for two years, with both parties expecting to renew the commitments in 2021.

 

Source: https://www.nationthailand.com/business/30375550

 

-- © Copyright The Nation Thailand 2019-08-29

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[zydeco]

Thailand being completely colonized.

[Burma Bill]

If people stopped buying Chinese made products there would be no need for this EEC!

[johng]

7 minutes ago, Burma Bill said:

If people stopped buying Chinese made products there would be no need for this EEC!

Almost impossible now as they make everything or a part of everything at prices that are unbeatable,consumers don't want to  pay 2-10 x the price for a local made product even if the product could be made locally ????

[tso310]

The most important aspect of this is the setting up of a working group. Plenty of freebies will be available. I wonder where the next conference of air freight will be, Europe, North America etc.