Bangkok's Don Muang Airport Seen As Potential Export Hub For Thai Products

[webfact]

Don Muang Airport seen as potential export hub for Thai products

BANGKOK, 7 February 2011 (NNT) – The Commerce Ministry is poised to discuss with the Transport Ministry about the possibility of using Don Mueang Airport as a distribution center for export products.

With an aim to facilitate small and medium entrepreneurs (SMEs) in the export sector, Deputy Commerce Minister Alongkorn Ponlaboot disclosed that the Ministry is conducting a feasibility study on the utilization of Don Mueang Airport’s Terminals 1 and 2 as a major distribution center for Thai export goods. The Commerce Ministry’s advisory team has been assigned to put together a report on the matter within 2 weeks before the meeting with the Transport Ministry is held.

Since Suvarnabhumi International Airport commenced its services in 2006, Don Mueang Airport has been operating only domestic flights. Two airlines, namely Nok Air and One-Two-GO Airlines, are still using the facilities today.

Regarding the China City Complex to be constructed on Bang Na-Trat Road in Bangkok, Mr Alongkorn said the Ministry would meet with the Federation of Thai Industries and the Thai Chamber of Commerce to exchange opinions on the project’s impacts on Thai businesses and formulate suitable measures if needed. According to the Deputy Minister, Thailand and China will hold shares at the ratio of 51:49 in compliance with the Foreign Investment Law while Thai investors are guaranteed to enjoy lucrative gains from the project.

-- NNT 2011-02-07

[Skywalker69]

:whistling: Thailand the "Mother" of all hubs.

[londonthai]

the great majority of export from the central provinces is thrugh the sea ports on the east coast.

air cargo, including post, is often carried on the passanger airplanes and there are already cargo fascilities in the suvarnabhumi. Hence moving back cargo services to don muang will be a logistical problem.

[dumball]

'londonthai' timestamp='1297089061' post='4203583']

the great majority of export from the central provinces is thrugh the sea ports on the east coast.

air cargo, including post, is often carried on the passanger airplanes and there are already cargo fascilities in the suvarnabhumi. Hence moving back cargo services to don muang will be a logistical problem.

Whoa-whoa-whoa there a second , are you implying simple logic should be applied ??

You have forgotten to include an absolute in thier thinking here , think of the Bmillions you will divest the architects of .

That would never do , sorry old boy , try another suggestion to fit scam, sorry , plan .

[bangon04]

Sorry but it sounds much more likely that Don Mueang will become a hub of Chinese imports......

[janverbeem]

I'm sure there is a mistake in the topic title.Without doubt they had in mind the Export hub for the whole of Asia if not the world.

[Bakseedaa]

the great majority of export from the central provinces is thrugh the sea ports on the east coast.

air cargo, including post, is often carried on the passanger airplanes and there are already cargo fascilities in the suvarnabhumi. Hence moving back cargo services to don muang will be a logistical problem.

Very little air cargo is carried on passenger planes... have you been in the hold of a Jumbo or even bigger a 777, not much room for cargo in there... ok for a few boxes and some parcels and mail... but not many combine harvesters or Toyota cars fitting inside these planes... Think Big... Think Don Muan..... Think Airbus Beluga

[JohnnyFeelIt]

wow.. using an airport to export, groundbreaking!

[dcutman]

Sorry but it sounds much more likely that Don Mueang will become a hub of Chinese imports......

No, China is building there own export complex, China City.

I think this is the Thai's idea of trying to make all the Thai companies that manufacter products for export have there own place to show there products.

Hmmm, I wonder how many potential buyers would come here when they have 70,000 choices of Chinese products at the China City Complex. I am guessing between 0 and 5. I could be wrong. just a guess. I think everybody knows if a Chinese exporter see's a less expensive Thai product, they will cut there price just long enough for that Thai company to go out of biz.

I dont know how many Thai investers can get involved in this China City project, that this article says is going to be so lucrative for Thai investors. The China City project is going to be built with a Chinese contractor and have all Chinese financing. I am pretty sure the Chinese are not going to pay the puppet, Thai share holder all that much.

Edited February 8, 2011 by dcutman

[webfact]

Permanent trade centre planned for Don Mueang

By Petchanet Pratruangkrai

The Nation

The Commerce Ministry and private organisations are planning to use part of Don Mueang Airport as a permanent Thailand and Asean exhibition centre to ensure competitiveness after the ThaiChina International Products City is set up.

Moreover, a working committee was set up yesterday to develop competitiveness of Thai small and mediumsized enterprises and logistics for international trade to absorb the impact from market liberalisation and the expected flood of investment into the country.

After meeting with the Federation of Thai Industries, the Federation of Thai Logistics Service Providers, the Thai Retailers and Wholesalers Association, the Lifestyle Federation, and the Thailand Auto Parts and Accessories Association, Deputy Commerce Minister Alongkorn Ponlaboot said two action plans would be implemented to ensure Thai competitiveness after Chinese investors set up the trade complex here.

The ministry will talk to related government agencies, including the Transport Ministry and Airports of Thailand, on allocation of part of Don Mueang Airport for a trading centre.

A study will be finalised in two weeks. Under the plan, Don Mueang Airport will house a showroom for Thai and Asean goods. The government will offer low rental fees for enterprises, focusing on SMEs, which do not have much funding for participation in trade fairs.

Alongkorn also revealed that two or three Thai enterprises had expressed interest in forming a joint venture with Ashima Group, the Chinese investor behind the Products City trading complex here. One of the interested firms is a bank.

He insisted that the Ashima investment must comply with the Foreign Business Act to hold no more than a 49.99percent share, while Thai enterprises must hold the major proportion.

Under the Foreign Business Act, retail and wholesale businesses are categorised in Annex III, under which an investment whose capital is more than Bt100 million is allowed to do business in Thailand automatically without asking for the government's approval. However, the foreign investors must hold a minority share.

Moreover, the ministry will coordinate with other government agencies in providing safety nets and exercise stringent control over Chinese goods and people to protect domestic traders and consumers.

Somchai Pornrattanacharoen, president of the Thai Retailers and Wholesalers Association, supports the plan to establish a permanent trading centre for Thai SMEs, as they have limited budgets for participating in trade fairs.

He added that the government must reform the trade laws to prevent dumping of Chinese goods.

Trisla Tantimit, vice president of the Thai Licensed Customs Brokers Association, said logistics enterprises were concerned about reduced business opportunities after Chinese investors set up the trading centre here.

Chinese exporters may only use Chinese shipping companies to move goods into Thailand. The government clearly needs to negotiate with Chinese exporters on increasing opportunities for Thai logistics providers, she said.

-- The Nation 2011-02-08

[Payboy]

Hubba Hubba

[dcutman]

Permanent trade centre planned for Don Mueang

By Petchanet Pratruangkrai

The Nation

The Commerce Ministry and private organisations are planning to use part of Don Mueang Airport as a permanent Thailand and Asean exhibition centre to ensure competitiveness after the ThaiChina International Products City is set up.

Moreover, a working committee was set up yesterday to develop competitiveness of Thai small and mediumsized enterprises and logistics for international trade to absorb the impact from market liberalisation and the expected flood of investment into the country.

After meeting with the Federation of Thai Industries, the Federation of Thai Logistics Service Providers, the Thai Retailers and Wholesalers Association, the Lifestyle Federation, and the Thailand Auto Parts and Accessories Association, Deputy Commerce Minister Alongkorn Ponlaboot said two action plans would be implemented to ensure Thai competitiveness after Chinese investors set up the trade complex here.

The ministry will talk to related government agencies, including the Transport Ministry and Airports of Thailand, on allocation of part of Don Mueang Airport for a trading centre.

A study will be finalised in two weeks. Under the plan, Don Mueang Airport will house a showroom for Thai and Asean goods. The government will offer low rental fees for enterprises, focusing on SMEs, which do not have much funding for participation in trade fairs.

Alongkorn also revealed that two or three Thai enterprises had expressed interest in forming a joint venture with Ashima Group, the Chinese investor behind the Products City trading complex here. One of the interested firms is a bank.

He insisted that the Ashima investment must comply with the Foreign Business Act to hold no more than a 49.99percent share, while Thai enterprises must hold the major proportion.

Under the Foreign Business Act, retail and wholesale businesses are categorised in Annex III, under which an investment whose capital is more than Bt100 million is allowed to do business in Thailand automatically without asking for the government's approval. However, the foreign investors must hold a minority share.

Moreover, the ministry will coordinate with other government agencies in providing safety nets and exercise stringent control over Chinese goods and people to protect domestic traders and consumers.

Somchai Pornrattanacharoen, president of the Thai Retailers and Wholesalers Association, supports the plan to establish a permanent trading centre for Thai SMEs, as they have limited budgets for participating in trade fairs.

He added that the government must reform the trade laws to prevent dumping of Chinese goods.

Trisla Tantimit, vice president of the Thai Licensed Customs Brokers Association, said logistics enterprises were concerned about reduced business opportunities after Chinese investors set up the trading centre here.

Chinese exporters may only use Chinese shipping companies to move goods into Thailand. The government clearly needs to negotiate with Chinese exporters on increasing opportunities for Thai logistics providers, she said.

-- The Nation 2011-02-08

This story gets better by the minute.

Is it just me or doest it sound like Thailand is gonna get it right in the A$$ on this deal.

I have not noticed in an any of the articles about this China City or now the Don Mueang trade center projects how hailand is going to benefit. Where most articles of this nature are overstating the millions or billions of baht Thailand is going to benefit. Not one has mentioned, not 1 baht in benefit to Thailand, other than better hotel occupancy rates and I am sure better biz at the entertainment complexes.

I guess time will tell. My bet 1 year after this China City Complex is up and running, there will be many Thai companies crying the blues, that these Chines are putting me out of business.

The only reason China wants to do there trade in Thailand is because they have so many complaints ( 130) filed with the WTO about there trade practices. It is costing them to much in terrifs, so they come to Thailand to re-export there crap to get around that.

Edited February 8, 2011 by dcutman

[londonthai]

Permanent trade centre planned for Don Mueang.

in the article's title is "distribution center for export products", now it's upgraded to the permanent trade centre. A little confusing, what was on their mind.

as a trade centre don muang sounds better.

at the same time it will boost the traffic in the airport itself, as now it's underused

Edited February 8, 2011 by londonthai

[warfie]

the great majority of export from the central provinces is thrugh the sea ports on the east coast.

air cargo, including post, is often carried on the passanger airplanes and there are already cargo fascilities in the suvarnabhumi. Hence moving back cargo services to don muang will be a logistical problem.

Very little air cargo is carried on passenger planes... have you been in the hold of a Jumbo or even bigger a 777, not much room for cargo in there... ok for a few boxes and some parcels and mail... but not many combine harvesters or Toyota cars fitting inside these planes... Think Big... Think Don Muan..... Think Airbus Beluga

Cars and harvesters by air-freight? I don't think so....

[Bedrockguesthouse]

the great majority of export from the central provinces is thrugh the sea ports on the east coast.

air cargo, including post, is often carried on the passanger airplanes and there are already cargo fascilities in the suvarnabhumi. Hence moving back cargo services to don muang will be a logistical problem.

Very little air cargo is carried on passenger planes... have you been in the hold of a Jumbo or even bigger a 777, not much room for cargo in there... ok for a few boxes and some parcels and mail... but not many combine harvesters or Toyota cars fitting inside these planes... Think Big... Think Don Muan..... Think Airbus Beluga

A Majority of wide body passenger aircraft carry significant amounts of cargo. 16-20,000 kgs plus. The beluga carries a small wieght load around 38,000 kgs over a relatively short range about 1500 n miles. 747 freighters carry 95 tons plus and the antonov 124 carries approx 130 tons and the AN225 can carry 150 tons from memory.

However the number of passenger wide bodied aircraft that lift cargo everyday far exceeds the numbers of freighter aircraft travelling the globe.

[webfact]

Commerce Ministry to Turn Don Muang into SMEs Hub

The Commerce Minister has plans to turn Don Muang Airport into a distribution hub for SME products.

Deputy minister of commerce, Alongkorn Ponlaboot said after holding talks with the Federation of Thai Industries, or FTI, that there are plans to help small and medium enterprises, or SMEs, in Thailand. Investors are working on creating a wholesale and retail complex in Thailand, called 'China City', which would help increase channels for selling products and goods.

The minister proposed that Don Muang International Airport be used as a hub for transferring goods to support the mass investment and as a place to process the distribution of goods.

Alongkorn stated that the ministry will conduct a careful study of the plan within the next 2 weeks. If the airport is capable structurally and logistically further plans will be carried out in coordination with the Transport Ministry as well as the royal Thai air force.

The minister is of the view that Don Muang is suitable for a hub, given the availability of its structures and logistics. Turning it into a hub would increase Thailand's competitiveness amongst ASEAN countries and China.

As for progress regarding the Ar Su Ma complex, currently 2 to 3 investment groups as well as banks are very interested in investing in it. Even though authorized capital is only 50 million baht, more investments are expected to be made soon.

-- Tan Network 2011-02-08

[Ricardo]

Isn't this is just another attempt to find a use, for an expensive white-elephant, and get it off the government's 'books' ?

The place has been a waste of capital, ever since the new airport opened, but a conference-centre or exhibition-site might generate business for Bangkok. It might also make a super new Bangkok-terminal & goods-yard for all these planned new high-speed railways.

Edited February 8, 2011 by Ricardo

[webfact]

Transport Minister Halts Using Don Muang Airport as Hub for SMEs

The transport minister has decided to await careful analysis from the ICAO before using Don Muang International Airport as a hub for SMEs.

Concerning the commerce minister's plan to use Don Muang Airport as a hub for the transfer and distribution of SME goods, Transport Minister Sophon Saram said that approval is required from the International Civil Aviation Organization, or the ICAO, before taking any further action.

As for previous observations, the International Air Transport Association stated that Don Muang Airport should be used to support domestic flights in the short-term.

In the long-term, there must be an expansion of the Suvarnabhumi airport to increase its capacity to receive all flights, both domestic and international.

Only then should all flights at Don Muang Airport can be cancelled.

-- Tan Network 2011-02-09

[Thai at Heart]

Transport Minister Halts Using Don Muang Airport as Hub for SMEs

The transport minister has decided to await careful analysis from the ICAO before using Don Muang International Airport as a hub for SMEs.

Concerning the commerce minister's plan to use Don Muang Airport as a hub for the transfer and distribution of SME goods, Transport Minister Sophon Saram said that approval is required from the International Civil Aviation Organization, or the ICAO, before taking any further action.

As for previous observations, the International Air Transport Association stated that Don Muang Airport should be used to support domestic flights in the short-term.

In the long-term, there must be an expansion of the Suvarnabhumi airport to increase its capacity to receive all flights, both domestic and international.

Only then should all flights at Don Muang Airport can be cancelled.

-- Tan Network 2011-02-09

Whoa, whao, the hokey kokey.

In, out, in, out and shake it all about. I think this is referred to as "policy on the hoof".