Phuket Contractors Protest Rising Sand Prices

[Lite Beer]

Phuket contractors protest rising sand prices

Phuket Gazette –

Piroj Aorpattanakul (left) hands the letter of complaint to Governor Tri. Mr Piroj called on the government and the Phuket Chamber of Commerce to help find a cheap, local source of building sand. Photo: Kritsada Mueanhawong

The protesters say that price of building sand has doubled since the illegal quarry was shut down last month. Subsequent shortages are forcing many Phuket construction projects to a halt, they claim. Photo: Kritsada Mueanhawong

PHUKET: A group of construction contractors and building material retailers yesterday gathered at Phuket Provincial Hall to protest the cost of building sand, which has spiraled upward following the raid and closure of an illegal quarry in Phang Nga.

The protesters filed a joint complaint, addressed to Phuket Governor Tri Augkaradacha and Phuket Chamber of Commerce committee member Samran Sinthong.

Local prices of the essential construction commodity started skyrocketing after the Department of Special Investigation (DSI) shut down a sand quarry in Tai Muang District, Phang Nga in July, explained Piroj Aorpattanakul of the Triphada Construction Company.

“Since the operator is under investigation, the DSI banned the company from excavating any more sand or selling any of their stockpiles. That directly affected us."

“All of the sand that used to be sold in Phuket was from Phang Nga. Now suppliers have to buy sand from other provinces at much higher prices. It is having a serious, wide-reaching effect on the local economy,” Mr Piroj explained.

Prices of sand have nearby doubled and the shortage is forcing many construction projects in Phuket, including hotels and housing developments, to grind to a halt.

“Sand is one of the most important materials, used in all kinds of building work. Those of us who have come to file the complaint today want to a new source to buy sand at reasonable prices to get our businesses going again,” Mr Piroj said.

“We used to pay 500 baht per cubic meter, but now we have to pay 1,000 baht. The price is much higher than we used to pay and the volume of sand available is not enough to meet local demand,” he added.

Mr Piroj called on Governor Tri and the Phuket Chamber of Commerce to help locate a local source of inexpensive building sand.

“Or they could help by negotiating with the DSI to allow us to continue buying sand from the quarry in Phang Nga until the case is finalized,” he said.

“I would like government officials to clearly define areas where sand mining is allowed and where it is forbidden. Current regulations are unclear, which could cause the problem we are facing now to recur again and again," he said.

Source: http://www.phuketgazette.net/phuket_news/2012/Phuket-contractors-protest-rising-sand-prices-16713.html

-- Phuket Gazette 2012-08-21

[BabyJebus]

oh noes, the richest and most violent of phuket have to take a small paycut

I wont be able to sleep tonight

[bobobo]

100 percent more expensive...Is it only one company in the country that can deliver sand?? Buy somewhere else..oops I forgot.....

My fault..

[Valentine]

oh noes, the richest and most violent of phuket have to take a small paycut

I wont be able to sleep tonight

Glad you can sleep well. I am not rich nor violent but our company uses a lot of sand & profit margins are not as high as you might think. You may not want to build anything on Phuket but if you do it will cost a lot more now unless they get this sorted. Price of concrete is up by about 150 to 200 Baht/m3. The problem is even if the Phang Nga issue is resolved suppliers will most likely not reduce their prices back to the same level. The water truck guy we use has increased by 50 Baht per truck citing increase in diesel price so wait for all other materials to start increasing based upon the price of fuel. To be honest I have not noticed any major increase in diesel & I seem to recall it was more expensive a few years back.

[Valentine]

100 percent more expensive...Is it only one company in the country that can deliver sand?? Buy somewhere else..oops I forgot.....

My fault..

Think about it. The sand probably costs the same to buy elsewhere but transport costs are much higher.

[brianP]

Those sand sifters need to cement a concrete deal to solidify their foundations.

[bobobo]

Valentine I buy that. Good to get an another view of the problem..

[NamKangMan]

oh noes, the richest and most violent of phuket have to take a small paycut

I wont be able to sleep tonight

Ahhhhhh, no - the extra cost will just be passed onto the consumer, and on Phuket, that's mainly foreigners.

Edited August 21, 2012 by NamKangMan

[Shot]

" sand, which has spiraled upward following the raid and closure of an illegal quarry in Phang Nga. "

Hmmmmmmm. "illegal quarry"

Price is half that of next nearest supplier.

At which point in the supply chain, did the buyer not know the sand was illegal?

Just asking.

[Pops]

" sand, which has spiraled upward following the raid and closure of an illegal quarry in Phang Nga. "

Hmmmmmmm. "illegal quarry"

Price is half that of next nearest supplier.

At which point in the supply chain, did the buyer not know the sand was illegal?

Just asking.

Yeah in any Western country the seller of illegally gained raw material would be legally punished but so would the buyer.

Here we just ask the governor to adjust the prices to illegally gained raw material level.

They plainly admit having used illegally obtained raw material for years, better even, the whole of Phuket has been using it apparently.

You gotta love it !!!

Awesome !!!

[BabyJebus]

oh noes, the richest and most violent of phuket have to take a small paycut

I wont be able to sleep tonight

Glad you can sleep well. I am not rich nor violent but our company uses a lot of sand & profit margins are not as high as you might think. You may not want to build anything on Phuket but if you do it will cost a lot more now unless they get this sorted. Price of concrete is up by about 150 to 200 Baht/m3. The problem is even if the Phang Nga issue is resolved suppliers will most likely not reduce their prices back to the same level. The water truck guy we use has increased by 50 Baht per truck citing increase in diesel price so wait for all other materials to start increasing based upon the price of fuel. To be honest I have not noticed any major increase in diesel & I seem to recall it was more expensive a few years back.

If you were a gangster like the thai contractors you would be making millions per month in raw profit

Edited August 21, 2012 by BabyJebus

[prepress]

They may use the sand from the beach. The hotel guest can later step directly into the ocean