Fabrice Goetschmann, executive director for business development, said yesterday that the investment plan would focus on increasing its warehouse capacity from 50,000 to 130,000 square metres by 2009.

The investment is in preparation for expected strong demand during 2009 and 2010, particularly from the petrochemical and auto industries.

The company is a joint venture between Katoen Natie Group of Belgium and Sembcorp Logistics of Singapore.

It launched in Thailand in September 1997 by spending Bt1 billion to build its warehouse and a logistics system, including a silo, bulk containers and drumming and transport facilities at Map Ta Put Industrial Estate in Rayong province.

"Our customers include PTT Chemical and the petrochemical arm of Siam Cement Group. Both are to expand their investment in the petrochemical industry. Their production capacity will double in 2009. As a result, we have to expand our business to support our customers," Goetschmann said.

The company's logistics system is managed to help reduce customers' costs and to provide more security for their products.

It reached an agreement with Wyncoast Logistic yesterday to use its rail system to carry customers' products from Rayong to Leam Chabang deep sea port in Chon Buri.

Under the five-year contract, it will transport products via 40,000 Wyncoast containers each year, accounting for 60 per cent of Wyncoast's capacity, Wyncoast managing director Kiettipong Santabutra said.

The rail system will reduce transportation costs by 10-15 per cent compared with road haulage, Goetschmann said.

Koen Caroon, managing director of Katoen Natie Sembcorp (Jurong), said it expected the production volume of the petrochemical industry in Thailand to triple in the next 10 years, while container volumes could increase to as much as 3,000 containers per day.

Somluck Srimalee

The Nation