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Published on July 23, 2007

The Transport  Ministry is preparing to seek Cabinet approval to liquidate Thai Marine Navigation Co Ltd by September, a ministry source said last week.

The move is in line with a Cabinet resolution of last year that requires the company to wind down when its joint venture, TMN Co Ltd, can stand on its own feet.

The previous administration approved TMN with registered capital of Bt600 million. A group of 23 local ship-owners holds 70 per cent and the Finance Ministry 30 per cent.

The previous Cabinet agreed in principle to have Thai Marine Navigation rehabilitated but said that if it could not be overhauled in one year it would have to be closed down.

The ministry has demanded Thai Marine Navigation conduct all business through TMN.

However, the joint venture will not receive the same right to provide water transportation for state enterprises and state agencies that Thai Marine Navigation has.

TMN is now taking on 18 employees from Thai Marine Navigation and buying a used 8,000DWT bulk vessel worth US$12 million (Bt400 million) for delivery next month.

Thai Marine Navigation has never had its own fleet.

Since 1987 it has operated like a shipping brokerage, using its special right to carry cargo for the public sector.

The new vessel could supply coal to power plants planned by the Electricity Generating Authority of Thailand. It will also be appointed to ferry crude palm oil from Chumphon to PTT Chemical's biodiesel plants.

"This will help TMN feed itself," the source said, adding that it would no longer need to rely on Thai Marine Navigation, which is swimming in red ink.

Watcharapong Thongrung

The Nation