APM Terminals has entered into a joint venture with Sahathai Terminal and Mitr Phol Sugar Corporation of Thailand to build a container feeder terminal in Bangkok.
On 18 January 2019, the parties announced that Sahathai will have a 38% stake in the joint venture, Bangkok River Terminal Co., Ltd, which has registered capital of THB150 million (USD4.75 million). APM Terminals and Mitr Phol Sugar Corporation will have respective stakes of 33% and 29%.
APM Terminals’ stake is held through a Dutch subsidiary, Inland Services BV. The company is the terminal operating arm of Denmark’s AP Moller Maersk group.
The parties said that they had been in discussions since October 2018, adding that construction of the terminal is pending the mandatory environmental impact assessments.
Sahathai currently operates a freight terminal and operates a logistics business in Bangkok, a river port. In 2015, the company established Bangkok Barge Terminal Co., Ltd, a joint venture with Japan’s Mitsui OSK Lines. Sahathai also has a joint venture with Swiss-Italian liner operator Mediterranean Shipping Company that provides barging services between Bangkok and Thailand’s main container port, Laem Chabang.
APM Terminals already has a presence in Thailand, with terminal operations in Laem Chabang and a Bangkok-based subsidiary, Siam Shoreside Services Ltd, which provides land-based container transportation and repair services.
Mitr Phol Sugar Corporation is Asia’s largest sugar manufacturer.
The joint venture between APM Terminals and the Thai companies said that their proposed terminal will reduce logistics costs for shippers and promote imports and exports through Bangkok.
As much of Thailand’s manufacturing and retail sectors are concentrated in Bangkok, roads connecting the capital city to Laem Chabang are often congested. As containers are still primarily trucked and railed between Bangkok and Laem Chabang, waterway transport via barges has been an increasingly viable alternative.
Concurrently, Sahathai will establish Bangkok Logistic Park Co., Ltd, a joint venture for developing logistics complexes with Thai industrial real estate developer Ticon Industrial Connection, with the former having a stake of 25%.