Media Release: 1st June 2015
Mr. Jitchai Nimitpanya
Deputy Chief Executive Officer
1. How do you see cold chain sector growing in Thailand?
Thai cold chain business keeps growing together with current lifestyle. People trend to eat more pre-cooked food (RTE & RTD: Ready to eat and Ready to drink), which require cold temperature from raw material storage, production, logisticthrough retail outlet. Cold Chain must be extended to serve needs.
From Ministry of Commerce statistics,there are more than 100 cold operators in Thailand with total capacity over 600,000 ton.
2. What are the common challenges being faced by facility owners to run smooth operations?
Cold chain businesses face fierce competition from new facilities of existing operators and newly established operators. Therefore, additional services are required to differentiate from normal storage service only.
As a leading in cold chain business in Thailand, we continue developing quality service such as to operate free trade zone warehouse so customers can enjoy tax privilege to minimize cash investment. Free trade zone is the Customs-approved zone for industrial, commercial and others activities to receive extra tax and duty privileges as per specified by law. With ASEAN free trade agreement (AEC) goods is freely moved in member counties. Cold warehouses support manufacturers to keep fresh raw materials to production and distributors to supply consumers’ fresh finished products. Free trade zone cold storage will provide extra benefits.
3. What are the top initiatives required to be taken to boost cold chain sector in Thailand?
Company introduced innovations such as mobile raking system to maximize storage space and reduce to time access individual pallet. Time and manpower to reach exact pallet can be reduced significantly. In the mean time we investigate possibility of an automated warehouse system (ASRS) as a first Thai public cold warehouse. With more than 500 LED instead of conventional fluorescent bulbswill save energy and reduce heat source in cold room. New type of insulation and thicker wall will reduce cooling loss and maintain precise temperature. Apart from technology side we just introduce environmental quality management (ISO 14001) to get all employees to participate in environmental conservation.
4. What are the key buyer’s sectors you are catering to at present and what are the prospective sectors you want to work with?
Our existing customers are food processing industries that covering almost every segments i.e. fresh food covering meal, poultry, fish, vegetable whereas FG covering Ready to eat, Ready to drink.
Our expected customers, we are focusing on import export segment as well as third party logistics that we hope these segments will dramatically bloom due to AEC theme in next coming year that our free zone facility at Suwinthawong and especially Bangna that located near Suvarnabhumi international airport will support the dramatically demands to minimize burden operating cost of our customer due to our free zone privilege.
5. What are your objectives in participating at Asia Cold Chain Show? What would you be promoting from your booth to both local and international buyers?
Our strengths are knowledge base, experience and skill as well as many customers to cover variety of products such as fresh food – covering meal, poultry, fish, vegetable, FG – covering Ready to eat, Ready to drink, etc. We are now prompt to go with AEC.
We believe cold chain is not only cold storage. We extend focus to cold chain management which included several services from cold storage, cold transportation, product sorting, grouping, picking and packing. Hygienic freezing service is well-managed under ISO 9001 and GMP program. We have more than 200 customers.
By the way we are also on the stage to developing our management team to be professional standards to drive our sustainable growth in AEC theme in the future.
Even though the process to be a public company are difficult and sophisticate but we can do it now we are public company and we are on filing process and will be a listed company in SET in the near future.
Our target is a Local Champion in Thailand first, then we target to AEC that it required capital and local strategic partner. At the beginning of opening AEC would be the best time for us to invest in AEC that we will not miss a big chance.
Diversifying to AEC is our master plan that we set 10 year ago, with this opportunity we can meet strategic partner that we can get along with to mutually grow together in AEC.