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Suvarnabhumi Archive for August, 2007


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Airports of Thailand plans commercial complex land at Suvarnabhumi Airport

Monday, August 27th, 2007

Airports of Thailand (AOT) plans to develop 1,000 rai of vacant land at Suvarnabhumi Airport into a commercial complex containing a three-star hotel, exhibition hall and shops.

The Bt10-billion site is located in the airport’s northeastern corner, close to the transportation terminal and some petrol stations.

Construction is expected to start early next year on the 300-room hotel and the exhibition hall next to it, said Narongchai Tanadchang-saeng, deputy general manager for business development.

The retail area will consist of local-product shops, restaurants, spa and massage facilities and a food court. A golf course is also on the drawing board.

“The company’s directors are discussing the project and expect to approve it soon,” said Narongchai, adding that the total investment needed depended on negotiations with outside investors. “The company is interested in investing in the project itself, but we’re also considering allowing investors to do so,” he said.

The company is seeking extra sources of income following an 82-per-cent drop in its April-June net profit – to Bt331.3 million, from Bt2.09 billion last year due to higher operating expenses and corporate income taxes. Its revenues now come mainly from aircraft landing fees, parking fees and rents.

Another prospect revenue channel will be outdoor advertising signs around the airport, with installation starting next year. This is projected to contribute at least Bt100 million a year.

Suvarnabhumi Airport general manager Serirat Prasutanond said the airport was getting ready to step into its second year of operation by fixing all of the problems that came under heavy criticism in its first year.

It has already served 35 million passengers in its first 11 months and expects to reach 40 million by the end of the year.

Airports of Thailand said Suvarnabhumi was poised to become one of the top 20 airports in the world next year and enter the top 10 in 2009.

“We plan to get the ranking based on the results of a customer-satisfaction survey under Airport Service Quality, a project of the Airport Council International, an international airport organisation,” he said.

Teams have been set up to improve six key areas for the ranking: security management system, airport facilities and services, collaboration with airlines and government bodies, commercial airport property management, service mindedness and airport environment.
(Sritama/Nation)



Suvarnabhumi airport railway construction deadline to be decided this week

Tuesday, August 21st, 2007

The State Railway is expected to decide this week how long the construction deadline of the Suvarnabhumi airport railway project should be extended.
State Railway of Thailand deputy governor Nakhon Chantarasorn said the committee responsible for the project was examining conditions of the deadline extension for the consortium led by Sino-Thai Engineering & Construction Plc (Stecon).

An State Railway of Thailand source said it had been expected the service would start running before December next year. To achieve this, the construction deadline should be extended from Nov 5 this year by 356 days and the contractor must work around the clock.

The State Railway of Thailand wanted the contractor to bear any additional cost and would retain the right to terminate the contract if it was breached during the extension.

The State Railway of Thailand expected to make a decision this week, the source said.

One condition under consideration is a May cabinet resolution that ordered state agencies to extend by 180 days the completion dates of construction projects affected by floods.

Mr Nakhon said the Airport Rail Link was eligible for the 180-day extension because its route goes through Lat Krabang district, which was flooded.

The committee would decide if the 180-day extension should be added to or included in the contract extension.

If it was added, the State Railway of Thailand would face a higher interest burden on loans for the project, Mr Nakhon said.

The source said the 180-day flood grace period could be included in the 356-day extension because floods had occurred during the period the State Railway of Thailand had been unable, for other reasons, to hand over the land to the contractor.

The State Railway of Thailand and the Stecon consortium signed the Airport Rail Link contract on Jan 20, 2005. It required the railway to be completed in 990 days, which falls on Nov 5. But the State Railway of Thailand delayed delivery of the land to the contractor, leading to the deadline extension which is under negotiation.

The new railway, estimated to cost 26 Billion Baht, will offer public transport service between the inner city and Suvarnabhumi airport. An express trip will take 15 minutes and a regular commuter trip 30 minutes. (Bkk Post)



Security firm at Suvarnabhumi airport to accept shorter term

Tuesday, August 14th, 2007

The security firm at Suvarnabhumi airport yesterday indicated that it was willing to accept a shorter contract term sought by Airports of Thailand (AOT). Karn Thongyai, managing director of Asia Security Management Co, which is part of the Loxley-ICTS consortium, said a reduction in the contract term would be acceptable if it was reasonable.

He said he had to study details from the Airports of Thailand board but the shortened period should start from now, rather than being backdated to when the original contract began last year.

His comments came after the Airports of Thailand board yesterday asked negotiators to persuade the contractor which provides the security service at Suvarnabhumi airport to shorten its contract from 10 years to up to five years.

Airports of Thailand chairman Saprang Kalayanamitr said three board members would talk to the Loxley-ICTS consortium with the aim of shortening the contract from 10 years to 3 years, plus 2 annual renewals.

The negotiators are Airports of Thailand vice-chairman Chavalit Sethameteekul, the director-general of the Customs Department, and board members Itthiporn Supawong and Chirmsak Pinthong.

The consortium obtained the contract during the term of the former Airports of Thailand board. The present board believes 10 years was too long for a security contract.



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