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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 link builder asked for deadline delay

Wednesday, April 18th, 2007

The consortium contracted to build the 30 billion baht Suvarnabhumi airport railway link has written to the State Railway of Thailand (SRT) asking for a deadline extension of 652 days. However, a construction supervision consultant for the project has suggested that the extension of the construction deadline should not exceed 398 days, according to the State Railway of Thailand (SRT) source.

The B. Grimm consortium says it needs the extra time to complete the project. The consortium includes Sino-Thai Engineering & Construction and Siemens. The source said the consortium has written to the SRT asking for an extension of 652 days, based on the delay in the handover of land.

The contractor stated that the expropriation of the land in the Decha community in Phaya Thai district started on May 19, 2005, later than the 90-day timeframe agreed to in the contract. The handover was completed on March 2 this year. Therefore, it needed much more time to finish the construction.

However, the construction consultant argued that the delay in the handover of land did not affect the construction of the other sections of the Suvarnabhumi airport link.

In addition, the contractor should be able to speed up their construction to ensure the link is open for full operation as soon as possible.

Transport Minister Theera Haocharoen admitted that more time will be needed to complete the project.

It is up to the SRT to decide how long it will take to finish the construction, Adm Theera said, adding that a study showed the construction period should be extended by one year.

”The SRT has not finalised its report on the extended period (for the construction).

”However, I think the project should be finished as quickly as possible, since the airport link is essential for commuting people to and from Suvarnabhumi airport,” Adm Theera said.

Chairman of the SRT board Siwa Saengmanee said the matter is very urgent, though the board will consider it carefully. He believed the should be completed by November next year (2008), before its scheduled opening the following month, on Dec 5, His Majesty the King’s birthday.

SRT deputy governor Nakorn Chanthasorn said the construction consultant’s finding will be sent to the SRT’s sub-committee on public transport and it will then be submitted to the SRT board for a decision.

Mr Nakorn said the matter may also require deliberation by the cabinet as it involves the SRT’s financial responsibilities for the project.

The State Railway of Thailand (SRT) has to pay the creditor bank of the contractor 18 billion baht of the total construction price of 30 billion baht.

The airport link will stretch 28.6km from the Makkasan area in the inner city to Suvarnabhumi airport, east of Bangkok. It was designed to allow passengers to get between the city and the airport in 15 minutes and to connect with electric railways in the capital



Cabinet cancels Suvarnabhumi metropolis project

Sunday, April 8th, 2007

Military-installed cabinet accepted the Interior Ministry’s request to withdraw the draft bill on the proposed establishment of a special administrative zone around Suvarnabhumi airport from scrutiny by the Council of State.

The move comes because it was the Thaksin government-initiated project and was blasted in a series of recent polls conducted by the military installed’s ministry.

Deputy military’s government spokeswoman Netpreeya Chumchaiyo said the request was accepted after the ministry forwarded the findings and recommendations of a series of surveys on the draft bill.

The ministry has also suggested that the government set up an organisation in the form of a land development panel to coordinate with state-run agencies involved in the development of this specific area ( around Suvarnabhumi Airport ).

She said it was still too early to say whether the government would approve or disapprove the bill.

If the Interior Ministry continued to push for it, then it would have to be thoroughly reviewed and amended before being returned to the cabinet for reconsideration, she said.



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