Thailand’s new transport centre boosts regional logistics hub status

Airports of Thailand Ground Aviation Services (AOTGA) anticipates that its newly inaugurated Multimodal Transportation Centre at Suvarnabhumi Airport will bolster Thailand’s position as a regional logistics hub, enhancing goods transportation among Cambodia, Laos, Myanmar, and Vietnam (CLMV).

The new centre is designed to integrate various transportation modes, including land, rail, sea, and air, with the added benefit of consolidating customs clearance procedures at a single point. Siriwat Tovachirakul, president of AOTGA, a subsidiary of Airports of Thailand Plc, highlighted the centre’s multifaceted capabilities.

“The new centre integrates multiple modes of transportation, including land, rail, sea, and air, while enabling customs clearance procedures at a single point.”

This integration is expected to reduce costs for logistics companies and support the government’s initiative to make Thailand a regional aviation hub.

Siriwat projects that services offered by the centre will generate 80 million baht (US$2.4 million) in revenue in fiscal 2025, with cargo volumes estimated to range between 40,000 and 50,000 tonnes.

The official opening of the centre, located in the airport’s Free Zone 3, was attended by executives and officials from Airports of Thailand and the Customs Department.

More than 10 logistics and goods transportation companies have already started utilising the centre’s services, and the number is anticipated to grow in line with the continuous expansion of e-commerce, added Siriwat.

“We expect revenue and cargo volume to increase by 10 to 15% a year.”

AOTGA, in partnership with the Airports of Thailand and the Customs Department, invested 150 million baht (US$4.5 million) in developing the centre, which spans an area of 4,872 square metres. The facility aims to connect all transportation modes, offer centralised cargo handling and storage, and provide a comprehensive customs clearance system.

Particular focus is given to the air cargo sector, which has seen significant growth due to Thailand’s strategic location as a hub for CLMV countries, especially for e-commerce goods.

AOTGA anticipates breaking even within seven to eight years.

The company expects its total revenue, including earnings from other ground services such as passenger luggage management, to reach between 3.8 and 3.9 billion baht (US$113.3 million and 116.3 million) in fiscal 2025, up from 3.4 billion baht (US$1 billion) in fiscal 2024, reported Bangkok Post.

The increase in revenue is attributed to the company’s airport cleaning business and ground services at Phuket and Don Mueang airports.