Don Mueang Tollway projects revenue boost amid rising traffic

Don Mueang Tollway Public Company Limited (DMT) forecasts a bright performance for the third quarter of this year heading into the High Season of Q4. The surge in tourism, both foreign and domestic, is expected to boost passenger numbers and traffic on the elevated tollway.

Sakda Phanwai, the Managing Director, expressed optimism as Thai AirAsia X relocated its flights back to Don Mueang Airport starting October 1. This relocation aligns with the government’s plan to make Thailand a regional aviation hub, which is anticipated to increase tollway traffic and support revenue growth in Q4.

Sakda noted the positive trend in operational performance for Q3, driven by increased traffic on the Don Mueang Tollway. This growth is attributed to the government’s tourism stimulus measures, bringing in more tourists and supporting continuous revenue growth compared to previous quarters and the same period last year. The return of international airlines to Terminal 1 at Don Mueang Airport, a key connection point to various regions in the country, has also contributed to higher traffic volumes on the tollway.

On October 1, Thai AirAsia X moved all its flights to Don Mueang, supporting the government’s policy to promote Thailand as a regional aviation centre. This move is expected to significantly increase traffic on the elevated tollway, bolstering revenue in the High Season final quarter.

“We are confident that the total revenue for 2024 will grow as planned, with the average daily traffic volume expected to be no less than 116,000 vehicles per day, compared to an average of 106,907 vehicles per day in 2023.”

Sakda also mentioned that the company is continuously bidding for new projects, including public-private partnership (PPP) projects. Key targets include the M82 project (Bang Khun Thian-Ban Phaeo Motorway) and the M5 project (Uttaraphimuk Elevated Expressway extension from Rangsit to Bang Pa-In), expected to open for bidding in the second half of 2024 and 2025 respectively.

DMT is also seeking new business opportunities to create a new growth curve, ensuring sustainable business growth and generating good returns for shareholders. The company emphasises ESG (Environmental, Social, and Governance) initiatives, focusing on comprehensive renewable energy use.

In Q3 2024, DMT completed the installation of energy-saving equipment on 1,540 streetlights along the tollway. Additionally, heat-reducing materials such as cool-down paint and hydraulic cement (eco-friendly cement) will be utilised for tollway maintenance. These ongoing ESG efforts contribute to environmental benefits and help reduce operating costs while increasing profits.

In the first half of 2024, DMT reported a net profit of 505.69 million baht, a 4% increase from the same period last year, which was 486.72 million baht. This profit growth is due to increased traffic volume. The company has already paid an interim dividend for the first six months of 2024 at a rate of 0.42 baht per share, reported KhaoSod.