First commencing operations as a terminal operator along the Chao Phraya River, the main waterway of Thailand, Sahathai began by servicing both international shipping liners and local ports. Sahathai Terminal is currently a conglomerate of four major port and terminal services including, port and terminal, road transportation, container yard and warehousing services, as well as import/ export value-added services.

Last year, in 2017, Sahathai Terminal achieved an important milestone after successfully submitting an IPO to enter the Thai stock market and have been trading their stock on the SET (Stock Exchange of Thailand) since November. The purpose was to raise public funds to strengthen their working capital and expand their business empire according to their long-term vision.

We were honored to speak with Mr. Banchai Karuchit, Deputy Chief Executive Officer, Sahathai Terminal further about their past successes and their future plans to become the leading river port in Thailand.

Continuous Improvement Makes Us Stronger Every Year

Sahathai Terminal has been continually expanding and strengthening their operations and services as a Chao Phraya River port operator for nearly 10 years. The river port is situated along the bank on the Puchao Saming Phrai Road side of the Chao Phraya River. Operating two barge terminals for coastal transportation and a feeder terminal for international feeder vessels, the facility can accommodate a total of 500,000 TEUs annually. They recently upgraded their operation with two new quay cranes to further increase their servicing capabilities.

Mr. Banchai Karuchit

Mr. Karuchit said: “Sahathai Terminal has just added two new quay cranes to upgrade our operations. Now we have 4 operable quay cranes with a maximum container service capacity of 75 moves per hour, an upgrade from 50 moves per hour with our previous equipment. The investment has not only added value to our operations in terms of faster and more secure services, it also beneficial to our shipping line clients with faster loading/unloading times, which reduces idling time for ships at the port. Cargo can be transited and distributed faster and it’s reassuring to them that cargo will be processed on schedule.”

On top of the operational improvements, Sahathai Terminal also runs a Container Inspection System (X-Ray machine) from Thai Customs. The facility has been in operations since April and serves both importers and exporters and alleviates congestion at Laem Chabang Port where all the scanning was previously done at. Sahathai Terminal is the first river port in Bangkok allowed to have an in-port Container Inspection System installed from the Thai Customs.

The Container Inspection System at Sahathai Terminal is part of their comprehensive service plan. It is beneficial to import and export customers in terms of cost saving, process simplification, and risk mitigation.

Aiming to provide a comprehensive one-stop service in port and terminal operations, Mr. Karuchit said: “We have also been approved for ‘Final Port of Loading’ from the Thai Custom, which means containers processed through custom clearance procedures from Sahathai Terminal are finalized. There are no further processes once they arrive at Laem Chabang Port; this is a real savings in terms of both time and operations cost. Apart from an effective operation, we also pay close attention to safety and service convenience. We have adopted an e-payment system which accepts credit card payments. While a typical port and terminal services payment is in cash only, we are offering our customers with additional options. In the near future we will also have another payment channel available via QR Code, which enables customers with the ability to just scan our QR Code at the service counter to complete their transaction; simple, fast, and convenient.”

Sahathai Terminal was also recently awarded Customs Trade Partnership Against Terrorism (C-TPAT) certification. C-TPAT is a coalition between the public and private sector to improve cross-border supply chain safety. As a C-TPAT certified facility, Sahathai Terminal is further assuring the safety of their customers cargo which also benefits by having priority when moving through U.S. Customs.

A Full Range of Solutions

By aiming to provide comprehensive services, Sahathai Terminal has expanded their footprint beyond their core port and terminal business.

“We have also expanded our affiliate businesses, and each has been divided and assigned accordingly. Every business arm under the Sahathai umbrella has its own management, and they are allowed a certain degree of freedom to manage and expand the business under their own expertise.”

“Bangkok Barge Terminal (BBT) is a barge terminal operator and is a joint venture between Sahathai Terminal and MOL. BBT has been granted a permit from the Thai Custom to provide customs clearance procedures for both inbound and outbound cargo. We are the first private Inland Container Depot (ICD) river port in Thailand, providing containerized cargo transportation by both truck and barge. We have also received permission from the Thai Ministry of Public health to operate an in-port food, drug and pharmaceutical chemicals inspection control station.”

“Sahathai Terminal and BBT also recently signed a contract with ONE, the major Japanese shipping line (ONE is a combination of MOL, NYK and “K” Line – the three largest Japanese shipping lines), to provide port and other involved services. BBT is aiming to fully utilize its facility and winning this contract is a major push toward their goal this year.”

Beyond just port and terminal services, Sahathai Terminal also has barge, land transportation, and container yard services. “In our attempt to cover all aspects of containerized cargo transportation, we have also joined forces with Medlog and set up Bangkok Barge Service (BBS), which is currently serving the industry with a fleet of 17 barges, 15 of which are chartered and 2 are our own asset.”

Bangkok Container Depot Service (BCDS) is their third affiliate company. “BCDS provides container cleaning and maintenance service. The project was initiated last year with a total investment of THB 560 million. The facility is within the vicinity of Sahathai Terminal and BBT and phase 1 has already been open for service since April of this year. We are expecting to finish nearly all phases by the end of this year and will be in full operation come early next year. BCDS’ services will increase our capability in container maintenance and cleaning. BCDS processes containers in a space double the size compared to the same operation conducted inside Sahathai Terminal area. The service capacity is expected to be doubled as well once BCDS is up and running at full-scale. Moving the container cleaning and servicing operation outside Sahathai Terminal area has also increased work efficiency inside the port area. A road transportation service is the last affiliate business under Sahathai Terminal. Bangkok Trucking Services (BTS) is our trailer truck service operator.”

One of the most important factors behind Sahathai Terminal’s organic growth is their dedication and attention to services as Mr. Karuchit explained: “Mainly, we attend to customer needs as they come first and are our top priority. We try to expand our services to accommodate their needs. Container loading/ unloading, warehousing and free-zone warehouse services, container yard, road transportation, container cleaning, and general servicing; we do all of these in order to take complete care of our customers.

I would like to take this opportunity to share our gratitude towards all the generous support from every customer for trusting us with their valuable cargo. Another important factor is our staff; their dedication to the work and willingness to provide first class service in all aspects has resulted in Sahathai Terminal’s strong growth and continued advancement towards a bright future together.”

Sahathai’s strengths lie in their extremely convenient location and always on services and solidity from strategic partnership with two major ocean liners. Sahathai Terminal is aiming to grow into a comprehensive logistics provider to support Thailand’s growing export volumes, and the Thai Government’s Eastern Economic Corridor (EEC) project.

Ms. Sauwakun Karuchit, Chief Executive Officer, Sahathai Terminal PCL said, “Sahathai Terminal is a leading comprehensive port operator in Thailand. We provide terminal services for both feeders and barges. Our strategic location conveniently connects both Bangkok and neighboring Thonburi. We provide terminal services, operate a container freight station (CFS), and a container depot that also operates as a free zone. We also provide land transportation for containers from Bangkok to the Laem Chabang area. We also provide customs clearance, container repair and maintenance, freight forwarding and other value-added services.”

“In 2015, we partnered with Mitsui O.S.K. Lines (MOL) and jointly established Bangkok Barge Terminal Co. Ltd. (BBT). BBT provides coastal shipping services under international standards, and is fully equipped with modern technology and an experienced staff. The following year, we agreed to another partnership, this time with Mediterranean Shipping Company (MSC).

“More recently, we also acquired an Inland Container Depot (ICD) license from Thai Customs, allowing us to provide customs clearance service directly for import and export cargo processed through Sahathai Terminal, a first for a river terminal in Thailand,” Ms. Karuchit added.

Mr. Banchai Karuchit, Deputy Chief Executive Officer, Sahathai Terminal PCL, said that Sahathai Terminal has had solid financial growth with a total income of THB 1,080 million in 2016, an increase from THB 841 million in 2015 and THB 830 million in 2014. This growth comes from a major increase in container throughput and additional warehousing services. Sahathai Terminal’s net profit yield was THB 74 million in 2016, an increase from THB 25 million in 2015 and THB 36 million in 2014.

Through the first half of this year, Sahathai Terminal has reported a total income of THB 644 million and a net profit of THB 11 million, compared to THB 480 million and THB 35 million from the same period in 2016. The reduction in net profit comes from the initial start of BBT, which just began operations late last year. However, after being granted an ICD license, the container throughput has been growing continually and the outlook is looking like strong continued growth in the future.

Sahathai Terminal PCL has a registered capital of THB 230 million and Paid-up capital of THB 170 million. They are offering par value of shares at THB 0.50 and aiming to enter the MAI market soon.

About Sahathai Terminal

Opened in 2007, Sahathai Terminal spans over 168,000 square meters consisting of feeder, barge, and multi-purpose terminals, container maintenance and repair facility, on site customs clearance, warehouses, and inland transportation. Located on a strategic location surrounded by road networks and highways giving customers convenient ways to connect between Bangkok and other provinces. With full range of logistics services, modern equipment and expert personnel, Sahathai Terminal can serve all customer requirement.

For more information, please e-mail [email protected] or call +66 (0) 2386 8000.