SET-listed Ch. Karnchang Plc (CK), Thailand’s second-largest construction firm in terms of capital market value, expects annual revenue will exceed 40 billion baht after 2015 thanks to the junta’s planned 2.4-trillion-baht infrastructure investment.
Mr Plew gives a thumbs-up in front of a Blue Line tunnel beneath the Chao Phraya River. Ch. Karnchang is the contractor for the extension phase of the mass-transit route from Sanam Chai-Tha Phra. The tunnel is the country’s first river underpass. PATIPAT JANTHONG
The local construction industry has been upbeat ever since the military government approved a massive eight-year investment from 2015-22.
The funds will be injected into public infrastructure projects that were stalled by the political deadlock.
Chief executive and president Plew Trivisvavet said CK would also join continuing projects such as the electric railway system that could be the company’s main revenue contributor over the next two years.
The company had projected 2014 revenue at 30 billion baht but recently revised up the figure to 33 billion in response to positive factors.
Mr Plew said CK was ready to bid for any megaproject as a turnkey contractor or project operator, be it airport, railway or deep-sea port development.
“We very much have the capability to be a good-quality contractor in terms of human resources, financial liquidity and technology to support our work in the coming years,” he said.
Moreover, a 300-billion-baht water management project that was revised by the junta is another potential bid for the company, probably next year.
Mr Plew said 11 transport and infrastructure projects worth a combined 261 billion baht would open for bidding this year including for marine transport, airports, motorways and railroads.
Major projects include a 68-billion-baht extension of Suvarnabhumi airport, extension two motorways to the Northeast and Eastern Seaboard, also worth a combined 68 billion, and northern Bangkok’s Green Line electric train valued at 38 billion.
At the end of the second quarter, CK projected a backlog of 101.5 billion baht with revenue realised over the next three or four years.
The backlog comprises 10 billion baht from the extension of the mass-transit Blue Line, 15 billion from the Purple Line and 76.5 billion from the Xayaburi hydropower plant in Laos.
“Thailand will need more infrastructure in the future,” said Mr Plew.
“And after the Asean Economic Community takes effect in late 2015, a huge number of infrastructure projects will be initiated in neighbouring countries.”
CK Power Plc (CKP) plans to study the feasibility of renewable energy projects in the capacity of 100 megawatts from 2015-17, said Supamas Trivisvavet, managing director of the power subsidiary.
She said much of the new capacity now under development such as the Xayaburi and Nambak projects in Laos would not come online until after 2017, so CKP must try to find new capacity more quickly from renewable energy.
CKP targets power generation capacity of 2,310 MW in 2019, up from 874 MW now.
CK shares closed yesterday on the SET at 27.25 baht, up one baht, in heavy trade worth 2.01 billion baht.