The project to connect Thailand to a deep sea port at Dawei in Burma has been in the planning stages for a long time.
Thailand will not connect to Burma via an Isthmus of Kra canal, as visualized many years in the picture above, but rather via roads and railway (Read previous articles #1 and #2).
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BURMA PROJECT: Ital-Thai looking for partners by Yuthana Praiwan
Italian-Thai Development Plc, Thailand's largest construction company, will seek strategic partners to co-develop its 75-year landlease development project worth US$58 billion in Dawei, Burma.
Chairman Premchai Karnasuta said more than 20 investors have been approached to become the project's strategic partners and they would co-invest in the first phase worth $8 billion that involves key infrastructures such as a deep-sea port, roads and railways linking to the Thai border in Kanchanaburi.
We will take about six months to finalise our partners. After that, we will run at full capacity to develop the project," he said.
ITD will develop this mega-project through its wholly-owned subsidiary, Dawei Development Co (DDC), with $100 million in registered capital. ITD signed the landlease with the Myanmar Port Authority last week.
A 160-kilometre road linking to the Thai border is being built to prepare for transporting construction materials to Dawei with expected completion next April.
Mr Premchai said the landlease agreement with the Burmese government covers 250 square kilometres or 170,000 rai. The first phase comprises major infrastructure and will be developed from 2010-15. The second phase worth $50 billion will be an industrial estate, which will include heavy industries such as power plants, an oil refinery, a petrochemical complex, and steel and fertiliser plants. The estate will attract industries from 2016.
DDC may allow investors to join as an industrial estate operator to manage the area.
Local policymakers in Burma are now drafting regulations to make Dawei a free trade zone to facilitate industrial developments in the future.
I believe developed countries with trade sanctions on Burma may lift their bans. The sanctions that have lasted over two decades only serve to make the locals poor. With the massive investments in this project creating jobs, why not take part?" Mr Premchai said.
An analyst said ITD will definitely return to profit this year. Three of six analysts marked ITD to profit nearly 1 billion baht in 2010 and nearly 500 million baht in 2011. ITD lost 2.66 billion baht in 2008 and 1.77 billion in 2009.
In addition to operating results, share sales in its subsidiaries such as 15% in the Nam Theun 2 hydroelectric plant worth $110 million a month ago and a 10.8% stake in Toyo-Thai Corporation this week will drive returns, said the analysts.
ITD reported backlog projects as of Sept 30 at 51 billion baht, with another coming worth 100 billion baht, which will generate revenue for ITD in 2011 and 2012
Mandated projects will generate 460 billion baht, particularly mega-projects in Vietnam, Laos and Malaysia.
The company is now considering selling a portion in the Asian Pacific Potash Co's operations in Udon Thani and Laos, in which ITD holds 90% and 40% shares, respectively. The company aims to raise capital for the new development project in Dawei.
This year, ITD expects sales may drop by 10% to 40 billion baht but will rise 25% to 50 billion next year.
ITD shares closed yesterday on the SET at 4.82 baht, down 12 satang, in trade worth 645 million baht.
(Source: Bangkok Post, BURMA PROJECT, Ital-Thai looking for partners, 9/11/2010, Yuthana Praiwan, link)
isthmus - a narrow strip of land connecting two larger land areas usually with large bodies of water on each side (See Wikipedia)
Isthmus of Kra - the narrow land bridge connecting Malaysia with the rest of Asia (See Wikipedia
Kra Canal - canal across the narrow Isthmus of Kra near Surathani chare by Thailand and Burma (See Wikipedia)
Dawei - also known as "Tavoy", a small Burmese city on the thin Isthmus of Kra shared by Thailand and Burma (See Wikipedia)
construction - the work of building or making something, especially buildings, bridges, etc. การก่อสร้าง
strategic - done with a special plan to achieve long term goals
partners - the companies owning part of the joint venture หุ้นส่วน
co- - do together with another person or organization
co-develop - develop together with another company
development - the gradual growth and formation of something
co-invest - invest together with another person or company
key - important คนสำคัญ
port - an area of water where ships stop, including the buildings around it ท่าเรือ
deep sea port - a landing place for very large ships (See Wikipedia) ท่าเรือน้ำลึก
border - the official line separating two areas, regions or countries เขตแดน อาณาเขต
finalise - bring to and end (examples: finalize an agreement, finalize the selection of partners, finalize our decision)
capacity - the ability to do something, the amount that a factory or plant could produce if all the equipment was in use all the time ความสามารถในการทำงาน
run at full capacity - produce the greatest amount possible (maximum) by using all machines and supplies available
subsidiary - a company that is owned or controlled by a larger company บริษัทลูก, บริษัทในเครือ
wholly-owned subsidiary - the company owns all the shares of the subsidiary (not just control of 50%+)
registered - officially recorded as a business with the government (and given permission to operate)
capital - the money of owners invested in a business (See glossary)
expected - believe will happen คาดว่า (จะเกิดขึ้น)
lease - renting something for a period (not own but can use for period of time in exchange for regular payments)
landlease - renting the use of land for a period of time
first phase - the first part of a long project (to happen over a period of time)
X comprises Y, Z, ... - X includes Y, Z ...
infrastructure - the high-cost facilities that everyone in the economy shares (water, roads, electricity, trains) สาธารณูปโภค (See Google Definitions)
power - energy in the form of electricity produced in large quantities and used to operate lights, machines, and heating
plants - factories
power plant - factory in which electricity is produced
refinery - a factory that makes some chemical like oil pure, a factory that purifies a chemical
petrochemical - chemicals made from oil ปิโตรเคมี
complex - an area or set of buildings that has several parts
fertiliser - a natural or chemical substance which is spread on the land or given to plants, to make plants grow well ปุ๋ย (See Wikipedia)
attract - to cause someone to be interested in something ดึงดูดความสนใจ
industrial estate - a special area especially for factories with special facilities (roads, transportation, water, electricity, waste disposal) (See Wikipedia)
drafting - writing
regulations - rules made by the government to control how some activity is done กฎระเบียบ
trade - the buying and selling of goods การค้าขาย
free trade zone - same as "free trade area"
facilitate - to make it possible or easier for something to happen ทำให้สะดวกขึ้น
sanctions - punishment for countries that have broken international law (that restrict trade and official contact)
lift - to end a warning, a restriction, etc. ยกเลิก
ban - a rule that says you cannot do something, restriction
lift ban - end a ban
decades - periods of ten years เป็นสิบๆปี
locals - people who live in a particular place ชาวบ้าน
massive - very large in size, amount or numberใหญ่โต, มหาศาล
profit - money that you make from selling goods and services after all your costs have been paid กำไร
operating results - how well a company did during a period of time (revenue, profit)
share sales - selling stock shares (part ownership of company)
subsidiaries - a smaller company owned or controlled by a larger company บริษัทสาขา
hydroelectric - electricity generated from river flowing in a river
stake - a share or a financial involvement in something such as a business
drive returns - control how much a company makes
backlog - many things that you must do (work waiting to be done, not done yet)
generate - create, produce ก่อให้เกิด สร้าง กระตุ้นให้เิกิด
revenue - income from taxes or business activities รายได้
mandate - permission to do something given by some power or authority
mandated projects - projects for which permission has already been given
portion - a part of something ส่วน
potash - a chemical used in fertilizer
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