Growing demand for goods storage facilities is encouraging local warehouse service provider Best Bonded Warehouse Co to grab this business opportunity by allocating 2.4-billion-baht in capital spending -- a record high for the company -- to almost double its warehousing capacity.
The company plans to increase its storage areas to 400,000 square metres over the next couple of years, up from 174,000 sq m at present.
These storage areas are located on the Kingkaew, Bang Na-Trat and Rama III roads as well as in Navanakorn Industrial Zone.
Demand for warehouse facilities has risen significantly annually as goods delivery services have become more popular, driven by bustling online shopping, said Montri Kamprasert, managing director of Best Bonded Warehouse.
Many delivery operators are looking for warehousing services rather than developing their own facilities, which are more expensive, he said.
Building warehouses in the Eastern Economic Corridor is costly as land prices in the area are soaring, but this has given Best Bonded Warehouse an opportunity to expand its business.
Warehousing is also a solution to the container shortage.
Best Bonded Warehouse recently teamed up with SCG Express Co and FedEx Corp to enhance efficiency in logistics services.
Under its plan to further develop its business, Best Bonded Warehouse will add facilities on Rama II Road as well as in Navanakorn Industrial Zone and Laem Chabang in Chon Buri to serve customers in the Central region.
It will also expand its services to Chiang Rai's Chiang Khong district, Tak's Mae Sot district and Songkhla's Sadao district in order to facilitate cross-border trade.
Businesses that will benefit from the new facilities include those related to raw materials, food and beverages and goods ordered through online platforms.
The company will also allocate part of the capital spending for installation of rooftop solar panels at its warehouses, said Mr Montri.
This investment is aimed at cutting electricity bills as the fuel tariff will increase as a result of the global surge in oil prices.
The company expects to have up to 1,400 kilowatts of electricity generated by solar panels, which will be enough to meet electricity demand of 1,300KW during the daytime and peak hours.
Sitipon Charoenkajornkul, president of Best Bonded Warehouse, said the company plans to be listed on the stock market through a backdoor listing but declined to elaborate.