National oil and gas conglomerate PTT Plc is diversifying into yet another non-oil business by setting up a logistics firm to provide goods transport and management services.
The move is in line with the 13th National Economic and Social Development Plan, which promotes modern logistics and infrastructure development, as well as PTT's plan to invest in S-curve businesses, which promise rapid growth, said Auttapol Rerkpiboon, president and chief executive of PTT.
The latest investment, which was approved by the PTT board of directors, was made through PTT's wholly-owned Siam Management Holding to establish a new company, named Global Multimodal Logistics.
The registration of Global Multimodal Logistics was completed yesterday, with registered capital of 230 million baht, according to a letter submitted to the Stock Exchange of Thailand.
Global Multimodal Logistics aims to connect key transport channels together to facilitate entrepreneurs and connect domestic transportation with international transport networks.
With these new logistics services, businesses can reduce logistics costs and increase their competitiveness in the market, said Mr Auttapol.
"The new company will offer freight services through road, rail, sea and air transport systems," he said.
Cold chain management, which involves a process to safely transport temperature-sensitive goods, and property management will be also included in the services provided by Global Multimodal Logistics.
A detailed business plan and direction of the new company as well as its capital spending will be concluded by the end of this year.
Logistics business is the latest venture of PTT which has diversified into a variety of non-oil businesses, including electric vehicles (EVs), EV batteries, renewable energy and hydrogen fuel, as well as medical products.
PTT's wholly-owned Arun Plus Co earlier formed a joint venture with PTT's power generation arm Global Power Synergy Plc in order to produce EV batteries using technology from Boston-based 24M Technologies Inc of the US.