The Treasury Department has awarded a 30-year concession to Phuket Deep Sea Port Co to manage the deep-sea port in Phuket's Vichit subdistrict, while the concessionaire aims for an annual 10% increase in cruise passengers stepping ashore at the port.
Phuket Deep Sea Port Co beat Phuket Future Port Co to grab the concession contract with a management fee offer of 345 million baht -- well above its rival's offer, as well as the Treasury Department's minimum price of 116.9 million, said Patchara Anuntasilpa, director-general of the department.
Under the contract, the winner must pay a fixed fee of 15.5 million baht each year for the first five years, plus revenue-sharing of 5% before expense deductions every year. The fee will be raised by 15% every five years.
The 30-year contract started from May 1 this year.
The Treasury Department owns over 40 public and commercial ports, of which 35 are located along the Chao Phraya River.
Wallop Pongluengdhama, general manager of Phuket Deep Sea Port, said 200,000-300,000 cruise passengers come ashore at the Vichit deep-sea port each year, 99% of whom are foreigners, mostly from China, Malaysia and Singapore.
Cruise liners have already made reservations to dock at the deep-sea port until 2021, Mr Wallop said.
The number of tourists in Phuket is increasing and cruise travel to there is gaining in popularity, he said.
The company was earlier granted a contract worth 132 million baht from the Treasury Department to expand the deep-sea port to facilitate larger cruise ships.
Under the contract, the 350-metre quay will be enlarged by 60 metres to serve cruise vessels of 240-340 metres in length.
A 340m cruise ship can accommodate up to 8,000 passengers, 6,000 of whom tend to be tourists. For a 240m cruise vessel, a maximum of 2,500 passengers can be accommodated, of which 1,500 are tourists.
Moreover, construction of a passenger hall and landscape improvements are part of the plan.
The renovation is expected to be completed in 18 months.
The company plans to develop the deep-sea port into a home port concept, offering facilities similar to those found at Suvarnabhumi airport, Mr Wallop said.