GROWTH

Helping industrial estates with SEZ reach Thailand 4.0

The continuing phases of Thailand's new economic models have been launched to accelerate the national industrial estate development to reach the Thailand 4.0. The Special Economic Zone (SEZ) policy is driven by the Industrial Estate Authority of Thailand as part of the government's vital mechanism to support growing economic potential as well as its strengths in fundamental facilities and skilled labour costs. The projects are as follows:

Sa Kaeo Industrial Estate

Located at Thailand's eastern gateway known as the East-West Economic Corridor (EWEC), Sa Kaeo Industrial Estate is the connecting point to Cambodia (Poipet-Oniang provinces) and the maritime trade route to South Vietnam. I-EA-T has increased the value for the designated area by revamping the estate to support the growing bases of manufacturing capability mainly focusing on labour-centric industry as well as international logistics and cargo industries.

The industrial vicinity at Pa Rai Sub-district, Aranyaprathet District, Sa Kaeo Province is divided into five strategic areas including general industrial estate, 241.94 Rai (36.63%); logistics service area, 89.18 Rai (13.5%); free trade zone, 59.45 Rai (9%); commercial area, 36.95 Rai (5.59%); public-utilities area (managed by I-EA-T office and Industrial support unit), 163.43 Rai (24.74%), and; green and buffer areas, 69.6 Rai (10.54%).

Sa Kaeo Industrial Estate aims to distribute the investment to the region by focusing on the benefit gains for factory operations as well as generating income to the residents in the communities, reducing the unemployment rate and labour migration. The prospective industries include processed agricultural products and foods, textile and apparel, gems and jewellery, automobile, electronics, plastic, and logistics and distribution service centres.

The area of 3 Rai 2 Ngan 84 Sq. Wah is currently leased to a cleaning solution company and another 6 Rai 3 Ngan 84 Sq. Wah is leased to used apparel, shoes and costume accessories packaging service providers. The available leasing area is accounted for 442 Rai 1 Ngan 48 Sq. Wah and has already been developed for investment purposes. The provision of facilities include 3 standard manufactures (five units) which are one 1,000 sq. m and two 500 sq. m manufacturers.

The designated areas for SME related investment and the public all-purpose space are accounted for 25 sq. m comprising four manufactures (20 units). The first phase of construction was completed in January 2018 and has already opened for business, which includes OTOP and agricultural products. In addition, road construction, flood prevention system, irrigation system, wastewater treatment system, groundwater banking, and electricity establishment are to be completed by 2018.

Songkhla Special Economic Zone

Established as the government's significant economic model, Songkhla Special Economic Zone aims to raise the competitive levels among domestic and international traders to participate in AEC with full competency. The 1,196 Rai 2 Ngan 20 Sq. Wah estate on Highway 4 at Samnak Kham Sub-district, Sadao District, Songkhla Province is divided into seven sections: general industry, 289.624 Rai (31.21%); free trade zone, 81.282 Rai (8.76%); logistics service, 119.571 Rai (12.89%); commercial area, 48.269 Rai (5.2%); electric station, 8.663 Rai (0.93%); public utilities area (managed by I-EA-T office and Industrial support unit), 277.65 Rai (29.92%); and, green and buffer area, 102.866 Rai (11.09%).

Infrastructure and other facilities developed to accommodate investors include

  • Road system: Highway 4 has been enlarged to four lanes featuring 40 metres minimum width and traffic surface featuring 13 metres minimum width.
  • Irrigation system: water storage capacity is 3,443 cubic metres which is 200 cubic metres higher than the standard water supply requirement in the estate.
  • Electricity system: Electricity sub-stations are established in the estate and managed by PEA
    • Wastewater treatment system: Two provision of Activated Sludge (AS) wastewater treatment systems are provided to clean all wastewater in the estate. The total treatment capacity is 2,500 cubic metres/day which is 200 cubic metres higher than the usual waste produced per day
  • Other facilities include a school and hospital to accommodate the members in the community.

The area allocations in the estate have proceeded with minimal impact to environment and the public. The increased convenience gained from the integrated infrastructure and facilities not only improves quality of life but also encourages economic growth in the area. New investment helps promote employment, local raw materials demand, and other investment support businesses such as construction, retail shops, and accommodation.

The target investments suitable for Songkhla Special Economic Zone are processed agricultural products, logistics, industrial services, automobile and mechanism parts, electronics manufacturing and accessories, and light industry.

Map Ta Phut Industrial Port Development Project, Phase 3

The project has been developed under the Eastern Seaboard economic model to serve large sized industries including petrochemical, fully integrated steel, chemical fertiliser, and soda ash.

Until now, I-EA-T has completed the area development phases 1 and 2 with land reclamation process covering 1,400 Rai comprised two vessel ports for liquid cargo terminal and general products. The total logistics terminal port area of 1,470 Rai also includes a navigation channel and manoeuvring basin which have been designed to accommodate sizes and numbers of vessels as well as increased safety.

As per Map Ta Phut Industrial Port Development Project, Phase 3, I-EA-T continued the landfilling process to increase the port capacity to 550 Rai and 450 Rai for sediment trap. The total port area of 2,200 metres helps enhance the traffic capacity and logistics of the increasing liquid and energy products (petrol and natural gas) demands in the future.

I-EA-T has realised the potential of Map Ta Phut Industrial Port Development Project as a vital terminal for goods transfers and a logistics centre of ASEAN, which is widely recognised as the gateway to international trade. Map Ta Phut Port is the essential strategic connection to the Eastern Economic Corridor, bordering Dawei (Myanmar) Deep Sea Port - Laem Chabang Port - Map Ta Phut, to Cambodia and Vietnam. This designated areas aim to become the potential trading gateway connecting ASEAN together to serve S-Curve and New S-Curve investment and to increase advanced development in the region including new employment, community economic systems, and increased financial flows encouraging revenue to the public. In addition, the development has driven national economy and support Ministry of Energy plan to build up energy stability in the country.

In this coming year 2019, I-EA-T will offer investment opportunities for private sectors to participate in joint venture businesses covering all infrastructure in the Map Ta Phut Port Industrial Port Development plan. I-EA-T will support the investment in the early stage with the maximum sum of 12,900 million baht to increase liquidity as well as to reduce difficulties in finding capital resources. The investment patterns are as follows:

  • Gas vessels operators (B estate) taking part in infrastructure and superstructure investment value of 47,900 million baht (200 Rai)
  • Liquid vessels operators (A estate) taking part in superstructure investment value of 4,300 million baht (200 Rai)
  • I-EA-T taking part in infrastructure investment value of 12,900 million baht for 30 years and the private sector is responsible for front port rental payment, back port rental payment, customs fees, and upfront fees for A estate (maximum 3,396 million baht) and B estate (maximum 3,000 million baht)

Map Ta Phut Industrial Port Development Project, Phase 3 is divided into 2 stages as follows:

  • First stage: Selecting the private enterprises to take part in the joint venture investment. The eligible enterprises will be granted authority to develop the portal area of 1,415 metre and back of the portal area of 200 Rai.
  • Second stage: Selecting private enterprises to take part in the investment of landfilled areas from the first stage. The areas include an 814 metre-long LNG Terminal, 200-Rai back port, and 150-Rai Cargo or related business.

Smart Park Project

The 1,500-Rai ecological and innovative based industrial estate is located on Highway 3, Sukhumvit Road, Map Ta Phut Sub-district, Mueang Distric, Rayong province. The pilot project has been allocated a 2 billion baht budget to move Thailand vigorously towards Thailand 4.0. The cluster-based design provides investors with convenience and increases accessibility to connect with other similar or interconnected industrial businesses.

By supporting such a pivotal module, Smart Park has been developed with an internal traffic system in accordance with the zoning plan. The environmentally-friendly Tram and buggy are the main modes of transportation for commuting within the estate to help increase safety and reducing pollution. Other industrial facilities include CCTV, central water chiller system, and underground facilities tunnel. In communication front, a Data Farm has been established as the central information centre while Community Mall, Fair Trade Centre, and Community Market have been launched to serve investors and industrial residents' lifestyles.

The potential prospective industries are relevant to highly advanced and eco-friendly industries including Robotics, Aviation & Logistics, Medical Hub, and Digital.

I-EA-T has recently signed investment contracts with six remarkable national organisations, namely EEC, BIG, PTTPL, BCPG, Gusco and BTS, which are in the process of submitting the environmental impact analysis reports to related partnership networks. The tentative construction plan is to commence at the end of 2020 and slated to open for business within two years after completion.

Rubber City Industrial Estate

Rubber City located in Cha Lung Sub-district, Hat Yai District, Songkhla province has developed the project to promote use of rubber in the industrial sector, and to increase rubber products' value through innovative manufacturing processes which will eventually drive the domestic rubber price higher.

During the development period phases 2 and 3, I-EA-T has conducted a development scheme for Rubber City by dividing the designated area into two sections; Southern industrial estate office 2,381-1-06 Rai and Project area (Phase 2/2 and 3) 1,248 Rai which is made up with infrastructure area accounted for 619 Rai (49%) and the industrial area accounted for 629 Rai (51%).

Rubber City has been enhanced with establishment of worthwhile infrastructures as follows:

  • Road system: 40 metre-primary street (4 lanes divided) and 22 metre-secondary street (2 lanes divided)
  • Electricity system: maximum 60 kVA/Rai
  • Irrigation system: Water is transferred from 2,000,000 cubic metres reservoir to the destination 7-10 cubic metres/Rai/day
    • Central wastewater treatment system: AS system installation. The total treatment capacity is 12,000 cubic metres/day
  • Communication and telecommunication system: Serving 2,048 landlines and internet connections (glass fibre cable and lease line)

According to business forecasts, once the utility area is fully cultivated, the use of rubber will rise to 9,000 tonnes per year which will generate approximately 450 million baht per year in revenue for rubber farmers. Meanwhile, processed rubber products will generate 10 times the revenue, or 4.5 billion baht.