30 April 2019
Ch Karnchang will focus its efforts on bidding for large construction projects in both the domestic and foreign markets, leveraging on the group’s extensive expertise, especially in managing large and highly complicated projects, the listed company said on Tuesday.
The company has set a 2019 revenue target at between Bt25 billion and Bt30 billion and aims to win construction projects in the Eastern Economic Corridor (EEC).
Chairman Plew Trivisvavet said Ch Karnchang would continue to focus on strengthening its business, leveraging on its subsidiaries’ diverse strengths in infrastructure development, including rail, road, energy and water supply systems.
Its subsidiaries include Bangkok Expressway and Metro, CK Power and TTW, all of which are listed firms.
Supamas Trivisvavet, chief executive officer of Ch Karnchang, said: “We are confident of maintaining growth momentum this year, considering our Bt48.965-billion backlog. We aim to generate Bt25 billion to Bt30 billion, considering the positive growth trend in the industry for the next few years. To achieve this goal, we will focus on three major areas – infrastructure projects in Thailand, the EEC and overseas investment.”
For Thai infrastructure projects, it is expected that a number of projects that are ready for calling bids and public-private partnership (PPP) projects worth Bt1.77 trillion will be available this year.
They include the Bt179.412-billion Thai-Chinese high-speed train project phase 1 from Bangkok-Nakhon Ratchasima; the Bt143-billion MRT Orange Line – Thailand Cultural Centre-Bang Khun Non; the Bt30.437-billion expressway – Rama III-Dao Khanong; and the Bt84.6-billion motorway – Bang Pa-In to Nakhon Ratchasima.
There is also the Bt55.62-billion Bang Yai-Kanchanaburi motorway, and the Bt397.084-billion SRT Double Track Phase 2, comprising nine routes.
The second focus is on EEC investment projects.
Most of these projects are jointly developed by the government and private sectors, such as the B224.544-billion high-speed train project linking Suvarnabhumi, Don Mueang and U-tapao airports, and the U-tapao airport expansion project worth Bt200 billion.
The company has been monitoring the progress on these projects closely, the CEO said.
As to overseas investment, Ch Karnchang will focus on Asian countries, especially infrastructure projects under the PPP model.
The company is particularly interested in low-risk projects with potential to generate significant returns, Supamas said.
At present, the company is studying the different investment avenues for US$400 million (Bt12.77 billion) worth of expressway construction in Yangon, Myanmar, and water-supply system development in Sri Lanka.
An additional hydroelectric power project in Laos, for which CK Power is in discussion with the Lao government, is expected to see progress shortly, she added.
In terms of ongoing project progress, Supamas said the company had achieved significant progress in all projects.
The Bt135-billion Xayaburi Hydroelectric Power Project in Laos is 93 per cent and will be commercially operated by the final quarter of this year.
The MRT – Blue Line (extension) contract No 2 is 99 per cent completed, while the MRT – Blue Line (extension) contract No 6 is 60 per cent completed.
Finally, the MRT – Orange Line (Thailand Cultural Centre-Min Buri) contracts 1, 2 and 5 are 20 per cent completed, she said.