National oil and gas conglomerate PTT Plc is joining hands with national flag carrier Thai Airways International (THAI) to develop cargo services, with the ultimate aim of becoming a regional logistics leader.
The two firms plan to conduct a one-year feasibility study on the integration of their business expertise and the possibility of spinning off a new business.
"A study team has already been formed to look into the business potential of the two companies and a way to synergise it," said Suvadhana Sibunruang, acting chief executive of THAI.
Mr Suvadhana and PTT president and chief executive Auttapol Rerkpiboon on Friday signed a memorandum of understanding on the cooperation, which marks the start of an exchange of experts between the two companies in order to synergise their businesses.
The national airline has decades of experience in providing cargo services for the industrial and agricultural sectors, as well as transporting products that require special care, notably vaccines and medicines.
Despite the Covid-19 lockdown periods, THAI continued to operate its cargo services, using passenger aircraft as there were no commercial flights to help the company with its transport of goods, said Mr Suvadhana.
In April this year, THAI saw its goods transport flights, including those transporting fruit, rise by 123% to 87, up from 39 flights in March. Up to 78 of the total flights in April headed to China, with the remainder going to India.
Mr Auttapol said PTT can integrate its experience in land transport and warehouse operation in the northeastern province of Khon Kaen with THAI's business.
PTT was also awarded the right to the third-phase development of Laem Chabang deep-sea port in Chon Buri and the third-phase development of Map Ta Phut deep-sea port in Rayong. These two projects can benefit from the cooperation with THAI, he said.
"We want to integrate all types of transport in order to make Thailand a logistics centre of Southeast Asia," said Mr Auttapol.
