PTT Plc, the colossal titan of Thailand’s oil and gas landscape, finds itself at a pivotal crossroads, re-evaluating its roadmap through the bustling alleyways of logistics. Once entrenched in the cradle of petroleum, this national giant is now contemplating an adventurous foray into non-oil territories, eyeing fresh investment vistas and a revamp of its business persona in the ever-evolving logistics world.
At the helm of this bold initiative is Chaya Chandavasu, the indefatigable Senior Executive Vice-President for Corporate Strategy at PTT. Chaya insists on a meticulous dissection of the competitiveness of PTT’s non-oil ventures before taking the plunge into this new business frontier. The cornerstone of this venture is Global Multimodal Logistics (GML), a dynamic offspring birthed in 2022, under the careful nurturing of Siam Management Holding Co., another thriving branch of the PTT family tree.
GML is a brainchild crafted to resonate with Thailand’s ambitious 13th National Economic and Social Development Plan for 2023 to 2027. This comprehensive blueprint places a magnifying glass on modernizing logistics and infrastructure, with PTT poised to surf this transformative wave. Their arsenal includes a gamut of services spanning rail and land transport, air logistics, cold storage management, and logistics lease management. The mission at hand? To amplify competitiveness while hacking away at logistics costs in this cutthroat arena.
But let’s not get ahead of ourselves. While PTT plunges into these novel ventures, it’s not an abandonment of its oil and gas romance. Chaya ardently reassures that PTT still holds a burning passion for logistics investments linked to oil, gas, and petrochemical goodies. The conglomerate is neck-deep into the third phase of expanding logistical facilities at two pivotal deep-sea portals. The gargantuan Laem Chabang in Chon Buri and the critical Map Ta Phut in Rayong are being groomed to bolster oil transportation prowess and double as indispensable depots for liquefied natural gas.
An audacious investment of a whopping 114 billion baht is slated to rev supercharge the Laem Chabang facility by 2027, with a sizzling follow-up of the 55.4 billion baht Map Ta Phut facility in line for a similar launch the same year. Chaya underscores PTT’s recalibration towards a streamlined portfolio, laser-focused on businesses where they can outmaneuver their rivals. “Our focus remains squarely on businesses we specialize in, ones where we can lock horns with competitors,” she confidently declares.
But hold onto your hats, because it’s not just the logistics that PTT is shaking up. In a twist more surprising than a carnival funhouse, PTT has hit the brakes on its electric vehicle (EV) aspirations. Believe it or not, PTT has opted to divest its shares in Horizon Plus—a joint venture initially fired up to blaze the trail in domestic EV manufacturing. Faced with an escalating tidal wave of market competition, this decision was nodded through by Horizon Plus shareholders, sealing the deal and carving PTT out of this particular narrative.
With these dynamic upheavals, PTT Plc is perched at an intersection between tradition and transformation. As Thailand’s economic horizon continuously shifts and morphs, PTT’s strategic recalibrations in both logistics and EVs illuminate its adaptability and ambition to remain at the cutting edge in this fiercely contested global stage. Whether it’s fuelling the future or charting new courses in logistics, the entire world fixates on PTT’s next daring stride. Where will this journey steer next? Only time will tell.
Wow, PTT diving into logistics and cutting back on EVs seems odd. Aren’t electric vehicles the future?
You’d think so, but maybe they see more potential in logistics with the immediate returns given the current infrastructure setup.
PTT probably has insights we don’t. Logistics might be less sexy than EVs but it’s incredibly crucial and potentially more profitable right now.
I suppose you’re right, but I’m skeptical. They should be leaders, not followers!
PTT’s move is just solid business sense. Logistics is about to explode with global supply chain evolution, mark my words!
Absolutely! With the world’s pivot to efficiency, the logistics sector is prime for innovation and profit.
Fair point, but can they really compete with established logistics giants globally?
Good to see PTT still invested in oil and gas logistics. Can’t shift all focus to renewables just yet.
But isn’t that exactly why the climate is in trouble? We need a stronger focus on renewable energy!
Renewables are important, but oil and gas still power the world. Transition takes time.
Interesting how they’re pulling out of the EV race. Does this mean they’ve noticed a bubble forming?
Could be that. Or perhaps it’s simply not their forte, and they know when to walk away.
You’re probably right. Better to quit early than to sink.
114 billion baht in Laem Chabang by 2027? Those are some serious numbers. They’re betting big on logistics!
They wouldn’t unless they were confident. It’s high risk, high reward!
Companies like PTT adapting to logistics are smart. The infrastructure enhancements in Thailand will be game-changing.
Never thought I’d see the day a petrol giant focused on logistics instead!
It’s a natural progression with the global delivery economy. Everyone wants a slice.
Makes sense, especially when delivery demand is skyrocketing.
What a bold strategy shift by PTT! Aligning with Thailand’s economic plan shows foresight and adaptability.
With PTT focusing on logistics, they might set standards in Southeast Asia. Watch out FedEx and DHL!
I wonder how this pivot will affect employees used to the oil sector. New skills required?
Hope PTT’s long-term plan includes environmental sustainability. Logistics can be carbon heavy.
Good point! Large corporations must integrate green practices or the planet pays.