Bangkok--23 Jul--MT Multimedia
JWD InfoLogistics Public Company Limited (JWD) announces strong H1/2019 operating results of its business of storage and handling of dangerous goods, thanks to an increase in the quantity of dangerous goods through Laem Chabang Port. Continued growth during H2/2019 is expected. Seventy percent of the maximum capacity at the JWD Chemical Supply Chain (JCS) operations centre is being used. A deal with a big customer is expected to be closed to make the full capacity being used. Management is happy with the highest score earned by JCS, following inspection by the Department of Industrial Works as part of its initiative to lift the quality of storage places of hazardous substances.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD InfoLogistics Public Company Limited (JWD), an ASEAN top logistics and supply chain solution, revealed that the overall business of storage and handling of dangerous goods, which is part of the company's logistics service business, achieved a higher growth rate than that expected for the first half of 2019. The impressive growth was driven by the burgeoning demand for these services, when compared year-on-year. This corresponds with the high volume of import and export activities at Laem Chabang Port in Chonburi Province during the first six months of 2019, which recorded an average of 10,910 containers per month.
This record performance of the business of storage and handling of dangerous goods is due to (1) the increasing quantity of dangerous goods through Laem Chabang Port; (2) improved production lines of refinery and petroleum business operators, resulting in longer leases of storage space for dangerous goods, which are used as their raw materials; and (3) an increase in average storage period of dangerous goods manufactured for export, from an average of three days to an average of seven to ten days.
"The overall business of storage and handling of dangerous goods during the first half of this year was very impressive. We achieved rising sales of both goods storage services and handling of goods through Laem Chabang Port. Storage of dangerous goods is typically charged at progressive rates. That is, the longer a period of storage, the higher charge rate. From this perspective, we believe the business will continue to expand in the second half of this year," Mr. Charvanin said.
The company strongly believes that the demand for services of storage and handling of dangerous goods in the second half of this year will remain high, as business operators in dangerous goods-related industries tend to set up factories in industrial estates around Laem Chabang, following the new zoning restrictions imposed on Bang Pu, Krathum Baen, and Suk Sawat. Furthermore, it is more difficult than before to obtain permission for expansion of investment in tank farms in neighboring areas of Chao Phraya River. Meanwhile, stricter safety rules on handling of hazardous chemical substances have been adopted.
The 9,000-sq.m. JWD Chemical Supply Chain (JCS) operations center, a comprehensive domestic and international distribution hub at Laem Chabang Port, Chonburi Province, which offers services such as re-packaging, packaging, and sorting, also recorded positive growth. A majority of the company's customers who use these services are traders of chemical products, particularly large foreign trading companies that operate in Thailand. As of the end of June 2019, 70% of the maximum capacity was used. The company now expects to close a deal with a leading chemical manufacturer, which will result in the full capacity being used.
Chairman of the Executive Committee and CEO of JWD added that as part of its initiative for establishing standards for storage of hazardous substances in order to lift the quality of storage places for hazardous substances, the Department of Industrial Works inspected premises of a hundred providers of hazardous substance storage services. The JWD Chemical Supply Chain was one of the five places that passed the inspection, meeting all the minimum legal requirements. The company, in fact, obtained the top score of 100% among the five places that passed the inspection.
The top score earned by the JWD Chemical Supply Chain was thanks to its safety and emergency systems that meet standards. In the past, the company constructed, improved, and installed safety systems according to European standards. Additional equipment was subsequently added in certain areas. For example, both beam detectors and flame detectors were installed within storage rooms, although only either one of the detectors is required to be installed. Firewalls are one meter above the roof surface of every storage room, although they are required to be only 30 to 50 centimeters above the roof surface. The company believes the results of the inspection will promote customer confidence and attract even more customers.