After listing on the stock market last November to acquire funding for future expansion, SET-listed marine logistics provider Sahathai Terminal Plc (PORT) is keen to broaden its regional outlook.
Sahathai raised 526 million baht from its initial public offering on the Stock Exchange of Thailand.
Director and deputy chief executive Banchai Karuchit said the company is seeking mergers and acquisitions and talking with two firms in Asean, expecting deals to be completed this year.
"Our operation is 100 percent local, but M&A will allow us to expand overseas," he said. "We are interested in new markets that have many opportunities in the logistics sector, neighbouring countries in particular, which are growing at a faster pace than Thailand."
Mr Banchai said Sahathai expects to pick up the company's growth pace once its regional expansion plans get under way.
The company is interested in investing in a marine port business in neighbouring countries because of their bullish economies and "blue ocean" conditions.
"Sahathai is an expert in the port and water transport businesses, so entering countries where there is already high demand will help in our investment decisions," Mr Banchai said.
He expects to disclose at least one of two deals if all goes according to plan, expecting annual revenue to grow significantly.
Founded in 2007, Sahathai has two ports in service -- Sahathai Terminal and Bangkok Barge Terminal -- spanning 168,000 square metres on the Chao Phraya River.
The company has four business units: containerised cargo, multipurpose terminals, warehousing and value-added services such as freight forwarder, container depot, agent and subcontractor.
Mr Banchai said Sahathai has expanded its container depot area in Phra Pradaeng to serve demand growth since last year, expecting the first phase to be completed by midyear and the second phase to be completed next year.
"We expanded the plot from 15 rai to 37 rai and expect container volume to double to 300,000 next year," he said.
Sahathai Terminal on the banks of the Chao Phraya River in Samut Prakan province.
Mr Banchai also has a positive outlook for the government's flagship Eastern Economic Corridor (EEC) project, saying it will be another milestone for the country's logistics sector.
He said the EEC scheme should raise demand for container transport between the company's port in Bangkok and Laem Chabang port in Chon Buri.
"I project the transport flows between the two ports will rise by 3-7% annually after the EEC project is implemented," he said.
To deal with further expansion from the EEC, Sahathai plans to bring on two barges to transport heavy goods. The company expects demand from marine transport to increase over the next five years until 2023, as this form of logistics is relatively cheaper.
Mr Banchai said Sahathai has prepared an investment budget of 300 million baht for future expansion in 2018-19, which is not included in the M&A plan.
The company is talking with the Chinese giant Alibaba to expand its warehouse in Bangkok to serve Thailand's bullish e-commerce market. Sahathai is also in talks with German luxury carmaker Mercedes-Benz Thailand to expand warehousing for auto parts.
"Both companies are now major port customers, and they want to expand their warehouse space in Bangkok to serve their core logistics routes," Mr Banchai said.
The company expects to seal those deals soon.
In 2018, Sahathai targets revenue growth of 10%, aiming for 1.2 billion baht.
PORT shares closed last Friday on the SET at 8.35 baht, up 15 satang, in trade worth 32.6 million baht.