Deputy Transport Minister Chadchart Sittiphan admits he has no excuse for last year's catastrophic flooding but says the government will do its best to make sure it will not happen again.
‘‘Building dykes around industrial estates is necessary but it is not enough. Industries can’t survive if they become dry islands surrounded by water with no logistics links.’’
CHADCHART SITTIPHAN
DEPUTY TRANSPORT MINISTER
"To solve the flood problem, we have to know what happened last year. From our survey, the problem is not that complicated," he told the 2012 Post Forum yesterday.
"It mainly has to do with some weak links in our water management system such as old watergates or encroachment into waterways."
The Strategic Committee for Water Resources Management (SCWRM) has estimated it will need to manage around 20 billion cubic metres of water this year to avoid another flood.
The first line of defence, Mr Chadchart said, will be the Bhumibol and Sirikit dams which together should contain 5 billion cu/m and be able to cope with sudden inflows from storms.
The second level of protection would be the 2 million rai of water collection areas, or "monkey-cheek" catchment areas which should absorb another 5 billion cu/m.
The remaining 10 billion cu/m of water, if it does arrive, will be contained by the drainage system below the Chao Phraya dam and a strategy comprising roads and watergates, which is where the Ministry of Transport comes into the picture.
"Building dykes around industrial estates is necessary but it is not enough," Mr Chadchart said.
"Industries can't survive if they become dry islands surrounded by water with no logistics links.
"We also found from our own survey in Ayutthaya that there are many SMEs [small and medium enterprises] that need protection too. The dyke is no answer for them."
The Transport Ministry has proposed local roads and logistic routes be elevated so they serve both as flood barriers and strategic links.
"Raising roads does not incur an extensive cost especially for those that run alongside the rivers. And it does not disturb the public that much," Mr Chadchart said. The proposal has been approved by the SCWRM and some of the road elevation projects are already under way.
The ministry plans to raise the level of roads by 50cm above the level which floodwaters reached in those areas last year.
In the immediate term _ six months to a year _ the Transport Ministry will elevate the section of the road from Bang Pa-in Industrial Estate to Rojana Industrial Park.
It will also dredge a third channel in the Chao Phraya River which will increase drainage capacity by 20%.
In the medium term, the King's Dyke will be extended to Khlong 7 and the lower Khlong Hok Wa.
The Chulalongkorn watergate will be relocated so it is further out into the Chao Phraya River near Tiwanont Road.
This will help authorities regulate the water flow more efficiently and protect such areas such as Don Muang and Muang Ek, Mr Chadchart said.
Over the next two years, the ministry will raise the level of several main roads linking Bangkok with outer areas.
To the north, it will extend the elevated Don Muang Tollway to Wang Noi in Ayutthaya. The link will serve as a feeder for the industrial estates in Ayutthaya as well, Mr Chadchart said.
To the south, Rama II will be elevated from Chalerm Mahanakorn Expressway to the southern ring road.
On the west side of Bangkok, the level of Boromratchonnanee Road will be raised beyond Phutthamonthon to Nakhon Chaisi.
‘‘We are pushing operations as fast as possible. By the third quarter, we expect 80 per cent of those companies affected to have restarted operations.’’
PONGSAVAS SVASTI
INDUSTRY MINISTER
Kickstarting industry
CHIRATAS NIVATPUMIN
More than 80% of Thai and foreign industrial companies affected by the 2011 floods are expected to restart operations by the third quarter, says Industry Minister Pongsavas Svasti.
MR Pongsavas said that of more than 830 companies affected by the flooding that hit six industrial estates and zones in Ayutthaya and Pathum Thani last year, 23% were able to resume operations by the end of last month.'
The figure is expected to rise to 40% by the end of this month, and 50% by the end of March.
MR Pongsavas said the remaining companies would take longer to recover, as firms in high-technology sectors such as semiconductors, electronics and hard disk drive manufacturing would need six to eight months to source new equipment to restart operations.
"But we are pushing operations as fast as possible. By the third quarter, we expect 80 per cent of those companies affected to have restarted operations," he said.
The 2011 floods took a devastating toll on the country's manufacturing sector, with millions of people affected and supply chains across the world disrupted.
MR Pongsavas said the floods, with damage estimated as high as US$50 billion, ranked as the fourth costliest disaster ever, behind the 2011 Sendai earthquake, the 1995 Kobe earthquake and Hurricane Katrina in 2005.
Authorities are now intent on creating barriers to safeguard not just key industrial zones, but also logistics links to ensure that even in the event of flooding, business operations and supply chains remain intact.
The Industry Ministry is pushing rebuilding programmes, including new tax exemptions from the Board of Investment (BoI) to encourage reinvestment and enable flood-hit companies to quickly restart operations.
The BoI will ease restrictions on outsourcing, the use of foreign labour and plant relocations to enable companies to continue to operate while they rehabilitate their affected plants.
Import tariffs on raw materials and parts will also be waived to help reduce costs.
The ministry has also established five centres in four provinces for use as temporary manufacturing facilities for small- and medium-sized companies.
"In Ayutthaya, over 100 companies are currently using the facilities while their factories are being refurbished. And we welcome more to come and use these facilities," MR Pongsavas said.
He expressed confidence the plans enacted by the government would help alleviate any threat of flooding this year.
"We have seen a rebound in industrial manufacturing and sharp gains in applications for investment promotion privileges," MR Pongsavas said.
"I am confident Thailand's position as a key manufacturing base within Asean remains unchanged."
![‘‘Liberalisation will result in added competition for local producers, from [foreign] companies with greater capital and technology. But it also presents us with new opportunities.’’
BOONSONG TERIYAPIROM COMMERCE MINISTER](https://static.bangkokpost.com/media/content/20120224/362609.jpg)
‘‘Liberalisation will result in added competition for local producers, from [foreign] companies with greater capital and technology. But it also presents us with new opportunities.’’
BOONSONG TERIYAPIROM
COMMERCE MINISTER
Exports start to bounce back
POST REPORTERS
Thai exports should return to normal levels by the second quarter, as more flood-affected companies restart operations with each passing day, Commerce Minister Boonsong Teriyapirom says.
The Commerce Ministry yesterday said Thai exports totalled just US$15.49 billion in November, a 12.4% decline from the same period the year before. Exports improved in December to $17 billion, down 2% from the previous year.
Looking forward, Thailand needs to continue to move up the value chain and take advantage of the global trend towards free-trade arrangements, Mr Boonsong told the 2012 Post Forum.
"We will push policies which benefit from the trend towards bilateral, multilateral and regional trade arrangements, with Thailand positioned as the gateway to Asean," he said.
"Yes, liberalisation will result in added competition for local producers, from [foreign] companies with greater capital and technology. But it also presents us with new opportunities for growth."
Commerce Ministry officials at trade offices around the world will take up the role of "matchmakers" to assist Thai companies reach potential new buyers and markets.
Officials will also look for opportunities for Thai firms to develop new sources for materials and parts that can be used in the production chain.
"We need to move up the value chain, and encourage differentiation in our products and services," Mr Boonsong said, singling out sectors such as software, agribusiness and key commodities like jasmine rice and tapioca as areas where Thailand enjoys a competitive advantage.
The Commerce Ministry would also expand its "Blue Flag" programme to help low-income groups suffering from higher living expenses in the wake of the devastating 2011 floods.
The ministry projects inflation in a range of 3.3% to 3.8% for 2012.
Mr Boonsong said the ministry would open 800 "Blue Flag" food canteens nationwide by the end of the year to assist households suffering from high food costs. The canteens would offer 10 common Thai dishes at 25 to 30 baht a plate.
The ministry this month announced a list of price guidelines for food courts. A dish of rice and curry or an omelette, for instance, should be priced at 30 baht at office canteens or 35 baht at shopping mall food centres.
"While we are committed to a free-market system, at the same time, the Commerce Ministry must guard against profiteering and unfair pricing practices," Mr Boonsong said.
The Blue Flag programme was launched in 1995 to offer foodstuffs and consumer goods at discounted prices to the public. The Internal Trade Department plans to double the number of stores to 8,000 by the end of the year.
