The Tollway invests and joins forces with 21 auction partners

“Don Mueang Tollway” unveils a five-year plan (2023-2027) to expand by teaming up with partners to participate in 21 tenders for state projects. There would be 3 concessions “M5 Highway, Rangsit-Bang Pa-in”, as well as the management of Rama 2 Highway and Kathu -Patong. Phuket invests 40 billion to negotiate with the highway department to raise and lower 3 main points to solve the traffic jams in the city.

Covid’s situation is both a positive and negative factor for doing business. Indeed, the Don Muang Tollway Group has taken the opportunity to improve within the organization. The highlight is Mr. Thanin Panichewa taking the position of General Manager.

Then there is the promotion of former executives of the Expressway Authority of Thailand.  

Sakda Panwai, managing director of Don Mueang Tollway Public Company Limited or Don Mueang Tollway, abbreviated as DMT, revealed to “Prachachat Business” that the situation of COVID-19 in 2020-2021, despite the economic crisis that has occurred, the company can continue to pay dividends to shareholders. One of the main turning points came from the listing of DMT on the Stock Exchange of Thailand in May 2021, giving the company more ability to do business.

In this regard, from the cash flow and the loan amount of about 1,000 million baht, it has the ability to incur debt for the investment of 10,000 million baht while the interest debt is zero. This means that the state of the organization is able to compete in the government bidding.

The company plans at least one project bidding competition per year. The format includes an express lane construction auction, which is a mainstay of the company. 

“From now on, we are interested in participating in every competition that the government has opened to the private sector. The part will be more or less auctioned depending on the business opportunity that comes up. In the meantime, we have negotiated quite a few alliances.”

At present, DMT is concessionaire of the Don Mueang Elevated Expressway, a distance of 21.9 km, divided into 2 sections: the urban expressway, Din Daeng – Don Mueang Airport section with the city outskirts of Don Mueang Airport – National Monument with an elevated range of Memorial – Future Park Rangsit Highway Department Make the distance of Don Mueang Tollway to 28 km.

For the year 2022, Dr. Sakda said he plans to participate in the auction for 3 projects that are auctioned. 1. M5 highway, Rangsit-Bang Pa-in section, 22 km distance of the highway department The current value is 2.7-28 billion baht.

“The company had high hopes to get this work because it is an extension of Don Muang Tollway from Future Park to connect to the M6 Bang Pa-in-Korat highway. The value of the work is estimated at 27 billion baht. The price is currently affected by the Russian-Ukrainian war causing the cost to increase to 2.8 billion before selecting the winning bidder which is expected to be by the end of the year. The cost is expected to be increased to 30 billion baht.”

The other 2 projects are 2. M82 highway, Bang Khun Thian – Ban Phaeo. under construction The company wants to participate in the auction of expressway management contracts. The value of the concession is 2,000 million baht more or less. 

The third project is the Kathu-Patong Expressway Phuket Province which has been approved by the Cabinet. It is also interested in being a partner in the management of the expressway, with an expected investment of 2,000-3,000 million baht. The aim is to maintain the “Expressway Housewives” model.

The goal is to be more aggressive in the auction. It comes from the concept of non-paying road business. Therefore, in the bidding for some projects, Don Mueang Tollway is not a key partner, but a strategic partner, doing what it knows how to do, which is expressway management, with more than 30 years of experience as mentioned above.

Seen in this light, the investment opportunities are more open than before. Recently, there has been interest in participating in the Department of Highways rest area project auction. Currently, there are two projects awaiting auction in Bang Lamung and Sriracha, with land sizes of 20 rai and 50 rai, with a projected investment of 1,500 million baht.

“We have positioned ourselves as expressway stewards because we are familiar with concession contracts with traffic management in terms of toll traffic and expressway rescue, so our non-toll business allows us to compete in one year for bids for five projects.”

Dr. Sakda also mentioned this year’s investment plan. of the economic recovery trend causing an increase in traffic volume. 

The goal is to gain this year, 1.2 hundred thousand cars in circulation.

“This year, we are preparing to provide services to support the volume of 1.2 hundred thousand vehicles per day, both maintenance and rescue on the expressways.”

And it is expected that by 2023-2024, it can return to 1.5 hundred thousand cars per day, which is a record before the COVID era in 2019.