Kiattana transports other goods, unifies operations

MAI-listed logistics provider Kiattana Transport Plc (KIAT) has offered new logistics services to compensate for the revenue loss resulting from lower usage of liquefied petroleum gas (LPG) and low oil prices.

As the company is a leading provider of integrated logistics services for heavy metals, industrial wastes, chemicals, and hazardous substances, a sharp drop in LPG usage and low oil prices have taken a direct toll on Kiattana Transport’s business operations, said managing director Kirin Chuthammasathit.

“Revenue growth is normally 7-8% annually and net profit growth is usually 12%, but revenue growth and net profit are expected to decline slightly to 5% and 10% this year, respectively,” said Mr Kirin.

The company has increased other types of logistics services such as transport of consumer goods and food supplies, he said.

Kiattana plans to increase its logistics routes in neighbouring countries for client support. It is already routed to Vietnam and Myanmar, with a plan to expand its logistics trail in Myanmar through the company’s branch located in Tak province, said Mr Kirin.

“We are still looking for mergers and acquisitions for further business growth, but it has been difficult to conclude deals, especially with foreign companies because of certain regulatory problems, operation systems and unsuitable share prices,” he said.

The company has budgeted about 10 million baht to establish a control centre and install a centralised system to monitor transport routes, aiming to improve efficiency, said Mr Kirin. The new system will enable monitoring of trucks and drivers along with work processes through satellite GPS.

“Kiattana previously managed its operations through a decentralised system from eight centres nationwide. But a centralised system can collect all data, logistics routes, and other transport information, improving efficiency and reducing costs,” he said.

The firm’s customers are mainly in the mining, energy, smelter, petrochemical, and chemical industries. Its branches are located in Tak, Ayutthaya, Rayong, Samut Prakan, Kamphaeng Phet, and Khon Kaen provinces. A subsidiary is KGP Co Ltd, which is involved with generating and distributing electricity.

KIAT shares closed yesterday on the MAI at 60 satang, down one satang, in trade worth 8.5 million baht.