Klong Toey strike means B10m hit
Written by Admin on Thursday, September 4th, 2008
POLITICAL SHOWDOWN
Klong Toey strike means B10m hit
Costs 4,000 baht per container to move
POST REPORTERS
About 5,000 containers of export and import shipments at the Bangkok port were affected after more than a thousand employees of the Port Authority of Thailand (PAT) labour union went on strike yesterday. Shippers estimated the country could lose up to four billion baht a day from the strike, which is part of the anti-government protest led by the People’s Alliance for Democracy (PAD).
Suchart Chantaranakaracha, chairman of the Thai National Shippers’ Council, said the strike at Klong Toey port would cause serious damages if perishable goods and fashion products were left on the dock.
He said shippers might shift to Laem Chabang port in Chon Buri if the strike continues.
PAT director-general Sunida Skulratana said the union would have a meeting today to decide whether to continue the strike.
”We expect to know their decision by mid-day,” she said, adding that the strike had caused damages of about 10 million baht to the port on its first day.
Nearly 300 employees of the Port Authority of Thailand rally outside of the agency’s headquarters in Klong Toey to protest against the government’s handling of the political crisis. — SOMCHAI POOMLARD
Suwit Ratanachinda, president of the Thai International Freight Forwarders Association, said companies would have to pay an extra 4,000 baht for moving each container from Klong Toey to Laem Chabang.
The Bangkok port handles 40,000 containers a week for both export and import shipments.
Mr Suwit called on Prime Minister samak Sundaravej to step down to help reduce economic losses caused by the anti-government protests.
”The union will not stop unless the prime minister quits. The country and the private sector have been suffering until today because we are waiting for the premier to show his responsibility,” he said.
Tanit Sorat, vice-chairman of the Federation of Thai Industries (FTI), said the private sector planned to hold talks with PAT executives to help negotiate a quick end to the strike.
”What we are worried about is that the strike will expand to Laem Chabang port, which handles cargo of 4.9 million 20-foot equivalent units (TEU) a year. If so, it would have drastic impacts on our businesses and the country’s imports and exports,” said Mr Tanit, also head of FTI’s Logistics Industry Club.
Klong Toey is still one of Thailand’s major ports, with the capacity to handle a fifth of the country’s overall shipping, he said.
”The port is still popular because it is close to central Bangkok. Especially when oil prices are high, Klong Toey helps exporters and importers lower their costs instead of using the Laem Chabang port,” he said.
Meanwhile, the operations for all 15 terminals at the country’s largest port in Laem Chabang went on as scheduled yesterday because it is operated by private companies and not labour unions, a port official said.
Orachun Sripaplun, chief of public relations at Laem Chabang port in Chon Buri, said ocean vessels were still calling at the port and a number of containers were unloaded yesterday despite labour unions of state enterprises, including the PAT, calling for a strike.
”I would like to assure shippers that the businesses here are run by companies that do not want to see any break in their operations,” he said.
The PAT has awarded private contracts to operate Laem Chabang since its completion in 1992.
Last year, the port accommodated a total of 4.64 million TEU plus 697,209 vehicles that were shipped out abroad. Mr Orachun expected the cargo volume this year to surpass five million TEU, with over 800,000 units of automobiles.
Klong Toey, formerly the country’s main port, now handles only 1.3 million to 1.4 million TEU per year.
