SingPost Warehouse Source: Bangkok Post, Thailand Post Logistics Unit Expected To Turn Profit

SingPost Warehouse, Source: Bangkok Post

The company’s logistics revenue is expected to reach THB 480 million, a 60% increase from THB 300 million in 2015.

“We also expect to break even this year, after facing a loss of 100 million baht last year, thanks to our cost-effectiveness strategy”, said Warakan Srinualnad, chief executive of Thailand Post Distribution, the logistics arm of Thailand Post.

Thailand’s logistics market has experienced an average annual growth rate of 15% per year, highlighting a growing need for high-class logistics service.

Thailand Post began its logistics operations in 2015, mainly serving the pharmaceutical industry, ecommerce and warehouse management. The company has nine of its own storage and distribution facilities in major provinces.

The company projects revenue from its medical and pharmaceutical services to account for 80% (THB 384 million) of the total this year. Ecommerce is set to account for 12% and its warehouse management service is set to generate 8%.

“Thailand Post Distribution expects revenue from its ecommerce service to surge to THB 58 million this year, as that market is booming,” comments Srinualnad.

A version of this appeared in Bangkok Post on June 24. Read the full article here.