What's new in business news: August 6, 2013

Phuket's overcrowded airport adds capacity, protests threaten GDP growth & in protest over garbage power plant villagers burn mock coffin.

AIRPORTS

Overcrowded Phuket airport: Plans to add capacity

The overcrowded Phuket airport will get some quick relief by the end of the year with a temporary new passenger terminal able to handle 3 million passengers a year.

The airport's main expansion, costing 5.8 billion baht, will be completed in mid-2015.

The AoT board also asked management to conduct a feasibility study for a second runway at Phuket to meet future demand growth once the current expansion is finished.

The temporary passenger terminal will be located away from the existing terminal, will have 10 check-in counters and will be used for passengers on international charter flights who will then be transferred by bus to the main terminal for security and immigration formalities.

Phuket airport's traffic volume is expected to reach 10.5 million this year, well beyond the 6.5 million the present terminal offers.

The ongoing main expansion will increase Phuket's annual passenger handling to 12.5 million.

The new multi-storey terminal, able to handle 5 million passengers a year, will be for international travellers.

The present terminal will be used solely for domestic passengers once its upgrade is done in mid-2015, giving it a yearly capacity of 7.5 million passengers.

But by the time Phuket's main expansion is completed, the incremental capacity will be absorbed by the growing traffic, which is projected to grow to 12 million in 2015 if not more.

There are also plans to attract airlines to Krabi airport as an alternative to congested Phuket international airport with a ferry link between the two airports.

Krabi handles only a million passengers a year, despite having the capacity to handle up to 3 million.

ECONOMICS

Protests threaten GDP growth

Anti-government protests must not be allowed to turn violent, or risk seriously damaging the country’s gross domestic product (GDP) growth for the year, the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce said on Tuesday.

As long as rallies against government are carried out peacefully and in line with the law, the protests were unlikely to dampen the economy, even with the imposition of the Internal Security Act (ISA) in Bangkok.

But if the protest escalates to unrest, it will hurt the economic system and tourism. People will spend less, reducing domestic consumption.

It is projected that economic expansion for 2013 would be between 4 and 4.5%, with an average growth rate of 4.3%.

The average general consumer price index for the year is expected to stand at 2.5%, while exports would grow by about 4%.

GDP growth in the country would be trimmed by around 0.1 to 0.2%, if the rallies are democratic, peaceful and end in three months.

But if the protests are prolonged and violent and continue until October, the start of high season for the tourism sector, growth rates could be lowered by about 0.3%, to between 4.0 and 4.1% for the year.

In the event that extreme violence occurs, affecting the safety of foreign tourists, or if foreign embassies issue a warning for their citizens to be cautious about travelling to Thailand, growth would be trimmed by as much as 0.5%, resulting in only 3.8% growth for the year.

ENERGY 

Villagers oppose waste-to-energy plant

About 500 villagers in Bang Rakam district of Phitsanulok have rallied in protest at the building of a new power plant that would use garbage as fuel, saying they are worried about possible pollution.

The protesters gathered at a temple to voice their concerns about the plan by VK Energy and Trading Co, which wants to construct a power plant on 63 rai in tambon Taluk Rad of Bang Rakam district. Local people are afraid the waste-to-energy plant would generate foul odours, pollute the air and water, and result in the transportation of more garbage into the village.   

The company had arranged to send representatives to provide details about the project to villagers at 9am, but no one turned up.

At 10am, the villagers closed part of the Phitsanulok – Kamphaengphet Road and burned a replica coffin dedicated to the company’s executives.

About 100 police were deployed to scene, but there was no violence.

Later, around 11am, Viboon Tangkasemkit, mayor of Bang Rakam Muang Mai municipality, and Prasit Veethong, Bang Rakam tambon chief, told villagers that the company had sought permission to build the plant and wanted to provide details to local people. The project had not yet been approved.

The company wants to develop a 6.5 megawatt waste-to-energy plant to serve electricity demands of people in the area with promises to have an inspection process to monitor any pollution.

The company plans to invest one billion baht to develop the complex, which would  include a park and a sports ground on 12 rai, a water reservoir of 23 rai and 18 rai for accommodation units.