Kraiboon: New model to benefit PWO

State-run Public Warehouse Organization (PWO) plans to call for bids on its 20-rai land plot along the Chao Phraya River in Rat Burana District, with an eye towards developing a new community mall.

According to board chairman Kraiboon Suadsong, the proposal is scheduled to be tabled for the board's vetting tomorrow.

"We aim to construct the new community mall with quality that will be on par with Asiatique The Riverfront," he said. "In addition, we will allocate a part of the land plot be developed as a learning centre, including model agricultural plots in line with the concept of sufficiency economy."

Asiatique The Riverfront is a large-scale riverside community mall developed by Riverside Masterplan Co and owned by liquor tycoon Charoen Sirivadhanabhakdi.

According to Mr Kraiboon, the new Private Investment in State Undertaking Act (2013) allows for the joint investment of the PWO with interested parties in the private sector.

Details of the joint investment and revenue-sharing structure will be available after the board's meeting, he said, adding that the PWO aims to propose the new community mall development plan for the cabinet's approval this year.

"We believe the new business model will help generate enough income for the PWO to stay afloat," he said. "The PWO no longer receives income from state pledging schemes, be it from rice or other crops, like it used to in the past."

According to Mr Kraiboon, the PWO also owns a 19 rai land plot in the Bukkhalo area, Thon Buri, which is also adjacent to the Chao Phraya River. Property projects in this area are also slated for future development, he said.

The PWO was established by Royal Decree in 1955, with its primary objective to ensure that the quantity, quality and prices for rice and other agricultural products are appropriate for the public. It operates seven warehouses and two wharves, with a combined 292-rai in land plots nationwide.

In 2015, the PWO reported total revenue of 2.1 billion baht, with net profit of 560 million baht. A majority of the revenue stems from wharf services, warehouse and cold storage facility rental fees, along with management fees from state projects.