The problem could be remedied by widening the channel but it has been noted that not only would the cost
of dredging be very high, but continuous maintenance would be needed. Maintenance costs alone are estimated at
about 300 million baht a year.
Moreover, as the port is located within Bangkok Metropolis, its boundaries are confined within strict limits,
which means that the onshore area for cargo handling and storage is also limited. Although current throughout is only
3.2 million tons per annun of containerised cargo, congestion is already a major problem.
It has also been proposed that the existing port at Sattahip provide expansion facilities for Klong Toey.
However, the ESB office pointed that smaller feeder ships carrying cargo transhipped from Singapore or Hong Kong
were vessels that could only call at Sattahip, while future cargoes passing through major international ports were
likely to be containerised. Thailand, therefore, would not be able to accommodate direct transoceanic shipments from
Europe, the Americas and the Middle East.
It was also noted that the costs of developing Sattahip Port would be very high, involving widening of the
dredged channel from the existing 100 metres to 160 metres, deepening of the channel and basin from 10 metres to
13 metres and construction of new outboard berths.
The office noted that the cost, in relation to the increased capacity, made it more viable to develop a port at
Laem Chabang, especially in view of the latter's potential for development. It was, therefore proposed that Lerm
Chabang be made the site of the country's second commercial port.
It was also decided that an industrial port be set up at Mab Ta Phud in Rayong.
However, both projects were nearly pulled off the drawing board because of the country's heavy extemal
debt burden.
When the external debt service ratio neared the critica1 level of 30% the Govemment decided that no more
unnecessary and non-urgent foreign loans would be borrowed. The aim of this was to keep extemal debt borrowings
in fiscal 1986 within the US$ 1,000 million ceiling, thus staving off a financial disaster for the country.
The Cabinet then decided to set up a three-man committee to review the ESB because it was noted several
times that most of the projects required huge foreign borrowings, which could push the external debt service ratio
beyond the critical mark.
They had 45 days to review the entire programme during which time it was reported that the two deep-sea
port projects were the likely victims if the ESB was scaled down in size.
lt, therefore, came as a surprise when the Cabinet announced on ChristmaS Eve of 1985 that the entire
programme would proceed as planned.
According to the ESB plan, construction of the Mab Ta Phud Port will begin in May 1986 and completed by
October 1989. Investment in the initial stage would be around 5,820 million baht..
Meanwhile, construction of the Laem Chabang deep-sea port will begin in September 1986 and completed
by July 1990. Investment in the first phase will total 6,860 million baht.
The idea to construct a new sea port at Laem Chabang also won support from the Bangkok Shipowners and
Agents Association. (BSM)