Thursday, May 22, 2008
(Add comments from Dubai World chairman, Thai transport minister.)
By Supunnabul Suwannakij
Of DOW JONES NEWSWIRES
BANGKOK (Dow Jones)--Dubai World, the investment arm of the United Arab Emirates government, is considering investing in property projects and operating deep sea ports in Thailand, the company's Chairman Sultan Ahmed bin Sulayem said Thursday.
"We're interested (to invest) in real estate projects in Bangkok, Phuket and many parts of the country," Sulayem told Dow Jones Newswires.
Dubai World Tuesday signed a memorandum of understanding with Thailand's transport ministry to fund a feasibility study into a landbridge project in the country's south that would link the Andaman Sea and Gulf of Thailand with trans-peninsular pipelines and transport infrastructure.
"If the Thai government allows us, we will get involved in port operations," Sulayem said.
In Asia, the company operates ports in Australia, China, Korea and Vietnam.
"We believe with our experience, this (landbridge) will be a successful project," Sulayem said.
The landbridge would link oil terminals and deep sea ports on either side of the isthmus by connecting Thailand to the Malaysian peninsula with two 240-kilometer oil pipelines, a road and a railway.
When completed, it will offer an alternative to shipping oil through the crowded Strait of Malacca and the landbridge area would be developed as a special economic zone.
Thailand's Transport Minister Santi Prompat said Thursday that an initial investment value for the whole project is around THB200 billion ($6.3 billion) and the feasibility study will take less than a year.
The study will cover potential locations for deep sea ports in the Andaman Sea and the Gulf of Thailand, environmental impact, commercial viability, investment costs, legal issues and implementation plans.
"The economy in Thailand is stable and the growth is good. A project like this will be very good for Thailand," Sulayem said.
Apart from funding the feasibility study for the landbridge project, Dubai World would like to get involved in port operations, marketing and financing, he said.
Dubai World's portfolio also includes real estate developer Nakheel, which is building a host of waterfront developments off the emirate's coast; DP World (DPW.AI), one of the world's leading port operators; and casino operator MGM Mirage (MGM). The company also provides financial services through its investment arm Istithmar World.
-By Supunnabul Suwannakij, Dow Jones Newswires; 66 2266 0744; tu.suwannakij@dowjones.com
(END) Dow Jones Newswires
22-05-08 0738GMT
