<article>Thailand-based logistic service provider, NCL International Logistics PLC is planning to set up two logistic hubs outside the Kingdom by next year.</article>

Thailand-based logistic service provider, NCL International Logistics PLC is planning to set up two logistic hubs outside the Kingdom by next year.
The two hubs, one each in Singapore and Dubai, will have an expected investment outlay of 30 million-50 million baht ($923,000-$1.54 million). The company is planning to utilise funds raised from its initial public offering (IPO) in the Market for Alternative Investment (MAI), to support this expansion plan. “Currently, Thailand is the center for our logistics operations. This expansion (to Singapore and Dubai) will help is meet the growing demand. The lack of tax barrier (in these markets) will also make us more competitive ,” said NCL’s chief executive officer (CEO) Kitti Phua.
The trading value among the ASEAN Economic Community (AEC), once it comes into force next year,  is expected to rise from the current $60 million to $620 million, mainly due to the tax exemption. NCL is planning to take advantage of this upswing in trade by establishing its two hubs in Singapore and Dubai. The company&#8217;s hub is Singapore will not only support this additional demand but also provide smooth connection to the other hub in Dubai, which would service the markets in Europe, without any additional taxation, explained the NCL&#8217;s CEO .
The move will would also help diversify the risk emerging from the Thailand&#8217;s political chaos, which resulted in a lower profit margin for NCL, in the first half of 2014.
According to Phua, a  part of the 60 million baht ($1.87 million) raised from the IPO will be also be used to expand the company&#8217;s head office, while another 160 million-270 million baht ($5 million-$8.4 million) will be spent on purchasing 50-100 additional trucks and trailers.
NCL plans to open two service points, in Songkhla province and Udon Thani, to support the growing border trade.
“The money from IPO might not be enough to support all out future expansion needs. We may have to borrow from financial institutes in order to pursue aggressive and sustained growth in our business,” Phua added.
The company&#8217;s revenue and profit has grown more than 20% each year, for the past three years. In the first six months in 2014, it generated an income of 485 million baht ($15.16 million), up from 434 million baht ($13.56 million) in the same period last year. Of the total revenue, 85%-90% came from international logistics and the rest 10%-15% from domestic operations.
Currently, the NCL serves customers in more than 180 countries worldwide.
(edited by Yamini Dhall)
<pre>Image :<a title="ncl.th" href="http://ncl-th.listedcompany.com/" target="_blank">http://ncl-th.listedcompany.com/</a></pre>

NCL to invest $1.54m for hubs at Singapore, Dubai

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NCL to invest $1.54m for hubs at Singapore, Dubai

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