SET-listed coal trader Asia Green Energy (AGE) expects to double its logistics revenue in 2022 after being awarded contracts worth 550 million baht to transport cement and silica sand for three years.
Revenue from its growing logistics service is expected to increase to 800 million baht in 2022, up from 400 million last year, according to the company's estimates.
AGE recently signed contracts to transport the two products, amounting to 3.2 million tonnes in total.
"The agreements enable us to earn more revenue and enhance utilisation of our existing logistics infrastructure that has offered coal transport by road and sea," said Panom Kuansataporn, chairman of the AGE board.
Last year his company decided to offer transport services to more non-coal companies, especially those in heavy industries.
This year it will continue to expand its logistics business by increasing its fleet of trucks, said Mr Panom.
The number of new trucks has yet to be finalised, he said.
The company has almost 500 trucks in total and plans to partner with more truck operators to expand its logistics services, said Mr Panom.
For the sea transport segment, AGE increased its loading capacity to 7 million tonnes a year, up from 5 million tonnes, and expanded warehousing facilities from 5 to 6 units.
The company also plans to offer a logistics service in the agricultural sector through its subsidiary AGE Agri Trading Co. The new service is scheduled to begin this year.
AGE's logistics infrastructure was initially developed to facilitate its coal trade, but was later expanded in 2020 when the company saw an opportunity to provide transport services for companies other than coal traders.
The logistics capacity improvement is expected to increase its total revenue growth by 25% to 15 billion baht this year, up from 12 billion last year.
The company's coal trade volume is predicted to be 6.5 million tonnes this year, up from 5 million tonnes in 2021, he said.