WICE Inks 15-Year Mega-Deal with Siphandone-RATCH LAO In a Sustainable Business Collaboration to Transport Over 2 Billion Baht Worth of Wood Pellets.
Laying an ESG Path with EV Trucks to Propel WICE to Sustainable Business Heights
WICE Logistics PCL. or WICE, a full-service international logistics provider, has signed a mega-project deal lasting 15 years to manage the transportation of compressed biomass wood pellets in collaboration with Siphandone-RATCH LAO Co. Ltd., valued at over 2 billion Baht. This signifies a long-term commitment, coupled with a business collaboration promoting sustainability and following the ESG (Environmental, Social, and Governance) principles, incorporating EV (Electric Vehicle) trucks from the Lao People’s Democratic Republic to the Kerry Siam Seaport in Chonburi Province. The company is also developing a comprehensive network of EV charging stations to support international transportation.
Dr. Araya Kongsoonthorn, Group Chief Executive Officer, and Mr. Chudet Kongsoonthorn, Group Managing Director – Business Development, at WICE Logistics Pcl., shared that on December 11, 2023, the company signed a Service Agreement with Siphandone-RATCH LAO Co. Ltd., a joint venture of RATCH-Lao Service Co. Ltd., Buriram Green Energy Co. Ltd. (a subsidiary of Buriram Sugar Public Company Limited), Kyuden Mirai Energy Co. Ltd., and Siphandone Bolaven Development Co. Ltd. The purpose is to transport compressed-biomass wood pellets from the Lao People’s Democratic Republic (Lao PDR) to Thailand’s Kerry Siam Seaport in Chonburi Province and onward to international customers, with a contract value exceeding 2 billion Baht. The long-term agreement spans 15 years, with transportation services scheduled to commence in the first quarter of 2024.
In this regard, the use of EV trucks for transportation is considered one of the projects that WICE has initiated and consistently promoted. This initiative aims to position the organization as a leader in sustainable business operations. Apart from managing transportation costs by mitigating fluctuations in global oil prices, it aligns with the trend of business collaboration in the clean energy sector. In pushing towards ESG goals, WICE has introduced a pioneering transportation model for compressed-biomass wood pellets using EV trucks to reduce greenhouse gas emissions (carbon footprint) and carbon dioxide compared to internal combustion vehicles by over 40%. Initially, there are plans to introduce 30-40 EV trucks to transport approximately 100,000 tons of wood pellets per year.
“This signing marks a significant milestone for the company, reinforcing its commitment and determination to genuinely develop sustainability. The introduction of EV trucks for transporting wood pellets alongside conventional trucks demonstrates WICE’s capability and readiness to meet the diverse needs of customers comprehensively, addressing all aspects and responding with end-to-end services. This proactive approach aims to drive robust business growth while maintaining a focus on social and environmental considerations, contributing to broad and impactful outcomes. This approach is the core of the green economy strategy in conducting business with all stakeholders sustainably,” Dr. Araya says.
To which Mr. Chudet adds: “Currently, the company is exploring the development of Electric Vehicle Charging Stations, considering suitable locations and the number of charging points at each station. This aligns with the crucial strategic routes to support goods transportation using EV trucks. The expansion of this business plan is deemed a crucial driver for the company’s future growth, ready to accommodate a diverse range of customers. This business plan is considered a key element in driving the company’s future business initiatives.”
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