Thanaleng Dry Port Due Diligence Study

Background

• Sitthi Logistics has built a dry port (Thanaleng Dry Port- TDP) in Integrated Vientiane Logistics Park (VLP) to capture the freight traffic between Laos and the neighbouring countries, especially China, Vietnam and Thailand. The dry port commenced operations in December 2021.

• The logistics park is proposed to include the future construction of an Exported Processing Zone (EPZ) and a Tank Farm for fuel. VLP has been established as a PPP scheme between Sitthi and the Government of the Lao PDR.

• The client was financing the dry port portion of the project and appointed Drewry to conduct the commercial and operational due diligence of the dry port.

   

Client Objectives

• To conduct traffic and tariff forecast of TDP

• To review TDP business plan and validate the operational and market projections

Drewry Approach

• This study was conducted using a combination of primary survey and secondary research. Consultants from Drewry’s Maritime Advisory team spent two weeks in Laos and surrounding areas assessing both on-site realities and trade dynamics of the existing dry port facilities at different locations in the country.

Results Achieved

• Drewry presented the detailed report outlining macroeconomic assessment of the country and Vientiane region, international trade, dry port development in the country, competitiveness assessment of TDP, tariff and revenue forecast. It led to the the client providing US$67 million corporate loan to TDP.