Airports of Thailand Public Company Limited (SET: AOT) is expected to announce the winner for the bidding for the third ground handling and cargo service concession at Suvarnabhumi Airport within this week, according to sources from the industry.
According to sources in the aviation sector, AOT is currently negotiating compensation terms with the two bidders who passed the technical evaluation round: AOT Ground Aviation Services Co., Ltd. (AOTGA) and Bags Ground Services Co., Ltd. The negotiation process is ongoing and builds upon the initial proposals submitted earlier.
The negotiation process will begin with the bidder offering the highest compensation as a benchmark for comparison and further discussions. The finalized negotiation results are expected to be presented to the AOT Board of Directors by August 20, with the winner to be officially announced on August 21, 2025.
Subsequently, AOT will forward the selection result to the Ministry of Transport for the cabinet’s approval, with contract signing anticipated within the year.
These two major AOT projects have a combined value of THB 67.3 billion, consisting of the third ground handling concession at Suvarnabhumi Airport, valued at THB 29.39 billion, and the third cargo service concession at Suvarnabhumi Airport, valued at THB 37.91 billion.
Earlier, the selection committee under Section 35 of the Public-Private Partnership Act B.E. 2562 (2019) reviewed the qualifications of bidders for both projects. Only two companies passed this stage in both projects: AOTGA and Bags Ground Services Co., Ltd. (100% owned by Suravut Cherdchai, heir of Sujinda Cherdchai, owner of the Cherdchai Garage). Recently, both firms have also passed the technical evaluation stage.
Siriwat Tovachirakul, President of AOTGA, stated that if awarded both projects, AOTGA is prepared to invest approximately THB 4 billion in total. The company has solid cash flow and creditworthiness, allowing for possible additional bank loans if necessary.
AOT currently holds a 49% stake in AOTGA, while SKY ICT Public Company Limited (SET: SKY) holds the remaining 51% via SAL Group (Thailand) Co., Ltd. (SAL).
The third ground handling concession will operate under a “PPP Net Cost” model (revenue/profit sharing with the state). The government will be responsible for providing land for project development and quality oversight, while the private sector must handle financing, design, construction, procurement of machinery and equipment, and project management according to AOT’s specifications.
The total private sector investment for the ground handling project is THB 29.39 billion, divided into THB 1.61 billion for construction and equipment and THB 27.78 billion for operations and maintenance over a 25-year concession. The scope includes core ramp and ground service operations such as aircraft support equipment, baggage handling, cargo and mail transport, passenger and crew transfers, and other related services.
Similarly, the third cargo services project will also use a PPP Net Cost model. The government provides land and oversees private operations, while the private partner handles financing, design, construction, procurement, maintenance, and warehouse management as per AOT’s conditions.
The total private investment is THB 37.91 billion: THB 1.32 billion for construction, equipment, and systems, and THB 36.60 billion for operations and maintenance, also over 25 years. Its scope covers import, export, transshipment, perishable, express, and e-commerce goods.
Sithidej Mayalarp, CEO of SKY, confirmed anticipation of the outcome of this major bid for becoming the third ground handling and cargo service provider at Suvarnabhumi Airport for the next 25 years. He stated that this landmark deal will shape the company’s future role in Thailand’s airport business.
