PTT Philippines pouring in P450M for expansion
In this article (5)
AS part of the company’s robust expansion program, independent oil player PTT Philippines is pouring in P450-million worth of investment in retail this year.
Khun Korawat Sungmongkol, PTT Philippines director for operations and logistics, said part of the expansion program is the rolling out of “mini gas stations.”
He added that at least two mini gas stations will be initially put up for pilot-testing in Luzon and Visayas.
“We will definitely try to roll [them] out first in Luzon because that’s where our strength is and maybe in Cebu as well,” Sungmongkol said in a forum.
Once it passes the standards of the PTT head office in Thailand, he added, the project will be fully implemented in 2016.
“This year will still be experimentation year. We have to get the confirmation of head office,” Sungmongkol said.
He added that investment packages should be adjusted to fit requirements of local investors.
PTT Philippines targets small and medium enterprises (SMEs) to invest in owning their mini gas stations.
Investment in a mini gas station, Sungmongkol said, is 30 percent less than in a normal station.
“A normal or compact PTT station costs around P8 million while a mini gas station could be P6 million,” he added.
Sungmongkol said they are eyeing about 800 to 1,000 square meters for a mini gas station.
“We have to comply with our head-office standards to make sure there’s enough space for fire safety and the tank we’ll install [in such station],” he added.
PTT Philippines Marketing Director Khun Thitiroj Rergsumran said the mini gas stations are on top of the company’s 15 service stations target for this year.
“For the Philippines, it is a policy also that we have to expand retail business. We get assignment from our head office to have 15 stations a year,” he added.
This year, Rergsumran said, the company will concentrate on becoming the regional brand in the East Asian countries.
“We’re going to have a very huge project in Vietnam and here in the Philippines,” he said.
Questions & Answers
Q.What is the total investment PTT Philippines is making in its retail expansion this year?
What is the total investment PTT Philippines is making in its retail expansion this year?
PTT Philippines is investing P450-million in retail expansion this year. This investment is part of a robust expansion program, which includes the rolling out of new mini gas stations.
Q.What is the cost difference between a normal PTT station and a mini gas station?
What is the cost difference between a normal PTT station and a mini gas station?
A normal or compact PTT station costs approximately P8 million. A mini gas station, however, is 30 percent less, costing around P6 million to invest in.
Q.Which areas will be used for the initial pilot-testing of the new mini gas stations?
Which areas will be used for the initial pilot-testing of the new mini gas stations?
Initially, at least two mini gas stations will be pilot-tested in Luzon and Visayas. Luzon is prioritised due to PTT Philippines' existing strength in that region, with Cebu also being considered.
Q.When does PTT Philippines plan to fully implement the mini gas station project?
When does PTT Philippines plan to fully implement the mini gas station project?
The project is expected to be fully implemented in 2016, following an experimentation year in the current period. Confirmation from the PTT head office in Thailand is required first.