Thailand Flooding Update

12 Oct 11

The current belief is that Bangkok should escape the major threat of flooding as the water flowing outhward has passed its peak and preventive measures in place and dikes around the city and along the Chao Phraya River are intact, a senior Bangkok Metropolitan Administration (BMA) official said today.1

However, things don't augur so well for other provinces, especially in the Ayutthaya province. Ayutthaya is the worsthit by the unprecedented floods as it is situated between Chao Phraya and Pasak rivers. The floods are so strong that several temporary dikes built along Chao Phraya river in Pathum Thani were breached. Bang Bua Thong district dike in Nonthaburi is also breached and the flood is about 1 metre deep. The raging torrent is now bearing down Rangsit district and expected to inundate Eastern Bangkok. Por Tek Tueng Foundation spokeman tells people to leave their ouses before the flood is too deep because by then the charitable organisation cannot help evacuate the people. "Don't care for belongings such as TV or refrigerators. If they are lost, they can be bought again. But if lives are lost, they cannot be recovered," said the spokesman.2

Many industrial estates that operate in the Ayutthaya province have been badly hit. Floodwater covered all three zones of the Rojana Industrial Park and the whole park was under water yesterday. The park houses 198 factories . Industry Minister Wannarat Channukul said the inundation was swift as only 10-20 factories had been hit on Saturday. "All 198 factories at Rojana have had to be closed because the water is about 5.1 metres high," Mr Wannarat said. Companies that operate in Ayutthaya province that have announced damage to their businesses as a result of the floods have been reported as follows3:-

  • Toyota has announced that it has ceased production at all three of its motor plants until Saturday. This is because about ten auto parts manufacturers in Ayutthaya cannot deliver necessary components to the assembly plants.
    Toyota cannot source these auto parts from overseas as it takes time to place and receive orders.
  • US-based Ford Motor is also a casualty of severe flooding with its assembly plant in Rayong halting production for at least 48 hours because suppliers in Ayutthaya have been severely hit by floods. Production was suspended at the AutoAlliance Thailand facility for the next 48 hours to make a full assessment of inventory and logistics continuity.4 The company's production facilities in Rayong have not been affected by the floods.
  • Honda Automobile (Thailand)'s car factory at Rojana Industrial Park have been affected.
  • Ticon Industrial Connection (a provider of factories and logistics warehouses for lease) has reported that its 17 factories and three warehouses in Phase II of the Rojana Industrial Park had been flood damaged. Ticon had
    earlier reported that 15 of its dactors in Rojana Phase I were inundated.
  • On 6 October Nikon Corp. suspended production after its facilities were damaged by flooding and have given no indication as to when production will resume.
  • Eng Teknologi Holdings (a Malaysian electronic components maker) has temporarily shut down two of its units.
  • Fujikura has halted production at three plants at Ayutthaya and another plant in Pathum Thani. No time frame has been given for restarting the plants.

Other companies that have operations in Ayuttaya include Canon, Sony, ON Semiconductor's SANYO Semiconductor division and many other local and multi-national companies.

You have to pity the poor workers who are trying to capture 100 crocodiles that had been washed out of a flooded farm in the Bang Sai district.

The General Insurance Association of Thailand consider compensation claims by
manufacturers affected by the severe flooding, especially in the central region,
are likely to exceed Bht 10 Billion. Evidently many factories in industrial estates
have insurance coverage for both flood and BI and losses will clearly stem from the industrial flooding.

In response to the unprecedented flooding in Thailand's central region, we have mobilized experienced global catastrophe adjusters who are now in Thailand to augment and support our existing capable team of adjusters in a technical support role. Rob Williams is our regional large claims unit leader based in Singapore and has recently been involved in handling numerous complex claims in Japan following the Tsunami and Earthquake and James Palmer was involved in assisting our Australian operations during the 2010 Brisbane flooding. A team of Executive and BI adjusters are now on standby to also arrive and support your Insured's at the earliest opportunity.

If we can be of any assistance to you or your clients, please do not hesitate to contact:-

Gareth D. Sampson
ACII FCILA FUEDI-ELAE
Managing Director
Cunningham Lindsey (Thailand) Ltd.
gsampson@cl-int.com
Mobile: +66 81 754 7748
Jakkrit Khaosa-ard
ATII ANZIIF (Snr Assoc) CIP ACLA
Associate Director
Cunningham Lindsey (Thailand) Ltd.
jKhaosa-ard@cl-int.com
Mobile: +66 081 319 9487

 


1 The Nation, 12 October 2011
2 Bangkok Post 12 October 2011
3 The Nation, nationmultimedia.com, 12 October 2011
4 Bangkok Post, 12 October 2011

 

 

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