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Myanmar Transport Infrastructure Brief | 18 January – 24 January 2018 2

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Issue 57 | 24 January 2017 News Analysis Myanmar Transport Tenders Companies Infrastructure Brief Data Market Updates MIC approves new logistics centre in upper Myanmar EFR Group aims to bring new facility online by mid-2018 Yangon chief minister visits site of potential deep-sea port U Phyo Min Thein continues to push for the development of a deep-sea port and SEZ in Yangon Region’s southern districts Company of the Week Myanmar-Japan JV launches new container freight station FMIDecaux is set to KMA-Suzue Logistics Myanmar unveils its new CFS in Dagon Seikkan township upgrade 250 Yangon bus-stops to MoC proposes interim budget for infrastructure, housing international standard Regional government shelves underpass projects following a tender win. Extensive river navigation project set to begin next month Construction schedule announced for Magway Region bridge YCDC finalises contract for bus-stop upgrade Second deputy minister appointed for transport and communications Elevated expressway may be implemented without proposal to MIC DCA, Chin State officials discuss airport projects President nominates new construction minister European company awarded seismic acquisition contract YPS implementation will commence shortly Yangon traffic control centre irks government again Large portion of Tanintharyi Region budget used on roads Project of the Week Construction begins on bridge spanning Kaladan River Malaysian infrastructure developer scopes opportunities in Myanmar Groundwork on the Road upgrade in Ayeyarwady set to improve connectivity in the delta Falam Airport project YBS operator chosen to implement new airport shuttle in Chin State is over New traffic alert system in the works 25% complete as of Myanmar Transport Infrastructure Monitor to launch new format mid-January. This Week’s Tenders Purchase of used materials from the Ministry of Planning and Finance Supply of fiberglass boat for the Department of Fisheries Transportation services for NGO and Warehouse lease in Mingaladon township Various works for Myanma Railways and Warehouse lease in Thaketa township Supply of asphalt in Mandalay Region and Transportation of goods for NGO Supply of rubber pads and ballast and Supply of reinforced steel bar Calendar Data Asia Infrastructure ’18 Retail, Distribution & Logistics Forum Weekly fuel prices Myanmar Supply Chain Summit Myanmar Infrastructure Summit 2018 Trade statistics World Bank-Singapore Infrastructure Finance Summit transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 18 January – 24 January 2018 2 Logistics The idea is goods can now be stored in MIC approves new logistics centre in upper Mandalay until a buyer is found and then Myanmar undergo custom examinations at Paleik before being shipped directly to their final destination A new logistics and distribution centre tied to in Yangon, as opposed to shipping goods to the EFR Group of Companies was approved by Yangon for storage. the Myanmar Investment Commission (MIC) on 15 January, according to a release from the EFR Group was established in 1996. Initially commission. focused primarily on customs clearance, the company gradually expanded into a diversified The facility will be located near the Paleik logistics conglomerate which is thought to be railway station in Sintgaing township, the largest in Myanmar. Mandalay Region. The group of companies has interests in Myanmar Transport Infrastructure Monitor freight forwarding, inland water transport, air understands the facility is about 40 minutes freight, project logistics, warehousing, south of Mandalay by car. distribution and a number of other logistics activities. EFR Logistics and Distribution Center (Mandalay), a new company established by Water EFR Group, is developing the facility, a Chief Minister visits site of potential deep-sea representative from EFR told Myanmar port Transport Infrastructure Monitor. A group of Yangon Region government officials The company hopes to start trial operations led by Chief Minister U Phyo Min Thein sometime after April, the representative conducted an inspection of a possible added. deep-sea port site in Yangon Region’s Kawhmu township on 20 January, a post on U Phyo Min The new company is a Myanmar citizen-owned Thein’s Facebook page states. company and is 100% owned by EFR Group. Officials such as Yangon Region minister of EFR envisions the facility being a logistics hub electricity, industry, roads and communication for central Myanmar, as the facility will be Daw Nilar Kyaw and Yangon Region minster of linked to the national transport network by agriculture, livestock, forest and energy U Han road and rail, and is located near Mandalay Tun accompanied U Phyo Min Thein. International Airport. The project site is near Thayet Taw village, The facility will offer inland transport services, according to the chief minister. container storage and export and import services, the representative said. Thayet Taw village is situated in the southeast corner of the township near the mouth of In an interview with Myanmar Transport Yangon River. Infrastructure Monitor in early 2017, EFR Group chairman U Kyaw Lwin Oo claimed After inspecting the site, the chief minister the – then at the time proposed – Paleik promised to develop Kawhmu township into a logistics facility could help cut transport costs new city of Yangon and explained the regional by nearly 70% for certain agricultural goods government’s plan to present the project to that typically rely on road transport to Yangon. the union government, according to a Daily Eleven report. transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 18 January – 24 January 2018 3 In a separate Democracy Today report The Yangon-Dala Bridge, also known as the covering the inspection tour, Dala township Myanmar-Korea Friendship Bride, is now MP U Tun Yin was quoted as saying that a moving forward and is scheduled to break deep-sea port in the township would be a ground in April. component of a project similar to Thilawa Special Economic Zone (SEZ). It is being financed by a KOICA loan of approximately $138m. It has long been thought that any deep-sea or deep-water port in Yangon Region would be A four to six lane highway in Dala — tied to a Korea-backed SEZ somewhere in the presumably linking the landmark bridge to the region’s southern districts. proposed SEZ — is also reportedly being discussed by KOICA and the regional The proposed project is one that Yangon government, per previous reports. Region chief minister U Phyo Min Thein has continually pushed for since taking office in The viability and necessity of a deep-sea port 2016. in Yangon Region has been a topic of debate in recent years. Myanmar Transport Infrastructure Monitor notes that U Phyo Min Thein and Proponents of a deep-sea port in a township Yangon Region minister of transport, such as Kawhmu argue that such as electricity and industry Daw Nilar Kyaw development would mitigate bottleneck issues claimed at different meetings in early and reduce logistics costs, while detractors say December 2017 that a SEZ in southern Yangon the number of other potential deep-sea port is in the pipeline, though neither offered any projects in Myanmar and the breakwater detailed plans. required for a Yangon deep-sea port would make the port an unnecessary and inefficient The following week in December, a 7Day Daily investment. report claimed Myanmar’s central body for SEZs had provisionally accepted an idea proposed by Yangon Region chief minister U Phyo Min Thein to establish a second SEZ in Yangon. Myanmar Transport Infrastructure Monitor notes that a development plan for Yangon Region’s southern districts was thought to be jointly drafted by the Department of Urban and housing Development (DUHD) and the Photo: U Phyo Min Thein Facebook page Korea International Cooperation Agency (KOICA). Korea has shown an increasing interest in southern Yangon Region transport connectivity as its plans for a SEZ in the area continue to materialise. transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 18 January – 24 January 2018 4 Logistics Work on the facility began in February 2017, Myanmar-Japan JV launches new container according to a 2017 press release from Suzue freight station Corporation. KMA-Suzue Logistics Myanmar, a joint venture between KMA Shipping and Japan-based Suzue Corporation, has announced that its container freight station in Dagon Seikkan is now operational. An opening ceremony at the facility was held on 16 January, according to MBC. Myanmar Transport Infrastructure Monitor understands the facility is located in Dagon Photos: Suzue Corporation Seikkan township about 15km from downtown ports, 20km from Thilawa SEZ and 20km from KMA-Suzue Logistics Myanmar was established Yangon International Airport. in 2013. Logistics companies are increasingly drawn to The joint venture focuses on logistics and warehousing and logistics centre investments freight forwarding services, with the majority in Yangon’s Dagon Seikkan township due to of customers being Japanese companies, the the area’s proximity to industrial zones and CEO says. relatively easier access to Thilawa SEZ. It recently applied for a bonded warehouse license for the new container freight station, though it is unclear if the company will be granted the license. Moving forward, KMA-Suzue Logistics Myanmar plans to develop more warehouses and facilities, such as a diesel fuel terminal at Thilawa, KMA Shipping manager Daw Nyein Thwe Khaing said.
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