Current Situation on Shipping Industries, Maritime Policy and Legislation in

Mr. Maung Maung Oo Director General Department of Marine Administration Ministry of Transport Republic of the Union of Myanmar

MOT DMA-DG Contents

1 Myanmar - Introduction

2 Shipping Industries in Myanmar

3 Myanmar Maritime Policy and Legislation

MOT DMA-DG MYANMAR Introduction

MOT DMA-DG Land Boundaries

Total land boundaries 5,876 km China 2,185 km Lao 235 km Thailand 1,800 km Bangladesh 193 km India 1,463 km 4 MOT DMA-DG 4 GENERAL INFORMATION ABOUT MYANMAR

Location Situated in South East Asia between- latitude 9˙32’ and 28˙31’ N and longitude 92˙10’ and 101˙11’ E Total land area 676,557 km2 Total Land boundaries 5,876 km (Border countries) Total length South to North 2,090 km East to West 936 km Total length of coastline 2,228 km Population 63 millions

About 37% of the 2 population lives in coastal A continental shelf of 228,000 km 2 areas. Territorial sea of 486,000 km (EEZ)

MOT DMA-DG 5 Export & Import Commodities (Fiscal Year 2012-2013) MT(Thousand) % Crude Oil 26.698 (9.56%)

Rice & Rice Products 7.043 (2.52%)

Timber 14.523 (5.20%)

Mining 0.256 (0.09%)

Wheat Grain 26.907 (9.63%)

Fishery Products 6.996 (2.50%)

Vehicle & Machinery 45.132 (16.16%)

General Cargo 151.818 (54.34%)

Total MT (279.373) Thousand was Handled.

MOT DMA-DG 6 MOT Economic Policy

Myanmar launched a wide-ranging economic policy change since 1988. Centralized planning policy was replaced by a market- oriented economic policy and a number of economic reform measures were initiated. The Myanmar, while formulating and adopting an appropriate market-oriented economic system, has identified the economic objectives as the economic policy for the national development. The economic objectives include to build of modern industrialized nation through the agricultural development, and all-round development of other sectors of the economy by inviting participation in terms of technical know-how and investments from sources inside the country and abroad.

MOT DMA-DG Regional Cooperation for Transport

Myanmar is a full member of sub regional cooperation such as ASEAN, BIMSTEC, Ayeyawaddy- ChaoPhaya- Mekong Basin Development Cooperation (ACMES) , Asia Cooperation Dialogue, and Bangladesh-China- India-Myanmar Economic Forum. Under the assistance of UN ESCAP, ADB and Mekong River Commission, East-West Economic Corridor project has been implement for the development of transport network across the Mekong sub-region; namely, China, Vietnam, Myanmar, Cambodia , Loa DPR and Thailand.

MOT DMA-DG Roadmap Towards Integrated and Competitive Maritime Transport in ASEAN

9 Implementation on ASEAN Strategic Transport Plan 2011-2015 (BAP)

Measures 20 - timeline 2015 Up to now – 17 measures accomplished 3 ongoing

MOT DMA-DG Reformed Agenda for Maritime

Infrastructure Development for and Thilawa Ports

Privatization

Multimodal transport Transit on Kaladan River

National Shipping Policy

Consultation with stakeholders

Prepare for the adaption of Single Shipping Market in ASEAN

Information Technology

MOT DMA-DG Shipping Industries in Myanmar

MOT DMA-DG Ministry of Transport Is composed of: Departments 1. Department of Transport (DoT) 2. Department of Civil Aviation (DCA) 3. Department of Marine Administration (DMA) 4. Directorate of Water Resources and Improvement of River System (DWIR) 5. Department of Hydrology and Metrology (DMH)

Enterprises Institutions 1. Myanma Port Authority (MPA) 1. Myanmar Maritime University (MMU) 2. Inland Water Transport (IWT) 2. Myanmar Mercantile Marine Collage (MMMC) 3. Myanma Shipyard (MS) 4. Myanma Airway (MA)

MOT DMA-DG 12 Human Resource Development

13

Sources of Seafarers supply

Private Training Direct Entry Institutions

Earnestly recommended to recruit MMU and MMMC decent students for next generation Myanmar maritime industry.

MOT DMA-DG 13 Government Institutions 1. Myanmar Maritime University (MMU)

2. Myanmar Mercantile Marine College (MMMC)

MOT DMA-DG 14 MET by Private Institutions

1. Ascension Marine Training Centre * 16. M.S.C 2. Asia Masters 17. MTC (Dawbon) 3. Aung Seamanship Training 18. Myanmar Excellent Stars * 4. Aung Tharaphu 19. Myanmar Marine Engineers Association * 5. Cygnus Marine 20. Myanmar Seafarers Federation 6. Global Maritime 21. Myanmar Seaman Employment Association 7. Golden Eagle 22. Pacific Glory International * 8. Harmonious Unity International 23. Success * 9. Hla & Tin Transport Co., Ltd. 24. True North Marine Training Center 10. Htet Oo * 25. UNIQUE Marine Services Co., Ltd. 11. Image 26. Uniteam Marine Training Centre * 12. JSM Maritime Training Centre * 27. Win Ye Kyaw Services Co., Ltd. * 13. Kabar Services Co., Ltd. * 28. Wise Wish Co., Ltd. * 14. MARICO Seafarers Training Centre 29. Zay Ya Theikti Services Co., Ltd. 15. Mercury Training Centre – 2 Centres

* The training centers at which CoC courses are conducted.

MOT DMA-DG 15 Numbers of Officers and Ratings registered in DMA (last updated 21 March 2014)

MASTER (FG) 1233

CHIEF MATE (FG) 918

OOW (FG) 4395

MASTER (NCV) 89 Deck Engine Officers Officers CHIEF MATE (NCV) 411 7% 9%

CHIEF ENGINEER 887

SECOND ENGINEER 1391

THIRD ENGINEER 4586 Ratings 84% ELECTRICAL ENGINEER 1693

TOTAL OFFICERS 15103

TOTAL RATINGS 81402

TOTAL SEAFARERS 96505

MOT DMA-DG 16 Government / Shipyard / Dockyard Location Private own 1. Sinmalike Shipyards Myanma Shipyards Kamaryut 2. Ahlone Dockyard IWT Ahlone 3. Dalla Dockyard IWT Dalla 4. 300 tons Dockyard IWT Dalla 5. Yatanarpon Dockyard IWT Mandalay Ship Building & Repairing Yards 6. Dockyard IWT Sittwe in Myanmar 7. Thanlwin Dockyard IWT Mawlamying 8. Dawbon Dockyard DMA Yangon 9. Mandalay Dockyard DMA Mandalay 10. Sittwe Dockyard DMA Sittwe 11. Myeik Dockyard DMA Myeik

12. Satsun Dockyard Myanmar Port Authority Mingalar Taung Nyunt

13. Angyi Dockyard Myanmar Port Authority Dalla

14. Annawar Dockyard Myanmar Water Enterprise Chaung Wine

15. Cooperative Dockyard Cooperative Team Dawbon 16. Nawarat, Myaayar, Asia, Moe, Aungzabu, Tunthawtar, Taninthar Yi, 8 Dockyards (Private) Khanaungto Winshwewar 17. Patamyar,Amyothargonyoung 2 Dockyards (Private) Insein 18. Chaungwa lunkyin 1 Dockyard (Private) Kamaryut

19. Sarparchaung U Nyi Nyi Myint lunkyin 1 Dockyard (Private) Dalla

20. Sanmaniwin lunkyin, Lawpan lunkyin, 3 Dockyards (Private) Hlaing Tharyar Moe lunkyin 21. Makhalar, Kyantineaung, Pwintoo, Bawgawaddy, Zayartun, Shwehninsi, 7 Dockyards (Private) Thitlwin 17 MOT DMA-DG DMA-DG Total 37 Yards MOT 17 Number of Vessel in Myanmar

3000 Number of Different Type of Vessel by Years 2500 Coastal Passenger 2000 1500 Inland Passenger 1000 Coastal Cargo 500 Inland Cargo 0 Fishing Vessel Coastal Tug Oil Barge

MOT DMA-DG SITTWE Port Region/State

Yangon Yangon KYAUKPYU Sittwe Kyaukphu Rakhine YANGON PATHEIN Thandwe

Pathein Ayeyarwady

DAWEI Mawlamyine Mon

MYEIK Myeik Tanintharyi Kawthoung

MOT DMA-DG KAWTHOUNG 19 Yangon River Approach

Yangon Port vessel of 167m LOA, 9m draft, 15,000 DWT Thilawa Port. vessel of 200m LOA, 9m draft, 20,000 DWT Yangon ~Thilawa Port : 16 km Yangon ~ Pilot Station: 64 km Compulsory pilotage > 200 GT.

Tidal Range (The average tidal range ) - 19.3 feet (5.85 m) at spring tide - about 8.4 feet (2.55 m) at neap tide Current Velocity- 4 to 6 knots Wave - do not hinder marine operations - seldom rough with less than (2m) wave- height.

MOT DMA-DG 20 SEZ – Special Economic Zone

SEZ to promote FDI SEZ Law enacted Jan.2011 Dawei, Kyaukpyu and Thilawa have been designated as SEZ. Dawei is led by Thailand, Kyaukpyu - China and Thilawa is led by Japan. Modified SEZ law submitted to Parliament

21 MOT DMA-DG DMA-DG MOT 21 Yangon Port

Total 37 Plots 200 m quay length (Each Plot) 750 m landward MOT DMA-DG DMA-DG 22 Myanmar and Japan International Cooperation between in Maritime Transport

Mv. Pinya MV. Mergui

Two ships supplied by Japanese Government under WW II war reparation agreement. HITACHI ZOSEN Shipyard in OSAKA. (Pinya) URAGA Shipyard in YOKOHAMA. (Mergui) To establish a leading national shipping line.

MOT DMA-DG Trade between Japan and Myanmar (Cont.)

The major exports to Japan from Myanmar are garment, pulses & beans , sesame, marine product , jewelry , minerals and ore.

The major imports to Myanmar from Japan are motor vehicles and spare parts, tin and steel products, engines , materials for power supply, plastic raw materials, chemical cotton and rolling stocks.

MOT DMA-DG 24 Route from Calcutta to Aizawl via Sittwe through Kaladan River

Proposed Trade Route from Sittwe port ( Myanmar) to NH-54 (India)

MOT DMA-DG

25 DEEP SEA PORT PROJECTS IN MYANMAR

Myanmar coast line started from Naaf River to

Naaf River Bayint Naung Point is demarcated into (3) sections as follows:- Rakhine Coast - 713 Km KYAUKPYU Delta Coast - 437 Km Tanintharyi Coast - 1078 Km Yangon Total - 2228 Km

All existing ports of Myanmar including Yangon Port are river ports and not deep enough for larger conventional and container vessels. WESTPORT KALEGAUK To cope with the growth of the maritime trade volume after adoption of the market oriented economy of the country and the regional demand of DAWEI larger vessels for seaborne traffic, the government laid down the plan to develop Deep Sea Commercial Ports at suitable sites along the coast of Myanmar.

MOT DMA-DG Bayint Naung Point 26 Kyaukpyu Deep Sea Port Project

Location Made Island., 11.2 km S/E of Kyaukphu Geographical Position 19 H 22'.6 N, 93 H 40'.8 E

Approach channel Sittwe LAD 24 m, Tidal Range 2~2.7m Habour Area LAD 20 m, Sea Room 1000 m ~ 1600 m Prosperity Most appropriate approach to cope western corridor. Made Is. Save sailing distance about 5000 Km compare with existing sea route through Malacca Strait Kyaukpyu to China East Coast. Main Outlet of ocean route for land locked regions' trade. Opportunity for transporting of Container, General Cargoes, Crude Oil and Gas. Shortest trade route from India to China.

MOT DMA-DG 27 Dawei Deep Sea Port Project

Location Nabule Lies at Nabule Area, north-west of Dawei City. Geographical Position 13 H 48'.5 N, 98 H 04' E Dawei Approach channel LAD 15 m, Tide Range 5m Habour Area LAD 15 m Sea Room 3.2 Km Prosperity Dawei Area as a hub connecting to GMS, South and South East Asia countries. Industry, Tourism, Fisheries, Mining and Energy

MOT DMA-DG 28 Kalegauk Deep Sea Port Project

Location Between Mawlamyine and Ye in . Geographical Position 15 H 32' N, 97 H 38' E Approach channel LAD 15 m, Tidal Range 3~5m Habour Area L AD 18 m, Sea Room 4.8 Km Prosperity West-East Economic Corridor Working Group has identified to develop deep sea port supporting with industrial estate at Kalagauk area where it was stretched and covered between Mawlamyine and Ye coast line in Mon State. KALAGAUK West-East Economic Corridor (WEC) route will act as a land bridge linking India Ocean in the Pacific cutting the distance of the conventional circuitous sea route passing the Malacca Strait by almost two third. The Project will certainly benefit the countries alone the corridor such as Vietnam, Lao, Cambodia, Thailand and China as well. Development of deep sea port will serve access port as a gate way of WEC at west side. So, it will be realistic to conduct feasibility study on development of said project. MOT DMA-DG 29 Delta Region Westport Project

The Memorandum of Understanding (MOU) relating to the Feasibility Study & Draw the Master Plan of the Delta Region at Ngayoke Bay Westport Project was signed between the Myanma Port Authority and Super Axis Development Pte.,Ltd/ Silver Wave Development Pte.,Ltd

MOT DMA-DG MYANMAR MARITIME POLICY AND LEGISLATION

MOT DMA-DG 31 Transport Policy

Myanmar government has laid down Transport policies to support and facilitate easier communication and transport among its states and division as well as to provide support in the implementation of its duties for the security and convenience of all transportation sectors. The transport policies were reflected in ASEAN Transport cooperation framework plan (1999-2004) and ASEAN Transport Action Plan (ATAP) 2005-2010. A number of regional policy framework plans and agreements have been concluded to guide the ASEAN transport Cooperation and liberalization of services. The ASEAN Strategic Transport Plan for (2011-2015) has been adopted as Brunei Action Plan in November 2010.

MOT DMA-DG 32 Policy of the Ministry of Transport

To develop and fully utilize transport capacities to contribute towards the realization of an economically strong, modern and developed nation.

To fulfill transport requirements, and to extend and maintain the transport infrastructure to be able to fully support increased production from other economic sectors and meet growing public and social demands.

To ensure smooth and secure domestic and international transport systems as well as contribute towards the development of border areas and national races and the development of tourism.

To enable all-weather river transportation by maintenance and preservation of natural resources.

To develop air and maritime transport infrastructures in line with international standards for environmental protection.

To enhance the transport sector through human resources development and upgrade expertise in management and advancing modern technology.

To abide by international conventions, acts, laws, rules and regulations with respect to the transport sector.

To develop domestic and international transportation and actively take a key role in the implementation of a national multi-modal transport system.

To plan for implementation of implement national, sub-regional and international transport networks.

33 DMA-DG

MOT DMA-DG 33 Marine Administration Policy

To conform National Ships to Safety standards, safe practices and standard of competence required of it's marine personal.

To promote development of human resources, man-power planning and optim um utilization of such man-power in the maritime sector.

To improve the safety record of Myanmar registered vessels.

To improve specific obligation save lives in distress at sea and protection of th e marine increment.

MOT DMA-DG 34 Application of International Maritime Conventions in Myanmar

INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974 (SOLAS 74 )

CONVENTION ON THE INTERNATIONAL REGULATIONS FOR PREVENTING COLLISIONS AT SEA, 1972 ( COLREGS 72 )

INTERNATIONAL CONVENTION ON LOAD LINES, 1966 ( LOAD LINE 66 )

INTERNATIONAL CONVENTION ON TONNAGE MEASUREMENT OF SHIPS, 1969 (TONNAGE 69 )

INTERNATIONAL CONVENTION FOR THE PREVENTION OF POLLUTION FROM SHIPS , 1973/78 (MARPOL 73/78 ANNEX I & II )

INTERNATIONAL CONVENTION ON STANDARD OF TRAINING , CERTIFICATION A ND WATCHKEEPING FOR SEAFARERS, 1978 AS AMENDED IN 1995 AND 1997 (STCW – 1978 AS AMENDED )

CONVENTION FOR THE SUPPRESSION OF UNLAWFUL ACT AGAINST THE SAFETY OF MARITIME NAVIGATION, 1988 ( SUA 1988 )

PROTOCOL FOR THE SUPPRESSION OF UNLAWFUL ACTS AGAINST THE SAFETY OF FIXED PLATFORMS LOCATED ON THE CONTINENTAL SHELF, 1988 ( SUA PROTOCAL 1988)

MOT DMA-DG 35 Status of National Legislation

Responsible No. Law Status Department DoT 1 The Multimodal Transport Law 2011 Draft completed DMA 2 The Myanmar Registration of Ships Act & under processing Draft completed DMA 3 The Inland Vessel Law 2013 & under processing Draft completed DMA 4 The Myanmar Merchant Shipping Law 2013 & under processing

The Convention for the Unification of Certain Rules of Law wi DMA 5 Inserted into MSL th respect to Collisions between Vessels

The Myanmar Coastal and Inland Water Transport License Draft completed & under p DMA 6 Law 2012 rocessing DMA 7 The Bills of Lading Act, 1856

DMA 8 The Carriers Act, 1865

DMA 9 The Myanmar Carriage of Goods by Sea Act, 1925

36 MOT DMA-DG 36 Status of National Legislation

Responsible No. Law Status Department

Draft completed & under pr DWIR 10 The Obstructions in Fairways Act 1881 ocessing Draft completed & under pr DWIR 11 The Defile Traffic Act 1907 ocessing MPA 12 The Ports Act of 1908 MPA 13 The Yangon Port Act, 1905 MPA 14 The Out-ports Act of 1914 Act (13), (14) & (15) combined into one as Th Draft completed & under pr e Ports Act ocessing MPA 15 The Myanmar Lighthouse Act 1937 To be revised

MOT DMA-DG 37 Socio Economy

Economic structure of Myanmar is agricultural-based, where primary sector accounts for 43% of total GDP and industrial sector has 17% while services sector has 40%.

Because of the globalization, a consumer from one domain can get the product from different domain easily by taking the advantage of development of transport logistics.

production pattern has been changed in order to find the cheap labour and resources in developing countries so that production factory was established in hinterland area of particular ports. On the other hand, distribution centers need to be spread out in order to give the door-to door service to consumers.

So, logistics and supply chain management become vital role to get the cargo from source to final destination in time, at low cost and without damage to cargo.

Containerization supports to the activities throughout the supply chain by giving the chances of easy handling, least time consumption and hard to damage of cargo at several transit points.

MOT DMA-DG Myanmar Special Economic Zone Law

To base on the framework of the maintenance, protection and safeguarding the sovereignty of the State in allowing to operate foreign investment businesses; To develop the momentum of the economy of the State by establishing and operating the Special Economic Zones; To develop the industry and high technologies in the State; To improve the goods processing, trading and service business; To enable the citizens to train, learn and transfer the high technologies; To create more employment opportunities for the citizens; To develop the infrastructures of the State.

MOT DMA-DG Challenges

The lack of funding, resources and manpower,

Need of public consciousness concerning Maritime issues, marine accidents and incidents,

Deficient and/or incompetent indigenous expertise in Maritime Affairs,

Lack of appropriate environmentally sound technology, and

Co-operation among the shipping industries , maritime sectors and allocation of duties & responsibilities

MOT DMA-DG Conclusion

Although there are challenges and difficulties, Myanmar have advantages that it has strategic location, between global houses, has precious resources and good enough sized population of 60 million plus to create a vibrant economy. At the present , Myanmar is moving forward to make Political and Economic Changes and only need to take the opportunities to utilize the advantages.

MOT DMA-DG MOT

Thank You

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