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Myanmar Transport Brief ANALYSIS Issue 20 DATA TENDERS 4 May 2017 COMPANIES

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Myanmar Transport Brief ANALYSIS Issue 20 DATA TENDERS 4 May 2017 COMPANIES NEWS Myanmar Transport Brief ANALYSIS DATA Issue 20 TENDERS 4 May 2017 COMPANIES Part of the Myanmar Transport Monitor transport.frontiermyanmar.com IN THIS ISSUE Analysis: Transport a bright spot as MIC shakes up investment regulations Approvals for transport and communications made up nearly 50% of 2016-17 total MIC approvals, as new investment rules come into effect Committee formed to consider opening Bagan to international flights Foreign carriers are keen on servicing Myanmar’s premier tourist destination, but they must overcome opposition from local airlines Mon bridge quietly opened amid intense criticism TRANSPORT NUMBER OF Politics had kept a large bridge near Mawlamyine closed, with local groups THE WEEK protesting it being named after an ethnic Bamar hero 29km Analysis: NLD cautious on infrastructure financing from One Belt, One Road Chinese officials and various experts are promoting the benefits of President A 29km road in Sagaing Xi Jinping’s signature programme, but Myanmar officials are not so sure Region will be complete by 24 May, according to Road media reports. Yangon-Pathein road due for upgrade next year, YBS faces scathing review, and new terminal opens in Katha, Sagaing Region The road is being built Water between Pin Lal Bu and Ship sunk in Yangon harbor to be raised, one person missing in Kawthaung Paungbyin to provide an accident, and Yangon checks infrastructure ahead of water taxi launch alternative to boat travel Air on the a dangerous stretch Officials discuss direct flights between Mandalay and Japan, while extreme of the Chindwin river, turbulence causes significant injuries on flight in Myanmar airspace which claimed dozens of Trade and Logistics lives in an accident last Border gate in Kokang area to re-open, and border gate in restive northern year. Rakhine State to open, while Indian area bans Myanmar pigs Other The road is eight km Pre-stressed concrete facility opened in Hmawbi by Japan-Myanmar venture, longer than an existing cable car to Kayin State landmark nearly complete route. THIS WEEK’S NEW TENDERS Supply of dredger and barge and crushed stone CALENDAR Supply of fork lift trucks, lubricants and fuels and road construction materials Supply of Toyota Hilux and provision of driver and vehicle 15th ASEAN Ports & Shipping 2017 Building and THIS WEEK’S NEW DATA Construction Weekly fuel retail and import prices, December and January Myanmar 2017 Trade statistics transport.frontiermyanmar.com Myanmar Transport Brief | 28 April - 4 May 2017 2 Other TYTC Services for collection and Analysis: Transport investment a bright spot transportation of waste as MIC shakes up investment regulations Myanmar Motor Corporation Public Company for manufacturing of buses The Myanmar Investment Commission (MIC) MSL Industries for a warehouses, aims to improve an often frustrating approval logistics and distribution services process for foreign investment, though Maxxcare for specialised warehousing, transport and communications was a bright logistics and distribution spot in the 2016-17 year. Loscam Myanmar for providing pallets and other supply chain equipment Investments worth $3.1bn were approved by the MIC in 2016-17 for transport and In addition, transport projects are being communications. approved already in 2017-18. While numbers were no doubt helped that a Myanmar Kong Hua company was approved significant number of telecoms-related this week for a foreign investment in approvals, a significant number of international port services in Kyauk Tan transport-related projects also received the township to the southeast of Yangon. green light. The start of the 2017-18 fiscal year on 1 April also saw the completion of the by-laws surrounding the recently-passed Myanmar Investment Law, which replaces the two previous laws governing foreign and local investment. While it is early days for investments under the new regime, MIC secretary U Aung Naing Oo said he was optimistic about improving the often daunting and frustrating process that A total of 14 transport and communications had faced foreign investors in the country. projects were approved last fiscal year by the MIC, more than any sector except for Speaking at an event hosted by the British manufacturing, which typically consists of less Chamber of Commerce on 3 May, U Aung capital-intensive investments such as garment Naing Oo was candid in the problems of the factories. MIC’s relations with the various government ministries. Put another way, the $3.1bn approved for investment to transport and communications While he is often circumspect when speaking was about half of the total investments worth to Myanmar media, at the British chamber $6.6bn approved in 2016-17. event he was relatively open to the scale of the challenge, calling it a “tough job” for MIC. The following transport-related projects were approved in the previous 2016-17 fiscal year: “Ministries will tell you they are willing to promote business in Myanmar … but they say Dry ports in Mandalay and Yangon by you need to do ‘this and that’,” he said. “’This local firm Resource Group Logistics and and that’ can be quite difficult.” foreign company KM Terminal and Logistics transport.frontiermyanmar.com Myanmar Transport Brief | 28 April - 4 May 2017 3 However, he said that the ministries are often The idea is that foreign tourists would be able trying to uphold their rights, even though to travel from one heritage site to the next, waiting to receive their responses on without the need to transit. investment decisions often slows the MIC process. There are currently no direct flights between Cambodia and Myanmar, though Myanmar The MIC has also appointed a focal person in Airways International previously flew between each ministry, hopefully improving the Yangon and Phnom Penh / Siem Reap. relationship. Emirates also services Yangon as a stop on its The bylaws following the new Myanmar Dubai to Phnom Penh route. Investment Law also are intended to speed up the approvals process. Pressure has been growing on Myanmar authorities to open Bagan to international U Aung Naing Oo said that MIC requests of flights. ministries will now come with timelines attached. If the ministries do not respond in time, the project will deemed to be approved, in contrast to past systems where approvals often languished at the ministry level. He also said the MIC aims to be a single window for investors, cutting down on the requirement for them to interact with various ministries. Currently, domestic airlines have a monopoly on the airport, and Myanmar Transport U Aung Naing Oo also said he is hopeful that Monitor understands they are strenuously the much-delayed new Companies Act will be opposed to allowing international flights to approved in 2017, adding he had made the begin. request personally to a number of parliamentarians. Many of Myanmar’s nine domestic airlines fly routes that start in Yangon, and travel to a Air combination of Nyaung-U (Bagan), Mandalay, Committee formed to consider opening Bagan and Heho (Inle lake). to international flights Allowing direct international flights to Bagan Working committees have been formed to along with Heho has been keenly sought be a consider opening Bagan airport (Nyaung-U number of companies and foreign Airport) as an international gateway, according delegations , though so far have not to a 29 April article in the Global New Light of succeeded. Myanmar quoting Ministry of Hotels and Tourism officials. State-owned the Myawaddy reported in March that Emirates is looking to launch a Bagan- Consideration is being given to allowing direct Cambodia route. flights between Bagan and Angkor War, a tourist location in Cambodia near Siem Reap city, the article said. transport.frontiermyanmar.com Myanmar Transport Brief | 28 April - 4 May 2017 4 Thai deputy prime minister Somkid Jatusripitak It received about 250,000 visitors in 2015, a also brought up direct Bagan-Thailand flights number which could rise to 500,000 by 2018, during a trip leading a Thai business delegation according to an article in the Myanmar Times to Myanmar in February. quoting officials from the Bagan Tour Guide Association. A 29 April article in The Global New Light of Myanmar stated that the working committees Road have been formed for direct Myanmar- Mon bridge quietly opened amid intense Cambodia flights, and direct flights to Bagan criticism are “under development”, with consideration The government has decided to move forward being given to opening the airport to with open the Bogyoke Aung San Bridge (Bilu international flights. Island), despite fierce opposition among local people about the name. It is not clear from the article as to whether it is only the Cambodia flights that are under Choosing to name the bridge after a Burmese consideration, or if Bagan may be opened to leader has been derided by critics, who say it flights from all countries. shows a lack of awareness by the National League for Democracy about local ethnic It also did not mention who sits on the issues. working committees, though it likely includes officials from the Department of Civil Aviation. At present, international visitors to Bagan must arrive by way of Yangon, or to a lesser degree Mandalay. About 1.1m tourists arrive via Yangon in 2015 (the latest year for which the Ministry of Hotels and Tourism has posted statistics), compared with 107,000 in Mandalay and 13,800 in Naypyitaw. The bridge is located a few miles outside of the Mon State capital of Mawlamyine. An additional 3.3m “tourists” arrived overland, though many are thought to be day-trippers The controversial bridge was opened without and not real tourists. Nevertheless, this an official ceremony on 27 April. inflates figures. Workers had reportedly installed a sign calling Nyaung-U has a 2,600m runway, along with a the Bogyoke Aung San Bridge (Bilu Island) in taxiway, lighting system and air control the middle of the night on 26 April, a fact system.
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