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Myanmar Transport Infrastructure Brief | 23 November– 29 November 2017 2

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Myanmar Transport Infrastructure Brief | 23 November– 29 November 2017 2 NEWS Myanmar Transport ANALYSIS DATA Infrastructure Brief TENDERS COMPANIES Issue 50, 29 November 2017 Part of the Myanmar Transport Infrastructure Monitor transport.frontiermyanmar.com IN THIS ISSUE DCA invites EOIs for Muse Airport Expressions of interests invited for the PPP project near the China border less than a month after the airport was announced Launch held for airport fuel depot National Energy Puma Aviation Services’ new fuel depot increases Yangon International’s fuel storage capacity by over 400% Mandalay dry port project making steady progress TRANSPORT NUMBER OF THE WEEK The project, jointly developed by Kerry Logistics and Resources Group Logistics, is about 50% complete 50% DWIR to begin charting Ayeyarwady River The Sai Din Bridge in Chinese firm eyeing Mandalay-Muse railway northern Rakhine State is Manipur and Myanmar discuss trade promotion and transport connectivity 50% complete according to Myanmar and Japan discuss potential flyover project the Department of Bridges Bagan-Siem Reap flight talks resurface after Myanmar-Cambodia MoU under the Ministry of Chief minister discusses electric rail in new city Construction. Suzuki plans to produce two new models at Thilawa plant The bridge broke ground in Twante Canal development project to begin next fiscal year December 2016 and will link Domestic airline suspends operations for two weeks Ponnagyun and Buthidaung. New South Okkalapa-North Okkalapa bridge 100% open Potential Manaung project would prioritise airport, roads and port It is one of five bridges in Myanmar-French partnership to upgrade Yangon bus-stops the area expected to finish construction in March 2018. Initial work on circular railway upgrade begins Yangon Region conducting feasibility studies for ports downstream CALENDAR Myanmar and Nepal discuss direct flights Myanbuild 2017 Construction underway on road in northern Kachin Asia Infrastructure Mandalay-Pyin Oo Lwin road developer must resubmit work programme 2018 Chin State chief minister: infrastructure key to attracting investment Retail, Distribution YBS operator plans to add five new lines in 2018 & Logistics Forum Silting near Pakokku disrupts river trade THIS WEEK’S NEW TENDERS THIS WEEK’S NEW DATA Weekly fuel retail EOIs invited for Muse Airport and Supply of asphalt in Naypyitaw and import prices, Supply of reinforced steel bars in Rakhine State October-November Transport of cement in northern Shan State Trade statistics Supply of premium diesel in Sagaing and Supply of Toyota Hilux for DRD Supply of materials for MR and Supply of various equipment for IWUMD Civil works for tertiary roads and culverts in Mandalay Supply of asphalt in Kale transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 23 November– 29 November 2017 2 Air The DCA previously estimated the airport will DCA invites EOIs for Muse Airport take five years to construct. The Aerodrome Standards & Safety Division It joins the Heho, Kawthaung and Mawlamyine under the Department of Civil Aviation (DCA) airports on the list of regional airports recently invites local-foreign consortiums to submit tendered out for upgrade and construction expressions of interest (EOI) for the financing, works through PPPs. construction, management of the planned Muse Airport in northern Shan State. If the projects move forward, they would become the country’s first regional airports to Deputy Minister of Transport and be privately operated. Communications U Kyaw Myo announced in late October that the Muse Airport would be The DCA told Myanmar Transport developed under a public-private partnership Infrastructure Monitor the department (PPP) model. received eight EOIs for Heho, eight EOIs for Kawthaung and four EOIs for Mawlamyine. The call for EOIs comes less than a month after U Kyaw Myo announced the plans for Muse For more details on the Muse Airport EOI, Airport, which came at the 25 October session please click here. of the lower house of parliament. Air EOI documents are available between 27 Launch held for airport fuel depot November and 1 December. The deadline for EOI submission is 15 December. National Energy Puma Aviation Services (NEPAS) held an opening ceremony for its new The project ultimately aims to increase fuel depot at Yangon International Airport on domestic transport connectivity and boost 20 November. trade between Myanmar and China. The new depot increases fuel storage capacity The ministry has been keen on developing an from 1,200 to 6,200 cubic metres at the airport in the Myanmar-China border town for airport. some time now. It conducted joint surveys on potential sites with the Ministry of Construction in 2008 and 2010, though concerns over improper terrain and weak air currents nixed any plans. A subsequent proposal to develop an airport at the earmarked site under a PPP was sent to the Economics Committee of the Union Government and was provisionally approved in June 2013. This improves the security of supply to the Muse Airport will be constructed at a site 9.6 airport and allows the firm to operate a km (6 miles) south of Muse, situated north of forthcoming hydrant line at a high capacity Kaung Bwe village and west of the throughput, a Puma Energy official said. Lashio-Muse road (National Highway 3). transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 23 November– 29 November 2017 3 The depot has been built to EI 1540 and Yangon International is Myanmar’s busiest National Fire Protection Association (NFPA) airport and main international gateway. standards. The airport welcomed its 2017’s five millionth Engineering teams from around the world passenger on 14 November and expects a total were involved, but the spokesperson said that of 5.9m passengers in 2017, representing a 9% while the project was supported growth on 5.45m passengers in 2016. internationally by the company’s expertise, “in the vast majority it was designed and built by About two-thirds of its passengers were Myanmar engineers and construction teams international travellers, and 70% from within and this is something that we are all very Asia, statistics from airport operator Pioneer proud of”. Aerodrome show. National Energy Puma Aviation Services is the Puma Energy in Myanmar Myanma Petroleum Product Enterprise’s (MPPE) first joint venture, with MPPE holding In addition to its stake in NEPAS, Puma Energy 51% and Puma Energy the remaining 49%. is the majority owner of Puma Energy Asia Sun, which owns and operates a large fuel terminal to the southeast of Yangon. Puma Energy Asia Sun is also working to build a domestic distribution and retail network, and is considering another terminal at Mandalay. Logistics Mandalay dry port project making steady progress The JV was announced in December 2014, Construction on a dry port in Mandalay is 75% following a tender. complete, according to Myawaddy Daily. The firm held a small opening ceremony for Works began in July 2016, with the project the new depot at Yangon International in estimated to finish by April 2018. Yangon's Mingaladon township on 20 November. A lease agreement for the 75-acre site in Myitnge, south of Mandalay, was finalised in It was attended by NEPAS company members, April with Myanma Railways.. as well as airline and Department of Civil Aviation (DCA) officials. The site is next to the Myitnge railway station and National Highway #1. In addition to the facility at the Yangon airport, it operates at another 10 airports in the The build-operate-transfer (BOT) project is country. being joint-developed by Myanmar company Resources Group Logistics and KLN The spokesperson said that NEPAS currently (Singapore), a subsidiary of Hong Kong-based has no further hard infrastructure plans at the Kerry Logistics. other airports, but the firm has already upgraded existing infrastructure to international standards at all its locations. transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 23 November– 29 November 2017 4 The site is divided into two sections, with The 80-acre site will also be implemented with Resources Group Logistics developing the a total investment of $40m. 32-acre Section A and Kerry Logistics developing the 43-acre Section B. Both companies will each develop a 40-acre section. The project is being implemented with a total investment of $40m. The Yangon dry port currently lags behind the Mandalay dry port in development, Kerry Dry Ports are inland logistics centres linked to Logistics toldMyanmar Transport one or more modes of transport for the Infrastructure Monitor. handling, storage and regulatory inspection for goods involved in international trade and The company says it will develop the Mandalay customs control. dry port first before it focuses on the Yangon dry port project. Kerry Logistics told Myanmar Transport Infrastructure Monitor the 75% completion Myawady reported by Myawaddy Daily is an overestimation, though the progress is close to Though little to no progress has been made on that level of completion. dry port developments outside of Yangon and Mandalay, there have been talks regarding a Although both the Yangon and Mandalay dry potential 100-acre dry port near Myawady, ports have yet to finish construction, Kerry Kayin State. Resources Transport, a joint venture between the two developers, began operating a Myawady is the main hub for border trade container train between Mandalay’s Paliek between Myanmar and Thailand. station and Yangon’s Wardan station on 4 August, the company says. A project plan was reportedly slated to be drafted by Japan International Cooperation The train runs every Thursday, Friday and Agency (JICA), though issues with the potential Saturday. project site have delayed any planning. Other Dry Ports Muse The government intends to develop eight dry In 2016, there was a preliminary proposal for a ports across Myanmar by 2020. dry port near Muse at the Myanmar-China border. Other than Yangon and Mandalay, other potential locations reportedly include Muse, Local company First Golden Dragon Company Tamu, Mawlamyine, Monywa, Myawady, Bago was keen on developing a 210-acre dry port and Pyay.
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