Times-Mar 29
The Ministry of Transport and Communications, with help from the Japan International Cooperation Agency (JICA), is drawing up a National Logistics Master Plan to supplement the existing National Transport Master Plan in Myanmar.
Mr Masayuki Karasawa, chief representative of JICA’s Myanmar Office, presented the National Logistics Master Plan, which is expected to be launched within the year, at the Myanmar Infrastructure Summit 2018 last week.
The purpose of the plan is to create an efficient and competitive logistics system that supports multimodal transportation in the country, which, in turn, will attract foreign direct investments and enhance industrial development.
According to Mr Karasawa’s presentation, a total of 167 projects have been included under the new logistics plan, of which 108 have already been identified under the earlier transport plan. As such, 59 logistics projects have been added based on urgency, available resources and future demand.
Each project is estimated to cost around $29 million, or K40 billion, on average, according to Mr Karasawa’s presentation.
The government is raising efforts to organise and develop a competent transport and logistics system in Myanmar at a time when trade between the country and its global partners is projected to rise.
According to the National Logistics Master Plan, cargo movement to and from Myanmar is forecast to double to 312 million tonnes by 2030 compared to 169 million tonnes in 2015.
Logistics corridors
To optimise freight transport efficiency and maximise investments into the sector, a logistics corridor development strategy will be implemented, Mr Karasawa said.
Under this strategy, investments will be concentrated within six so-called logistics corridors, which include major transport and cargo systems such as roads and rivers linking large industrial clusters to border gates and ports.
These corridors will include the North-South Logistics Corridor linking Yangon to China, South East logistics corridor linking Myanmar to Thailand, Trans-Myanmar Logistics Corridor linking Kyaukphyu in Rakhine State to Tachileik in Shan State, Myanmar – India Logistics Corridor, as well as the Main River Logistics Corridor and Coastal Marine Logistics Corridor.
Investments will be channeled towards building new and upgrading existing logistics facilities and transport infrastructure within these corridors. Funds will also be used to establish a multimodal hub with proper hub and spoke functions and hinterland connectivity.
“I expect the National Logistic Master Plan will help to resolve difficulties and challenges we face in the logistics sector,” U Aung Khin Myint, chair of the Myanmar International Freight Forwarders’ Association, told The Myanmar Times.
U Htike Htike, deputy director of the Ministry of Transport and Communications, said: “Logistics is a big and important sector in Myanmar. So, we need to have a more cost effective logistics plan to improve the economy. We need to implement the plan not only with government support but also with loans and investments from the private sector.”
The Ministry of Transport and Communications, Ministry of Construction and JICA have been conducting studies for the purpose of drawing up a National Logistics Master Plan since July 2016.
The study, which aims to formulate a strategic and workable logistics development plan aligning with the 2014 National Transport Master Plan, is expected to be complete by the end of this year.
The National Logistics Master Plan analyses and takes into account growth trends in trade and the economy, including cargo demand as well as transport, industrial and logistics development in Myanmar.
