Yangon Port Development Towards a Longterm Vision Yangon

Yangon Port Development Towards a Long-term Vision Yangon, May 2018

Yangon Port 2050: A Dutch Long-term vision • • • The Dutch companies in Myanmar discussed Yangon Port during a Port Pressure Cooker in January 2018 (Yangon). Key issues and opportunities were discussed, leading to initial ideas for the Dutch Long-term Vision for Yangon Port. Coalition of Dutch companies committed resources to invest deepen dialogue with Myanmar strategic stakeholders, and explore two year proposal with Dutch government.

The Netherlands and their Experience • • Netherlands is a Delta Nation and houses one of the largest ports in the world Very strong Water Sector (Ports, Climate Change, Flood Resilience) Independent Business Sector Extensive knowledge of Myanmar through various ongoing initiatives (G 2 G, K 2 K, B 2 B) • Proven results in similar projects: • Mekong Delta, Vietnam. • Jakarta (Tanjung Priok), Indonesia • Port of Rotterdam, The Netherlands

Key issues for Yangon Port • • Current draught limitation of Yangon and Thilawa Port (-9 m and -10 m respectively) Poor hinterland connections to Industrial Zones (IZs) and Mandalay region Lack of synergy due to scattered port development High logistics costs hampering economic growth Short-term vision of Yangon Port and Thilawa (10 -20 years) Uncertainties in the long-term Long project history

Stakeholders • (MTOC) Ministry of Transport and Communication: Myanmar Port Authority, Department of Marine Administration, Inland Water Transport, Directorate of Water Resources and Improvement of River Systems, Department of Meteorology and Hydrology • (MONREC) Ministry of Natural Resources and Environmental Conservation • (MOPF) Ministry of Planning and Finance • (MOC) Ministry of Construction • (MOGE) Myanmar Oil & Gas Enterprise • (MMU) Myanmar Maritime University • (MFSL) Myanma Five Star Shipping Line • (MIFFA) Myanmar International Freight Forwarders Association • Myanmar Fuel Oil Importers and Distributors Association • Private port/terminal operators, logistics companies, local stakeholders

Existing Plans for Deep Sea Ports and Yangon Port Several plans were developed for a Deep Sea Port 1. Kyaukpyu, Rakhine State (West) 2. Ngayoke Bay, Ayeyarwaddy Region (West) 3. Kalagauk, between Mawlamyine and Ye Region (South) 4. Dawei, Tanintharyi Region (South) The long-term vision for Yangon Sea Port will take into account the possible development of any deep sea port. Different scenarios will be assessed, including the deep sea port development plans and the development of the Yangon / Thilawa Port area.

The Netherlands and their Experience • • Netherlands is a Delta Nation and houses one of the largest ports in the world Very strong Water Sector (Ports, Climate Change, Flood Resilience) Independent Business Sector Extensive knowledge of Myanmar through various ongoing initiatives (G 2 G, K 2 K, B 2 B) • Proven results in similar projects: • Mekong Delta, Vietnam. • Jakarta (Tanjung Priok), Indonesia • Port of Rotterdam, The Netherlands

Current developments Sittwe - 2008: Mo. U Indian – MM govern. Development as India Gateway Kaladan Multi-Modal project Kyaukpyu - SEZ containing port/industrial area - Led by China’s CITIC (70/85% stake) - 2015: Chinese oil pipeline operational Pathein - PIC: industrial zones, new port areas - Deep sea port locations proposed at Nga Yoke Kaung/Danson Bay - Planned upgrades of road, rail and IWT links with Yangon Thilawa/Yangon - Thilawa SEZ/deep river port 25 km downstream of Yangon - Both ports face depth restrictions - Many expansions planned Kalegauk Island - River port expansions in Mawlamyine - Several feasibility studies conducted for deep sea port locations - End of EWEC-corridor Dawei - SEZ developed by Italian-Thai group - Project on hold, will restart soon - Focus on export, potential as transit

Look wide before pinning Yangon port • How to handle large shallow areas in Yangon river and the river mouth? • Will Yangon remain the main gateway? • Use other Myanmar coastal ports for future transshipment of Post-Panamax vessels? • Accept high dredging CAPEX/OPEX?

Supply: existing road infrastructure • Yangon has a clear monopoly due to its comparatively better infrastructure, connectivity, and support of rich hinterland • Traffic congestions in Yangon contribute to increases in travel and lead times, and therefore to an increase in transportation costs • Ministry of Construction allocates high priority on certain segments of the highway network, shown in the figure • Myanmar uses a multimodal transport system, however there is a lack of equipment for cargo/container handling, and the railway and road networks are not integrated

Supply: planned developments 1 1

Demand: existing cargo forecasts • TO BE ADDED

Depth requirements • Taking into account Myanmar’s economic developments and container ship size trends in the Asian region, Myanmar should be able to accommodate 4. 000 TEU container ships in the near future (already sailing on intra-Asian shipping routes) • If Myanmar remains a feeder market: drafts of 10 m will be sufficient (± 2. 200 TEU) • If Myanmar facilitates handling of main line ships: drafts of 12. 5 – 13 m (± 4. 000 TEU) • Depth requirements will follow from the cargo forecast

Urban, Industrial, Infrastructure developments • ‘’The Project for the National Logistics Master Plan Study of the Republic of the Union of Myanmar – Draft Final Report’’, • author: Ministry of Construction and JICA (October 2017) • ….

Urban, Industrial, Infrastructure developments

Showcase: Port of Rotterdam Development. Over 100 years of Port Development

Yangon Port 2050: The Rotterdam-Model. small N 40 km 1 7 Rotterdam N 40 km Yangon Think Big – start

Yangon Port 2050: a Dutch Long-term Vision Goal Vision Result • The Rotterdam-Model in Yangon: “Think Big, Start Small” Ø Incorporate on-going plans for Yangon Port and city development (supply) Ø Assess economic development cargo forecasts (demand) Ø Develop a vision for the port development on the short-, medium- and long -term (phased approach) Ø Consider the Urban, Industrial and Infrastructure development scenarios (integrated approach) • Flexible, Adaptable, Accommodate for Growth • Resilient to Climate Change

Yangon Port 2050: The Initial next steps • Stakeholders and their objectives • Technical overview • Supply (existing infrastructure and planned developments) • Demand (cargo forecasts) • Institutional, financial and economical setting • Regional, national and local development plans • Business case

Key Questions • Who are the main stakeholders and what are their objectives? • When and where will a deep sea port be constructed? • What are the development plans for the Yangon and Thilawa Port area? • … • Notes: Pressure Cooker session January, 2018, Yangon.

…. . sers Myanmar Government Port U Competit ors Training & Educational Institutes Inve /Ow stors /Sh ners areh olde rs Commun ity Suppliers