[051212.EN.SEA] No Longer Isolated, Myanmar's Yangon Makes Its Debut In The Port World

DESPITE the global weakness in consumer demand, Singapore's GML Logistics Pte Ltd (GML) has found something to cheer about in the growth potential of Myanmar' s Port of Yangon, now that the country has emerged from the diplomatic shadows.

Myanmar is one of the biggest exporters of beans and pulses, food crops important for high protein and amino acids, with pulses playing a key role in crop rotation due to their ability to fix nitrogen.

GML managing director Frankie Lim, who launched his firm in 2007 as an NVOCC, and first concentrated on the China-cross-straits trade was soon diverted by the potential of Yangon's Myanmar Industrial Port (MIP) with its annual capacity of 200,000 TEU, expected to rise to 300,000 TEU by the end of 2013.

"Vessels are quite full despite new players coming in. Every month you can see another line calling," said Captain Lim, who has since become an MIP representative, committed to the port's development.

MIP is the only privately-owned port serving Yangon, the former capital (Rangoon) and still its largest city. There are also two state-run terminals serving the same market.

"In the last three years we have been getting more customers," said Captain Lim. "Since 2010, we have had Hartman Asia Container Line, STX Pan Ocean, CMA-CGM, RCL, KMA, MOL and OOCL at our terminal."

The port is upgrading its facilities to improve the productivity and efficiency. The terminal has improved on-time delivery using four mobile cranes. "Extended customs hours have allowed flexibility and improved turnarounds. We are also expanding the yard space. This will eliminate congestion, improve cargo collection and delivery turn times," said Captain Lim.

Crane productivity is also high, he said, with an average of 20 moves per hour, per crane, and as high as 40 moves per hour on discharge using two cranes.

Upon the completion of the current terminal expansion (2015), MIP will have a total of 2.8 kilometres of terminal length at the port.

MIP is also in the process of acquiring mobile and gantry cranes to add to the four Gottwald cranes that can handle 100 tons each, it already expects two more by end of the year. A new entry gate is also being built to become operational in the New Year. Other features include colour x-ray scanners, dredging, berth extension to 600 metres and the building of an eight-storey office block.

Being the only Yangon facility with colour x-ray scanners, which is required by some customs departments around the world, cargo is often transferred from other local facilities to MIP for scanning-before further processing, which provides MIP another competitive advantage.

But problems remain. "Navigation is only possible from sunrise to sunset, based on the draft and tidal. The allowable draft is based on seasonal factors, announced by the authorities daily," said Captain Lim.

"I think the infrastructure will need to cater to the port 24 hours a day, a deeper dredged channel, and ensuring that the whole port system works to get the containers coming in on time. If in five years we can do this, then we will be on the same level as any other port, whether it is Bangkok or Ho Chi Minh," he said.

"But we are still looking at eight to 8.5 metres, and in the dry season it could be down to less than eight," he said, which meant forward planning would be needed to develop big ship traffic from Singapore and Port Klang so that ships could arrive and depart the tidal port with the minimum time lost.

Source : HKSG.