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October 24, 2019

Logistics hub planned on Yangon outer circular road: Minister

A truck terminal yard or logistics hub is likely to be developed on the Yangon outer circular road once the traffic congestion caused by trucks in the city is eased, said U Myint Thaung, the Yangon Region Minister for Planning and Finance.
The minister made the remarks in response to a question raised by U Kyaw Min Han, a Region Hluttaw representative from Latha Township Constituency 2, at the first day meeting of the second Yangon Region Hluttaw’s 10th regular session. U Kyaw Min Han had asked whether there are any plans to implement a logistics hub to ensure smooth freight transport and create jobs for Yangon residents.
“Highway freight forwarders transport goods using 12-, 10-, and 6-wheeled vehicles. Goods imported by the private and public sectors through the sea channel are kept in warehouses in Sule jetties and private port terminals, and then, they are delivered to Yangon and other regions and states. Players in the road transportation sector use 22-wheeled trucks, 12-wheeled trucks, and six-wheeled trucks to carry the goods to factories or Bayintnaung terminals. At present, factories in Hlinethaya, Shwepyitha, Mingaladon, South Dagon, and East Dagon industrial zones are distributing the goods. In addition, the Bayintnaung terminal cannot accommodate all the trucks and the concerned trade body is discussing this with the Myanmar Highway Freight Transportation Services Association. After we reduce the numbers of trucks entering and exiting the city, we will implement a trucks terminal yard on the Yangon outer circular road. The implementation of a logistics hub will help create job opportunities and improve the SME sector as well,” said U Myint Thaung.
U Kyaw Min Han from Latha Township Constituency 2 suggested inviting local and foreign investors for developing international standard warehousing facilities.
“The development of a logistics industry can help control commodity prices, ensure smooth trading, reduce production costs, and support SMEs,” he said.
“While sending goods into Yangon city, placing central warehouses on the outside of Yangon city, forwarding goods to warehouses of respective townships using small express vehicles, and then delivering the goods door-to-door to customers will facilitate shipping and handling of goods. Hopefully, it will also help reduce traffic congestion caused by heavy trucks,” said U Kyaw Min Han.
The country’s freight transport is moved by air, water, road, and rail. In the 2017-2018 fiscal year, rail freight volume was estimated at 526,100 tons, while over 533,400 trucks, trailers, and three-wheeled vehicles were used for road freight services. Inland water transport carried 422,135 tons using 12 state-owned ferries and 336 private vessels, while domestic airlines transported 1,372 tons of goods.

By Nyein Nyein(Translated by Ei Myat Mon)

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