KM Terminal and Logistics Ltd launched a dry port in Ywathagyi Township in Yangon on 11 November to transport cargo to the Myitnge dry port in the Mandalay Region. The service will run once a week.
The inauguration ceremony was attended by U Thant Sin Maung, the Union Minister for Transport and Communications, deputy ministers and officials from the Yangon Region government, the Singaporean Ambassador, and businesspersons.
On the day of the launch, the 19th freight train was operated from the Yangon dry port to the Myitnge dry port. Freight trains were operated between the Myitnge dry port and the Wardan jetty on a trial basis before the official launch of Yangon dry port.
The two dry ports were built at a cost of US$55 million. The ports were constructed under a Build-Operate-Transfer (BOT) system, with Singapore-based Kerry Logistics Network Ltd., investing 70% investment and Myanmar-based Mother Logistics Co. Ltd., investing the remaining 30%. The Yangon dry port was built at a cost of $40 million, while construction of the Myitnge dry port cost $15 million.
“The two dry ports will help upgrade the operation of export/import trade, reduce travel time as they are both located in areas where traffic runs smoothly. Further, implementation of a computerized control system is expected to reduce transport changes,” said U Nyi Htut, the general manager of KM Terminal and Logistics Ltd.
The dry ports will cater for customs inspections and offer round-the-clock services. For export and import businesses, the ports will offer services such as loading, discharge, and delivery as well as cargo storage, door-to-door. Additional services will cover clearing and maintenance of containers, IT tracking and tracing of cargo, and on-site weighing. Cargo insurance and import-export duty exemption for re-exported cargo will also be provided at the ports.
The ports will collect freight charges and taxes as per rates set by Myanma Railways. Depending on the services offered, service fees will also be levied. The port operators will allow between 15 and 27 carriages to run between the two dry ports. One carriage can carry 33 tons of goods.
“We need at least 15 carriages of cargo to run the service. For the time being, the company will allow a freight train to run one round trip each week. The train will leave Ywathagyi dry port every Sunday. From next year, the train will run twice a week. Depending on the demand, freight trains are expected to operate daily in the future,” said U Nyi Htut.
The project is expected to generate a profit in the next six years.
The dry ports have been constructed with the aim supporting freight traffic between upper and lower Myanmar. Freight trains are expected to run through the Myawady, Maesout, and Muse routes in the future. Myanmar also intends to create a trade network with neighbouring India, China, and Thailand. Preparations are under way to provide transit services between the countries.
The Yangon dry port has been constructed on 26 acres of land of the total 40 acres set aside for it in Ywathagyi Township. Based on the growth of business, the remaining 14 acres will be used for the project over the next six years. At the port launch yesterday, Union Minister U Thant Sin Maung said that the existing railway roads will be upgraded for freight transport. He urged called for increased cooperation between the government and private businesses to develop the transport services business.
At present, the Ministry of Transport and Communications is making a feasibility study in Monywa to develop a dry port in partnership with a Korean Company.
By May Thet Hnin
(Translated by Khaing Thanda Lwin)