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Myanmar,
which is often called Asia’s last frontier, has the potential to
achieve quick development by integrating with neighbouring countries.
The success of this process, however, is highly dependent on the
adoption of a coherent and appropriate combination of policy measures
for business and industrial development. Such measures should be
developed based on the careful assessments on available opportunities
and constraints the country faces.
There are presently two potentially significant
industrialisation projects in pipeline: the development of the Thilawa
Special Economic Zone (SEZ) and the upgrading of the road connections of
the East-West Economic Corridor (EWEC) within the Myanmar territory.
Thilawa SEZ is located at the mouth of the Yangon river, 20 kilometres
south of Yangon, the commercial and industrial centre of Myanmar. EWEC
crosses the central regions of four ASEAN countries, Vietnam, Lao PDR,
Thailand and Myanmar, linking the South China Sea and Andaman Sea by
roads of international standards and three border crossing points (see
Map 1).
However, while these projects are promising
developments they are not adequate to cater to the needs of all
industries and areas in the country.
One of the bottlenecks of manufacturing development
in Myanmar is the lack of a deep sea port to serve as a key logistical
gateway of Yangon. Unfortunately, Yangon has no deep sea port and the
quick development and integration of the country will benefit greatly
from such an investment. It is commonly observed throughout the world
that the manufacturing sector develops best when located adjacent to or
near to a large deep sea port. A deep sea port is particularly crucial
for the manufacturing sector because such a port is needed to facilitate
the movement of goods for both sales and supplies, serving for export
and import operations. Deep sea ports, due to the depth of their water,
have the capability to accommodate large and heavily loaded ships.
Two existing deep sea ports are along the northwest
coastal line of Myanmar; however, their locations are far from the
central region of Myanmar (and EWEC) (Map 2). Apart from the necessary
upgrading of their facilities and capacities, their expected roles in
manufacturing are likely to be limited to serving as regional logistics
hubs for specific development purposes (e.g. gateways to and investment
destinations for South Asia and China).
A number of options exist for the development of
additional deep sea ports. All of these have value and should be pursued
in due course however priority should also be given to the developments
which are best positioned to serve the needs of the manufacturing
sector with connections to the capital.
Industrial Zones and Special Economic Zones in Myanmar
Plans have been made to develop a special economic
zone along the southern coastline in Dawei that will include the
development of a deep sea port. This project has been strongly supported
by Thailand and aims to develop large scale utility infrastructure and
diversified industrial clusters, including heavy industries, which could
complement to the well-developed industrial clusters in the central
region and eastern seaboard of Thailand. However, the Dawei port is
located approximately 700km from Yangon and 300km from the western hub
of the East-West Economic Corridor. Although the Dawei port has a
geographic advantage with regard to market access to Thailand, Myanmar’s
main trade partner, it is far from the traditional industrial clusters
of Myanmar.
In addition to the three advanced development plans
for deep sea ports, two more emerging projects to develop deep sea ports
close to Yangon, in Pathein and on Kalargote Island, are planned.
Pathein’s plan has been recently proposed and includes, in addition to a
new deep sea port, a couple of SEZs around Pathein and expressway and
railway links between Yangon and Pathein. The deep sea port of Pathein
is located in 200km west of Yangon and it can extend EWEC to the western
coastline.
On the other hand, Kalargote Island, has been
periodically considered as a potential deep sea port location by various
agencies for the past three decades, on and off. The most recent
proposal was made by a Thai investor in 2013 to develop the island as a
deep sea port, which aims to serve for the future industrial clusters
along the East-West Economic Corridor and nearby states. The plan
proposes that the island will not only to become a gateway for import
and export operations at the existing and planned industrial zones but
will also to serve for Thai-Myanmar border-trade and -production through
the Three Pagoda border-pass and the other SEZ along EWEC.
The Kalargote Island project has clear advantages
over the other port development projects, including proximity to Yangon,
EWEC, the new industrial zones and Thailand, Myanmar’s major market.
This development should take priority to fast track the clear advantages
it will bring.
A comprehensive development strategy for the Tilawa
SEZ and EWEC, coupled with the development of industrial zones, other
SEZs and deep sea ports, should be at the high priority for the country.
A lack of such policy framework, which must include the development of a
deep sea port nearby Yangon, represents a major obstacle in enhance
Myanmar’s growth prospects.
Dr Masato Abe is Economic Affairs
Officer of United Nations ESCAP in Thailand. The views expressed herein
are those of the author and do not necessarily reflect the views of the
United Nations or Myanmar Business Today.
Ref;http://www.mmbiztoday.com/articles/missing-element-myanmar-s-development-plan-deep-sea-port
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