www.powerlogisticsasia.com is an annual project logistics event which is taking place in Singapore. The event brings together the heavy transport and lifting industry that is catering to the oil, gas, heavy engineering, power, mining and other related industries. It offers a great opportunity for participants to hold up the flag in the South East Asian project cargo market. It comprises of educational workshops, conferences, seminars and an exhibition. www.powerlogisticsasia.com

1. MYANMAR
PROJECT LOGISTICS
3 YEARS LATER

2. OUR BACKGROUND
1983 – 1984 Hydro Power Project
2013 2x120 MW Power Plant Projects
J.V. with Injynn
Injynn = marine offshore supply logistics
The Freight = onshore project logistics
Together = offer seamless on- and offshore services
Project logistics
Equipment provider
Tug, barge in cooperation with CHL
Air, sea, land, warehouse, customs services

3. HISTORY - 3 PERIODS
Under the British Empire 19th century to 1947
Infrastructure nearly the same as London
Vast road and railroad network
60+ airfields
Independence 1948 (1962 military control) to 2011
A few power plants (mostly hydro)
3 new ports
Upgraded Yangon and Mandalay airport
1 highway
1 new capital
Civilian nominated government to now

4. HISTORY - 3 PERIODS

5. 3 YEARS LATER
What has changed since the opening up of Myanmar?
1. Legal
2. Insurance
3. Health, Safety, Environment, Social
4. Customs
5. Licenses
6. Infrastructure
7. Equipment

6. LEGAL

7. LEGAL
Many laws are still outdated
For many transportation and lifting issues there are no
laws existing as there was never any need for. Classic
example is the multi-axle trailer
The present road law is limited to the 22-wheel truck
The max. permissible weight is presently 50.5 tons
The weight varies from type of truck / trailer to the time of
the year
There is no regulation about the bridges
Bridges normally don’t carry max. payload signage

8. LEGAL
Road transport permits are not regulated
Many overlapping parts
Consequently many players (government) involved
Regional as well as national administration needs to get
involved
Find your way through the local administration
This also applies for other areas such as developing a jetty
(river or ocean), etc.

9. LEGAL

10. LEGAL

11. INSURANCE

12. INSURANCE
Most local companies do not carry any insurance because
besides life and fire hardly any others available
This applies to lifting, trucking and shipping
Exception: Foreign owned vessels working in the OG
offshore industry
Marine cargo insurance is also new to Myanmar
Foreign contractors are advised to buy insurance in their
own backyard
There is hardly an option to claim from the local logistics
provider

13. INSURANCE
Ask your local service provider about their insurance
coverage. They include:
Forwarders / Logistics Companies
Truck Operators and Crane Operators
Warehouse and Yard Operators
Barge and Ship Operators
If in doubt ask to see the insurance policy / certificate
Many insurance companies still shun Myanmar

14. HEALTH, SAFETY, ENVIRONMENT, SOCIAL

15. HEALTH, SAFETY, ENVIRONMENT, SOCIAL
Overall very little regard for HSES
This includes ports, airports, trucking, lifting, etc.
In many places workers are wearing slippers and
traditional Myanmar sarong and no hard hats
Exception: Private operated ports
Operators in all fields don’t train their staff
Environment and social aspects are largely disregarded
There is much push from the western world for social
impacts
Hardly any interest though in environmental impacts

16. HEALTH, SAFETY, ENVIRONMENT, SOCIAL
The western world needs to be more patient and give
Myanmar more time
We can’t expect a country that was locked away for more
than 5 decades to become overnight a global leader

17. CUSTOMS

18. CUSTOMS
The prevailing customs procedures for Myanmar are
provided in the Sea Customs Act and Land Customs Act
Types of duties are levied on imported goods are as
follows:
Import duties
Commercial taxes
License fees
The 1996 Version of the Harmonized System is applied
since 1st January 1996
Generally we are on the right track. But…

19. CUSTOMS
Customs clearance at the seaports is slow and inefficient
Reason:
Fast growing import volumes
Brain drain = older government employees are joining the private
sector
Customs can’t train and add manpower at the same pace
All work is done manually
Most shipments need import licenses
All shipments are subject to inspection
Generally a crackdown with a “mobile team” slows down things
further
Online scheduled for 2016

20. CUSTOMS
Temporary import / re-export still an issue
Carnet ATA / Carnet de Passage should be adopted
FYI: The Freight Co., has a non bribery policy and has
undergone extensive anti-bribery training!

21. LICENSES

22. Most import shipments are subject to import license
There are three types of trade in Myanmar
By Sea
By Air
By Land
Sea and Air are considered overseas trade
Land = cross border trade if payment not through banks
Under the Ministry of Commerce the Directorate of Trade
issues licenses for overseas trade
The Dept. of Border Trade issues licenses for cross-border
trade.
LICENSES

23. LICENSES
Only trading companies can get import license
Exception: Foreign companies investing through Myanmar
Investment Commission (MIC)
For non MIC supported companies only 100% Myanmar
owned companies can get an import license
Example in our case: import of capital equipment has to
be imported through a trading company
Licenses must be obtained in NYT = time wasting

24. INFRASTRUCTURE

25. INFRASTRUCTURE
The basic infrastructure is still outdated
Telecommunication is on its way
Besides telecom main efforts seem to be focused on
electricity
Road, bridges and railways do not get much coverage
Ports are a problem because focus on Yangon and
Yangon’s environment not suitable for deep sea ports
Other areas slated for deep sea ports (SEZ KYP and Dawei)
remain a problem
No H/L facilities for air cargo

26. INFRASTRUCTURE
Maximum permissible weight on the road
Bridges not suitable for heavy haulage
Road conditions particularly of rural roads
Now adding pedestrian bridges in Yangon
Government should establish guidelines when building
new roads and bridges
Container ports all in Yangon
Inland water ways had no attention for decades
Ayeryawaddy ranks top 5 globally in carrying sediments

27. EQUIPMENT

28. EQUIPMENT
Lots of cranes coming into the country
Most are used for construction projects
Availability of heavy duty trailers is mediocre especially in
the low bed segment
Barges and LCT’s are abundantly available
No certification and international classification though
Generally equipment know-how and manpower training is
very questionable
As mentioned largely no insurance
We provided heavy lifting and transportation workshop to
government and EPC’s

29. EQUIPMENT
We offer first international standard, classified and fully
insured 210’ barge
Tug and barge are brand new and NKK classified
100-tons brand new crawler crane permanently on deck
Support equipment low bed trailer to arrive end of this
year and hydraulic trailers to mobilize in the first quarter of
2015
Hence complete range barging, trucking, lifting at the
highest international standard will be available then

30. SUMMARY
Overall not much has changed
Ports are expanded inside Yangon adding to traffic jam
Road and bridge constructions are starting but they will
not help for heavy haulage
Most heavy transports upcountry need a combination of
barge and trailer = added costs
Equipment, especially cranes are coming into Yangon but
are snapped up by construction projects in town
Lot remains to do including legislation, road, river, ports
Private sector needs to import technology and standards
Government push development and laws

31. MYANMAR 3 YEARS AND A BIT MORE
1983 - 2014