Market Trends of Myanmar Freight And Logistics Industry
Road Transport Sector Remains the Dominant Mode of Transportation
Road freight transportation has been emerging as a leading mode of freight transportation in recent years, along with shipping and inland water transport. Road transport is the dominant mode of domestic transportation, helping connect rural areas and support regional and international trade.
The road network in Myanmar is weak and underdeveloped compared to ASEAN nations, with more than half of the road network being unpaved. The improper infrastructure, coupled with the lowest motor vehicle penetration in Southeast Asia, results in high transportation costs and long travel times. This makes the trucking costs in the country comparatively higher than in other countries in ASEAN.
As part of Myanmar’s Sustainable Development Policy 2018-30, transport infrastructure development is a prioritized area. The third goal in the report relates to creating jobs and boosting the economy with the help of the private sector.
Cross-border trade has been gaining more importance across Southeast Asia and has become key for increasing trade activity and economic development. All the countries in the region have joined hands and created cooperative development to increase competitiveness altogether. In this context, cross-border trade is expected to be a major driver of the Burmese trucking industry.
Developments in Transport Infrastructure to Improve Connectivity and Drive the Logistics Market
Myanmar’s significant reforms include merging the ministries related to transportation under a single Ministry of Transport, expanding transport networks to reduce transportation costs, improving water transport along the Ayeyarwady and Chindwin rivers, and allowing private companies to manage Yangon and Mandalay international airports under the PPP (public-private partnership) scheme.
In order to increase freight transport efficiency and maximize investments in the sector, a logistics corridor development strategy is being considered. Under this strategy, investments will be concentrated within six so-called logistics corridors, including major transport and cargo systems, such as roads and rivers linking large industrial clusters to border gates and ports.
The establishment of six logistics corridors that run through the country, which is fundamental to the plan, includes the North-South Logistics Corridor between Yangon and Southern China, South-East Logistics Corridor to Thailand, Trans-Myanmar Logistics Corridor connecting Kyaukphyu in Rakhine State with Tachileik in Shan State, Myanmar-India Logistics Corridor, Main River Logistics Corridor, and Coastal Marine Logistics Corridor.
