Singapore Myanmar Investco Limited (formerly known as ‘Singapore Windsor Holdings Limited’) has formally entered into five-year agreements covering duty free, retail and F&B outlets at Myanmar’s Yangon International Airport Terminal 2.
[Yangon International (15km north of downtown Yangon) is the busiest international airport in Myanmar, ahead of the country’s other two main international airports at Mandalay and in the capital city of Naypyidaw. The airport has exceeded its original capacity of 2.7m passengers, handling just over 4m in 2014. It is eventually expected to handle around 6m passengers a year. The recent election victory by Aung San Suu Kyi’s National League for Democracy (NLD) is also being seen as pivotal in opening up the country still further to tourism and trade, although technically Myanmar’s armed forces/generals [previous government-Ed] still administer all of the country’s international border points.]
This follows TRBusiness’ exclusive report back in June, which revealed that DFS Group and the Singapore Windsor Holdings company had agreed a 10-year supply deal in Myanmar to supply the existing Naypyidaw International Airport duty free operation – plus additional new duty free arrivals and departure outlets at Yangon International Airport.
The company (SMI), which describes itself as ‘a progressive business group with a primary focus on Myanmar’ says its new agreement – which includes an optional 5-year extension – comprises total retail space in the new terminal of around 6,725sq m and 43 shop units, with a total floor area of approximately 6,725sq m.
POTENTIALLY LONG-TERM CONTRACT AS MYANMAR OPENS UP
It adds that F&B franchises, as well as a previously announced tie-up with a global duty free operator [DFS supply agreement-Ed] have now been secured, with operations scheduled to commence from March 2016, with a gradual roll out over the next few months [the actual contract date begins on April 1 2016 and expires on 31 March 2021-Ed].
myanmar yangon airportIn a statement today, the company said: “In line with the rapid increase of flights to Myanmar, the number of international travellers for leisure and business is forecast to grow rapidly. The new international terminal 2 at Yangon is expected to allow YIA to more than triple the number of international passengers travelling to Yangon.”
Both duty free and F&B outlets will be positioned on the ground, first and second levels of the new terminal and the umbrella concessionaire says it has already agreed terms with several well-known international fashion and lifestyle brands, as well as F&B franchises.
It added: “In addition, as previously announced on 27 May 2015, the group’s exclusive 10-year supply agreement with DFS, the world’s leading travel retailer, will form an integral part of SMI’s travel retail business model. Together, both initiatives will augment the group’s market position in the burgeoning travel industry and increase its business presence of consumer-related services in Myanmar.”
EXTENSIVE CONTACTS AND EXPERIENCE…
Commenting, Mark Bedingham, President and CEO of SMI said: “SMI has been able to use the capabilities of its senior executives – many of whom have extensive experience in duty free, retail and F&B management – to make a compelling offer through our local partners to YIA and their magnificent new terminal, to provide them with a unique and exceptional range of duty free, luxury and lifestyle brands and to introduce for the first time some world class F&B concepts.
“This will allow SMI to have full exposure to the expected rapid growth in tourism and business travel.”
SMI has several diversified interests in Myanmar besides its new duty free interests. These include telecom infrastructure construction; trading, distribution and retail; serviced office business; car hire and rental services; and logistics and warehousing services.
[Technically, SMI’s agreement comprises a formal signing between SMI Retail Pte. Ltd. (SMI Retail) and the Royal Golden Sky Company Limited (RGS), covering duty free, retail and F&B outlets at the New Terminal 2 of Yangon International Airport-Ed].
Source: TRBusiness
