Representatives of the oil and gas industry have submitted a business proposal to the government to a build a deep-sea port near Yangon.
“We are studying the potential logistics and feasibility of a deep-sea port project 20 miles from Yangon to reduce transportation costs for maritime trade and fuel imports,” Dr Win Myint, Secretary of Myanmar Fuel Oil Importers and Distributors Association, told Myanmar Business Today.
Currently, industrial ports on the Yangon River can only accommodate vessels to a depth of 9 meters and a weight of 20,000 tons.
“We need to be able to accommodate loading capacities in excess of35,000 tons. A deep-sea port will open Yangon to more efficient and less costly methods of importing fuel,” Dr. Win Myint said.
The proposal submitted by the association estimates the cost of the project to be $500 million, which includes a fuel pipeline to Yangon, bridges between the city and port, and other transportation infrastructure.
Myanmar consumes 600,000 tons of fuel each month and to transport it pays an average cost of $2 per barrel. The proposal estimates that a deep-sea port nearer to the city will shave $12 million off monthly transportation costs.
“In collaboration with the Myanmar Port Authority, we are in the process of choosing the most appropriate location with the best depth and access to infrastructure,” Dr. Win Myint also added.
At a meeting of the Myanmar Chamber of Commerce, Dr. Tun Naing urged the port project to conduct a thorough environmental impact assessment.
The proposal states that the deep-sea port will be not only controlled by stakeholders, but will also welcome investment from the private sector, Dr. Win Myint added.
Source: Myanmar Business Today
