South Korea to build $98 million logistics hub in Yangon

South Korea has invested $98 million to construct a logistics hub at Shwe Lin Ban Industrial Zone in Hlaing Thar Yar township, Yangon region. The move is touted to be vital to promoting Myanmar’s exports.

HUBS MK Co Ltd from South Korea and Myanmar Trade Promotion Organisation under the Ministry of Commerce signed a memorandum of agreement (MOA) for the project in Nay Pyi Taw on Wednesday.

As Myanmar continues to avail portions of its economy to international trade, an international-standard logistics hub will be necessary to ensure a certain level of export quality and reduce production and transportation costs, said U Aung Soe, director-general of Myanmar Trade Promotion Organisation.

“The quality of Myanmar’s agricultural, livestock and fishery products earmarked for export can be controlled and sustained if we build a modern trade support system which facilitates logistics and transport of the goods from rural farms to a central hub for shipping overseas. Other export products should be promoted too. That’s the reason why this project was initiated,” said U Aung Soe.

The South Koreans will foot the bill to build the Yangon hub, which could cost around US $98 million. Myanmar will not be contributing financially to the project but will allow usage of the 59.1 acre piece of government-owned land.

“On our side, we will only be offering the land. Subsequently, the profits will be distributed accordingly,” U Aung Soe told The Myanmar Times. HUBS MK Company will conduct studies and estimate the rate of success of the project within a month’s time. Other required works will also be quickly carried out.

“Now that the MOA is signed, we must conduct the relevant submissions to get approval from the government. The next step is to submit the proposal to the Myanmar Investment Commission in accordance with the law. I’m hoping that constructions will be able to start within this year,” said Mr Kang Shangwon, CEO of HUBS MK Co Ltd.

“As Yangon city is the primary capital for trade in Myanmar, the flagship logistics project will initially be developed here. In the future, we will develop similar projects in the other Regions and States that produce alternative goods,” said U Aung Soe.

After this current trade promotion project is completed, market conditions for the export of agricultural produce and other fishery products are expected to improve, which will boost the export sector, maintain quality standards and reduce costs, he continued.

“When complete, this project will bring benefits to Myanmar’s economy as a whole,” Union Minister Dr Than Myint said.

Source: Myanmar Times

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