Following extensive work with NGOs, local companies and diplomats, Damco is assisting its clients this year to open their supply chains up to the frontier market of Myanmar.
Damco has commenced offering its customers access to the frontier market of Myanmar, after being granted a permanent license in July to operate under its own legal entity in the country, making the company one of the first supply chain solution providers to offer genuine end-to-end logistics services there.
Myanmar, with about 60 million people, is implementing reforms and was opened to business in 2012 with companies from the US, Europe and beyond.
Damco is helping its customers reduce short and long-term business volatility in this new market by working closely with the UK-based Institute for Human Rights and Business and the Danish Institute for Human Rights to ensure the UN Guiding Principles on Human Rights are applied.
Back in May 2012, Damco participated as part of a larger fact-finding mission which involved consulting with NGOs, local companies, and diplomats. Subsequently, a resource centre was established within the British Council in Yangon. Since then, an experienced business development manager has been accompanying some of Damco's most important customers to meet local trade associations, conduct market studies and look at both vendor sourcing and setting up CFS (Container Freight Station) and CY (Container Yard) operations on the ground.
"Damco is a first-mover logistics company in Myanmar. We have an immediate implementation plan as well as a long term one to set up logistics capability and infrastructure in Myanmar. This will allow our customers to open up their supply chains and sourcing operations in the country, whilst ensuring the highest standards are met in terms of meeting the principles of the UN Global Compact," comments Damco Cluster Manager Kiattichai Pitpreecha.
Now that the company has obtained a long-term license to operate, it has commenced implementing a plan of investment to ensure its current consolidation and container deployment activities are extended in the years to come. Damco has made initial steps for setting up its own office in Myanmar, and the company has already set up a container freight station operation in Yangon, having been awarded business by several of its global accounts to manage their first shipments from Myanmar.