Myanmar is one of the fastest growing economies in the world, as both local and international companies forge opportunities in the country since the lifting of international sanctions in 2012.
With 6.5 percent GDP growth in 2016, Myanmar’s robust expansion is both consumption and export is seen as a major destination for enterprises to invest. This is mainly due to the country’s rich natural resources and its strategic location at the intersection of China, India and Southeast Asia. The country’s economic growth has even withstood major climatic events such as the floods which affected much of Myanmar during 2015.
It is now predicted that Myanmar is poised to see its transport sector post double-digit growth in the coming years and we want to play a key supportive role.
Since we established our new office 4 years ago in Yangon, Damco has consistently strengthened its position in Myanmar to help meet the country’s logistics needs. One way in which we have done this is with the opening of modern warehousing facilities, the most recent of which launched earlier this month.
In partnership with a Myanmar-based construction company, the modern 10,000 square meter warehouse will provide customers with access to several essential services including inventory management, order processing, RF scanning and bar coding.
Transport infrastructure developments in Myanmar
The transport and logistics sector is bolstered by three factors: rising urbanization, surging air passenger traffic and trade volumes. However, ageing rail and road networks, urban and port congestion, and a lack of multi-modal connectivity have made rising transport costs an obstacle to new overseas investment.
The government addressed these challenges through delivery of its National Transport Master Plan (NTMP). Launched in 2014, the Plan was put in place to inspire public investment in new transport infrastructure in the coming years.
Development of transport corridors is a key element for Myanmar and its neighbouring countries. These corridors help reduce distance and delivery time for transportation of goods. As Myanmar’s main export items are gas, oil, woods, rice, beans, copper, clothing, precious and semi-precious stones, speed-to-market plays a crucial role.
Taking international logistics and warehousing to the next level for Myanmar
We have invested significantly in state-of-the-art warehouse management systems and processes firstly to raise productivity; secondly to increase efficiency; and thirdly, to help customers to excel in and with their supply chains.
The new Damco Myanmar Logistics Centre in Yangon, will primarily support the sourcing operations of lifestyle, fashion and retail customers located in the region; customers who have expanded manufacturing in Myanmar by more than 100% year on year.
The centre will enable our customers to stay ahead of their competition and provide them with superior services via the direct control and management of the entire operation and service delivery process. The facility is located close to our previous 7,200 square metre Container Freight Station (CFS) in Yangon, which is surrounded by major ports and industrial locations.
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