Adani Ports to set up container terminal in Myanmar

Adani Ports and Special Economic Zone Ltd, India’s largest private multi-port operator, has entered into an agreement to set up a container terminal in Myanmar at an investment of around US$290 million

May 14, 2019

The Ahlone International Port Terminal-2, which will be based at the Yangon Port, is estimated to cost around US$290 million

The project will mark Adani’s second foreign port investment after Australia; It runs five ports in India and is building two more

The port, to be completed in two phases, will have a total capacity of up to 800,000 TEUs and and create over 1,100 new jobs

Southeast Asia has emerged as one of the fastest-growing trade regions in the world, driven by steady economic growth

Adani Ports and Special Economic Zone Ltd, India’s largest private multi-port operator, has entered into an agreement to set up a container terminal in Myanmar, as per a report by The Press Trust of India on May 14, citing an official statement. The project, which will be based at the Yangon Port, is estimated to cost around US$290 million. The project, to be launched by the Adani Yangon International Terminal Co Ltd, will mark Adani’s second foreign port investment after Australia. The company currently operates five ports around India and is building two more to better support rising foreign trade.

The Myanmar Government’s Directorate of Investment and Company Administration said that Myanmar Investment Commission has approved a plan to develop, operate, maintain the Ahlone International Port Terminal-2 (AIPT-2) under a 50-year build-operate-transfer deal. As part of the approval, Adani Yangon International Terminal will receive income tax incentives for the first three years of operations. In Phase 1, the port will have the capacity to handle up to 150,000 20-ft equivalent units (TEUs). Construction on the first phase will start in mid-2019, with expected completion over a two-year period.

The Phase 2 of the project, which will take an additional six months to complete, will take the port’s total capacity of up to 800,000 TEUs.

The new terminal will considerably boost Myanmar’s international trade, and create over 1,100 new jobs. It comes at a time when Myanmar’s container traffic is expected to rise to 2 million TEUs, from the current 1.2 million TEUs in the next few years. The AIPT-2 port project will be a part of Myanmar’s Yangon Port cluster on Strand Road in Yangon. This port is a vital component of the nation’s economy and includes the Asia World Port Terminal and the Myanmar Industrial Port.

Meanwhile, it will help Adani expand in Southeast Asia. The port will employ the latest technology to cut down vessel turnaround time, raising efficiency. The region has emerged as one of the fastest-growing trade regions in the world, driven by steady economic growth that has encouraged consumption as well as infrastructure spending.

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