Global Market Research Reports : Ken Research: Myanmar Logistics Sector

Showing posts with label Myanmar Logistics Sector. Show all posts

Friday, January 27, 2023

Myanmar Logistics Industry is expected to reach ~ USD 8 Million in Revenue by 2027: Ken Research

Government initiated Vision 2030 will create an efficient, competitive and environmentally friendly logistics system in accordance with regional and international perspectives.
E-Commerce market is a booming sector in Myanmar. The number of internet users has increased, with penetration rate of more than 43%, Myanmar will see a tremendous growth in e-commerce platforms and Facebook online shopping channels in the coming years.
Development of six logistics corridors, including major transport and cargo systems, such as roads and rivers linking to border gates and ports to stimulate economic growth

Logistics Development Vision and Strategy up to 2030: The aim is to create an efficient, competitive and environmentally friendly logistics system in accordance with regional and international perspectives such as Logistics Corridor Development Strategy. Under this strategy, investments will be concentrated within six logistics corridors, including major transport and cargo systems, such as roads and rivers linking to border gates and ports. Development of National Single Window (NSW) to establish an e-custom system in order to ease the complicated trading procedures. The expansion of Myanmar's river ports is part of the country’s strategy to rapidly increase exports over the next five years and position it as a regional trade hub.

Government Support: The government has invested in a stream of construction projects including the Myanmar-Thailand Friendship Bridge, Yangon-Mandalay Rail Line, Yangon-Thanlyin Bridge, etc. This will make parcels delivered faster than before due to the improved condition of logistics infrastructure. Setting up New Economic Zones such as Myeik Special Economic Zone, Muse Central Economic Zone and Sittwe SEZ will boost trade among the neighboring countries and hence improve Myanmar’s Logistics.

Increasing Cross-Border Trade between Myanmar & its neighboring countries: Cross-border trade has been gaining more importance across the Southeast Asian region and has become the key for increasing trade activity and economic development. In this context, the cross-border trade is expected to be a major driver of the Myanmar trucking industry. Myanmar mostly relies on China, Thailand, and India for cross- border trade. Development of Myanmar-India Logistics Corridor will provide seamless vehicular movement which will enhance trade and connectivity.

Increasing Investments: Potential influx of FDIs paired with investments in infrastructure and logistics capabilities & capacities are providing new opportunities for investment in automation, analytics and robotics which can eventually help in expanding trade and import/ export activities. The Ministry of Construction plans to coordinate approximately USD 3.8 billion of investment in to building major highways and expressways before 2030. Adani Group will invest USD 290 million to build and run a container terminal along the Yangon River in collaboration with Myanmar Government.

The report titled “Myanmar Logistics Industry Outlook to FY'27F: Driven by Foreign Infrastructural Investments and Government Support but held back by Covid and unstable political conditions in Myanmar” by Ken Research suggests that the Logistics market is further expected to grow in the near future as there is an increase in the foreign infrastructure investments and government support to make Myanmar a Logistics hub. The government has established a Policy of Trade facilitation and logistics which will upgrade the capacities of international logistic enterprises & improve transport infrastructure. Myanmar has large opportunities to grow quickly, through enhancement of industrialization, necessary infrastructure, a well-established logistics system. The market is expected to register a positive five year CAGR of 12.6% in terms of revenue during the forecast period FY’22-FY’27.

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Key Segments Covered in Myanmar Logistics Industry

Myanmar Logistics Market

Market Size by Revenue, FY’18-FY’27
Market Segmentation by Freight Forwarding, warehousing, CEP , VAS Market by Revenue, FY 18- FY’27

Road Freight Market Segmentation on the basis of Type of Fleet Operators, FY’22 and FY’27 (Small Fleet Operators, Medium Fleet Operators, and Large Fleet Operators)
Market Segmentation on the basis of 3PL/ Integrated by revenue, FY’22 and FY’27
Market Segmentation on the basis of Type of Mode by revenue, FY’22 and FY’27 (Sea, Road, Air, and Rail),
Market Segmentation on the basis of Domestic/ International by revenue, FY’22 and FY’27
Market Segmentation on the basis of Type of End Users by revenue, FY’22 and FY’27 (Food and Beverage, Industrial & Construction, Retail, Automotive and Engineering, and Others)
Market Size by Revenue generated, FY’18-FY’27

Myanmar Freight Forwarding Market (Volume by Mode of Freight, Revenue, Price per ton per km, Average Distance Travelled)

Myanmar Warehousing Market (Total Area, Revenue, Average Occupancy Rate, Price per sqm per month)

Market Size by Revenue generated, FY’18-FY’27
Market Segmentation on the basis of Type of Warehousing Space, FY’22 (Tech/ Non-Tech, Organized/ Unorganized, and Racked/ Unracked)
Market Segmentation on the basis of Business Model by warehousing space, FY’22 and FY’27 (Industrial/ Retail Warehouses, Container Freight/ ICDs, and Cold Storage)
Market Segmentation on the basis of Type of Area by warehousing space, FY’22 and FY’ (open/ closed)
Market Segmentation on the basis of 3PL/ Integrated by revenue, FY’22 and FY’27
Market Segmentation on the basis of Type of End Users by revenue, FY’22 and FY’27 (Food and Beverage, Industrial & Construction, Retail, Automotive & Engineering, Pharma, and Others)
Market Segmentation on the basis of Type by regions by warehousing space, FY’22 and FY’27 (Yangon, Mandalay, and others)

Myanmar CEP Market (number of shipments, Revenue, Average E-Commerce Logistics cost)

Market Size by Revenue generated, FY’18-FY’27
Market Segmentation on the basis of Type of Domestic/ International Shipments, FY’22 and FY’27
Market Segmentation on the basis of Business Model by revenue, FY’22 and FY’27 (B2B, B2C, C2C)
Market Segmentation by Type of Shipments, FY’22 and FY’27 (Same Day, Next Day, 2 Days, More than 2 Days)

Key Target Audience

Freight Forwarding Companies
Warehousing Companies
Express Delivery Companies
Investors/ Real Estate Developers

Time Period Captured in the Report:

Historical Period: FY’2018-FY’2022
Forecast Period: FY’2023-FY’2027

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Logistics Companies in Myanmar:

Freight and Warehousing Players

Phee Group
Sea Lion
Schenker
Great Alpha Logistics
DIL
KTN Transportation
Indo Trans Logistics
Elan Logistics
Gandamar Shwe Pyi
Advantis
Kospa
CEA Project Logistics
CJ Logistics
DAMCO
N-Box Shipping

CEP Players

EMS and Myanmar Post
SBS Express
Royal Express
Magnate Group Logistics
Nippon Express
United Courier Services
Ninja Van
Bee Express

Key Topics Covered in the Report

Country Overview
Import and Export Scenario in Myanmar
Overview of Myanmar’s Logistics Infrastructure
Logistics Infrastructure in Myanmar: Airports, Seaports, Rail Network and Road Network, Economic Zones in Myanmar
Trends and Developments in Logistics Industry in Myanmar
SWOT Analysis in Logistics Industry in Myanmar
Government Initiatives in the Myanmar Logistics Industry
Issues & Challenges in Myanmar Logistics Market
Impact of Covid-19 & Military Coup in Myanmar
Ecosystem of Major Entities in Myanmar Logistics market
Freight Aggregator Market Along with Business Models
Bonded Warehouses in Myanmar
Technological Innovations in Warehousing Industry
Myanmar Logistics Current and Future Market Size on the basis of Revenue
Myanmar Logistics Current and Future Market Segmentations
Scenario of E-Commerce in Myanmar
Competition Landscape in Freight Warehousing & CEP Market in Myanmar

For more insights on the market intelligence, refer to the link below: –

Myanmar Logistics Industry: Ken Research

Related Reports by Ken Research: –

Iraq E-Commerce Logistics and Warehousing Market

UAE E-Commerce Logistics Market

Australia Logistics Market

Monday, January 9, 2023

Development of logistic corridors and multimodal hubs will drive the logistics market in Myanmar; expanding at a CAGR of 12.6% by revenue (USD Mn) during FY'22 and FY'27F: Ken Research

1. Myanmar has benefitted as an economy from the exports that have increased during FY’17 and FY’19

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The exports in Myanmar have increased and manufactured products make up ~40% of total Myanmar exports and continue to rise, followed by agriculture crops, mineral products and marine products. Myanmar’s exports to the United States significantly increased in FY’17 because of large amounts of garments that were exported.

The exports through Sea dominated in Myanmar out of the total export value. The sea was followed by Pipeline which captured around 23% of total exports. Nearly 30% of the exports was to China followed by Thailand and Japan. Garments made up of most of the total exports in Myanmar followed by minerals, Timber, Animal Products, etc.

2. Poor Infrastructure, Political Instability, Rising Fuel Prices are the major challenges in the growth of the Logistics Market in Myanmar

The logistics infrastructure in Myanmar is not up to the mark with ASEAN standards and is the major reason for slow growth of the logistics sector in the past. In the World Bank Logistics Performance Index, Myanmar ranks 137 out of 160 countries.

Its infrastructure score is less than 2 and logistics competence score is merely 2.28. There is a lack of diversified links in the logistics flow corridors and shortcomings of facilities such as transport hubs, truck terminals, dry ports, off-dock facilities and warehouses.

The military takeover of Myanmar on 1 February FY'22 has adversely affected the logistics companies due rising fuel prices, border closures, and a shortage of shipping containers. Declaration of martial law in some Yangon townships has particularly affected the safety of garment sector employees and they considered to leave. About 90% of the drivers in Yangon halted work.

Logistics companies in Myanmar have been affected by rising fuel prices, border closures, and a shortage of shipping containers after the Covid-19 outbreak.

Higher fuel prices and currency liquidity shortages significantly increased the cost of inland transport services. Limited internet and telecommunications capacity in the country further exacerbate the risks facing businesses in Myanmar.

3. To overcome the shortcomings, the government is aiming to establish Myanmar as a Logistics Hub by developing SEZs, Logistics Corridor Development Strategy and National Transport Master Plan

Myanmar has developed special economic zones in three areas – Dawei, Thilawa and Kyaukphyu – for international investors and multinational companies as developers and partners. In the long run, Myanmar is embarking on two poles – Yangon and Mandalay – with growth centers in most regional capitals. Establishment and upgrading the existing industries and the Special Economic Zones (SEZ) are important for Myanmar’s industrial development.

The strategic development of transport nodes is essential to upgrade or to transform a transport corridor into a logistics development corridor. The corridors include the North-South Logistics Corridor between Yangon and Southern China, South-East Logistics Corridor to Thailand, Trans-Myanmar Logistics Corridor connecting Kyaukphyu in Rakhine State with Tachileik in Shan State, Myanmar-India Logistics Corridor, Main River Logistics Corridor, and Coastal Marine Logistics Corridor.

The vision of the NTMP is to develop an efficient, modern, safe, and environmentally-friendly transport system in a coordinated and sustainable manner that embraces all transport modes for the benefit of the country and people of Myanmar.

Tuesday, November 29, 2022

Due to rapid increase Foreign Infrastructural Investments, Improving Connectivity along with government support is fuelling the expansion of Logistics Industry in Myanmar: Ken Research

Sea Transport Sector is the Dominant Mode of Transportation in Myanmar: Myanmar has an extensive sea network that is well positioned to serve the country’s main transport corridors, including the link between Yangon and Mandalay. The Port of Yangon is the premier port of Myanmar and handles about 90% of the country's exports and imports. Trade flow has dramatically increased to USD 27 billion in 2016-17 from USD 18 billion in 2012-13.

Tax Incentives within Special Economic Zones in Myanmar: Myanmar has developed special economic zones in three areas – Dawei, Thilawa and Kyaukphyu – for international investors and multinational companies as developers and partners. There is an Income tax exemption for the first 7 years from the date commercial operations commence within the free zone. Also there is 50% income tax reduction for the second 5 year period for businesses within the free zone or the promotion zone. The Myanmar SEZ Law is aimed at helping the country develop economic momentum and to bring about improvements in the goods processing, trading and services sectors.

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Rise in E-Commerce in Myanmar: Myanmar’s e-commerce firms have seen a spike in sales during covid with consumers stocking up on hand sanitizers, & other essential items. The numbers of a startup have emerged and come up with the door to door delivery service for the major use of grocery items. The E-Commerce showed a growth rate of ~27% in FY’20. SHOP.com.mm, the local arm of Chinese e-commerce giant Alibaba Group, sold over USD 90,000 worth of goods in the first hour of its first online sale.

Increase in Bonded Warehouses: Custom warehousing can help simplify export and import processes by lowering the advance income tax burden. The aim of bonded warehouses is to align local customs warehousing procedures with international standards and reduce import restrictions on Myanmar goods. The first company in Myanmar to have the opportunity to operate a bonded warehouse is Daizen Myanmar Company. Yangon handles 795,000 TEU of which the proposed 12 bonded warehouse represents capacity of 170,000 TEU or 21% of total container throughput.

Technological Advancements: Radio Frequency Identification, Drones, Robots, Cloud Storage are some of the technological advancements that are changing the face of the warehouse industry in Myanmar. DHL uses Autonomous mobile robots (AMRs) and Stationary robots clean facility floors or for surveillance. DB Schenker’s has implemented NexGen Warehouse Management (NGW) System in Myanmar which is fully customizable and has extensions for various verticals. Introduction & adoption of technologies such as telematics, V2V communications, and tracking to have a strong influence on delivery & service offerings.

Competitive Landscape in Myanmar Logistics Industry:

The competition is highly fragmented with a large number of enterprises within Freight Forwarding, warehousing and CEP segments. It is highly competitive on the basis of type of fleet, number of warehouses, warehousing space, freight volume, clients, and more.

The major freight transport and logistics services players are private companies, except the railway freight operation undertaken by Myanmar Rail (MR) and Inland Waterway Transport (IWT). Most of the companies operating in the country’s logistics sector are small and medium-sized enterprises. Yusen Logistics, DB Schenker, DHL, CEA Project Logistics, DAMCO, RG Logistics, Kerry Logistics, Premium Worldwide are some prominent logistics players active in the market. Players like EMS & Myanmar Post, Ninja Van, Bee Express, SBS Express, and Royal Express offer Courier and Express Services in Myanmar. Though the market has a presence of several leading players from all over the world, it is still a fragmented market without any dominant players.

The report titled “Myanmar Logistics Industry Outlook to FY'27F: Driven by Foreign Infrastructural Investments and Government Support but held back by Covid and unstable political conditions in Myanmar” by Ken Research suggests that the Logistics market is further expected to grow in the near future as there is an increase in the foreign infrastructure investments and government support to make Myanmar a Logistics hub. The government has established a Policy of Trade facilitation and logistics which will upgrade the capacities of international logistic enterprises & improve transport infrastructure. Myanmar has large opportunities to grow quickly, through enhancement of industrialization, necessary infrastructure, a well-established logistics system. The market is expected to register a positive five year CAGR of 12.6% in terms of revenue during the forecast period FY’22-FY’27.