HOW MYANMAR EXPRESS LOGISTICS MARKET
EVOLVED?
The political turmoil in Myanmar has long
been a degrading factor for the country’s trade and logistics facilitation. In
a lot of ways, 2011 was the year Myanmar’s economy opened up to the rest of the
world when the new democratic government came to power. Foreign investment has
since then been steadily coming in and international companies are looking at
Myanmar as a potential growth market. The total amount of FDI in Myanmar
reached USD ~ billion in 2018.
The Myanmar
Express Logistics Market was valued at USD ~ million in the year 2013,
while at present the market is valued at USD ~ million with a CAGR of ~% during
the review period. A key driver behind the recent growth in Myanmar’s Express
Logistics Market is the strategic location of Myanmar as a gateway between
India and ASEAN countries, along with availability of abundant natural
resources and cheap labor.
E-Commerce also plays a major role in
today’s express logistics market in Myanmar, mainly for domestic shipments.
The recent and gradual liberalization of
delivery services through partnership with third party logistics provides–after
decades of strict monopoly by Myanmar Post for mail and small parcels–have
enabled the development of a small e-commerce logistics market, primarily in urban
regions of Yangon and Mandalay.
Myanmar ranked 126th out of 170 countries
in the 2016 Integrated Index for Postal Development by the Universal Postal
Union (UPU), which is now supporting Myanmar Post to aid its development and
digitalization process. Myanmar Post and Telecommunications is also getting
support from Japan’s Ministry of Internal Affairs and Communications for the modernization
of postal services.
MYANMAR EXPRESS LOGISTICS MARKET
SEGMENTATION
Revenue by Type of Service
The
major segments of express logistics in Myanmar include mails and documents,
e-commerce parcels, express cargo and express cold chain, with a share of ~%,
~%, ~% and ~% respectively. Express cargo dominates the market in term
of revenue, mainly due to prosperous Manufacturing Sector which contributes a
share of ~ % to the GDP and also the increasing volumes of foreign trade, FMCG
and Retail Sector.
Number of Shipments by Domestic and
International Shipments
Annual number of shipments of mails and
documents in Myanmar is ~, out of which ~% are domestic and ~% are
international. Annual number of shipments of e-commerce parcels in Myanmar is
~, out of which ~% are domestic and ~% are international.
Number of Shipments by Air and Road
Express
Annual number of
shipments of mails and documents in Myanmar is ~, out of which ~% are through
air express and ~% are through road express. Annual number of shipments of
e-commerce parcels in Myanmar is ~, out of which ~% are through air express and
~% are through road express.
COMPETIVE
SCENARIO IN MYANMAR EXPRESS LOGISTICS MARKET
The Express Logistics market in Myanmar
is at the nascent growth stage. DHL is
the leading international player due to reliability and guarantee of
delivery, whereas Royal Express is the
leading domestic player. Since EMS is a subsidiary of Myanmar Post it has
the widest network of post offices and address database. Due to this reason
delivery in rural areas is done mainly through EMS. While the major e-commerce
players have logistics partners, the local merchants deliver their packages
through unlicensed small delivery service providers or express buses that do
not provide guarantee of delivery. This situation is expected to change with
the privatization of Myanmar Post
and development of postal services.
MYANMAR
EXPRESS LOGISTICS FUTURE OUTLOOK AND PROJECTIONS
The government has announced around ~ designated planned transport projects
for road, rail, sea and air transport facilities. They are drafting new sets of
laws pertaining to telecommunications, e-commerce and cyber security, expected
to be aligned with the recent ASEAN E-Commerce Agreement signed in November
2018. The agreement is aimed at facilitating cross border e-commerce transactions. Total cargo volume in 2030 is projected to reach ~ million tons and trade cargo to
increase at ~ %. The thriving F&B industry in Myanmar will be
the leading growth factor for growth of cold chain in the country by 2030,
accounting for ~% of household expenditure. Major corporations, especially
consumer goods manufacturers, from the US, Europe as well as Asia have
announced their intention to return to Myanmar or, to invest for the first
time. All these developments, backed by foreign investment and booming
e-commerce sector, are bound to increase the future market size of Express
Logistics at a double digit CAGR.
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Ankur Gupta, Head Marketing & Communications
+91-9015378249
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