Growth in Myanmar Logistics Market Driven by Economic Liberalization, Cross Border Trade with China, Introduction of E-Commerce and Modern Warehousing: Ken Research

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“Myanmar finally joins other ASEAN countries in logistics development by introducing pro-FDI policies, new transportation projects and 3 new SEZs”.

Analysts at Ken Research in their latest publication “Myanmar Logistics and Warehousing Market Outlook to 2023 – By Sea, Land, Pipeline, Air Freight Forwarding; International and Domestic Freight, Integrated and 3PL Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), 3PL Warehousing, Type of Warehouses; By Courier Express and Parcel Logistics and E-commerce Logistics” believe that the Logistics market has grown due to Myanmar’s strategic location in the Great Lakes region, government spending on the sector and increasing volumes and value of foreign trade.

Strategic Location: Myanmar acts as a gateway between India and China, two major trading partners. It also shares the border with Thailand and stands to benefit from the new Thai-Myanmar Friendship Bridge. Through Yangon ports, Myanmar acts as a trans-shipment hub of Southeast Asia, conducting sea trade with countries such as China, Singapore, Thailand and Japan.

Demand for Cold Storage: Myanmar has abundant access to freshwater and other resources ready to aid rapid industrialization. It is a leading producer of food products and garments, both of which require storage solutions. Livestock and fisheries account for about 20% of total agricultural income in Myanmar. Horticulture and poultry output have grown at 6% to 8% annually over the past two and a half decades, driven by growing urban demand and growing incomes. Ayeyarwaddy and Tanintharyi Regions are by far the largest fish producers.

Dominance of Third-Party Logistics: Due to infrastructural and regulatory hassles, a lot of logistics players in Myanmar such as DHL and CP Logistics prefer to outsource certain operations while maintaining an asset light model. The 3PL market is also being driven by innovations such as trucking aggregators of the likes of Kargo and the market is expected to incline more towards consolidation for mutual benefits.

Liberalization of Postal Sector: 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. Cross border e-commerce is still in the nascent growth stage, mainly due to custom clearance procedures in Myanmar which take 5-7 days as against the ideal standard of 1-2 days.

Key Segments Covered:-

Freight Forwarding Market

Revenue by Mode of Freight Transport

Road Freight (Domestic and International Volume, FTK and Revenue; Number of Registered Vehicles)

Ocean Freight (Domestic and International Volume, FTK and Revenue; Volume by Commodity, Sea Port Statistics)

Air Freight (Domestic and International Volume, FTK and Revenue)

Rail Freight (Domestic and International Volume, FTK and Revenue; Volume by Commodity and Region)

Freight Revenue by Intercity Road Freight Corridors

Yangon-Mandalay

Yangon-Muse

Yangon-Myawaddy

Others

Revenue By International Road Freight Corridors

Mandalay-Muse-Kumning

Yangon-Myawaddy-Mae Sot

Mandalay-Tamu-Manipur

Revenue by 3PL and Integrated Logistics

3PL Revenue

Integrated Logistics

Revenue by End User

Industrial and Construction (Oil and Gas, Cement, Steel, Bricks, Tiles, Glass Products etc)

FMCG (Electronics, Household Goods, Toiletries etc)

F&B (Meat, Poultry, Seafood, Fruits, Vegetables, Packaged Drinks etc)

Retail (Garments, Cosmetics, Shoes, Bags etc)

Others (Automotive, Telecom, Technological, Pharmaceuticals and Others)

Warehousing Market

Revenue by Operation Model

Industrial/Retail

ICD/CFS

Cold Storage

Revenue by Type of Warehouse

General Warehouse

Open Yard

Chillers/Freezers

Ambient Warehouse

Bonded Warehouse

Revenue by Contract and Integrated Logistics

3PL

Integrated Logistics

Revenue by End User

Industrial and Construction (Oil and Gas, Cement, Steel, Bricks, Tiles, Glass Products etc)

FMCG (Electronics, Household Goods, Toiletries etc)

F&B (Meat, Poultry, Seafood, Fruits, Vegetables, Packaged Drinks etc)

Retail (Garments, Cosmetics, Shoes, Bags etc)

Others (Automotive, Telecom, Technological, Pharmaceuticals and Others)

Warehousing Space By Region

Yangon

Mandalay

Others States and Regions

Courier, Express and Parcel Logistics Market

Revenue by Segment

Mails and Documents

E-Commerce Parcels

Express Cargo

Express Cold Chain

Number of Shipments by Domestic and International

Domestic (Mails and Documents and E-Commerce Parcels)

International (Mails and Documents and E-Commerce Parcels)

Number of Shipments by Air and Ground Express

Air Express (Mails and Documents and E-Commerce Parcels)

Ground Express (Mails and Documents and E-Commerce Parcels)

3PL Logistics Market

Revenue by Segment

Freight Forwarding

Warehousing

Value Added Services

Third Party Freight Forwarding Revenue by Phase of Delivery

Hub-Hub

Hub-Spoke

Spoke-Door

Third Party Freight Forwarding Revenue by Domestic and International

Domestic

International (Inbound and Outbound)

International Third Party Freight Forwarding Revenue by Cargo Category

Raw Materials (Building material, machinery, cement, steel, glass, textiles and others)

Spare Parts (Electronic tools, transport equipment spares and other spares)

Finished Goods (Garments, Electronics, Shoes, Bags and others)

Snapshot on E-Commerce Logistics Market in Myanmar

Snapshot on Last Mile Delivery Services in Myanmar

Companies Covered:-

DB Schenker

DHL

Yusen Logistics

Bollore Logistics

Rhenus Logistics

Kerry Logistics

Kuehne Nagel

OV Logistics

Maersk

Mediterranean Shipping Company

Kargo

Kospa Logistics

Damco

Ryobi Myanmar Distribution

CEA Project Logistics

Daizen

EMS

DHL Express

MGL Express

UCL Express

Royal Express

SBS Express

Myanmar Zarla Distribution

RG Express

Marathon Express

Key Target Audience:-

Freight Forwarding Companies

E Commerce Logistics Companies

3PL Companies

Consultancy Companies

Express Delivery Logistics Companies

Logistics/Warehousing Companies

Real Estate Companies/ Industrial Developers

Time Period Captured in the Report:-

Historical Period – 2013-2018

Forecast Period – 2019-2023

For more information, refer to below link:-

Myanmar Logistics and Warehousing Market

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Contact Us: 

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249