Adani Ports will invest $290 million in Myanmar to develop container terminal
Infrastructure conglomerate Adani Group has received in-principle approval from the Myanmar government to invest $290 million to build and run a container terminal along the Yangon river for 50-years.
This is Adani group’s second overseas venture after the Abbot Point terminal in Queensland, Australia.
Adani Yangon International Terminal Co Ltd (Adani), a unit of Adani Ports and Special Economic Zone Ltd (APSEZ), has been approved by MIC – Myanmar Investment Commission – a single-window approval authority under the civilian government headed by the Minister for Investment and Foreign Economic Relations U Thaung Tun, according to an official at Myanmar’s Directorate of Investment and Company Administration.
The Ahlone International Port Terminal 2 (AIPT 2) will be developed over 54 acres in Myanmar’s commercial capital Yangon and will employ over 1,100 local people. As part of the deal, Adani will set-up a maritime university to upgrade skills and build infrastructure such as waterways and other transport facilities to drive economic development in the region.
The terminal will be built under the auspices of the Myanmar Port Authority and the Myanmar Ministry of Transport and Communication.
The Adani group confirmed the deal but declined to give details.
Taking on China, Pakistan
Adani’s investment in Myanmar gives India a geopolitical counter to Chinese investments in Sri Lanka’s Hambantota port and Pakistan’s Gwadar port as the Dragon encircles the region with its Belt and Road initiative.
The first phase of the new terminal is expected to start operations by 2020-end with a capacity to handle 150,000 twenty-foot equivalent units (TEUs). In the second phase, the capacity of the terminal will be raised to 800,000 TEUs by June 2021. The AIPT 2 will be part of the Yangon Port Cluster, which currently includes Asia World Port Terminal and Myanmar Industrial Port.
Along with Myanmar International Terminals Thilawa, located to the south of Yangon, the Yangon cluster handles 90 per cent of Myanmar’s exports and imports.
The day-to-day working of the new terminal will be with the civilian government and the revenue generated will be shared with the Myanmar Port Authority, the terms of which will be decided shortly.
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.
Adani’s proposed investment in the Myanmar port is held through Singapore-based entities and follows the regulations of the Singapore government. Singapore has a memorandum of understanding with Myanmar to boost partnerships in transport and logistics, including port planning.
Adani’s entry will add to the growing list of multi-national corporations that are contributing to the growth of Myanmar’s economy including Total, Unilever, Mitsubishi, Posco, Daewoo, Samsung, Siemens and GE.
Source: The Hindu Business Line