Myanmar sees sharp rise in fuel imports as private companies are allowed to store and distribute fuel

A government decision to allow private companies to store and distribute fuel has resulted in a sharp rise in imports, according to Union minister for transport U Nyan Tun.

According to official figures from Myanma Port Authority (MPA), fuel imports rose by 47.65 percent in financial year 2015, which ended on 31 March.

The country imported 2.22 million tonnes of fuel in financial year 2013, 2.35 million tonnes in financial year 2014 and 3.47 million tonnes in financial year 2015.

The government has also recently permitted the construction of private jetties for loading and unloading fuel, at Yangon and Thilawa Ports.

These jetties are required to follow the International Ship and Port Facility Security Code (ISPC Code) prescribed by the International Maritime Organization (IMO). The Department of Marine Administration under the Ministry of Transport has also issued its own compliance guidelines for jetty construction.

On May 14, several services companies operating in the fuel storage and distribution industry were granted Myanmar Investment

Commission permission.

These permits for port services at Thilawa Port were timed to coincide with a Ministry of Transport plan to manage the water and air transportation sectors and skillfully handle fuel imports, according to the union minister.

“To facilitate the private fuel distribution sector, MPA has leased 420 acres of land, including 226,666 metres along the waterfront, to 14 private companies in the Thilawa port area, under build, operate and transfer [BOT] contracts,” he said.

The BOT and land lease contracts were signed between MPA and private companies on July 2. Following this, Green Asia Port Terminal (Thilawa) built by Green Asia Service Company opened on July 26.

Before 1988, port services were controlled by MPA, but since then, parts of the industry have been privatised through BOT and joint venture contracts, with a view to stimulating economic growth.

The government is trying to increase the involvement of the private sector, in order to effectively upgrade the ports, according to the Ministry of Transport. The current jetty ownership ratio between government-owned jetties and those owned by the private sector is 80:20 in favour of government ownership.

Source: http://www.mmtimes.com/index.php/business/15774-sharp-rise-in-fuel-imports-as-port-services-improve.html

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