A new major port and special economic zone to be built in Myanmar has passed a key stage after a US$50 billion agreement was signed recently between Myanmar, Japan and Thailand to support the Dawei project, according to Lloyds Loading List.
It has been rumoured that Thailand will be involved with the new Kra Canal, which could potentially form part of China’s Maritime Silk Road plan at a cost of around $20 billion.
Shinzo Abe, the Japanese Prime Minister, said that the signing of the agreement would “create an opportunity to strengthen the economic partnership between Japan and ASEAN, and Japan and Thailand.”
The project will start with a 138 kilometre road from Dawei to Kanshanaburi province in Thailand and is due to start between now and mid-2016.
Due to its location, the project is looking to be attractive to investors. The port is located between South East Asia, China and India.
The port may also be strategically placed to benefit from China’s Silk Road initiative, which aims to connect Europe, Africa and Asia via trading links.
