Adani Gets Green Light for New Asia Terminal
Adani Yangon International Terminal (Adani) will develop a new terminal on Yangon River after receiving final approval from the Myanmar Investment Commission, according to the Directorate of Investment and Company Administration (DICA).
The decision, which was made on April 26, 2019, will see Adani operate and maintain the Ahlone International Port Terminal 2 (AIPT) under a 50-year build, operate and transfer agreement with the Myanmar government.
AIPT 2, estimated to cost US$290 million, will be developed across 50 acres of land owned by the Myanmar Economic Corporation, which is currently operating AIPT 1.
Phase 1, due to begin in September 2019, will involve enough capacity for 100,000 – 150,000 TEU capacity once it is completed by the end of 2020.
Phase 2 will then take an additional six months and is expected to increase TEU capacity to 800,000 TEU. The Yangon River is large enough for 167 metre in length and 15,000 tonnes, including containerships 1500 TEUs.
Sunil Seth, CEO of Adani Myanmar, was quoted in The Myanmar Times: “Our focus will be on bringing modern technologies that will raise productivity and shorten the turnaround time of vessels that call at our port.
“We will set new benchmarks to throughput time and serve all the major shipping lines that service Yangon.”
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, to the south of Yangon, handle 90% of Myanmar’s exports and imports.
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 itself it as a regional trade hub.