Transport
From The Report: Myanmar 2015
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Building a modern transport network will be necessary if the government is to accomplish its ambitious development plans, with a host of air, rail and shipping upgrades planned for the coming years. Major projects include the proposed $1.1bn Hanthawaddy International Airport project, which will be able to accommodate 12m passengers with a plan to increase numbers to 30m per year, over 10 times the country’s current capacity. The existing network threatens to limit growth if air, rail and port facilities are not successfully upgraded in the coming years. The capital needed for improvements is significant, but Myanmar has great incentive to push for economic reforms and to further engage private parties and international development agencies. The state aims to be a major logistics player in the region, and given Myanmar’s strategic geographic position within the region, many believe this vision can be realised with sufficient injection of capital and international cooperation.

This chapter contains interviews with U Nyan Tun Aung, Minister of Transport; and U Si Thu, Managing Director, Myanmar Airways International (MAI).

Articles from this Chapter

Overview

To the limit: Major upgrades to transportation infrastructure will be required to meet growing demand
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A sudden boost in Myanmar’s commercial and tourist activity over the past three years has stretched some of the country’s outdated transport infrastructure to its limit, and growth in activity is showing no signs of slowing down. Building a modern transport network will be necessary if the government is to accomplish its ambitious development plans, with a host of air, rail and shipping upgrades planned for the coming years. The state aims to become a major logistics player in the region, and…

Interview

U Nyan Tun Aung, Minister of Transport: Interview
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Interview:U Nyan Tun Aung What factors were considered in the decision to privatise state-owned enterprises such as the Myanmar Port Authority (MPA)? U NYAN TUN AUNG: Even though Myanmar adopted a market-oriented economy in 1988, its economic policy was based on centralised planning, budgeting and state ownership of all means of production and services, including the ports. Prior to the privatisation of Myanmar’s state-owned enterprises such as the MPA, the port revenues collected were…

Interview

U Si Thu, Managing Director, Myanmar Airways International: Interview
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Interview:U Si Thu As the launch of the ASEAN Economic Community (AEC) approaches, how will local airline operators be affected by the open skies policy? U SI THU: There are several points to bear in mind regarding the open skies policy. First, as a result of decades of sanctions, most local airlines have not been exposed to international competition until recently. It is important that local industry should have some degree of protection from the government, to give local airlines time to…

Analysis

Liberalisation of domestic airspace has led to competition between established airlines and newer ones looking to expand
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Myanmar’s domestic airline space has become increasingly crowded in recent years as local conglomerates vie to establish their own airlines. At the same time, the industry’s service quality and safety record require improvements, even as rates for travellers remain high. International airlines are keen to engage with the growing market, and a number of airlines are adding cities in Myanmar to their flight schedules. While there have yet to be any major merger deals, this is likely to change as…