Study report: Feasibility Study for the Construction of a Container Port

Study report: Feasibility Study for the Construction of a Container Port

In the beginning of 2015, the MMRD Business Insight team conducted a pre-feasibility study for the construction of a new container port.

About the client

Our client – a large Asian conglomerate with operations in a wide range of industries – was considering setting up a new container port in one of the largest agricultural regions of Myanmar. We conducted the following research for our client:

  • Macro overview of the region
  • Overview of the rice and farming industries in the region
  • Assessment of the volume of cargo going in and out the region with a focus on agriculture and manufacturing (for both input and output)
  • Evaluation of the current logistic processes between this region and Yangon
  • Evaluation of the current logistic costs and time
  • Identify the potential benefits and constraints of a new container port vs the existing logistic systems

The preparation of the report involved:

  • In-depth interview with 20 respondents from business associations such as the District Rice Industry Association, ministries and organizations such as the Inland Water Transport or the Myanma Railway
  • In Depth interview with 85 business owners to better understand their needs and their challenges and to test the new container port concept
  • Desk research
  • Field visit and site evaluation

Context and challenges

Logistic is one of the greatest challenges companies are facing in Myanmar roads are in dire needs of repairs and moving goods from one place to another in extremely time consuming. According to a recent report by the World Bank, Yangon port is one of the most expensive in the world.

Assessing the real cost of logistic and supply chain is a challenge as Myanmar has many unwritten rules and hidden costs. MMRD Business Insight team joined forces with a local logistic consultant to carry out the pre-feasibility study.

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