IFC, a member of the World Bank Group, is providing long-term financing of $15 million to the International Bulk Terminal (Thilawa) Company Limited to develop and operate a greenfield bulk terminal at Thilawa, one of the first bulk terminals for Myanmar.
With an effective capacity of more than one million metric tons, the bulk terminal will reduce transport and logistics costs, support trade and increase the competitiveness of the country’s supply chains, creating new markets and jobs. The current lack of specialized and efficient bulk facilities forces producers and traders to containerize bulk commodities, which involves high handling costs.
IFC’s long-term funding for the Thilawa River Port builds on its prior investments in Myanmar’s transport sector. The cost of this project is estimated at $65 million, which will be partly covered by Lluvia, a Myanmar’s leading agri processing company, and Japan’s leading integrated logistics company Kamigumi, both jointly set up the International Bulk Terminal (Thilawa) Company
“We greatly appreciate IFC’s commitment to Myanmar and IFC’s long-term debt financing — a necessity for infrastructure projects,” said U Ko Ko Gyi, Managing Director of Lluvia. “We also look forward to benefiting from IFC’s technical knowledge and global experience.”
With Myanmar’s strategic geographic location, a port expansion program could help the country to develop as a regional trans-shipment hub. IFC’s investment will also help create a market for the bulk movement of agricultural commodities. In the near future, the port will be able to facilitate trade flows of wheat, animal feed, and rice, and also have the capacity to handle other non-agricultural commodities.
“As one of the first providers of specialized bulk cargo handling, this project contributes to the diversification of port services in Myanmar. It also supports the government’s ongoing plan to increase private sector participation in port, logistics and transportation services to drive economic growth,” said Vikram Kumar, IFC Country Manager for Myanmar.
Original source: IFC
Published on 27 March 2018
