Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (“JOIN”, headquartered in Tokyo, President & CEO: Takuma Hatano) entered into an agreement on March 19, 2019 with Kamigumi Co., Ltd. (“Kamigumi”, headquartered in Kobe City, President & COO: Yoshihiro Fukai) and Myanmar’s local company Lluvia Limited* (“Lluvia”, headquartered in Yangon City, Managing Director: U Ko Ko Gyi) to invest in International Bulk Terminal (Thilawa) Company Limited (“IBTT”) which was jointly established with Kamigumi and Lluvia. JOIN’s share of the investment is approximately JPY 1.7 billion and was made following the approval from the Minister of Land, Infrastructure, Transport and Tourism on January 29, 2019.
The terminal that will be operated by IBTT in Thilawa Area Port plot 30 and 31 (“the Terminal”) is being constructed as a bulk terminal powered by silos and warehouses for grains and feed crops. The construction work is based on a BOT contract with Myanma Port Authority with completion slated in April 2019 and operation is expected to start in May 2019.
The transition of Myanmar to a democratic government propelled the country’s economic growth which led to the expansion of food consumption and consequently the increase of imported wheat and other grains. Furthermore, rice, one of Myanmar’s staple crops, is widely exported to the world. Myanmar has traditionally traded grains by containers, however, as the volume increases, it is expected to shift more shipments to bulk carriers and grain silos which would reduce logistic costs on the back of larger volumes.
JOIN will support Kamigumi’s overseas expansion of terminal management expertise in food safety and efficient operation cultivated in the domestic market while also aim to contribute to increase Myanmar’s trade volume, improve the country’s food situation in line with its economic growth.
*Lluvia Limited: Invested and operated by Capital Diamond Star Group (“CDSG”, headquartered in Yangon City, Group Managing Director: U Ko Ko Gyi) and Mitsubishi Corporation (“Mitsubishi”, headquartered in Tokyo, President & CEO: Takehiko Kakiuchi). It is a joint venture company for CDSG’s food sector business.
?Overview of the Terminal?
Quay?230m?Plot 30 and 31?
Allowable ship length/Dead Weight Tonnage?200m/20,000DWT
Handling Capacity?1 million ton /year
Operation Period?Until the year 2064
(Press Contacts) Japan Overseas Infrastructure Investment Corporation for
Transport & Urban Development
Project Department Kawakami