A South Korean company is planning to invest nearly US$100 million to build a logistics hub on land owned by the Ministry of Commerce at a Yangon industrial estate, media reports said.
South Korea’s HUBS MK Co Ltd signed a memorandum of understanding for the project with the ministry’s Myanmar Trade Promotion Organization in Nay Pyi Taw on January 24.
The company plans to spend $98 million (about K130 billion) developing the logistics facility on a 59.1-acre (30-hectare) plot owned by the ministry at Shwe Lin Ban Industrial Zone in Yangon’s outer western Hlaing Tharyar Township, the reports said.
HUBS MK director Mr Steven Chang said the company wanted to contribute to economic growth in Myanmar and state-of-the-art technology would be used to ensure the logistic hub was the best in the country, state-run mitv reported.
Myanmar Trade Promotion Organization director-general U Aung Soe said modern logistics facilities would make exporting more efficient, including by cutting transport costs.
Aung Soe told Myanmar Times the quality of agricultural, livestock and fishery exports could be controlled and sustained by building a modern trade support system that facilitated logistics and the transport of goods from rural areas to a central hub for shipping overseas.
“That’s the reason why this project was initiated,” he told the daily, adding that other exports should also be promoted.
The ministry regards the establishment of logistics hubs as an essential element of the five-year National Export Strategy it launched in 2015 to support sustainable development through export promotion.