The rail development will be complemented by the development of the coastal ports and new facilities to support the seamless connection between modes of transport such as the
Single Rail Transfer Operator (SRTO) at Laem Chabang Port, which is aimed to improve efficiency of transferring containers between inland facilities and the port.

AMyanmar and Thailand have been in talks on the implementation of the bilateral initial implementation of the cross-border transport facilitation agreement, according to the Myanmar International Freight Forwarders Association (MIFFA).

As such, upgrading the facilities would be an important step forward for Myanmar-Thai cross-border trade. Myanmar is the last country to implement the Cross-Border Transport Agreement (CBTA).

Following State Counsellor Daw Aung San Suu Kyi’s visit to Thailand in June last year, the two countries agreed to expedite the negotiation process of the CBTA .

The Thai minister added that the country is investing in dry ports, inland container depots, container yards, and truck terminals situated in major industrial and production areas and along the key border check-points with Myanmar.

“Since Thailand is strategically located in mainland Southeast Asia, we recognised the vital role of transport and logistics in such a globalised and dynamic world today. More importantly, logistics is one of competitive tools in the global market, where currently, Thailand’s logistics costs is approximately 14 percent of GDP out of which 7.5pc being transport costs,” the minister said, adding that the number of 7.5pc reflects the need to further work on lowering the cost.

ASEAN+6

At the conference, Victor Fung, chair of Fung Group, also said that the northern Silk Road in China’s Belt and Road Initiative will “relieve the reliance” on the Strait of Malacca for the country’s international trade.

The investor did not mention the proposed Kyaukphyu Special Economic Zone (SEZ) in Rakhine State, which was seen by some commentators as China’s strategic move to reduce its dependence on trade via the Malacca Strait.

Since the National League for Democracy-led government took charge, the Myanmar consortium of the SEZ has made new demands to raise its stake to 30pc as well as receive dividends, but does not want to shoulder any financing responsibility. That has led to delays in approving the project, which is currently still pending.

“Developing economies such as India, China and ASEAN have emerged as new markets for products and goods while OECD countries are not the dominating player. The supply chain is more complex and the digital dimension adds another complexity,” Mr Fung went on.

He added that the framework of ASEAN 10+6 is crucial and it is important to see how this framework will be strengthened and spread along the Belt and Road in an era in which the TPP is held back.

ASEAN+6 is East Asia Summit group comprising ASEAN+3 (China, Japan and South Korea), together with Australia, New Zealand, and India.

Source: https://www.mmtimes.com/news/thailand-invests-facilities-raise-border-trade-myanmar.html