Poor management at Myanmar’s ports leads to costly delays

Poor management at Myanmar’s ports leads to costly delays Photo: The Myanmar Times

15 Jan 2021 - Source: Myanmar Times

Inefficiency and poor management at the privately-owned Myanmar Industrial Port (MIP) are causing delays, resulting in losses borne by logistic operators.

Businesses told The Myanmar Times that the MIP is poorly managed and overcrowded, leading to the unnecessary costly detention of their shipment.

"The main problem of the logistics sector is that the ports are crowded. A one-day workload is being completed in two days at the MIP instead. We have to pay an extra US$100 per container. The officials at MIP do not manage the ports well. The containers are overcrowded at the place where custom duties are checked," said U Thiha Paing, founder of Via logistics and Supply Chain.

The delays also mean that businesses have to pay extra for the rental of container trucks. Rental of these vehicles are hiked up to K80,000-K90,000 because the trucks and drivers have to wait the entire day for the release of the containers.

"Delays cost us more vehicle fees. The times are also disrupted. The container cannot reach the destination in time and we cannot unload the cargo at the warehouses at night during the COVID-19 pandemic. (All of these cost) us extra," said a logistic operator.

U Thiha Paing urged the government to look into the issue as the extra costs will ultimately result in increasing prices of imported goods.

Logistic operators are also urging MIP officials to cooperate with other ports to resolve the issues. - Translated

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