Mae Sot MyawaddyThe Mae Sot Myawaddy
This process was backed by the Ministry of Transport and Communications and conducted by the Myanmar International Freight Forwarders Association (MIFFA), Thilawa-based Daizen Myanmar and Malaysia-based Overland Total Logistic Services (OTL). MIFFA and the Ministry of Transport and Communications outlines four stages to improving the logistic situation at the Mae-Sot - Myawaddy frontier.
Firstly, there is the issue of handling manually, secondly, the replacement of cranes, the present project uses the replacement of semi-trailers and the final objective is a system that allows the free movement of lorries across the frontier. MIFFA Chairman U Aung Khin Myint, and one of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) co-chairs, said to the Myanmar Times that the regulation and replacement of trailers are in line with the Ministry of Transport's objective of ensuring smooth transportation for cross-border shipments.
It shows that the exchange of trailers at the frontier between Mae Sot and Myawaddy is an efficient interim solution for cross-border logistic. It is a right move towards the Ministry of Transport's objective of achieving smooth transportation along the roads for cross-border logistics," he said, added that the operation went better than originally expected.
Daizen Vice President Takaaki Yabe, who was part of the piloting said that taking the transhipment out of the processes will increase cost-efficiency and efficiencies. "As far as costs are concerned, the elimination of transshipment work at the frontier would help to create "seamless logistics". "He said, "This increased operational efficiencies will help reduce overall logistical costs.
Forwarding agents and logistic companies are now looking forward to intergovernmental policies in cross-border traffic. "cWe await the outcome of the intergovernmental negotiations on the interim conclusion of the International Trade Relief Treaty (IICBTA) between Myanmar and Thailand,³d said U Aung Khin Myint. IICBTA will be launched in Myanmar on 1 December this year.
The IICBTA includes Cambodia, Laos, Vietnam, Thailand and Myanmar. Burma is the last implementing member state of the Cross-Border Transport Agreement (CBTA). After State Councillor Daw Aung San Suu Kyi's June last year in Thailand, both sides reached agreement to accelerate the CBTA negotiating procedure under the IICBTA.
Information provided by the MITFA to the Department indicates that the tracker swap program significantly shortens the period of the programme and solves the issues that prevail in the country's traditional cross-border logistic. There are no hazards associated with handling trailers manually, such as damage to cargo or injuries to labour.
As a rule, the present reloading programme lasts four to five working day, while the piloting programme only lasted two and a half workdays. "On Wednesday mornings, we collected the load in Thailand and on Friday afternoons we reached our camp in Thilawa SEZ. The one is the elimination of reloading and shunting operations in Myawaddy and the other is the quicker handling operation at Thilawa SEZ in comparison to the Burden Duty in Myawaddy," said Mr Yabe.
An essential distinction between the use of trailerswap and traditional logistic is that it is possible to store containers, i.e. loads that have to be placed in a concrete box under certain control parameters, e.g. chilled loads, whereas traditional transshipments are not suitable for this kind of product according to MIFFA. "The containerization makes it possible to transport loads that are susceptible to temperatures and moisture under monitored operating parameters, thus preserving the cargo's quality," Yabe explains.
Aung Khin Myint said to the Myanmar Times that the exchange of trailers would mean that Mae Sot-Myawaddy could carry a much broader spectrum of cargo than just a container. "Prior to the realization of the piloting process, I had anticipated that only container loads would profit from the program. Customs clearance is another aspect of the regime which increases the effectiveness and competitive capacity of Mae Sot' s and Myawaddy' s trading activities.
With the introduction of a custom warehousing system, Myanmar will introduce cargo shipments this year. Myanmar's Daizen, who headed the Myanmar part of the Myanmar part of the trailers wap scheme, was the first to set up recorded transit camps in the state. The customs-warehousing allows the warehousing of international cargo on invoice, i.e. the warehousing of cargo before the payment of duties and trade-taxes.
For example, the containers did not have to go through Myawaddy to go through check-in or check-in during the project and were cleared within an hours in Myawaddy, where they were sealed by import officers with an electronically sealed document that also tracked the containers. It took two and a half day from collection in Thailand to shipment in Thilawa SEZ.
In comparison to sea cargo, the regulation has cut the operating time by 80 per cent. Another factor is the importance of Thilawa SEZ in Myanmar's logistic sector. Since the Myanmar customs warehousing facility is currently only allowed in the Thilawa SEZ, the SEZ is likely to become a major logistical centre between Thailand and the state.
In spite of the successful outcome of the lawsuit, Daizen's vice president of the Myanmar Times said that three points stand in the way of achieving barrier-free trading for the borders between Mae Sot and Myawaddy. The introduction of the Myanmar Automated Cargo Clearance System (MACCS) at the Myanmar frontier next year should solve this issue and accelerate the entire procedure.
Can Myanmar insurers offer Thai trailer and container coverage for Myanmar? "Finally and above all, there is still a large cross-border trading shortfall between Thailand and Myanmar. That means an empty journey back to Thailand.
Costs for cross-border logistic will fall significantly as Myanmar is exporting more goods by truck to Thailand," said Daizen's Vice President. Conducting this frontier piloting project would make the boundary between Mae-Sot and Myawaddy a viable choice for a broad spectrum of both national and multinational providers. "It will enable our internal and external distributors to supply our clients more quickly by reducing the logistical timescale," said Mr Yabe, who added that he expects an increased volume of trading between Mae Sot and Myawaddy.
The testing or consideration of similar programmes on the Myanmar-China frontier will depend on the ruling of the National Committee for Traffic Facilitation, headed by Secretary of State U Aung Khin Myint to the Myanmar Times.