Current Situation on Shipping Industries, Maritime Policy and

Legislation in Myanmar

Mr. Maung Maung OoDirector General

Department of Marine AdministrationMinistry of Transport

Republic of the Union of Myanmar

MOT DMA-DG

MOT DMA-DG

Contents

Myanmar - Introduction1

Shipping Industries in Myanmar2

3 Myanmar Maritime Policy and Legislation

IntroductionMYANMAR

MOT DMA-DG

4

4

Total land boundaries 5,876 km China 2,185 kmLao 235 kmThailand 1,800 km Bangladesh 193 km India 1,463 km

Land Boundaries

MOT DMA-DG

5

Location Situated in South East Asia between-latitude 9˙32’ and 28˙31’ N and longitude 92˙10’ and 101˙11’ ETotal land area 676,557 km2

Total Land boundaries 5,876 km(Border countries)Total length South to North 2,090 km East to West 936 km

Total length of coastline 2,228 km

Population 63 millions

Location Situated in South East Asia between-latitude 9˙32’ and 28˙31’ N and longitude 92˙10’ and 101˙11’ ETotal land area 676,557 km2

Total Land boundaries 5,876 km(Border countries)Total length South to North 2,090 km East to West 936 km

Total length of coastline 2,228 km

Population 63 millions

A continental shelf of 228,000 km2

Territorial sea of 486,000 km2 (EEZ)

About 37% of the population lives in coastal

areas.

GENERAL INFORMATION ABOUT MYANMAR

MOT DMA-DG

6

MT(Thousand) %

Total MT (279.373) Thousand was Handled.

Crude Oil 26.698 (9.56%)

Rice & Rice Products 7.043 (2.52%)

Timber 14.523 (5.20%)

Mining 0.256 (0.09%)

Wheat Grain 26.907 (9.63%)

Fishery Products 6.996 (2.50%)

Vehicle & Machinery 45.132 (16.16%)

General Cargo 151.818 (54.34%)

Export & Import Commodities(Fiscal Year 2012-2013)

MOT

MOT DMA-DG

MOT DMA-DG

Economic PolicyMyanmar launched a wide-ranging economic policychange since 1988.

Centralized planning policy was replaced by a market-oriented economic policy and a number of economicreform measures were initiated.

The Myanmar, while formulating and adopting anappropriate market-oriented economic system, hasidentified the economic objectives as the economicpolicy for the national development.

The economic objectives include to build of modernindustrialized nation through the agriculturaldevelopment, and all-round development of other sectors ofthe economy by inviting participation in terms oftechnical know-how and investments from sources inside thecountry and abroad.

Myanmar is a full member of sub regional cooperationsuch as ASEAN, BIMSTEC, Ayeyawaddy- ChaoPhaya-Mekong Basin Development Cooperation (ACMES), Asia Cooperation Dialogue, and Bangladesh-China-India-Myanmar Economic Forum.

Under the assistance of UN ESCAP, ADB and MekongRiver Commission, East-West Economic Corridorproject has been implement for the development oftransport network across the Mekong sub-region;namely, China, Vietnam, Myanmar, Cambodia , LoaDPR and Thailand.

Regional Cooperation for Transport

MOT DMA-DG

Roadmap Towards Integrated and Competitive Maritime Transport in

ASEAN

Measures 20 - timeline 2015Up to now – 17 measures accomplished 3 ongoing

9

Implementation on ASEAN Strategic Transport Plan 2011-2015 (BAP)

MOT DMA-DG

MOT DMA-DG

Infrastructure Development for Yangon and Thilawa Ports

Privatization

Multimodal transport Transit on Kaladan River

National Shipping Policy

Consultation with stakeholders

Prepare for the adaption of Single Shipping Market in ASEAN

Information Technology

Reformed Agenda for Maritime

Shipping Industries in Myanmar

MOT DMA-DG

12

Departments1. Department of Transport (DoT)2. Department of Civil Aviation (DCA)3. Department of Marine Administration (DMA)4. Directorate of Water Resources and Improvement of River System (DWIR)5. Department of Hydrology and Metrology (DMH)

Enterprises1. Myanma Port Authority (MPA)2. Inland Water Transport (IWT)3. Myanma Shipyard (MS) 4. Myanma Airway (MA)

Institutions1. Myanmar Maritime University (MMU)2. Myanmar Mercantile Marine Collage (MMMC)

Ministry of Transport Is composed of:

MOT DMA-DG

13

Private Training InstitutionsDirect Entry

Human Resource Development13

Sources of

Seafarers

supply

Earnestly recommended to recruit MMU and MMMC decent students for next generation Myanmar maritime industry.

MOT DMA-DG

14

Government Institutions1. Myanmar Maritime University (MMU)

2. Myanmar Mercantile Marine College (MMMC)

MOT DMA-DG

15

MET by Private Institutions

* The training centers at which CoC courses are conducted.

1. Ascension Marine Training Centre *

2. Asia Masters

3. Aung Seamanship Training

4. Aung Tharaphu

5. Cygnus Marine

6. Global Maritime

7. Golden Eagle

8. Harmonious Unity International

9. Hla & Tin Transport Co., Ltd.

10. Htet Oo *

11. Image

12. JSM Maritime Training Centre *

13. Kabar Services Co., Ltd. *

14. MARICO Seafarers Training Centre

15. Mercury Training Centre – 2 Centres

16. M.S.C

17. MTC (Dawbon)

18. Myanmar Excellent Stars *

19. Myanmar Marine Engineers Association *

20. Myanmar Seafarers Federation

21. Myanmar Seaman Employment Association

22. Pacific Glory International *

23. Success *

24. True North Marine Training Center

25. UNIQUE Marine Services Co., Ltd.

26. Uniteam Marine Training Centre *

27. Win Ye Kyaw Services Co., Ltd. *

28. Wise Wish Co., Ltd. *

29. Zay Ya Theikti Services Co., Ltd.

MOT DMA-DG

16

MASTER (FG) 1233

CHIEF MATE (FG) 918

OOW (FG) 4395

MASTER (NCV) 89

CHIEF MATE (NCV) 411

CHIEF ENGINEER 887

SECOND ENGINEER 1391

THIRD ENGINEER 4586

ELECTRICAL ENGINEER 1693

TOTAL OFFICERS 15103

TOTAL RATINGS 81402

TOTAL SEAFARERS 96505

Numbers of Officers and Ratings

registered in DMA(last updated 21 March 2014)

Deck Officers

7%

Engine Officers

9%

Ratings84%

MOT DMA-DG

17

Ship Building & Repairing Yardsin Myanmar

MOTDMA-DG

17

Shipyard / Dockyard Government /Private own Location

1. Sinmalike Shipyards Myanma Shipyards Kamaryut2. Ahlone Dockyard IWT Ahlone3. Dalla Dockyard IWT Dalla4. 300 tons Dockyard IWT Dalla5. Yatanarpon Dockyard IWT Mandalay6. Sittwe Dockyard IWT Sittwe7. Thanlwin Dockyard IWT Mawlamying8. Dawbon Dockyard DMA Yangon9. Mandalay Dockyard DMA Mandalay10. Sittwe Dockyard DMA Sittwe11. Myeik Dockyard DMA Myeik

12. Satsun Dockyard Myanmar Port Authority Mingalar Taung Nyunt

13. Angyi Dockyard Myanmar Port Authority Dalla

14. Annawar Dockyard Myanmar Water Enterprise Chaung Wine

15. Cooperative Dockyard Cooperative Team Dawbon

16. Nawarat, Myaayar, Asia, Moe,Aungzabu, Tunthawtar, Taninthar Yi, Winshwewar

8 Dockyards (Private) Khanaungto

17. Patamyar,Amyothargonyoung 2 Dockyards (Private) Insein18. Chaungwa lunkyin 1 Dockyard (Private) Kamaryut

19. Sarparchaung U Nyi Nyi Myint lunkyin 1 Dockyard (Private) Dalla

20. Sanmaniwin lunkyin, Lawpan lunkyin, Moe lunkyin

3 Dockyards (Private) Hlaing Tharyar

21. Makhalar, Kyantineaung, Pwintoo, Bawgawaddy, Zayartun, Shwehninsi, Thitlwin

7 Dockyards (Private) Pathein

Total 37 YardsMOT DMA-DG

MOT DMA-DG

0500

10001500200025003000 Number of Different Type of Vessel by Years

Coastal Passenger

Inland Passenger

Coastal Cargo

Inland Cargo

Fishing Vessel

Coastal Tug

Oil Barge

Number of Vessel in Myanmar

19

Port Region/State

Yangon Yangon

Sittwe

Kyaukphu Rakhine

Thandwe

Pathein Ayeyarwady

Mawlamyine Mon

Dawei

Myeik Tanintharyi

Kawthoung

KAWTHOUNG

DAWEI

MYEIK

MAWLAMYINE

YANGONPATHEIN

THANDWE

KYAUKPYU

SITTWE

MOT DMA-DG

20

Yangon Portvessel of 167m LOA, 9m draft, 15,000 DWT

Thilawa Port.vessel of 200m LOA, 9m draft, 20,000 DWT

Yangon ~Thilawa Port : 16 kmYangon ~ Pilot Station: 64 kmCompulsory pilotage > 200 GT.

Tidal Range (The average tidal range ) -19.3 feet (5.85 m) at spring tide - about 8.4

feet (2.55 m) at neap tideCurrent Velocity- 4 to 6 knotsWave - do not hinder marine operations

- seldom rough with less than (2m)wave- height.

Yangon RiverApproach

MOT DMA-DG

21MOTDMA-DG

21

SEZ to promote FDI

SEZ Law enacted Jan.2011

Dawei, Kyaukpyu and Thilawa

have been designated as SEZ.

Dawei is led by Thailand,

Kyaukpyu - China and

Thilawa is led by Japan.

Modified SEZ law submitted

to Parliament

SEZ – Special Economic Zone

MOT DMA-DG

22DMA-DG

YangonPort

Total 37 Plots200 m quay length750 m landward (Each Plot)

MOT DMA-DG

Mv. Pinya MV. Mergui

Two ships supplied by Japanese Government under WW II war reparation agreement.

HITACHI ZOSEN Shipyard in OSAKA. (Pinya)

URAGA Shipyard in YOKOHAMA. (Mergui)

To establish a leading national shipping line.

Myanmar and Japan International Cooperation between in Maritime

Transport

MOT DMA-DG

24

The major exports to Japan from

Myanmar are garment, pulses & beans ,

sesame, marine product , jewelry ,

minerals and ore.

The major imports to Myanmar from

Japan are motor vehicles and spare parts,

tin and steel products, engines , materials

for power supply, plastic raw materials,

chemical cotton and rolling stocks.

Trade between Japan and Myanmar (Cont.)

MOT DMA-DG

25

Route from Calcutta to Aizawl via Sittwethrough Kaladan River

MOT DMA-DG

Proposed Trade Route from Sittwe port ( Myanmar) to NH-54 (India)

26

DAWEI

KYAUKPYU

KALEGAUK

DEEP SEA PORT PROJECTS IN MYANMAR

Naaf River

Bayint Naung Point

Myanmar coast line started from Naaf River toBayint Naung Point is demarcated into (3)sections as follows:-

Rakhine Coast - 713 Km

Delta Coast - 437 Km

Tanintharyi Coast - 1078 Km

Total - 2228 Km

All existing ports of Myanmar including Yangon Portare river ports and not deep enough for largerconventional and container vessels.

To cope with the growth of the maritime tradevolume after adoption of the market orientedeconomy of the country and the regional demand oflarger vessels for seaborne traffic, the governmentlaid down the plan to develop Deep SeaCommercial Ports at suitable sites along the coastof Myanmar.

WESTPORT

Yangon

MOT DMA-DG

27

Location

Made Island., 11.2 km S/E of Kyaukphu

Geographical Position

19 H 22'.6 N, 93 H 40'.8 E

Approach channel

LAD 24 m, Tidal Range 2~2.7m

Habour Area

LAD 20 m, Sea Room 1000 m ~ 1600 m

Prosperity

Most appropriate approach to cope western

corridor.

Save sailing distance about 5000 Km compare

with existing sea route through Malacca Strait

to China East Coast.

Main Outlet of ocean route for land locked

regions' trade.

Opportunity for transporting of Container,

General Cargoes, Crude Oil and Gas.

Shortest trade route from India to China.

Kyaukpyu Deep Sea Port Project

Kyaukpyu

Sittwe

Made Is.

MOT DMA-DG

28

Dawei

Nabule

Dawei Deep Sea Port Project

LocationLies at Nabule Area, north-west of Dawei City.

Geographical Position13 H 48'.5 N, 98 H 04' E

Approach channelLAD 15 m, Tide Range 5m

Habour AreaLAD 15 mSea Room 3.2 Km

ProsperityDawei Area as a hub connecting toGMS, South and South East Asia countries.Industry, Tourism, Fisheries, Mining and Energy

MOT DMA-DG

29

LocationBetween Mawlamyine and Ye in Mon State.

Geographical Position 15 H 32' N, 97 H 38' EApproach channel LAD 15 m, Tidal Range 3~5mHabour Area L AD 18 m, Sea Room 4.8 KmProsperityWest-East Economic Corridor Working Group hasidentified to develop deep sea port supporting withindustrial estate at Kalagauk area where it wasstretched and covered between Mawlamyine and Yecoast line in Mon State.West-East Economic Corridor (WEC) route will act as aland bridge linking India Ocean in the Pacific cuttingthe distance of the conventional circuitous sea routepassing the Malacca Strait by almost two third.The Project will certainly benefit the countries alone thecorridor such as Vietnam, Lao, Cambodia,Thailand and China as well.Development of deep sea port will serve access portas a gate way of WEC at west side. So, it will berealistic to conduct feasibility study on development ofsaid project.

Kalegauk Deep Sea Port Project

KALAGAUK

MOT DMA-DG

MOT DMA-DG

The Memorandum of

Understanding (MOU) relating to

the Feasibility Study & Draw the

Master Plan of the Delta Region

at Ngayoke Bay Westport Project

was signed between the Myanma

Port Authority and Super Axis

Development Pte.,Ltd/ Silver

Wave Development Pte.,Ltd

Delta Region Westport Project

31

MYANMAR MARITIME POLICY AND LEGISLATION

MOT DMA-DG

32

Transport Policy

Myanmar government has laid down Transport policies to support andfacilitate easier communication and transport among its states anddivision as well as to provide support in the implementation of itsduties for the security and convenience of all transportation sectors.

The transport policies were reflected in ASEAN Transportcooperation framework plan (1999-2004) and ASEAN TransportAction Plan (ATAP) 2005-2010. A number of regional policyframework plans and agreements have been concluded to guidethe ASEAN transport Cooperation and liberalization of services.The ASEAN Strategic Transport Plan for (2011-2015) has beenadopted as Brunei Action Plan in November 2010.

MOT DMA-DG

33

Policy of the Ministry of Transport

To develop and fully utilize transport capacities to contribute towards the realization of an economicallystrong, modern and developed nation.

To fulfill transport requirements, and to extend and maintain the transport infrastructure to be able to fullysupport increased production from other economic sectors and meet growing public and social demands.

To ensure smooth and secure domestic and international transport systems as well as contribute towards thedevelopment of border areas and national races and the development of tourism.

To enable all-weather river transportation by maintenance and preservation of natural resources.

To develop air and maritime transport infrastructures in line with international standards for environmentalprotection.

To enhance the transport sector through human resources development and upgrade expertise inmanagement and advancing modern technology.

To abide by international conventions, acts, laws, rules and regulations with respect to the transport sector.

To develop domestic and international transportation and actively take a key role in the implementation of anational multi-modal transport system.

To plan for implementation of implement national, sub-regional and international transport networks.

To develop and fully utilize transport capacities to contribute towards the realization of an economicallystrong, modern and developed nation.

To fulfill transport requirements, and to extend and maintain the transport infrastructure to be able to fullysupport increased production from other economic sectors and meet growing public and social demands.

To ensure smooth and secure domestic and international transport systems as well as contribute towards thedevelopment of border areas and national races and the development of tourism.

To enable all-weather river transportation by maintenance and preservation of natural resources.

To develop air and maritime transport infrastructures in line with international standards for environmentalprotection.

To enhance the transport sector through human resources development and upgrade expertise inmanagement and advancing modern technology.

To abide by international conventions, acts, laws, rules and regulations with respect to the transport sector.

To develop domestic and international transportation and actively take a key role in the implementation of anational multi-modal transport system.

To plan for implementation of implement national, sub-regional and international transport networks.

DMA-DG

33

MOT DMA-DG

34

Marine Administration Policy

To conform National Ships to Safety standards, safe practices and standard ofcompetence required of it's marine personal.

To promote development of human resources, man-power planning and optimum utilization of such man-power in the maritime sector.

To improve the safety record of Myanmar registered vessels.

To improve specific obligation save lives in distress at sea and protection of the marine increment.

MOT DMA-DG

35

Application of International Maritime Conventions in Myanmar

INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974 (SOLAS 74 )

CONVENTION ON THE INTERNATIONAL REGULATIONS FOR PREVENTINGCOLLISIONS AT SEA, 1972 ( COLREGS 72 )

INTERNATIONAL CONVENTION ON LOAD LINES, 1966 ( LOAD LINE 66 )

INTERNATIONAL CONVENTION ON TONNAGE MEASUREMENT OF SHIPS, 1969(TONNAGE 69 )

INTERNATIONAL CONVENTION FOR THE PREVENTION OF POLLUTION FROM SHIPS, 1973/78 (MARPOL 73/78 ANNEX I & II )

INTERNATIONAL CONVENTION ON STANDARD OF TRAINING , CERTIFICATION AND WATCHKEEPING FOR SEAFARERS, 1978 AS AMENDED IN 1995 AND 1997(STCW – 1978 AS AMENDED )

CONVENTION FOR THE SUPPRESSION OF UNLAWFUL ACT AGAINST THE SAFETYOF MARITIME NAVIGATION, 1988 ( SUA 1988 )

PROTOCOL FOR THE SUPPRESSION OF UNLAWFUL ACTS AGAINST THE SAFETYOF FIXED PLATFORMS LOCATED ON THE CONTINENTAL SHELF, 1988( SUA PROTOCAL 1988)

MOT DMA-DG

36

36

Responsible Department No. Law Status

DoT 1 The Multimodal Transport Law 2011

DMA 2 The Myanmar Registration of Ships Act Draft completed& under processing

DMA 3 The Inland Vessel Law 2013 Draft completed& under processing

DMA 4 The Myanmar Merchant Shipping Law 2013 Draft completed& under processing

DMA 5 The Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels Inserted into MSL

DMA 6 The Myanmar Coastal and Inland Water Transport License Law 2012

Draft completed & under processing

DMA 7 The Bills of Lading Act, 1856

DMA 8 The Carriers Act, 1865

DMA 9 The Myanmar Carriage of Goods by Sea Act, 1925

Status of National Legislation

MOT DMA-DG

37

Responsible Department No. Law Status

DWIR 10 The Obstructions in Fairways Act 1881 Draft completed & under processing

DWIR 11 The Defile Traffic Act 1907 Draft completed & under processing

MPA 12 The Ports Act of 1908

MPA 13 The Yangon Port Act, 1905

MPA 14 The Out-ports Act of 1914Act (13), (14) & (15) combined into one as The Ports Act

Draft completed & under processing

MPA 15 The Myanmar Lighthouse Act 1937 To be revised

Status of National Legislation

MOT DMA-DG

Socio EconomyEconomic structure of Myanmar is agricultural-based, whereprimary sector accounts for 43% of total GDP and industrial sectorhas 17% while services sector has 40%.

Because of the globalization, a consumer from one domain canget the product from different domain easily by taking the advantageof development of transport logistics.

production pattern has been changed in order to find the cheaplabour and resources in developing countries so that productionfactory was established in hinterland area of particular ports.

On the other hand, distribution centers need to be spread out inorder to give the door-to door service to consumers.

So, logistics and supply chain management become vital roleto get the cargo from source to final destination in time, at lowcost and without damage to cargo.

Containerization supports to the activities throughout the supplychain by giving the chances of easy handling, least time consumptionand hard to damage of cargo at several transit points.

MOT DMA-DG

Myanmar Special Economic Zone Law

To base on the framework of the maintenance, protection andsafeguarding the sovereignty of the State in allowing to operateforeign investment businesses;To develop the momentum of the economy of the State byestablishing and operating the Special Economic Zones;To develop the industry and high technologies in the State;To improve the goods processing, trading and service business;To enable the citizens to train, learn and transfer the hightechnologies;To create more employment opportunities for the citizens;To develop the infrastructures of the State.

To base on the framework of the maintenance, protection andsafeguarding the sovereignty of the State in allowing to operateforeign investment businesses;To develop the momentum of the economy of the State byestablishing and operating the Special Economic Zones;To develop the industry and high technologies in the State;To improve the goods processing, trading and service business;To enable the citizens to train, learn and transfer the hightechnologies;To create more employment opportunities for the citizens;To develop the infrastructures of the State.

MOT DMA-DG

Challenges

The lack of funding, resources and manpower,

Need of public consciousness concerning Maritime issues, marine accidents and incidents,

Deficient and/or incompetent indigenous expertise in Maritime Affairs,

Lack of appropriate environmentally sound technology, and

Co-operation among the shipping industries , maritime sectors and allocation of duties & responsibilities

MOT DMA-DG

MOT DMA-DG

Conclusion

Although there are challenges and difficulties,Myanmar have advantages that it hasstrategic location, between global houses, hasprecious resources and good enough sizedpopulation of 60 million plus to create a vibranteconomy. At the present , Myanmar is movingforward to make Political and EconomicChanges and only need to take theopportunities to utilize the advantages.

42

MOT

42

Thank You

MOT DMA-DG