Myanmar Logistics and Warehousing Market Outlook to 2023: Ken ResearchPosted by kenresearch on November 29th, 2019 The report titled “Myanmar Logistics and Warehousing Market Outlook to 2023 – By Road, Sea, Air and Rail Freight Forwarding; International and Domestic Freight, Integrated and 3PL Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), 3PL Warehousing, Type of Warehouses; By Courier Express and Parcel Logistics and E-commerce Logistics” provides a comprehensive analysis of the Logistics market in Myanmar. The report covers the overall size and future outlook of Myanmar Freight Forwarding, Warehousing, Courier Express and Parcel, 3PL and E Commerce Logistics market in terms of value, segmentation on the basis of service mix, by geography, by ownership and by type of industries. The report also covers the competitive landscape and company profiles of major Freight Forwarding, Warehousing and Express Logistics Companies in Myanmar. The report concludes with market projections for future and analyst recommendations highlighting the major opportunities and challenges. Myanmar Logistics Market Overview and Size In 2011 Myanmar’s economy opened up to the rest of the world. Foreign investment has since then been steadily coming in, reaching USD 7.5 billion in 2018, 13% growth since 2013. International companies are looking at Myanmar as a potential growth market. One of the lucrative factors for investing in Myanmar is the abundant supply of natural resources and one of the cheapest labor costs in Asia. However, there has been underinvestment in Myanmar with respect to the transportation sector, with merely 5% of government expenditure going towards the Transport and Communications sector even though Transportation services contribute 11.2% to the GDP. More than 80% of enterprises in Transportation and Storage Sector in Myanmar are operating with only 0-9 workers. This suggests that the market is majorly unorganized. Myanmar Logistics Market Segmentation By Freight Forwarding Despite a stunted economic growth before the liberalization initiative, freight forwarding has always been a prosperous industry in Myanmar due to its strategic location as the gateway between India and China and global sea connectivity through Yangon port. Road Freight contributes the highest share towards overall freight volume and revenues. Sea freight is the second largest contributor since Yangon Port is a major trans-shipment hub for Southeast Asia. Naturally, Industrial Sector is the major end user for freight forwarding services. Around 60% of value of imports in Myanmar is from capital goods such as building material, machinery, transport equipment and intermediate goods such as raw material, fuel, tools and spares. By Warehousing The Myanmar Warehousing industry is at nascent growth stage. Modern warehouses have just started developing and only a few are operational such as Daizen’s bonded warehouse and warehousing facility in Thilawa SEZ. International companies such as DHL and Damco have identified the gap in Myanmar’s warehousing services and are constantly focusing their activities towards developing warehousing services. Myanmar is a leading producer of food products and garments, both of which require storage solutions. By Courier, Express and Parcel Logistics Market Strict monopoly of Myanmar Post until 2013 hindered the growth of CEP market in Myanmar. The country ranked 126th out of 170 countries in the 2016 Integrated Index for Postal Development by the Universal Postal Union (UPU). UPU is now supporting Myanmar Post to aid its development and digitalization process. The Ministry of Transport and Communication and Japan’s Ministry of Internal Affairs and Communications have signed a memorandum of cooperation in the postal sector for the modernization and improvement of Myanmar’s postal services. By Third Party Logistics Market Due to infrastructural and regulatory hassles, logistics companies in Myanmar outsource certain operations while controlling core operations. For Example: CP Logistics outsources its fleet requirement in order to provide complete supply chain management. The market is dominated by numerous small and medium players for whom outsourcing is a primary strategy to sustain. The 3PL market is also being driven by innovations such as trucking aggregator models and the market is expected to incline more towards consolidation for mutual benefits. By E Commerce Logistics Market The recent and gradual liberalization of delivery services through partnership with third party logistics provides–after decades of strict monopoly by Myanmar Post for mail and small parcels–have enabled the development of a small e-commerce logistics market, primarily in urban regions of Yangon and Mandalay. Cross border e-commerce is still in the nascent growth stage, mainly due to custom clearance procedures in Myanmar which take 5-7 days as against the ideal standard of 1-2 days. Competitive Landscape There are around 4,000 logistics companies in Myanmar including 830+ trucking companies and 880+ domestic freight forwarders. Majority of the transporters are found in Yangon, Mandalay, Sittwe, Lashio, Muse and Myawaddy towns. The logistics market is still undeveloped and medium-sized transporters are operating mostly on the primary corridors. The market nature is highly fragmented. Since the cargo insurance system is weak in Myanmar, a lot of traders transport cargo with their owned trucks; therefore it is difficult for companies to specialize in a mode of transport. A number of mergers and acquisitions might happen in the future when private companies realize the symbiotic benefit of collaborating. Warehousing companies are placing rising emphasis on developing cold storage facilities and obtaining permits for building container freight stations and bonded warehouses. Future Outlook and Projections Myanmar Logistics and Warehousing Market is expected to register a double digit growth during 2018-2023. The reasons for the growth include heavy investment in logistics development by Myanmar government and international companies, expected increase in cargo throughput, development of SEZs and multimodal transport projects. The labour force in Myanmar is expected to reach 10 million by 2030, causing a lot of companies from Thailand and Japan to set up base in the country. Myanmar will benefit from new transport corridors through Myanmar to India, Thailand and Malaysia, as a part of China’s One Belt One Road initiative. Freight volume is projected to almost double by 2023, a major reason for high growth projections. Key Segments Covered:- Freight Forwarding Market Revenue by Mode of Freight Transport Road Freight (Domestic and International Volume, FTK and Revenue; Number of Registered Vehicles) Ocean Freight (Domestic and International Volume, FTK and Revenue; Volume by Commodity, Sea Port Statistics) Air Freight (Domestic and International Volume, FTK and Revenue) Rail Freight (Domestic and International Volume, FTK and Revenue; Volume by Commodity and Region) Freight Revenue by Intercity Road Freight Corridors Yangon-Mandalay Yangon-Muse Yangon-Myawaddy Others Revenue By International Road Freight Corridors Mandalay-Muse-Kumning Yangon-Myawaddy-Mae Sot Mandalay-Tamu-Manipur Revenue by 3PL and Integrated Logistics 3PL Revenue Integrated Logistics Revenue by End User Industrial and Construction (Oil and Gas, Cement, Steel, Bricks, Tiles, Glass Products etc) FMCG (Electronics, Household Goods, Toiletries etc) F&B (Meat, Poultry, Seafood, Fruits, Vegetables, Packaged Drinks etc) Retail (Garments, Cosmetics, Shoes, Bags etc) Others (Automotive, Telecom, Technological, Pharmaceuticals and Others) Warehousing Market Revenue by Operation Model Industrial/Retail ICD/CFS Cold Storage Revenue by Type of Warehouse General Warehouse Open Yard Chillers/Freezers Ambient Warehouse Bonded Warehouse Revenue by Contract and Integrated Logistics 3PL Integrated Logistics Revenue by End User Industrial and Construction (Oil and Gas, Cement, Steel, Bricks, Tiles, Glass Products etc) FMCG (Electronics, Household Goods, Toiletries etc) F&B (Meat, Poultry, Seafood, Fruits, Vegetables, Packaged Drinks etc) Retail (Garments, Cosmetics, Shoes, Bags etc) Others (Automotive, Telecom, Technological, Pharmaceuticals and Others) Warehousing Space By Region Yangon Mandalay Others States and Regions Courier, Express and Parcel Logistics Market Revenue by Segment Mails and Documents E-Commerce Parcels Express Cargo Express Cold Chain Number of Shipments by Domestic and International Domestic (Mails and Documents and E-Commerce Parcels) International (Mails and Documents and E-Commerce Parcels) Number of Shipments by Air and Ground Express Air Express (Mails and Documents and E-Commerce Parcels) Ground Express (Mails and Documents and E-Commerce Parcels) 3PL Logistics Market Revenue by Segment Freight Forwarding Warehousing Value Added Services Third Party Freight Forwarding Revenue by Phase of Delivery Hub-Hub Hub-Spoke Spoke-Door Third Party Freight Forwarding Revenue by Domestic and International Domestic International (Inbound and Outbound) International Third Party Freight Forwarding Revenue by Cargo Category Raw Materials (Building material, machinery, cement, steel, glass, textiles and others) Spare Parts (Electronic tools, transport equipment spares and other spares) Finished Goods (Garments, Electronics, Shoes, Bags and others) Snapshot on E-Commerce Logistics Market in Myanmar Snapshot on Last Mile Delivery Services in Myanmar Companies Covered:- DB Schenker DHL Yusen Logistics Bollore Logistics Rhenus Logistics Kerry Logistics Kuehne Nagel OV Logistics Maersk Mediterranean Shipping Company Kargo Kospa Logistics Damco Ryobi Myanmar Distribution CEA Project Logistics Daizen EMS DHL Express MGL Express UCL Express Royal Express SBS Express Myanmar Zarla Distribution RG Express Marathon Express Key Target Audience:- Freight Forwarding Companies E Commerce Logistics Companies 3PL Companies Consultancy Companies Express Delivery Logistics Companies Logistics/Warehousing Companies Real Estate Companies/ Industrial Developers Time Period Captured in the Report:- Historical Period – 2013-2018 Forecast Period – 2019-2023 Key Topics Covered in the Report:- Myanmar Logistics and Warehousing Market Introduction Logistics Infrastructure Value Chain in Myanmar Logistic Market Myanmar Logistics and Warehousing Market Size Myanmar Logistics and Warehousing Market Segmentation Myanmar Logistics and Warehousing Market Future Outlook Myanmar Logistics and Warehousing Market Future Segmentation Myanmar Freight Forwarding Market Size Myanmar Freight Forwarding Market Segmentation Myanmar Freight Forwarding Market Future Outlook Myanmar Freight Forwarding Market Future Segmentation Myanmar Warehousing Market Size Myanmar Warehousing Market Segmentation Myanmar Warehousing Market Future Outlook Myanmar Warehousing Market Future Segmentation Myanmar CEP Logistics Market Size Myanmar CEP Logistics Market Segmentation Myanmar CEP Logistics Market Future Outlook Myanmar CEP Logistics Market Future Segmentation Snapshot on Myanmar E-Commerce Logistics Market Snapshot on Myanmar Last Mile Delivery Services Market Myanmar 3PL Market Size Myanmar 3PL Market Segmentation Myanmar 3PL Market Future Outlook Myanmar 3PL Market Future Segmentation Regulatory Environment Trends and Developments Issues and Challenges Analyst Recommendation For more information, refer to below link:- Myanmar Logistics and Warehousing Market Related Reports:- Contact Us: Like it? Share it!More by this author |