Chinese consortium snaps up 70% stake in proposed Myanmar port project

Chinese consortium snaps up 70% stake in proposed Myanmar port project

A Chinese consortium led by CITIC Group has agreed to take a 70% stake in a deepwater sea port project in Myanmar, Reuters has reported.

According to Oo Maung, vice chairman of a government-led committee overseeing the project, Myanmar reached an agreement with the consortium in September for the development of a deep sea port in Kyauk Pyu in Rakhine state. The total cost of the project could reach $7.2bn, however the two parties have not yet reached an agreement on financing details and still need further negotiations to move the project forward.

Yuan Shaobin, executive president of CITIC Myanmar, said the company had agreed to take a 30% stake in the project. In additional to CITIC, the consortium includes China Harbor Engineering Company, China Merchants Holdings, TEDA Investment Holding and Yunnan Construction Engineering Group.

The project also includes the development of a special economic zone in Rakhine.

The potential deal is the latest move by Chinese companies to expand their presence in the global port industry, supported by China’s One Belt, One Road initiative. China Merchants Port Holdings, the port investment and operation unit of China Merchants Group, has concluded port deals in Brazil and Sri Lanka this year.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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