Tuesday, December 2, 2014

Freight Forwarder and Logistics Group Launches ASEAN Cooperation

New Venture Intended to Exploit Growing Export Market
Shipping News Feature

MYANMAR – THAILAND – We have catalogued before the number of freight forwarders and logistics groups entering the former Burmese market, and also some of the problems associated with that country* but now a player from neighbouring Thailand has chosen to establish a base in the country. This week saw the Leo Myanmar Logistics Company Limited open its Rangoon (Yangon) office in a move which the company believes to be the first such incursion by a Thai company.

The new venture is the result of a cooperation between FPS Logistics Thailand (FPST), the Thai member of the FPS global forwarding and consolidation network, and a wholly-owned subsidiary of Leo Global Logistics Ltd, and Myanmar’s EFR Group of companies, one of the country’s largest transport groups, with interests in liner agency, freight forwarding and logistics. FPST/Leo and EFR have a long-standing working relationship that saw them move eight mid-sized projects and heavy lift shipments into Myanmar in 2013.

During the next two years, the new company’s main focus will be major project and heavy lift cargoes employed in the development of infrastructure and manufacturing, as well as handling inbound consumer goods. It will provide a complete logistics solution spanning international multi-modal transport, customs formalities, warehousing and inland transport. In addition, Leo Myanmar will enter the cross-border trucking trade between Thailand and Myanmar, with a view to becoming a leader in providing international-standard door-to-door services between the two countries.

In the long term Leo Myanmar says it expects to see significant growth in exports by air and ocean, once new industrial developments have begun operations. The company anticipates growing interest in Myanmar from multi-nationals, creating significant demand for international-standard 3PL services and ventures to estimate the current import/export ratio of 85:15 to change eventually to a 60:40 balance.

Leo Myanmar’s plans particularly centre on growth in intra-Asian trade (mostly with China, Japan and the Asean countries), and trade between Myanmar and its neighbour Thailand. The company’s plans also extend to trade with Europe and the USA. FPST/Leo Global Logistics President and CEO Kettivit Sittisoontornwong, said:

"FPST has a vast global network of connections with overseas agents through its FPS membership, and these companies will be eager to support the new venture in Myanmar and so share in the massive opportunities in this exciting new market. FPST/Leo is also one of the leading logistics services providers in Thailand, which is one of the biggest trading partners of Myanmar. EFR sees great potential for us to develop business together between Thailand and Myanmar.”

* Typing Myanmar into the News Search box will produce previous stories concerning the countries status.

Photo: Yangon Port