Mike King, Special Correspondent | Apr 30, 2012 12:28PM EDT
Rickmers-Linie expects a wave of new investments in Myanmar following the suspension of EU sanctions.
The EU removed a range of restrictions on the country and individuals last week as reward for the human rights and democratic reforms of President Thein Sein over the last year after almost 50 years of rule by military junta. The move will enable EU-based investors and aid agencies to more easily provide financial assistance to Myanmar, which has a population of more than 50 million and abundant natural resources.
Last week, Japan waived some 300 billion yen ($3.7 billion) of Myanmar’s debts, while the U.S. is expected to ease its own sanctions on trade and investment in the Southeast Asian country later this year, which would bring further investment.
“Free of sanctions, Myanmar’s economy should develop quickly, and an increase in construction activity is inevitable. That will drive demand for breakbulk and project cargo,” said Gerhard Janssen, sales and marketing director of the German tramper line, which is calling at Myanmar’s key port of Yangon under inducement.
Container lines are also targeting the Myanmar market. Japanese carrier MOL started a new twice-weekly container service with RCL between the Port of Yangon and Singapore last month using three vessels.
Contact Mike King at michael@borderline.eu.com.
