Background information of Transportation Sector
- A large country with a land area of 676,577 square kilometers
- A land bridge between South and Southeast Asia
- Borders with Bangladesh, the PRC, India, the Lao PDR, Thailand
- Has a 2,800 km coastline along the Bay of Bengal
- Approximate population of 60 million, more than 70% living in rural areas
- GDP per capita was $380 in 2009 (among the poorest, 161 out of 180)
- Human Development Index (the lowest in Southeast Asia)
- According to ADB, after long years of isolation, Myanmar’s transport sector suffered a
lack of international expertise, experience, and investment and a loss of capacity in the
agencies.
- Transport subsectors
- Roads, railways, ports, inland waterways and civil aviation
- Transportation sector in Myanmar is underdeveloped. (Road density for ASEAN is overall
about 11 km per 1,000 people, while Myanmar’s about 2 km.) (Indonesia has about 250
vehicles per 1,000 people and Thailand has about 370; the equivalent figure for
Myanmar is just 18.)
- Between 2011 and 2020, investment has focus on major highways but the operation
and maintenance of the existing networks are still lacking.
- The transport sector is critical to improve domestic connectivity through more efficient
transport linkages between rural areas, markets and urban centers.
- From the time of independence in 1948 to the early 1960s, Myanmar had a sound
transport infrastructure and a competent and well-structured civil service to manage
but the “Burmese Road to Socialism” in 1962 led to nationalization of many productive
assets. Investment in the transport network fell sharply.
- Economic sanctions in the later periods also resulted in the infrastructure investment
and development.
- Centralized system was practiced to manage the transportation sector without
autonomy or reform and their revenues from the transport subsectors went to the
central treasure and the financing was allocated through the budget in the same
manner as a government department.
- Confusion of responsibility between the ministries over transport planning and
implementation also leads to fragmented institutional structure.
- Among all the transport subsectors, the road sector is the most common form of
transportation and responsibility for the road sector should be made clear under one
ministry.
- The problem with lower-level roads in rural areas is that they are adequately funded to
develop and maintain the roads. Investment in rural areas through roads can improve
access to education, health and agriculture and conflict-affected areas. This is important
to reduce poverty if the rural populations can have access to all-weather roads.
- The role of the private sector should be made larger.
Roads
- The vehicle density is low, compared to other countries in ASEAN, motorcycles account
for most of the vehicles. However, in Yangon where cars are only allowed, traffic
congestion has a negative impact on the inadequate road infrastructure.
- Road safety is another issue with Myanmar experiencing higher fatality rates/ (WHO
2007 indicates that Myanmar suffered 15.7 fatalities per 10,000 vehicles. Comparable
values were 1.1 for Australia, 4.9 for Thailand and 5.6 for Viet Nam.
- Licensing of drivers is to be done under the supervision of the Road Transport
Administration and more is needed to be done to ensure safety on the roads.
- Budgeting of new roads construction was around $300 million for $8,500 per km in 2011
and little was spent for maintenance.
Railways
- The railway subsector is run by a state enterprise. Railway sector was expanded in the
past to provide transport services in remote areas but the expense was high and the rail
network is in poor condition.
- The railway sector can be said to be in the red as railway financial statements indicate
that the revenues collected are only about half the expenses.
- The railway is in need of modernizing and a sound financial management system with
investment in basic infrastructure.
- Operating speeds are low, riding quality is poor and it cannot compare with the road.
(Travel between Yangon and Nay Pyi Taw is about 5 hours by road and almost 9 hours
by rail.)
Inland Waterways
- Inland waterway network in Myanmar includes the Ayeyarwaddy Delta and Chindwin
Rivers.
- Myanmar Inland Water Transport (IWT) is a state enterprise. IWT handles passengers
and freight.
- Transport tariffs are low and both passenger and freight services are fixed by the
government. This, again, demands commercialization to modernize and expand its
operation.
Ports
- Yangon is the principal port city and handles million tons of import and export. Yangon
port now includes the new port area at Thilawa, developed with the contribution of
private sectors.
- There are other ports at Dawei with Thai investment and Kyaukphyu in Rakhine State
with China investment. These ports will serve the Thai and PRC markets, together with
some development of the local area and economy.
Civil Aviation
- Myanmar has international airports in Yangon, Mandalay and Nay Pyi Taw and other 30
local airports.
- Domestic air services are provided by Myanmar Airways, a state enterprise of the MOT.
But there are privately owned airlines like Air KBZ, Asian Wings.
Urban Transport
- Bus services are basic to urban transportation. About 80% of Yangon’s public transport
is provided by buses and 6 % is provided by the city’s limited urban rail service.
- Buses are operated by a mix of public and private operators. These buses can be old and
unsafe.
- Investment in urban circular rail line can improve the transport network.
- The good thing is that Yangon’s street network is grid oriented and the roads are wide
for feasible public transportation management.
Myanmar and Mekong
- Myanmar’s key position in cross-border connections is the potential to develop and
expand its transportation in road corridors with China and Thailand in the Mekong.
- Myanmar is a member of the BIMSTEC and ESCAP and it should promote its networks
for its development of transportation and funding.
Private Sector
- Private sector has significantly involved in road construction and maintenance. There
are contracts and concession arrangements but service delivery, asset and financial
management and planning have deteriorated.
- No overarching transport policy or strategy
- No comparative cost-benefit analysis
- Lack of expertise or capacity in procurement, financial management and environmental
and social safeguards.
- Governance and corruption issues are serious.
- Transparency and accountability are weak.
Recommendations
- Simple plans and services for public participation and transparency
- Hire well-qualified consultants from domestic and international settings (Not to reinvent
the wheel)
- Involve communities in development programs
- Seek technical assistance from international partners
- Develop an overall strategy and road map for in-depth subsector assessment
- Deliver priority outputs quickly and visibly
- Adopt straightforward implementation procedures
- Provide hands-on training to staff in implementing agencies
MOC, MOT and MORT
