Adani to develop container terminal port in Myanmar

Adani to develop container terminal port in Myanmar

New Delhi, May 14: Adani Group Tuesday said it has received approvals to develop a new container terminal in Myanmar as the diversified conglomerate spreads its port operations beyond Indian shores.
This will be Adani’s second international port after Australia.
It said the investment does not breach Australian, US, UN or other international sanctions against Myanmar.
“Adani rejects insinuations that this investment is unethical or will compromise human rights,” the group said in a statement. “As with all its international investments, the Adani Group has been guided by the Securities and Exchange Board of India and other key international guidelines and will inform the concerned authorities when we firm up the agreements.” The land where the port is proposed to be built has been leased from the Myanmar Economic Corporation.
“An Adani Group company, the Adani Yangon International Terminal Co Ltd, has received approval from the Myanmar Investment Commission for an investment in a new container port in the Yangon Region,” the company said in a statement without giving investment it is going to make in developing the terminal to receive containers sailing on ships.
Local reports put the investment committed by Adani at USD 290 million.
Adani operates five ports in India including Mundra and Hazira in Gujarat and has three terminals at ports in Murmugao, Vishakhapatnam and Tuna-Tekra. It is building a container terminal at Ennore in Tamil Nadu and Vizinjham port in Kerala. It also has a port in Australia.
Adani Yangon International Terminal, a company incorporated in Singapore, received approval from the Myanmar Investment Commission on April 26 to develop, operate and maintain the Ahlone International Port Terminal-2 (AIPT-2) under a 50-year Build, Operate and Transfer agreement with the government, according to the Directorate of Investment and Company Administration (DICA).
AIPT-2 in Ahlone township by the Yangon river will be developed across 50 acres of land owned by Myanmar Economic Corporation, which is currently operating AIPT-1, according to DICA. The company will enjoy income tax incentives for the first three years of operations.
Construction of the port, which will be built from scratch, is expected to begin in September. Phase 1 of development will involve enough capacity to handle between 1 lakh and 1.5 lakh twenty-foot equivalent units (TEU), or twenty-foot containers, when it is completed within the targeted 12 months. Phase 2, which will take an additional six months to construct, is expected to take the port’s total capacity to a maximum of 8 lakh TEUs.
Adani statement said the Myanmar Investment Commission is an entity of the Myanmar government that is governed by senior ministers and public servants including representatives of the Ministry of Investment and Foreign Economic Relations, Ministry of Commerce, Ministry of Planning and Finance, and the Ministry of Natural Resources and Environmental Conservation.

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