Myanmar Logistics Industry Outlook to FY'27F

The report titled “Myanmar Logistics Industry Outlook to FY'27F: Driven by Foreign Infrastructural Investments and Government Support but held back by Covid and unstable political conditions in Myanmar” provides a comprehensive analysis on the status of Logistics Industry in Myanmar. The report covers Freight Forwarding Market, Warehousing Market, Courier, Express & Parcel (CEP) Services Market and Value Added Services (VAS) Market in detail. It also covers various aspects including Logistics Industry market size on the basis of revenue, ecosystem of major entities in Freight, Warehousing & CEP Market in Myanmar, trends & developments, issues & challenges faced by the industry, government regulations, SWOT Analysis, Issues & Challenges, Freight Aggregator Market, E-Commerce market size, Competition Scenario in Warehousing Market, Competition Scenario in CEP Market and other aspects. Further, the report focuses on the Myanmar Freight Forwarding Market Segmentation by Type of End Users (Food and Beverage, Industrial & Construction, Retail, Automotive & Engineering, Others) and By Domestic/ International; by Type of Mode (Sea, Road, Air, Rail); by Type of Fleet Operators, (Small Fleet Operators, Medium Fleet Operators, and Large Fleet Operators). It also focusses on Myanmar Warehousing market segmentation by Type of Warehousing Space (Tech/ Non-Tech, Organized/ Unorganized, and Racked/ Unracked); by Type of Business Model (Industrial/ Retail Warehouses, Container Freight/ ICDs, and Cold Storage); by Type of Warehousing Area (Open, and Closed), and By 3PL/ Integrated; by Type of Type of End Users (Food and Beverage, Industrial & Construction, Retail, Automotive & Engineering, Pharma, and Others); by Type of Region (Yangon, Mandalay, and Bago). Myanmar Logistics Industry report concludes with projections for the future of the industry including forecasted revenue for each of the Freight, Warehousing, CEP, and VAS Markets.

Myanmar Logistics Industry Overview:

The Logistics industry in Myanmar recorded a CAGR of ~xx% on the basis of revenue in between FY’18 and FY’22 owing to Logistics Infrastructure Development in the country. Myanmar is considered to be a significant international logistics hub because of its geographical advantage. It is bordered by five neighbouring countries located at the centre of three economic growth poles and hence makes it important for trade and investment. But recently, Transport and logistics services in Myanmar have been hit by the February 2021 Military coup. Logistics companies have been affected by rising fuel prices, border closures, and a shortage of shipping containers. Potential influx of FDIs paired with investments in infrastructure and logistics capabilities & capacities will provide new opportunities for investment in automation, analytics and robotics which can eventually help in expanding trade and import/ export activities. Investments within Seaports, Airports; Expansion of road network and rail networks, Setting up New Economic Zones such as Thilawa, Dawei and Kyaukphyu aims to improve the industrial infrastructure at international standard.

Myanmar Freight Forwarding Market Overview and segmentations:

The Freight Forwarding Market in Myanmar recorded a positive CAGR of xx% during FY'18 and FY'22. State of political unrest in 2018 reduced sea & road international volumes impacting revenues. High growth of revenues in 2021 in spite of military coup & congestion at ports due to rise in fuel prices of sea freight prices by 8-10 times. Sea transport is the dominant mode of transportation of freight forwarding in Myanmar. The market is highly unorganized and most transporters operate on primary corridors. There is a lot of opportunity for mergers due to the fragmented nature of the market. This would increase efficiency and lower the costs by better consolidation of orders. Sea mode of freight transport dominated in the Myanmar Freight Market in FY'22 and 3PL companies contribute more than the integrated companies to the overall revenue.

Myanmar Warehousing Market Overview and segmentations:

The Warehousing Market in Myanmar recorded a negative CAGR of xx% during FY’18 and FY’22. The Market is pretty unorganized with more than 60% space held by real estate developers due to strict government rules & regulations. Industry is witnessing increase in number of new players and existing players like Yusen Logistics and Fujitrans expanding their current level of operations. Warehouses are mostly located in the trade hubs, essential border towns and the regional and state capitals. The location of warehouses helps to aid the storage solution for Myanmar between the entry port and the last terminal in all local distribution, supply chain or every Export/Import processes. Most of the warehouses in Myanmar are mainly operated by private companies. There are also few warehouses managed by the government. Industrial Warehousing dominated the Warehousing Market in Myanmar in FY’22. Closed Warehouses accounted for the highest share in FY’22. Most of the warehousing is concentrated in Yangon region in Myanmar.

E-Commerce market is a booming sector in Myanmar with a market size of xx million in FY’22. It expanded at a CAGR of xx% during FY’17 and FY’22. The government has prioritized strengthening e-commerce in its economic relief plan. Cross border e-commerce is still in the nascent growth stage, mainly due to custom clearance procedures in Myanmar which take 5-7 days as against the ideal standard of 1-2 days. Covid led to increase in shipment in 2020 but it got impacted by military coup disturbing logistics delivery in the country. Courier, Express and Parcel (CEP) Market in Myanmar generated a revenue of USD xx million in FY’22 expanding at a CAGR of ~xx% during FY’18-FY’22. The recent and gradual liberalization of delivery services through partnership with 3PL providers after strict monopoly by Myanmar Post for mail and small parcels–have enabled the development of a small CEP market in urban regions of Yangon and Mandalay. Domestic Shipments dominated the CEP Market in Myanmar in FY’22. Most of the Shipments were through B2B Business Model & More than 2 days Shipments accounted for the highest share.

Competitive Landscape in Myanmar Logistics Industry:

The competition is highly fragmented with a large number of enterprises within Freight Forwarding, warehousing and CEP segments. It is highly competitive on the basis of type of fleet, number of warehouses, warehousing space, freight volume, clients, and more. The major freight transport and logistics services players are private companies, except the railway freight operation undertaken by Myanmar Rail (MR) and Inland Waterway Transport (IWT). Most of the companies operating in the country’s logistics sector are small and medium-sized enterprises. Yusen Logistics, DB Schenker, DHL, CEA Project Logistics, DAMCO, RG Logistics, Kerry Logistics, Premium Worldwide are some prominent logistics players active in the market.  Players like EMS & Myanmar Post, Ninja Van, Bee Express, SBS Express, and Royal Express offer Courier and Express Services in Myanmar. Though the market has a presence of several leading players from all over the world, it is still a fragmented market without any dominant players.

Myanmar Logistics Industry Future Outlook and Projections:

The market size on the basis of revenue is expected to grow at a CAGR of xx% increasing from USD xx million in FY’22 to USD xx million in FY’27. Government initiated Vision 2030 will create an efficient, competitive and environmentally friendly logistics system in accordance with regional and international perspectives. Implementation of ASEAN Highway Network Project especially along the regional economic corridors will improve the quality of road infrastructure and develop smooth and quality freight transport and cargo exports/ imports. Development of six logistics corridors, including major transport and cargo systems, such as roads and rivers linking to border gates and ports to stimulate economic growth in the country. Myanmar’s E-Commerce market is expected to grow exponentially, creating an urgent need for fulfillment centers.