Mon Island Port Plan Faces Logistical Hurdles
The Mon transport enterprise Talamon Company is reportedly seeking national government approval to build a port on sleepy Kalegauk Island which is several kilometers off the Mon coast 90 km west of the Three Pagodas Pass border point with Thailand. Talamon said it US $1 billion port would be much more modest than the $50 billion one planned for Dawei about 200 km down the coast. The firm, which operates road freight and passenger services and trades in building material and machinery parts, told the Mon news service Kaowao this week it also planned a road link between the coast and Three Pagodas Pass. “This might prove a useful trading link for the main Mon town of Moulmein but it doesn’t look practical as an international trade link,” Bangkok energy and infrastructures consultant-analyst Collin Reynolds told The Irrawaddy. “If you look at a map, Kalegauk is pretty remote as well as being separated from the mainland, which presents more headaches. It’s nearly 400 km to Bangkok as the crow flies compared with 250 km for the proposed Dawei-Bangkok link. “Road and electricity infrastructure in the area around Kalegauk is also rather primitive at present.” Another Bangkok-based consultant, Sar Watana, who advises shipping companies, said: Location and infrastructure could be a problem for this venture, but it might work as a localized trade base for Mon.” Hong Kong Oil Firm in New onshore Joint Venture with MOGE A Hong Kong company with links to China’s state-owned energy conglomerates has signed a deal to explore for oil and gas in central Burma. EPI Holdings will team up with Burma’s government-controlled Myanma Oil and Gas Enterprise (MOGE) and the privately owned Aye Myint Khine Company to drill in the Magwe area of the Irrawaddy River northwest of Naypyidaw. MOGE recently awarded onshore exploration licenses to companies from several countries. It said they were from Thailand, Malaysia and Singapore, but did not name a Chinese operator among them. EPI Holdings' main oil and gas business activities until now have been in Argentina where it is developing several oil wells. EPI also trades in metals. The independent firm, which is listed on the Hong Kong Stock Exchange, has business links with Chinese state-owned oil and gas giant Sinopec. Sinopec is already exploring a separate onshore field in central Burma, around Pahtolon, also in the Irrawaddy River valley. After several fruitless years it claimed in 2011 to have found a gas reserve with about 25 billion cubic meters. Sinopec has also reported a gas find in Monywa District of Sagaing Division. ‘Go to Burma,’ Malaysian Trade Minister Tells Business Leaders Malaysia’s government is urging the country’s industrial businesses to invest in Burma. International Trade Minister Mustapa Mohamed said Burma did not pose a competitive threat to Malaysia over attracting foreign investors because the two countries are at different stages of development. “Both countries have different targets in attracting FDIs with Malaysia going for high-technology investments while Myanmar is more on labour-intensive industries,”' he was quoting by The Star newspaper as telling a business forum this week. Key areas where Malaysian businesses could seek contracts in Burma included road and airport construction, oil palm plantations, property development and the oil and gas exploration and production sectors. “Presently there are 200 Malaysian companies and businessmen there and we want to see more of them in Myanmar,” Mustapha told a conference in Johor Baru. US Government: How to Do Business in Burma A website provided by the United States government is providing advice to American businesses on how to go about selling goods and services in Burma. The site, Export.gov, warns companies that under sanctions laws they must not do business with senior Burmese officials and their families, nor import goods from Burma, but adds: “There is no general prohibition for United States companies regarding the exportation of goods and services, other than financial services, to Burma.” Export.gov directs companies to the commercial office of the US Embassy in Rangoon for advice on the business climate in Burma. “Export.gov brings together resources from across the US government to assist American businesses in planning their international sales strategies and succeed in today’s global marketplace,” says the website, which was last updated on March 6. However, there is a caveat: “Political intervention, corruption and central state control continue to obstruct most economic sectors. The [Burmese] government is taking tentative steps to remove or amend restrictive trade and investment policies, however, it has yet to enact these changes through new legislation.” Canada Should Cancel Sanctions and Join the Business Queue In the wake of the brief visit to Burma by Canadian Foreign Minister John Baird last week, the Toronto Star newspaper has questioned whether Canada’s business interests are best served by maintaining sanctions. “There is no upside to seeing the Thein Sein government fail in its reform efforts or in pushing it further into welcoming Chinese arms,” the newspaper commented this week. “Burma will not soon achieve a democratic ideal, but neither do many of Canada’s trading partners. [Burma] should be held to the same standard. “By taking immediate steps, Canada can contribute to Burma’s success, build goodwill and allow Canadian business to pursue more effectively future opportunities in Burma.” The newspaper said Canada needs to decide whether to act now or wait and see what others do, “in which case what Canada does will not matter—it will arrive late.” |
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