Republic of the Union of Myanmar／NEXI Provides Overseas Investment Insurance to Support Thilawa Area Port Terminal Operation Project

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Kazuhiko Bando) has decided to support the Thilawa Area Port Terminal Operation Project by providing an overseas investment insurance. The project is supported by Sumitomo Corporation, Toyota Tsusho Corporation, Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (“JOIN”) with the aim of participating in the operation businesses, investing through Thilawa Multipurpose International Terminal Co., Ltd. whose major shareholder is Kamigumi Co., Ltd., a Japanese major logistics company, in Myanmar Thilawa Area Port Terminal. NEXI overseas investment insurance will cover a financing portion by Sumitomo Corporation and Toyota Tsusho Corporation.

Myanmar’s container throughput has increased rapidly at an annual average rate of over 15% since 2011 when the civilian government was established, and is expected to further growth in the future. Although Myanmar’s main port of Yangon handles about 90% of the country’s cargo volume, the draft is shallow , so vessels need to wait for high tides in order to enter/leave the port. Moreover, because it is situated near the downtown area, there is only a limited room for expansion in the future. It is therefore expected for more cargo to shift towards the Thilawa Area Port where bigger vessels can call thanks to its geographical advantage, in the following years.

In the project, a set of port facilities are maintained by Japanese yen loan. Along with JOIN’s participation in the project, Japanese companies’ high-quality terminal management expertise cultivated in this area will lead further economic growth of Myanmar. While continuing to support the operation project of the Thilawa Special Economic Zone (“SEZ”) since 2015, through overseas investment insurance, this time, NEXI will contribute to improvements of the shippers’ convenience in logistics operations, especially of Japanese firms operating in SEZ, by giving support for the port terminal operation. Also, NEXI considers the project as highly significant to support as a governmental financial institution because it is aligned with the Japanese government’s “Export Strategy for Infrastructure Systems”, and through the project, Japanese firms can contribute to solve the challenges that Myanmar is facing in the growing market, employing their own knowledge and expertise.

As a governmental financial institution of Japan, NEXI will continue to actively support Japanese companies in the expansion of their business internationally.

Contact:
Overseas Investment Insurance Underwriting Group, Underwriting Department
Tel: +81-(0)3-3512-7668