Bangkok--30 May--Maersk Line (Thailand)
Following speedy reforms, the formerly closed South East Asian nation of about 60 million people has been opened to European businesses - and now the Maersk Group will take part in its development by pursuing opportunities in a responsible fashion
The Maersk Group is eyeing business opportunities in the newly opened nation of Myanmar after the European Union suspended sanctions and invited companies to take part in its development.
The EU lifted restrictions on trade for a period of 12 months, with the exception of an arms embargo, on May 1, after banning imports from the country in 2007, 11 years after an arms ban was imposed together with travel bans on officials and asset freezes.
"The EU recognises the vital contribution the private sector has to make to the development of Myanmar and would welcome European companies exploring trade and investment opportunities," The Council of the European Union said in a statement. "This should be done by promoting the practice of the highest standards of integrity and corporate social responsibility."
Maersk business units are accordingly pursuing opportunities, mindful of the fact that US sanctions remain in place.
Thomas Riber Knudsen, Maersk Line's Chief Executive Asia Pacific Region, will lead a Maersk Line delegation to Yangon, the former capital, together with MCC, Maersk's intra-Asian shipper, and Damco in mid-May.
They will consult with NGOs, banks and diplomats in a bid to pave the way for responsible business.
Cautious approach
Knudsen told @Maersk that initial business opportunities lie in moving consumables for large firms — all global brands - as they jockey for first-mover advantages in the country of about 60 million people.
"The biggest opportunities in the short term are probably for Damco because as the big companies set up, they will need someone to run their distribution," Knudsen says, noting that the early movers all have strong corporate social responsibility programs. "But these are markets where we have to be careful how we do things and how we go about it — we have to use our values."
Knudsen says neighbouring nations will likely source agricultural products and raw materials from Myanmar before demand emerges for consumer products - from farther afield than China and Thailand — to create business for shipping lines, initially for MCC and later Maersk Line.
More asset-heavy industry will only come after a permanent end to sanctions and the national economy enjoys a firmer footing based on stronger institutions.
Damco on the move
Wasting little time, Damco has already appointed Myanmar Business Development Manager Angela Lee (starting June 1) to work with Damco's local agent (and Maersk Line's) to establish a presence with an initial focus on a container freight station.
"Damco has a clear plan to develop our presence, service capability and infrastructure that will give us the first-mover advantage and differentiation in Myanmar," Kiattichai Pitpreecha, Damco's cluster manager for Thailand/Malaysia, says.
"There are plenty of opportunities for Damco to assist our customers not only in the logistics and transportation side of business, but also with the sourcing activities."
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