Kerry Myanmar

completed

Kerry Logistics Network (“KLN”) is one of Asia’s leading third-party logistics company based in Hong Kong. KLN Singapore, a wholly owned subsidiary of KLN, is developing two greenfield dry ports at Mandalay and Yangon through its subsidiary company KM Terminals and Logistics Limited Myanmar (“KMTL” or the “company”). IFC is considering providing an A loan of US$ 15 million to KMTL to support its dry port development program (“Project”). However, IFC’s funds will be used to part finance construction of the Yangon dry port (the “Dry Port” ). The Dry Port is located in Ywar Thar Gyi, Dagon (East) Township, Yangon Region. The Dry Port is being developed on a 40 acre land leased to KMTL by Myanmar Railways (“MR”). The dry port project site is in the Ywar Thar Gyi railway station yard, immediately adjoining the Yangon-Mandalay railway line which forms its East boundary. A second dry port being developed by another sponsor, also on a 40 acre land, immediately adjoins the Dry Port on its south side. There are agricultural fields West of the Dry Port site. A 1.1 km access road that will serve both the proposed dry ports and other existing industrial facilities is being constructed by KMTL. In 2019, Yangon Dry Port is expected to handle 54,000 TEU container cargo with a design capacity to handle upto 177,000 TEUs. The Dry Port is under construction, an EPC contractor mobilized on April 2017, a Project Management Consultant (PMC) was hired by the company, and the Dry Port is expected to be commissioned by October 2018. The dry port facility will have: paved container handling and storage yard (29,000 m2); reefer handling and storage yard (900 m2); container stripping and stuffing areas and break bulk cargo handling and storage area (3,000 m2); container X Ray facility (2400 m2); railway siding and marshalling yard (10,500 m2); operation space of vehicles and machinery (16,000 m2);  parking space for cargo vehicles and machinery (20,000 m2); quarantine, warehousing space for freight and containers (Export, Import, storage); workshop for light repair of containers; electronic weighbridge; electric distribution; administration complex with offices for Dry Port employees and shipping line delegates; office building for customs; facility housing the IT infrastructure for Dry Port operation; security gate and guard house; boundary wall; rest areas; and bank branch.  The operational phase for the Dry Port would primarily involve: (i) transportation activities including container receipt and dispatch on rail train and by road transport vehicles/trucks. The road transport will be undertaken by third party transportation agencies including a KMTL subsidiary; (ii) storage of containers; (iii) Dry Port and container cleaning activities; (iv) maintenance of containers and equipment; and (v) other activities such as office/administrative functions. Equipment that will be deployed in the dry port includes yard tractors, yard chassis/trailer, 2 nos. Rubber Tyre Gantry Cranes (RTGCs), 3nos. of Reach Stackers, 8 nos. of fork lift, 24 nos. of reefers, 10 nos. of road transport vehicles and 750KVA diesel generators (DG) for backup power. It is expected that at full capacity 3 full rake trains will arrive and depart daily and 250 trucks/road transport vehicles will arrive/depart daily.]