Yangon considers ending industrial zone bridge tolls

Yangon considers ending industrial zone bridge tolls

Workers leave a factory at the end of their shift in Hlaing Tharyar industrial zone, Myanmar. (Photo: Naing Wynn Htoon/The Myanmar Times)
Workers leave a factory at the end of their shift in Hlaing Tharyar industrial zone, Myanmar. (Photo: Naing Wynn Htoon/The Myanmar Times)

YANGON, Myanmar - The Yangon Region government is debating removing toll fees on three bridges that connect Hlaing Thar Yar industrial zone with Yangon and the Thilawa special economic zone following complaints they are excessive.

“We are discussing with the Ministry of Construction the collection of fees on Bayint Naung bridge, Aung Zayar bridge and Shwe Pyi Thar bridge,” Daw Nilar Kyaw, Yangon Region Minister for Electricity, Industry and Transportation, told a Hluttaw session on Dec 2.

She was speaking in response to a question from Win Maung (NLD; Magwe 6).

In order for products from the Hlaing Thar Yar industrial zone to reach local and foreign markets they have to cross one of the three bridges over the Yangon River.

The Ministry of Construction is in charge of maintaining the bridges, and was responsible for calling tenders from private firms to collect tolls.

Oriental Highway Company (OHC), formerly part of Asia World, won the tender to collect tolls on all three bridges. Tin Ko Ko, operations director for OHC, said his firm’s contract for toll collection ends on March 31 next year.

Daw Nilar Kyaw said toll collection could not be stopped immediately because of the contract, but the region government is looking to stop levying the fees at the start of fiscal year 2017-18.

Tin Ko Ko said while the contract does give the government the right to extend it or not, he had not been contacted on the matter.

Container trucks carrying 20 foot-long containers are charged K20,000 (about 540 baht) to cross the bridges and those carrying 40 foot-long containers pay over K70,000. When charges for weight are factored in the cost of transporting a container across the bridge can be over K100,000, according to Myat Thin Aung, chair of the industrial zone’s management committee.

Businesspeople operating in the zone have complained about the high toll fees. Myat Thin Aung told The Myanmar Times that if the government stopped collecting tolls it would help lower transportation costs and make life easier for businessmen.

“If a container from Hlaing Thar Yar industrial zone is carried to Thilawa, the truck fare will cost on average between K200,000 and K300,000,” he said, adding that these figures included the additional logistics charges such as vehicle hire. “The cost of the truck journey from the zone to Thilawa can be more than the cost of shipping a container from Thilawa to Singapore.”

People in the logistics industry said this was an exaggeration, but agreed the toll costs were unreasonably high.

Some 70% of the goods produced in the Hlaing Thar Yar industrial zone are for export, according to management committee data.

The zone has 250 agricultural operators, 74 garment factories, 18 marine products companies and 14 factories concerned with wood-based products, according to the committee.

The Ministry of Construction said in August that it has already closed more than half of the 300 road and bridge toll gates it has built, and is looking at ways to close the rest.

Do you like the content of this article?
COMMENT