China And Myanmar To Proceed With $7.3 Billion Deep-Sea Port Project

An agreement has been made between China and Myanmar to restart the $7.3 billion deep-sea port project, Kyaukphyu, which had been put on hold. With a signing ceremony held in the capital of Myanmar, Naypyitaw, the agreement promised to speed up construction. It was signed by representatives of China’s state-owned CITIC Group (Myanmar) and the junta of Myanmar.

Although the Special Economic Zone (SEZ) and Kyaukphyu Port were first introduced in 2010, the COVID-19 outbreak and the military turmoil in February 2021 caused delays in the implementation. Situated in the province of Rakhine, the port is essential since it provides China with direct access to the Indian Ocean, enabling economic connections with West Asia, Europe, and the Atlantic region.

The port will be the southernmost point of the 1,700-kilometer China-Myanmar Economic Corridor (CMEC) when finished, connecting Kunming, the provincial capital of Yunnan, to the region. By functioning as a substitute for the clogged Malacca Strait, this corridor will give China’s landlocked Yunnan Province a pivotal route to the Indian Ocean, facilitating increased trade.

The Myanmar side holds thirty per cent of this initiative, headed by the CITIC Group (Myanmar). Although the specifics of the concession agreement’s amendment weren’t disclosed, some observers theorise that it might contain incentives for China. Chinese officials have been pressing for quicker discussions and highlighting the Kyaukphyu Port’s strategic significance.

The port is in the Rakhine province, an epicentre of fighting between the Arakan Army and the military, or “Tatmadaw.” Furthermore, the Rohingyas, a persecuted Muslim population in Myanmar, are native to Rakhine. Beyond its effects on the economy, military observers argue that the People’s Liberation Army (PLA) Navy benefits strategically from the Kyaukphyu Port since it gives it direct access to the Indian Ocean.

China’s maritime influence in the area is further cemented by this development, which adds to its portfolio of strategically positioned port developments, including a naval station in Djibouti, a commercial port in Sri Lanka, and a naval facility in Cambodia.

Reference: The Week

China And Myanmar To Proceed With $7.3 Billion Deep-Sea Port Project appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News