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Adani to develop container terminal port in Myanmar

Press Trust of India  |  New Delhi 

Group Tuesday said it has received approvals to develop a new container terminal in as the diversified conglomerate spreads its operations beyond Indian shores.

This will be Adani's second international after

It said the investment does not breach Australian, US, UN or other international sanctions against

"rejects insinuations that this investment is unethical or will compromise human rights," the group said in a statement. "As with all its international investments, the Group has been guided by the Securities and Exchange Board of and other key international guidelines and will inform the concerned authorities when we firm up the agreements."

The land where the is proposed to be built has been leased from the Economic Corporation (MEC).

"An company, the Adani International Terminal Co Ltd, has received approval from the for an investment in a new container port in the Region," the company said in a statement without giving investment it is going to make in developing the terminal to receive containers sailing on ships.

Local reports put the investment committed by Adani at USD 290 million.

Adani operates five ports in including Mundra and Hazira in and has three terminals at ports in Murmugao, Vishakhapatnam and Tuna-Tekra. It is building a container terminal at Ennore in and in It also has a port in

Adani International Terminal, a company incorporated in Singapore, received approval from the on April 26 to develop, operate and maintain the Ahlone International Port Terminal-2 (AIPT-2) under a 50-year Build, Operate and Transfer agreement with the government, according to the Directorate of (DICA).

AIPT-2 in Ahlone township by the will be developed across 50 acres of land owned by Myanmar Economic Corporation, which is currently operating AIPT-1, according to DICA. The company will enjoy income tax incentives for the first three years of operations.

Construction of the port, which will be built from scratch, is expected to begin in September. Phase 1 of development will involve enough capacity to handle between 1 lakh and 1.5 lakh twenty-foot equivalent units (TEU), or twenty-foot containers, when it is completed within the targeted 12 months.

Phase 2, which will take an additional six months to construct, is expected to take the port's total capacity to a maximum of 8 lakh TEUs.

Adani statement said the is an entity of the that is governed by senior ministers and public servants including representatives of the Ministry of Investment and Foreign Economic Relations, Ministry of Commerce, Ministry of Planning and Finance, and the

The port terminal will be built under the auspices of the Myanmar Port Authority, the Myanmar Ministry of Transport and Communication, it said.

"The new container port will enable Myanmar to bring further efficiencies to the nation's international trade by enabling cost-effective, high-volume imports and exports," it said. "This will benefit Myanmar's by contributing to the nation's economic development and create more than 1,100 local jobs."

Adani said its investment does not breach any international sanctions against Myanmar.

"It is important to note that many economic sanctions against Myanmar were lifted in recent years (including by the USA and Australia) following political reforms within the country and the election of a civilian government," it said.

The company added that while some nations, including Australia, have arms embargos and travel restrictions on key members of the military in place, this does not preclude investment in the nation or business dealings with corporations such as MEC.

The Group's vision, it said, is to help build critical infrastructure for nations across key markets and help in propelling economic development and social impacts.

AIPT-2 will be part of Yangon Port cluster on Strand Road in downtown Yangon, which includes Port Terminal and

Container traffic in Myanmar is projected to grow to 20 lakh TEUs from current 12 lakh TEUs in the next few years and the new port will handle part of the traffic.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 14 2019. 14:25 IST