CNI News
20 Nov 2022
Highway freight transportation services are still struggling to resume their operations even in the dry season, when businesses usually thrive, according to the Myanmar Highway Freight Transportation Services Association.
About 70 percent of the operations halted during the rainy season due to road conditions, shortages of commodities and higher costs.
Currently, only about 40 percent of services have resumed their operations because of the higher costs, an official from the association told the CNI.
He said, "Although the dry season has started, we cannot transport corn to Myawady. We expected that freight transportation services would recover in the dry season. However, we are still struggling to resume our operations. Some services have not resumed their operations as it is not profitable for them due to higher costs. Some freight transportation services have reduced their fleets. Normally, a truck can travel four trips a month. They are now running only two trips a month. Only about 40 to 50 percent of the services have resumed their operations because it is not profitable for them due to the shortages of goods to be transported.``
Yadana Bridge linking Mandalay and Sagaing.
Highway freight services rely on transportation of goods between states and regions and to and fro border trade camps for export and import businesses.
Currently, export and import businesses have not resumed their operations yet while there are shortages of goods to be transported between states and regions.
There are shortages of goods to be transported from Yangon to Taunggyi while the services do not get much profit from their return trip due to low service fees, U Kyin Thein from Bayintnaung Commodity Exchange, who transport goods between Yangon and Taunggyi, told the CNI.
A road-sign on PyinOoLwin-Mogok-Lashil road.
He said, "There are only a few commodities to be transported from Yangon to Taunggyi because factories cannot resume their operations amid shortages of raw materials. Merchants who usually transport at least one truckload of goods now do not have enough even for a truck. We can get only about MMK 200,000 service fees for transportation goods from Yangon to Taunggyi. That does not cover the costs and we lose about MMK 100,000 for the trip. When we return from Taunggyi, we have goods to be transported but we get MMK 300,000 service fees. As we lose MMK 100,000 on the trip from Yangon to Taunggyi, we get only MMK 200,000 for the round trip. Even then, we are not taking the costs for engine oil, tires and repair charges into consideration."
In transporting goods between states and regions, there were delays due to restrictions on travel hours.
Freight transportation services usually thrive in November and December when new crops are harvested but the businesses have not recovered yet. Transportation services are likely to fully revive in December, according to freight transportation services.
