Htoo Group picked to handle import cargoes at Yangon airport

Mingalardon Cargo Services (MCS), a subsidiary of Htoo Group of Companies, has been chosen among three applicants to provide import cargo handling services at Yangon International Airport, which is the international gateway to Myanmar.

MCS was selected for the cargo shipment services by air among the others.

MCS is currently operating export cargo services at Yangon International Airport, for which it was favoured by the authorities.

“Efficiency can be gained when one firm only operates both import and export cargo services. If we will separate the two functions, complication will arise in balancing the business and investments. Moreover, separation will not offer immediate results,” Tin Naing Tun, Director General of Civil Aviation Department, said on May 27.

Authorities’ plan to move the air cargo services to Hanthawaddy International Airport upon its opening by 2017 is another reason for their choice, Tin Naing Tun said.

He said, “Hanthawaddy airport will open in 2017. Then, we will move both export and import services there. At that time, if two companies are left separately operating the services in Yangon, we are worried they may face loss. Therefore, we have decided to give the business to MCS in our Executive Committee meeting with the Ministry of Construction.”

Privatization of import cargo services was prompted by the Public Service Capacity Assessment Committee which conducted an inspection at the airport, and decided the services should be privatized for more efficiency.

Generally, airlines operate such cargo services at international airports, and handling import cargoes yield better profits, Tin Naing Tun noted.

MCS’s parent company Htoo Group is owned by tycoon Tayza, a close associate of the previous military regime.

Source: EMG

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