Identifier
Created
Classification
Origin
08RANGOON414
2008-05-27 07:21:00
CONFIDENTIAL
Embassy Rangoon
Cable title:  

BURMA PORTS CONTINUE LIMITED OPERATIONS

Tags:  EWWT ECON ETRD PGOV PREL BM 
pdf how-to read a cable
VZCZCXRO4732
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGO #0414/01 1480721
ZNY CCCCC ZZH
O 270721Z MAY 08
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7661
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA 1225
RUEHBJ/AMEMBASSY BEIJING 1887
RUEHKA/AMEMBASSY DHAKA 4892
RUEHNE/AMEMBASSY NEW DELHI 4769
RUEHUL/AMEMBASSY SEOUL 8313
RUEHKO/AMEMBASSY TOKYO 5875
RUEHCN/AMCONSUL CHENGDU 1486
RUEHCHI/AMCONSUL CHIANG MAI 1615
RUEHCI/AMCONSUL KOLKATA 0344
RUEAIIA/CIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEKJCS/DIA WASHDC
RUEHGV/USMISSION GENEVA 3757
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUCNDT/USMISSION USUN NEW YORK 1668
RUEHBS/USEU BRUSSELS
C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 000414 

SIPDIS

STATE FOR EAP/MLS, S/ES-O-CMS, DS/CC AND DS/IP/EAP, INR/EAP
DEPT PASS TO USAID/OFDA
PACOM FOR FPA
TREASURY FOR OASIA

E.O. 12958: DECL: 05/27/2018
TAGS: EWWT ECON ETRD PGOV PREL BM
SUBJECT: BURMA PORTS CONTINUE LIMITED OPERATIONS

REF: A. RANGOON 413

B. RANGOON 353

RANGOON 00000414 001.4 OF 003


Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4
(b and d)

C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 000414

SIPDIS

STATE FOR EAP/MLS, S/ES-O-CMS, DS/CC AND DS/IP/EAP, INR/EAP
DEPT PASS TO USAID/OFDA
PACOM FOR FPA
TREASURY FOR OASIA

E.O. 12958: DECL: 05/27/2018
TAGS: EWWT ECON ETRD PGOV PREL BM
SUBJECT: BURMA PORTS CONTINUE LIMITED OPERATIONS

REF: A. RANGOON 413

B. RANGOON 353

RANGOON 00000414 001.4 OF 003


Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4
(b and d)


1. (C) Summary. The Burmese Port Authority has opened all
four of Rangoon's ports, albeit for limited operations.
Myanmar International Terminal Thilawa (MITT) continues to
receive the majority of incoming ships, as the Port Authority
continues to dredge the Rangoon River and repair jetties at
the other ports. The Rangoon ports serve up to 10 ships a
day; Port Authority records show that the majority of ships
are exporting Burmese goods, including beans and pulses,
logs, and rice. Several shipments of relief supplies arrived
at Rangoon Port, although contacts confirmed that Burmese
Customs officials were closely scrutinizing deliveries and
confiscating goods that appeared destined for commercial
resale. According to shipping industry officials, the
Myanmar Economic Corporation (MEC) exported 17,000 metric
tons of rice to Africa on May 19, although private companies
have not yet exported 7,000 metric tons of rice to Sri Lanka.
Burma continues to receive steady shipments of diesel fuel,
with seven ships arriving between May 22 and May 27. End
Summary.

Four Operational Ports
--------------


2. (C) Myanmar Port Authority officials continue to work
diligently to repair the Rangoon ports, Bay Line Shipping
Director Captain Quamruddin Ahmed told us (Ref B). Officials
have removed more than 30 boats from the bottom of the
Rangoon River, using mobile cranes on loan from crony
businessmen Tay Za and Steven Law. Small feeder cargo,
diesel, and container ships now have limited access to all
four of Rangoon's ports, Ahmed explained. Myanmar
International Terminal Thilawa (MITT) continues to receive
the majority of traffic, since its jetties are in the best
condition. Asia World staff have rebuilt much of the private

port area, so the port can now handle two ships at one time,
Embassy contact Anwar Hussain told us. Ahmed noted that the
majority of ships that were using Asia World Port brought in
goods for the government, while private businesses used MITT.
The jetties at Sule Warf and Bo Aung Kyaw Port remain in bad
shape, limiting the number of ships that can dock there, he
added. Port Authority officials will continue to dredge the
river and repair the jetties to allow more ships to move in
and out of the Rangoon Port area.

-------------- --------------
Rangoon Port Ship Capacity
As of May 25, 2008
-------------- --------------
Port Pre-Cyclone Post-Cyclone Cargo
Capacity Capacity Handled
-------------- --------------
MITT 5 ships 3 ships bulk/container
--MIPL 1 ship -- bulk
Sule Warf 7 ships 2 ships bulk/container
Bo Aung Kyaw 3 ships 1 ship container
Asia World 3 ships 2 ships bulk/container
-------------- --------------


3. (C) Currently, Rangoon's four ports can handle up to ten
ships a day, Ahmed explained. Despite efforts to restore
electricity to the port area, none of the ports have a
constant supply of electricity so port operations are limited

RANGOON 00000414 002.4 OF 003


to 10 hours a day. According to Ahmed, government officials
are focused on the resumption of exports rather than the
import of relief goods, most of which come in by air rather
than by sea. Each day, one can observe workers loading
products - including logs, agricultural products, commercial
goods, and rice - on to ships, he noted. Since May 22, more
than five ships have departed Burma carrying logs, two ships
transported agricultural products, and five left with
commercial goods. The government has made receiving
shipments of diesel fuel and condensate a priority, he
acknowledged, although much of the fuel is brought in by
private companies that sell it on the local market.

-------------- --------------
Incoming and Outgoing Vessels
Port of Rangoon
May 22 - May 30, 2008
-------------- --------------
Vessel Name Date Cargo
-------------- --------------
ITT Lion 5/22 Load - beans/pulses
Intan 5/22 Deliver - cement
Mandalay 5/22 Load - container goods
MT. Star Orion 5/22 Deliver - diesel
Bang Lar 5/23 Load - logs
Banga Barta 5/23 Load - ag. Products
TCI Arjun 5/23 Load - logs
Pha Shwe Gya Wywa 5/23 Deliver - relief goods/
general cargo
Mandina 5/23 Load - logs
Marina Star - 2 5/23 Load - container goods
MT. Nepline Redang 5/23 Deliver - Jet Oil
MT. Perg Prai 5/24 Deliver - oil
Mt. Po Yang Hu 5/24 Deliver - condensate
Caraka Jaya Niaga 5/25 Load - logs
So Na 5/25 Load - logs
Ellen S 5/25 Load - container goods
Kota Tegap 5/25 Load - container goods
Gati Zipp 5/25 Load - container goods
Trinity 1 5/25 Deliver - diesel
MT. Ocean Hawk 5/25 Deliver - condensate
Hakha 5/26 Deliver - relief goods/
General cargo
MCP Rotherdam 5/26 Load - container goods
MT. Ocean Eagle 5/26 Deliver - condensate
Myitkyina 5/27 Deliver - relief goods/
General cargo
Helios - 3 5/27 Load - logs
Kota Tabah 5/27 Load - container goods
MT. Chem Rose 5/27 Deliver - diesel
Mawlamyine 5/28 Deliver - cement
Eagle Pride 5/28 Load - container goods
Sagaing 5/28 Load - container goods
Southern Arrow 5/30 Load - logs
-------------- --------------
Source: Myanmar Port Authority

Customs Monitoring Shipments
--------------


4. (C) Both Hussain and Ahmed confirmed that in mid-May,
Burmese Customs officials were ordered to inspect all relief
cargo coming into the Rangoon Port. Hussain explained that
the GOB had allowed companies to import relief goods without
proper import permits, so several companies took advantage of
the lax policy to bring in commercial goods for resale.
Ahmed disclosed that on May 21, customs officials inspected
several palettes of water purification tablets, only to find

RANGOON 00000414 003.4 OF 003


that the boxes contained antibiotics for commercial sale. He
also noted that several companies brought in medicines (which
need an import permit) disguised as hygiene kits. Customs
officials confiscated these goods and have ramped up
inspections of incoming containers.


5. (C) Hussain noted that because the Port Authority was
limiting the number of ships bringing in commercial imports,
businesses were becoming increasingly desperate for goods.
Some companies brought in goods via illegal border trade, but
others continued to wait patiently for their delayed
shipments. While he did not condone the practice of bringing
in commercial goods under the label of relief supplies, he
noted that the GOB, in focusing more on exports rather than
imports, was forcing businesses to smuggle in goods in order
to survive.

Status of Rice Exports
--------------


6. (C) Ahmed told us that the GOB continues to allow exports
of rice, although since the cyclone, only military-owned
Myanmar Economic Holdings (MEC) has successfully completed an
order. On May 19, MEC exported 17,000 metric tons of rice to
Africa, he confirmed. Private companies with contracts to
export rice to Sri Lanka and Africa still have orders pending
(Ref B). Bay View Shipping is still loading 7,000 metric
tons of rice destined for Sri Lanka onto a cargo ship; the
loading process is taking a long time because the Port
Authority limits loading hours, Ahmed explained. Bay View
Shipping, which had expected to ship the rice to Sri Lanka by
May 19, has delayed the final delivery date to mid-June. The
Sri Lankan Government continued to press for its 50,000
metric tons of rice, Ahmed declared, noting that the Sri
Lankan Ambassador had contacted both the Ministry of Trade
and Bay View Shipping about the status of the shipment on
several occasions.

Comment
--------------


7. (C) The Port Authority has successfully resumed limited
operations at all four of Rangoon's ports, far ahead of its
July schedule. It remains unclear when full port operations
will resume, since it will take several months to rebuild
jetties and dredge the remainder of the Rangoon River. The
regime continues to place more emphasis on the export of
Burmese products rather than on the import of either
commercial goods or relief supplies, showing its priorities
remain financial (mostly personal) rather than relief for its
people. That some companies are trying to smuggle in
commercial goods as relief supplies shows how increasingly
desperate they are for supplies. As Customs officials
inspect and seize more cargo at the Rangoon ports, more
businesses will look for new ways to bring in commercial
goods, either through illegal border trade or via commercial
air.
VILLAROSA