New Mandalay trucking terminal hits a roadblock

Mandalay city’s truck terminals will be consolidated into the Pyi Gyi Mingalar Truck Terminal in Amarapura township before February 15, Mayor U Aung Maun said last week.

However, trucking company owners say sites at the new terminal are too expensive and they will not move until the prices are lowered.


“[The completion of] Pyi Gyi Mingalar Truck Terminal Camp was delayed until the [Mandalay City Development] Committee completed the necessities for the new camp, such as utilities and high-quality streets, which was followed by negotiation between members of the committee,” U Aung Maun said.

“All the completed terminal rooms and warehouses are now available. Therefore, the truck terminals in the city will begin moving to the new terminal from February 5 before the deadline February 15,” he added.

MCDC initially built a total of 150 reinforced concrete two-storey buildings that measure 25 feet wide and 60 feet long at the camp and sold them for K135 million each, or leased them for K700,000 a month, said U Aung Maun.

However, only 12 units were bought by trucking companies and the rest were bought by other companies and individuals, he said.

“The first units that we built were expensive, so we added a further 139 because the committee had planned the project as a low-cost venture and because we realised that we needed to add more.

“We will sell the newly completed sites for K70 million each or rent them for K300,000,” he added.

U Aung Maun said the price could not be further reduced.

U Aung Soe, head of MCDC’s revenue department, said the newly finished sites were reserved for trucking companies.

“We will sell and rent the new sites only to those who will do trucking business here,” U Aung Soe said on January 17 at a meeting concerning the new terminal. “Trucking company owners should contact the revenue department if they would like to buy or rent a site.”

However, U Khin Maung Htay, chairman of the Mandalay Region Highway Transportation and Service Business Association, said they will not move their firms to Pyi Gyi Mingalar.

“MCDC said the new sites are low-cost. The city development initially priced sites measuring 20- by 40-feet for K25-30 million or rented for K150,000 a month. But then the revenue department said they would be sold for K70 million, with monthly rents at K300,000,” he said.

“We will not move there until they offer the prices that we want,” said U Khin Maung Htay.

U Aung Zaw Nyo, an associate secretary of the association, added that the prices are too high.

“In Yangon, developers and the public declined a low-cost residential project that was selling units for K20 million each because they said they was not affordable. So how can we say that K70 million for a single site should be considered low-cost?” he asked.

“Members of our association would not like to rent sites and would prefer to buy, which we would consider doing if it could be done via instalment,” he added.

U Khin Maung Htay said Pyi Gyi Mingalar project was completed without proper negotiations with truck companies.

“We can’t accept the terminal because it’s a one-sided project. The officials launched the project on their own ideas and did not negotiate with us. So how can we accept it?” he said.

Trucking companies in Mandalay have been moved several times since the mid-1990s as the city has expanded: They were first moved to the Yadanarbon Truck Terminal in Chan Mya Thar Si township, and later relocated to Chanmya Shwe Pyi Truck Terminal (Pyi Gyi Tagun township) in 1991.

Association deputy chairman U Win Myint said rising land prices were forcing trucking companies ever further out.

“It seems that MCDC officials have forced the terminal’s owners to move. The Chanmya Shwe Pyi terminal was previously surrounded by undeveloped land but land prices have increased sharply since it was finished. And now companies are being asked to move again because the area is too crowded,” he said.

“And I’m sure that if we move again, the new site will soon be crowded.”

Translated by Zar Zar Soe

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/3990-new-mandalay-trucking-terminal-hits-a-roadblock.html