MYANMA Five Star Line says it sees no threat from the introduction of local private-sector competition because it considers the market large enough for many Myanmar firms to share the spoils.

MFSL managing director U Maung Maung Nyein said the state enterprise was willing to provide managerial advice, help private enterprises make foreign contacts and organise insurance for them.

It would not, however, provide financial support, with the most basic of suitable ships starting at around US$5 million each, U Maung Maung Nyein said.

He noted that of the 650-800 foreign-going vessels visiting Myanmar ports each year, 75 percent belonged to foreign companies, meaning most profits from the shipping trade were heading offshore.

Current foreign involvement showed the market was too large for the state shipping enterprise to dominate alone, he added.

“That’s why the government is allowing the private sector to get involved in international shipping operations – to stop the flow the foreign exchange heading overseas.

“New private shipping lines will not be considered as competitors because the market is wide open,” U Maung Maung Nyein said.

On July 25, MFSL hosted a seminar for private-sector businesspeople at its head-quarters in Yangon to explain the opportunities available in international shipping.