Disrupted Connectivity – Disrupted Livelihoods : Myanmar’s Transport and Logistics Update

Overview & Synopsis

This Myanmar Transport Monitoring Update continues the World Bank’s tracking of transport and logistics developments since the February 2021 takeover until May 2026, providing a periodic, evidence‑based assessment of a sector operating under severe and rapidly shifting constraints. Produced under the Myanmar Infrastructure and Digital Sectors Monitoring and Analysis (P507337) program, it offers timely analysis where conventional data are scarce, focusing on trade and logistics, connectivity, and mobility to inform policy dialogue and engagement. This edition extends analysis through early 2026 and is organized around three interconnected dynamics. First, external trade continues to reconfigure between maritime and land‑border corridors, with substantial informal flows persisting despite tighter controls. Second, fuel price volatility, foreign‑exchange constraints, and rising logistics costs are transmitting economy‑wide pressures into supply chains, food prices, and household welfare. Third, aviation and tourism have only partially adjusted: passenger traffic remains well below pre‑crisis levels while air cargo expands as a substitute for disrupted overland routes. Together, these trends reflect adaptation rather than recovery. The update builds on a broader body of analytical work, including World Bank report on Supply Chain Disruptions, Thick Borders, and Food Insecurity (June 2024), which examined the impacts of trade restrictions, logistics bottlenecks, and rising costs. It also complements the bi‑annual Myanmar Economic Monitor, which provides a wider macroeconomic perspective. The report examines recent developments in trade, transport flows, and supply chains. It covers Yangon’s ports as the primary gateway, shifting cross‑border trade with Thailand and China, and the impacts of trade policy and foreign‑exchange constraints. It also reviews supply‑chain disruptions, logistics costs, vehicle imports, and aviation and tourism trends. Seven chapters follow: maritime trade (Chapter 1), the trade and FX regime (Chapter 2), cross‑border trade (Chapter 3), the fuel crisis (Chapter 4), logistics costs and the vehicle fleet (Chapter 5), and aviation, tourism, and policy implications (Chapters 6–7).