Regime claims Kyaukphyu Deep-Sea Port Project to proceed despite conflict

By Admin 04 Jul 2026

DMG Newsroom

4 July 2026, Nay Pyi Taw

Junta-appointed Vice-President Nyo Saw has stated that the Kyaukphyu Deep-Sea Port Project in Arakan State must be completed within the designated timeframe, despite ongoing intense armed conflict in the region.

He made the remarks at a coordination meeting of the Central Committee on Myanmar Special Economic Zones held in Nay Pyi Taw on July 3.

During the meeting, Nyo Saw said that implementation of ongoing special economic zones, including the Kyaukphyu and Dawei SEZ projects and deep-sea port developments, must follow scheduled timelines.

He added that the projects are important for job creation, boosting exports, attracting foreign investment, and increasing national foreign income.

However, local residents said ground implementation remains unlikely due to heavy fighting in Kyaukphyu Township.

“Although the regime frequently talks about doing the project, nothing can be ready on the ground. Since battles are intense and conflicts are tense, these large projects feel unrealistic. These announcements are likely propaganda linked to promises made during Min Aung Hlaing’s China visit,” a Kyaukphyu resident said.

Fighting continues in Kyaukphyu Township between regime forces and the Arakan Army near areas surrounding the Taung Maw Gyi naval station and other sites linked to Chinese-backed projects.

During his recent visit to China, Min Aung Hlaing reportedly pledged to advance the Kyaukphyu Deep-Sea Port Project, while a China–Myanmar joint statement issued on June 17 said the project would begin as soon as possible.

The Kyaukphyu Deep-Sea Port Project, jointly developed by China and Myanmar, is located on Maday Island and Kotechee Island in Kyaukphyu Township. It is a key component of China’s Belt and Road Initiative (BRI) and the China–Myanmar Economic Corridor (CMEC).

A local observer of foreign projects said the regime is using major infrastructure projects to seek political leverage and possible ceasefire arrangements.

“Without the Arakan Army’s involvement or agreement, nothing can be implemented on the ground. Some form of negotiation or compromise will be necessary,” the observer said.

The regime is currently cooperating with China on the Kyaukphyu Deep-Sea Port and Muse–Mandalay railway projects, while also seeking to advance the Kaladan Multi-Modal Transit Transport Project and the India–Myanmar–Thailand Trilateral Highway with India.

Junta spokesperson Dr. Khaing Khaing Soe said on June 30 that key infrastructure projects would resume once security conditions improve, while also acknowledging that the Mandalay–Kyaukphyu railway project has been suspended due to conflict.

Analysts, including ISP-Myanmar, have suggested that renewed security guarantees linked to foreign investment projects may lead to intensified military operations in related areas.