Three Japanese Companies Ditch Myanmar Port Project

Three major Japanese companies—Kamigumi, Sumitomo Corporation, and Toyota Tsusho have confirmed their withdrawal from the Thilawa Multipurpose International Terminal project in Thanlyin Township, Yangon, Myanmar. The announcement follows pressure from civil society groups urging a responsible exit that prioritises human rights.

In a joint statement, the companies said they have initiated the liquidation process and are preparing to disengage from the port operation, developed with Japan's Official Development Assistance (ODA). The terminal has been run in partnership with the Ever Flow River Group, which has links to the military-owned Myanma Economic Holdings Limited, an entity under international sanctions.

The decision follows a March 19 letter from seven non-governmental organisations, including Justice for Myanmar (JFM), to the three companies as well as the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (Join) and Nippon Export and Investment Insurance (Nexi). The NGOs questioned whether proper human rights due diligence had been conducted since Myanmar's 2021 military coup and asked for clarity on how the companies planned to exit the project.

While the companies pledged to take steps to ensure employee safety and support transitions, they provided no clear details on whether they would meet international human rights standards, what would happen to the project's assets, whether termination penalties would be paid to the junta, or how they would prevent revenue from benefiting military-linked entities.

The NGOs also criticised Join's lack of transparency regarding the use of Japanese public funds in the project. Meanwhile, Nexi reportedly claimed the project posed minimal environmental risks but failed to address any human rights concerns.

Yuka Kiguchi of Mekong Watch, one of the seven NGOs involved, said, "Silence from Join and a narrow interpretation of business risk by Nexi fall far short of responsible business conduct."

The civil society groups are calling on Join and the three companies to ensure their exit is both transparent and aligned with international human rights obligations. They stress that any disengagement must actively avoid providing financial or logistical support to Myanmar's military regime.

Justice for Myanmar's spokesperson, Yadanar Maung, added, "The military continues to commit atrocities, including intensified airstrikes following the March 28 earthquake. Opaque exits that fail to respect human rights risk fuelling further violence. The companies and Japanese government must publicly demonstrate how they are avoiding complicity in the junta's crimes."