The government has decided to construct the new port nearby to Kayin Chaung Jetty, which is two miles away from Maungdaw. The port may cover an area of 50 acres. The proposed port is understood to allow cargo ships with 300 to 400 tons of freight from Bangladesh to Burma and vice versa.

At present there are two ports in Arakan State serving cargo ships trading with Bangladesh. These are Shwe Mingan in Sittwe and Shwe Zar in Maungdaw, though the jetty at Shwe Zar is now in a very poor condition.

A local border trade association leader said: “The present jetty [at Shwe Zar] is a narrow one and hence not suitable for extensive trading activities, so the State government has decided to construct the new port in a location near to Kayin Chaung Jetty, where at least 20 warehouses will be built."

The Rakhine business minister U Mya Aung has recently visited Maungdaw to initiate the project and discuss it with local businessmen.

He said: “U Mya Aung told us that the government planned to contribute 600 million Kyat for the new project. Another 400 million Kyat is to be contributed by the trade association of Maungdaw."

However, the trade association of Maungdaw confessed that at present it has no funds for the project and it urged the government in Sittwe to support them in the project.

The new port is expected to benefit both Buddhist and Muslim people living in the border areas.

Burma and Bangladesh signed a Memorandum of Understanding  on border trade on 18th May 1994 and trade began on 5th September 1995.