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Kaladan transport project gamechanger for regional trade amid India-Bangladesh tension

It is designed to enhance connectivity between India and Myanmar by integrating India’s eastern seaports with Myanmar’s Sittwe Port and extending to India’s Northeast via sea, river and road transport
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The Kaladan Multi-Modal Transit Transport Project (KMTTP) will benefit not only India and Myanmar but also Bangladesh, according to people familiar with the initiative. The remarks come amid heightened tensions between India and Bangladesh, with Dhaka objecting to New Delhi’s border fencing project within Indian territory.

Relations between India and Bangladesh have deteriorated since the ouster of Sheikh Hasina’s government last year. The former Bangladeshi premier, accused of corruption and human rights violations, has taken refuge in India, prompting the current Dhaka administration to request her extradition.

“The KMTTP is beneficial for all — Bangladesh, Myanmar, everyone,” sources said.

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The KMTTP is designed to enhance connectivity between India and Myanmar by integrating India’s eastern seaports with Myanmar’s Sittwe Port and extending to India’s Northeast via sea, river and road transport. The project features a 158-km inland waterway along the Kaladan River from Sittwe to Paletwa in Myanmar and a 109-km road link from Paletwa to Zorinpui on the India-Myanmar border in Mizoram.

Goods shipped from Kolkata to Sittwe Port can reach Teknaf Port in Bangladesh, just 60 nautical miles away. From Teknaf, goods can be transported 300 km by road to Sabroom in Tripura, where an integrated customs facility facilitates trade between Bangladesh and India’s Northeast.

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The waterway components of the project, including the Sittwe Port, an Inland Water Transport (IWT) terminal at Paletwa, a navigational channel along the Kaladan River and six self-propelled IWT vessels, have been completed. The Sittwe Port, inaugurated in May 2023, has since handled over 150 vessels. However, progress on the road component has been hindered by security challenges in Myanmar.

On January 17, India’s Ambassador to Myanmar, Abhay Thakur, reviewed ongoing operations at Sittwe Port. The port, operational since May 4, 2023, began with the cargo vessel MV-ITT LION (V-273) departing from Kolkata’s Syama Prasad Mookerjee Port.

Once fully operational, the KMTTP will provide an alternative connectivity route from India’s eastern coast to its Northeastern states via the Sittwe Port, bolstering trade and regional integration.

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