Kaladan Multi-Modal Transit Project: Challenges Ahead for Completion by 2027

Overview of the Kaladan Project

Sarbananda Sonowal, the Union Minister for Ports, Shipping and Waterways, has announced that the Kaladan Multi-Modal Transit Transport Project is projected to be fully operational by 2027. However, the reality on the ground suggests a more complicated scenario, with ongoing delays and numerous challenges that raise questions about this timeline.

Strategic Importance and Current Status

This project is crucial for enhancing connectivity between India and Myanmar, linking Indian eastern ports to Myanmar’s Sittwe Port and further into Northeast India through a comprehensive network of sea, river, and road transport. Despite its potential to revolutionize regional logistics and strategic access, the project has faced setbacks for over a decade. It is financed under the Government of India’s ‘Aid to Myanmar’ initiative and includes a 158-km waterway on the Kaladan River from Sittwe to Paletwa, along with a 109-km road from Paletwa to Zorinpui at the India-Myanmar border in Mizoram. While the waterway segment, which involves the construction of ports and inland terminals at Sittwe and Paletwa, has seen some completion, the road component has lagged significantly.

Recent Developments and Financial Aspects

Sittwe Port, which was inaugurated in May 2023, became operational after more than 15 years since the project's inception. However, progress on the road segment has been slow, largely due to the ongoing security issues in Myanmar. Although the Indian government approved a revised budget of around Rs 2,900 crore in 2015, only Rs 356 crore had been utilized by November 2024. Reports in Parliament indicated that construction had commenced on 70 km of the 109.2-km stretch, with merely 20 km of earthwork completed.

Security Challenges Impacting Progress

The delays are primarily attributed to security concerns. The Arakan Army, a significant insurgent group, has established a de facto autonomous region in Rakhine and southern Chin States, governing over 2.5 million individuals. Paletwa, a critical point in the Kaladan project located in Chin State, was previously seized by the Arakan Army from the military junta.

Diplomatic Efforts and Future Outlook

India has successfully conveyed the project's significance to both the Myanmar military and the Arakan Army. The original contract for the Zorinpui-Paletwa road was canceled and reassigned to the Indian Railway Construction Company (IRCON). Despite assurances from the Arakan Army, incidents such as the kidnapping of construction workers have occurred, and the threat of military airstrikes remains a concern. The junta has conducted indiscriminate aerial assaults in various conflict zones, including areas controlled by the Arakan Army. The Kaladan initiative is vital as it offers an alternative trade and access route to the Northeast, circumventing the vulnerable Siliguri Corridor, which serves as India’s narrow land link to the region. To ensure timely completion, ongoing diplomatic efforts and security coordination with all involved parties are crucial.