Kaladan project’s future in Jeopardy after seizure of areas near Sittwe Port by Arakan Army

Guwahati: India’s ambitious Kaladan multi-modal transit transport project faces significant challenges due to ongoing unrest in Myanmar. Recent developments, including the capture of key towns near the Sittwe port by anti-junta forces, have jeopardized the project’s future.

Sittwe, the Rakhine state capital, has become isolated due to the capture of surrounding areas by the Arakan Army or the Chin National Front (CNF). This isolation disrupts access to the Sittwe port, a critical component of the Kaladan project, which was developed with $120 million in Indian funding and inaugurated in May 2023.

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The $484-million Kaladan project aims to connect Kolkata port to Myanmar via sea and Mizoram in Northeast India by road. The project has two key components: a waterways component, currently completed with the Sittwe port upgrade, and a road component, still under construction.

The unfinished 109-km highway between Paletwa and Zorinpuri (Mizoram-Myanmar border) is crucial for providing Northeast India with access to the Bay of Bengal through Sittwe. The project’s full potential, including facilitating trade and boosting Northeast Indian economies, hinges on the completion of this road.

However, the recent capture of areas near the Sittwe port by anti-junta forces casts a shadow over the project’s future. India, concerned about pushing Myanmar closer to China and maintaining peace in its Northeast, has largely refrained from publicly criticizing the junta’s actions. This complex geopolitical situation further complicates the project’s outlook.

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Furthermore, the ongoing armed conflicts in Myanmar, particularly in Chin and Rakhine states, disrupt India’s Act East Policy, which aims to connect its Northeast with Southeast Asia. The Kaladan project, designed to facilitate economic integration within India and with Southeast Asia, is significantly impacted by these ongoing conflicts.