Introduction
The Indian government has recently approved India Ports Global Ltd. (IPGL) to take full control of the Sittwe Port on the Kaladan River in Myanmar's Rakhine province. This move marks Sittwe Port as the second international port managed by IPGL, the first being Iran's Shahid Beheshti Port in Chabahar. IPGL, a subsidiary of Sagarmala Development Company Limited governed by the Union Ministry of Ports, Shipping, and Waterways, will manage Sittwe Port like a domestic port, with complete control.
Major Highlights
Key Points of the Agreement
Lease Agreement: The lease of the port to India will be extended every three years.
Development and Investment: IPGL plans to raise funds to further develop the port and promote transactions in Indian rupees among traders.
Port Capabilities: Sittwe Port can handle deep-sea vessels up to 20,000 Weight Tonnage (DWT), and is part of the Kaladan Multimodal Transit Transport Project (KMTTP).
Trade and Connectivity
Trade: The current trade between India and Myanmar includes construction materials from India and rice, timber, fish, and seafood from Myanmar. The port's development aims to shift towards higher value-added products.
Regional Benefits: The states of Mizoram and Tripura in India are expected to benefit significantly from the port's development. Tripura is particularly focused on creating connectivity with Myanmar via the Kaladan River, reducing transportation time from Kolkata to Agartala from four days by road to two days via the Sittwe–Chittagong–Sabroom–Agartala route.
Challenges and Obstacles
Road Construction: Completing the road section is crucial for leveraging the multimodal aspect of the Kaladan project. This section faces challenges like coordination among border agencies, rugged terrain, land compensation issues, and security concerns due to insurgency.
Security and Political Issues: The political turmoil in Myanmar, exacerbated by the military junta's conflict with ethnic armed groups like the Arakan Army (AA), poses significant risks. The AA controls several townships in Rakhine State and targets military outposts, affecting projects like KMTTP.
Environmental and Logistical Issues: Delays are expected due to environmental, political, and security challenges. Maintenance dredging along the Kaladan River between Sittwe and Paletwa is necessary for the port's full functionality.
Strategic Implications
Regional Influence: Managing Sittwe Port allows India to play a vital role in regional security and stability, fostering valuable partnerships.
China's Presence: China's investment in the nearby Kyaukphyu deep-sea port and Special Economic Zone (SEZ) highlights the strategic importance of the region. The China-Myanmar Economic Corridor (CMEC) links Kyaukphyu to Kunming, providing China with direct access to the Indian Ocean.
Engagement with Ethnic Groups: India is adapting its approach by engaging in dialogue with ethnic groups like the AA and Chin National Front/Army (CNF/A) to ensure the smooth execution of its connectivity projects.
Conclusion
India's control over Sittwe Port is a strategic move to enhance regional connectivity and trade, especially benefiting the northeastern states. However, completing the road component of the Kaladan project and addressing the ongoing conflicts in Myanmar is crucial for fully operationalizing the project. Engaging with on-ground players and ethnic groups is essential for the successful implementation and long-term stability of these initiatives.
