Context: After Chabahar, India has gained the rights to operate a second overseas port, Sittwe, in Myanmar. The Ministry of External Affairs (MEA) has approved a proposal for India Ports Global (IPGL) to take over the operations of the entire port located on the Kaladan River.

Key highlights

• India Ports Global (IPGL), a company fully owned by the Ministry of Ports, Shipping, and Waterways, is set to take charge of operations at the Sittwe port.

• IPGL is 100 percent owned by the Ministry of Ports, Shipping and Waterways, Government of India.

• In the Indian Ocean, China and India are engaged in a struggle to expand their economic influence. Ports have become highly significant in this rivalry. China, in particular, has been aggressively seeking to acquire operating rights for numerous ports.

Background

• Kaladan project is aimed at connecting the port of Kolkata with the port of Sittwe in Rakhine or Arakan State which would then be connected to Mizoram by road and the Kaladan river which flows by Paletwa.

• The Kaladan Multi Modal Transit Transport Project was jointly identified by India and Myanmar to create a multi-modal mode of transport for shipment of cargo from the eastern ports of India to Myanmar as well as to the North-Eastern part of India through Myanmar. 

• This project, which will connect Sittwe Port in Myanmar to the India-Myanmar border, is expected to contribute to the economic development of the North-Eastern States of India, by opening up the sea route for the products. 

• It also provides a strategic link to the North-East, thereby reducing pressure on the Siliguri Corridor. 

• In the absence of an alternate route, the development of this project not only serves the economic, commercial and strategic interests of India, but also contributes to the development of Myanmar, and its economic integration with India. 

• Since the project is of political and strategic significance, it was decided to execute this project through India's grant assistance to Myanmar.

About Sittwe Port

• Sittwe Port is situated in Sittwe, the capital of Rakhine State in Myanmar.

• It is situated at the mouth of the Kaladan River, which flows into the Bay of Bengal.

• The port was constructed by India as part of the Kaladan Multi-Modal Transit Transport Project.

Importance of the port

• Its coastal location provides access to maritime trade routes, making it a crucial gateway for regional and international commerce.

• Being a deepwater port, it is capable of accommodating large vessels. Its depth allows for efficient loading and unloading of cargo, facilitating trade and transportation.

• Connectivity to Mizoram: Under the Kaladan Multimodal project, 158 km of waterways are being developed on the Kaladan River from Sittwe Port to Paletwa in Myanmar. Further, a road network of 109 km is being developed from Paletwa to Zorinpui on the India-Myanmar border in Mizoram state. This is expected to boost connectivity in India’s Northeastern states.

• Connectivity to Tripura: From Sittwe, Myanmar to Sarboom, Tripura:  Goods from Shyam Prasad Mukherjee Port, Kolkata, will be shipped to Sittwe Port. From Sittwe Port, the goods can be transported to   Teknaf Port, Bangladesh. From the  Teknaf Port the goods can be transported via road to Sabroom in Tripura. The project will immensely benefit Tripura by reducing transportation time and logistics costs significantly.

Strategic Implications for India

• Alternative route for Goods Transport: Sittwe port serves as an essential outlet for goods from India’s northeastern region. It offers a smoother and more cost-effective alternative to the congested traditional land routes.

• Enhances India’s Maritime Connectivity: The port is positioned close to the Indian Ocean and near the Strait of Malacca. The strategic location of the Sittwe Port enhances India’s maritime connectivity and trade routes, while also bolstering regional security.

• Countering Chinese Agressiveness: The move of acquisition of the Sittwe Port supports India’s economic ambitions, strengthens its naval capabilities, and demonstrates its commitment to protecting its strategic interests in the Indian Ocean amidst China’s growing assertiveness in the region.

Threat to the Sittwe Port from Arakan Rebels 

• The Myanmar Army has ruled the country for most of the period since independence. But the current military government led by Min Aung Hlaing which came to power in February 2021 is considered to be the most brutal. The military government also known as Tatmadaw, is facing a civil war where the various insurgents groups are fighting against it. In recent times the rebels have won control of key provinces of Myanmar.

• In the Rakhine state,where Sitwee is located the Myanmar army is engaged in war with the Arakan Army . The Arakan Army has almost reached within a few kilometres of the Rakhine state capital. There is every possibility that it might fall to the rebels. The military rule is being supported by the Indian government and if the rebels capture the Rakhine Province nobody knows what will be the fate of the Sitwee project.