Myanmar has high hopes for the India-built Sittwe Port, anticipating it to be a significant catalyst for regional connectivity and a boost to trade with India, according to a ET report. The port, a vital component of the Kaladan multi-modal transit transport project, was inaugurated on May 9. This ambitious project aims to establish an alternative route for connecting India’s eastern coast with the north-eastern states through the Sittwe Port. The port is linked to Paletwa in Myanmar through an inland waterway, and from Paletwa, a road segment connects to Zorinpui in Mizoram. Local communities are optimistic that direct trade with India will bring economic prosperity to the Arakan state.
Both Myanmar and India are in the process of finalising agreements to commence direct trade. However, the signing of a coastal shipping pact between the two countries is pending to officially launch trade between Sittwe and Kolkata. The terms of this pact will determine the frequency of cargo shipments between the two ports, such as operating one ship per week or two ships per month. Initially, shipping lines may not see substantial profits during the early stages of operation.
While the port is now open, its full operational capacity will only be realised once a regular shipping line between Kolkata and Sittwe is established. U Tin Aung Oo, the chairman of Rakhine State Chamber of Commerce and Industry, is optimistic about the port’s potential impact, as per the reports.
At present, Arakan state primarily engages in cross-border trade with Bangladesh. With the Sittwe Port, direct trade opportunities with India’s Kolkata Port will expand, providing more choices for traders and creating additional job opportunities. U Tin believes that this enhanced trade will lead to improvements in the region’s economic landscape.
There are ongoing negotiations to allow the use of coastal ships owned by Myanmar business owners for this trade. U Tha Tun Hla, chairman of the Arakan National Party, expressed that the Sittwe Port will bring benefits to the Arakanese people, provided that products from Arakan state are permitted to be traded through the port.
The Sittwe Port is seen as a promising development that has the potential to transform regional connectivity and foster economic growth in Myanmar’s Arakan state through increased trade opportunities with India.
Know more details on Sittwe Port
Sittwe Port is a deep-water port located in the city of Sittwe, which is the capital of the Rakhine State in Myanmar (Burma). It is strategically situated on the Bay of Bengal, making it a crucial maritime gateway for the region. The port plays a significant role in promoting trade and connectivity between India and Myanmar. Union Minister for Ports, Shipping and Waterways and AYUSH Sarbananda Sonowal and Deputy Prime Minister and Union Minister for Transport & Communications Admiral Tin Aung San, of the Republic of the Union of Myanmar jointly inaugurated the Sittwe Port in Rakhine State, Myanmar on May 9.
Sittwe Port is part of the Kaladan multi-modal transit transport project, a joint initiative between India and Myanmar. The project’s main objective is to establish a multimodal transportation network that connects India’s eastern coast (particularly Kolkata) with the north-eastern states of India through Myanmar’s waterways and road networks. The functioning of Sittwe Port is expected to bolster both bilateral and regional trade while also making a positive impact on the local economy of Myanmar’s Rakhine State.
The Kaladan project involves linking Sittwe Port to the inland location of Paletwa in Myanmar through the Kaladan River, creating an inland waterway route. From Paletwa, a road segment connects to Zorinpui in Mizoram, India. This multimodal route serves as an alternative corridor for trade and transportation, reducing dependence on the traditional land route that passes through India’s northeastern states.
The port’s development is expected to boost economic opportunities for the Arakan state and facilitate direct trade between India and Myanmar. It holds significant potential for enhancing regional connectivity and fostering economic growth in the area by facilitating the movement of goods and cargo between the two countries.