View Full Version : Kaladan Multi-Modal Transit Transport Project


rockystone
September 27th, 2011, 10:45 PM
Kaladan Project

http://www.arakanrivers.net/?page_id=135

On April 2nd 2008 the Indian government signed an agreement with the Burmese military junta for the Kaladan Multi-Modal Transit Transport Project. The project will connect the eastern Indian seaport of Kolkata with Site-tway (Sittwe) port in Arakan State by sea; it will then link Site-tway to the land-locked region of Mizoram in northeastern India via river and road transport. The project is divided into three phases, the first and second of which are scheduled to begin in November 2010.

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Construction Stages

Phase 1 – The port at Site-tway will be redeveloped to accommodate larger vessels and an increased shipping volume. This will entail dredging the approach channel and the port area (~562,000 cubic metres of material) to facilitate 6000 ton ships, as well as constructing two jetties and extensive loading and storage facilities that will significantly expand Site-tway’s current size and capacity. The larger 219 x 15m port jetty will be capable of handling 20,000 ton ocean freighters, and a 54 x 15m inland waterway terminal (IWT) jetty will cater to the smaller vessels that will ply the river. At present, Site-tway’s port consists of a 78 x 15m jetty and is appropriate for vessels of 2000-3000 tons.

Phase 2 – Dredging 158 km of the Kaladan River between Site-tway and Paletwa in Chin State. Another IWT terminal will be built at Paletwa for transferring cargo from river to road transport.

Phase 3 – Construction of a 129 km highway between Paletwa and the Mizoram border. Initial surveys and feasibility studies for the road were carried out by Indian authorities, concluding that “large-sized experienced construction firms of repute” would have to be hired to successfully implement the project. However in June 2009 it was decided that the highway construction would “be executed by Myanmar government departmentally”.

Companies and Authorities Involved

The project is being piloted and funded by the Indian Ministry of External Affairs.

The preliminary feasibility studies (hydrographic surveys, Detailed Project Reports, etc.) were carried out by Rail India Technical and Economic Services (RITES).

Construction work on Site-tway port and the jetty in Paletwa, as well as the dredging work, will be executed by the Inland Waterways Authority of India (IWAI), with Essar Projects Ltd, a division of the Essar Group appointed in May 2010 as the main contractor.

Both RITES and IWAI are state-run Indian companies.

Road construction will be executed by a Myanmar government department.

Finance

Original Projected Costs*

Redevelopment of Site-tway port and dredging the Kaladan waterway to Paletwa (Phases 1 and 2) – US $68.24 million
Construction of highway between Paletwa and the India-Burma border (Phase 3) - US $49.14 million.
*These will now need to be adjusted according to the project changes announced at the end of August 2010 after a review meeting by the MEA and the Ministry for Development of the North-East Region. Revised projections have not yet been released.

Who will pay?

According to the April 2008 Framework Agreement, the Government of the Union of Myanmar will provide the required land and security for the Project, including security for all personnel and technicians, for free. The Indian government will bear the full cost of the project, which was originally estimated at US $120 million. More recently the cost has been estimated as US$134 million. Under previous agreements, the Burmese regime was supposed to contribute US $10 million to the Project; in 2007 the Indian Government extended Burma a minimum interest loan in that amount to cover the costs of the latter’s commitments. The April 2008 agreement does not explicitly mention any financial obligation for the government of Burma regarding the Kaladan Project.

Who will use it?

According to the Framework Agreement: “…on completion, the project will be handed over to the Government of the Union of Myanmar on terms and conditions mutually agreed upon.” Those terms and conditions are outlined in two supplementary documents which either have yet to be agreed or simply have not been made public. It is anticipated that the transport system will remain fully owned by the Burmese state, but be primarily used by Indian companies to increase trade with Southeast Asia and link the land-locked Mizoram region to the sea. It is further expected that the Kaladan will be used far less by local citizens, since they will not be able to afford the tolls the Burmese government will impose on vessels using the waterway.

rockystone
September 27th, 2011, 10:49 PM
August update – Kaladan Development Update

http://www.arakanrivers.net/?p=1069

While progress on the construction of the Kaladan Multi-Modal Project remains hampered by the rainy season weather, the effect of foreign projects is taking its toll. Narinjara News reports that property in the regions surrounding the port of Kyaukpru, where foreign activity associated with foreign development initiatives (such as the Kaladan Multi-Modal Project) is centered, has risen. Speaking to Narinjara, a local resident discusses the price change and the impact this has: “The property prices in our area are now skyrocketing because of the increased number of foreigners in our area. The foreigners pay whatever price is necessary to get a property in our area” (Price of Properties in Arakan’s Economic Hubs Skyrocketing Due to Foreign Influence, August 18, 2011, Narinjara News).

While New71bd (August 5, 2011) asked about Bangladesh being sandwiched between India and Myanmar and also having maritime dispute with the two countries, in all likelihood will face another new challenge in its maritime boundary when Kaladan project takes off. The sea route designed between Indian ports on the eastern sea bed and Sittwe port in Myanmar in all likelihood will encircle the coastal belt of Bangladesh. The question is whether international laws will allow connecting the sea ports between India and Myanmar when disputes over maritime boundaries of those two countries vis-vis Bangladesh are pending in the international court. Another important aspect in this regard probably is that the Kaladan Multimodal Transport Project has been agreed upon between Myanmar and India without any record of prior consultation with Bangladesh. Will the international laws on seas allow such direct connection of ports between two countries by passing a third country in the middle? Will not this sea route create a natural encirclement of Bangladesh or create maritime blockade for it?

The India Council of State (Rajya Sabha) said on August 26, 2011 that ‘multi-modal transit transport facility — Kaladan project– linking Mizoram and other North-Eastern states with Myanmarese Sittwe port is being implemented on schedule ‘. Answering questions, Minister for External Affairs S M Krishna said in written replies that the Kaladan project envisaged connectivity with Indian ports on the eastern seaboard and Sittwe port through riverine transport and by road to Mizoram. The Framework Agreement and Protocols signed in April 2008 envisaged the completion in five years. It will provide a route for transport of goods to north and east India and is not linked to transit facilities provided through Bangladesh, the minister clarified. Answering questions on the problems of enclaves along Indo-Bangladesh border, the minister said both sides were finalising the date of the next Joint Boundary Group meeting. People living in Indian enclaves in Bangladesh were excluded from census as no access to these enclaves were provided by the Government of Bangladesh for census operations

rockystone
September 27th, 2011, 10:53 PM
Construction of Sittwe Port for Kaladan Multiple River Project

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murlee
September 27th, 2011, 11:02 PM
Nice thread!! TFS.. :cheers:

This project will be a game-changer for NE India along with transit access across bangladesh.

amrootha
October 17th, 2011, 08:53 AM
Thanks for your nice information.

gandhi.rushabh1992
February 24th, 2012, 12:35 PM
Fantastic project. I am surprised it has not made the headlines. Again it shows the national media's indifference to the north-east region.

The seven sister states will surely benefit greatly from this project. It has the potential to trigger an economic boom in the north eastern states.

anujkb
February 24th, 2012, 12:57 PM
Fantastic project. I am surprised it has not made the headlines. Again it shows the national media's indifference to the north-east region.

The seven sister states will surely benefit greatly from this project. It has the potential to trigger an economic boom in the north eastern states.

The media will focus on this ONLY WHEN IT MAY RUN OUT OF SCHEDULE. bcoz this news wont be of any importance to them till then.

TutConr
February 24th, 2012, 01:17 PM
This project is amazing! Not only will it boost ties between Myanmar and India, but also improve tourism in the north-east. Very exciting development! Two birds with one stone :D

anujkb
February 24th, 2012, 01:23 PM
This project is amazing! Not only will it boost ties between Myanmar and India, but also improve tourism in the north-east. Very exciting development! Two birds with one stone :D

Yes, it will just bypass the shouting and troublesome Bangladesh! :lol:

sixsigma1978
February 24th, 2012, 07:19 PM
looks like project's slowed down - india is on track to complete the border roads connecting mizoram to the myanmar districts - but the myanmar side of construction of roads and inland waterways is crawling at a snails pace. Land acquisition issues apparently

Inter Ministerial team to visit Myanmar to review the Kaladan Project (http://www.projectsmonitor.com/PrintArticle.aspx?aid=9004&sid=0)