Port Sittwe

PORT OF HOPE FOR MIZORAM

— Rochamliana

INTRODUCTION
Under the bilateral agreement between Government of India and Government of
Myanmar, there is a proposal to develop a trade route between the two countries
along the river Kolodyne (generally pronounced Kaladan), known as Chhimtuipui
River inside Indian border. River Kolodyne emanates from Central Mizoram and
emties into Bay of Bengal at Sittwe — a port located in the State of Rakhine,
Myanmar. Kolodyne Project is the strategic edifice that India is building with
Myanmar over the past few years as an important trans-border infrastructure
project that will let the land-locked north-eastern States gain easy access to the
Bay of Bengal through Myanmar. It envisages a Multi-Modal Transport Corridor and,
building of a pipeline that will bring natural gas from Myanmar via north-east to
the whole India.

‘The feasibility study, carried out in 1999-2000, brought out that river Kolodyne
(Chhimtuipui) is navigable from its confluence point with the Bay of Bengal, near
Sittwe upto Kaletwa (Setpyitpyin) on its north. Beyond Kaletwa, towards India
border, the river is not navigable owing to shallow water depth and frequent
rapids. The transport by road is, therefore, proposed for this stretch. The
proposed road link from Kaletwa in Myanmar on NH54 forms a part of the proposed
development of the trade route along the river Kolodyne (Chhimtuipui) between
Mizoram (India) and Chin State in Myanmar.

The Kaladan Multi-Modal Transport Project, which is expected to be completed in

three years from the date of approval and is expected to be commissioned by end
2009 will link Mizoram with Myanmar as well as rest of the world. It begins from
Sittwe Port up the Kolodyne River that flows through Mizoram to the small port of
Paletwa in Burma, covering a distance of 222 km. The Port will facilitate
movement of cargo vessels on inland water routes along Kolodyne River to
Sittwe. ‘It will take 12 hours from Haldia to and 36 hours from Vishakapatnam to
connect Sittwe Port.

Shri. Jairam Ramesh, Minister of Commerce, Govt. of India, — while meeting Chief
Minister of Mizoram Pu Zoramthanga on the first day of his two-day visit to
Mizoram during September 2006 spoke of the great economic significance of the
Sittwe/ Kaladan Project. India will invest $103 million to redevelop Sittwe Port
and improve navigability on the Kolodyne River in Myanmar. This would enable the
opening of another route for trade between the north-east and the rest of India
with southern Mizoram as the hub. India has proposed the public sector company
Rail India Technical Economic Services (RITES - A Government of India Undertaking)
as the prime contractor for the project.

PORT SITTWE
Sittwe, — formerly called Akyab is a town on Western Myanmar. It is the chief
settlement of the Arakan region. Situated on the Bay of Bengal at the mouth of the
Kolodyne River, — on the Paton Peninsula at the confluence of river Kolodyne into
Bay of Bengal. Sittwe occupies the eastern side of a hilly ridge affording shelter
from the southwest monsoon. After the cession of Arakan to the British in 1826,
Sittwe replaced Myohaung as the region's seat of government and rapidly grew from
a small fishing village into a leading port of Burma. Although heavily damaged
during World War II, the port was rebuilt, and it handles both coastal and
international trade. Rice is the chief export. Sittwe is the site of a dockyard,
diesel electric plant and several rice mills. It has air transportation service
and a regular ferry links it with Chittagong in Bangladesh. The town is at the
confluence of the Mayu, Kolodyne and Lemro rivers — all navigable. Rice is grown
on the alluvial plains. The wet, forested hill ridges of the interior to the east
are sparsely populated. Muslims, who migrated there from Bangladesh after the
Indo-Pakistani war of 1971 outnumber the Buddhist Arakanese in the Sittwe area.
The population in Sittwe is 107,607 (1983 Census).

The River Kolodyne flows from India’s Mizoram to Sittwe through another Myanmarese
State named Chin (capital city is Haka). Kolodyne River is the biggest waterway
in the locality. The coastal region in western Myanmar is separated from the
mainland by the Rakhine Yoma mountain range. The Sittwe Port, at the mouth of the
Kolodyne River in Rakhine coast is an important harbour, which emerged as a center
for rice export after British occupation in 1826.

STRATEGIC IMPORTANCE OF SITTWE PORT

Northeast comprising now eight states namely — Assam, Arunachal Pradesh, Nagaland,
Manipur, Mizoram, Meghalaya, Tripura and Sikkim is surrounded by five
international borders — Nepal, Bhutan, Tibet (China), Myanmar and Bangladesh. The
region with a cumulative population of nearly 50 million inhabitants of the seven
landlocked Indian states is connected to the mainland through a narrow corridor,
less than 15 miles wide between Nepal and the top of Bangladesh — known as the
Chicken’s Neck. More precisely, only 2% of the region’s territory is attached with
the country.

In this region, Assam is the only state with some degree of economic development.
The entire north-east region was absorbed into British Imperial India in the early
19th century as the British began to confront Burmese empire builders who were
encroaching westwards. But, aside from Assam teas, there has been little economic
development since that time. It seems that wrong judgment is being made by the
partition-era politicians who agreed to give away even non-Muslim majority areas
like Chittagong Port and the surrounding areas to Pakistan, — with Lahore in the
west, leaving India’s own north-east region landlocked, resulting in its
isolation, the disruption of its traditional trade routes and subsequent plunge
into insurgency.

Moreover, Bangladesh — which owes its very existence and survival to India rather
chooses to play by allowing its soil to be used as a sanctuary for anti-India
terrorists and refusing to give India permission to use its territory to transit
to the north-east. Bangladesh has turned down several requests by India to allow
river transport transit from the north-east to the sea, compelling India to
explore Sittwe in Myanmar, and focus is on developing Kolodyne. By the time the
Sittwe Port is ready, Kolodyne will become fully navigable and the connectivity of
the rest of India with the north-east and north-east Asia would improve
significantly. This project, once completed, will address the much needed access
to the seas for the landlocked northeast India, provide access to international
market for the exportable products from the region, and thus, help fulfill India’s
Look East Policy. Myanmar also will benefit from additional revenue collected
through goods going to India. It will also have a 225-km long navigable waterway
in the bargain. The Kolodyne Project will provide goods from the NE States denied
transit facilities through Bangladesh, now take a long and circuitous road to
ports in West Bengal through the narrow Siliguri corridor, — a shorter and cheaper
link to the seas. The Sittwe Port is not too far off Kolkata across the Bay of
Bengal.

Given the 1600-km land border with Myanmar, and the shared maritime space in the
Bay of Bengal, India believes it does not have the luxury of elevating its
commitment to democratic values above the immediate economic and strategic
interests there. ‘Union Minister for Development of North-eastern Region (DoNER)
Mani Shankar Aiyar says, “Bangladesh refusal to permit transit facilities to India
and its turning down repeated requests to use the Chittagong Port for north-east
will be history” ‘External Affairs Minister Pranab Mukherjee also says, ”Geography
is opportunity and the very geographical location of the northeast makes it the
doorway to Southeast and East Asia and vice versa, — a doorway for these economies
into India,” The Indian determination to quicken the pace of implementation of the
Kaladan project comes amidst the recent decision in Beijing to build a pipeline
from the South Western province of Yunnan to the Sittwe Port.

INDIA AND MYANMAR RELATIONSHIP

‘According to C. S. Kuppuswamy (of the South Asia Analysis Group), “The Indo-
Myanmar relations since 1948 (when Myanmar became independent) can be considered
as cordial and friendly (1948-1962), frozen or strained (1962-1988) and
flourishing from 1988 till date” The reasons for these radical changes in the ties
between two countries can be attributed to both Myanmar — for its isolationist
policy adopted by the military regime and, to India — for its shift from an
idealist or moralistic to realistic or pragmatic policy adopted.

For India, Myanmar’s ‘geo-strategic location’ at the tri-junction of East Asia,

Southeast Asia and South Asia is of critical significance. A boundary agreement
between India and Myanmar was signed in March 10, 1967. Maritime boundary between
the two countries was defined by a Maritime Delimitation Agreement in 1986. Four
Indian States border Myanmar — Mizoram, Arunachal Pradesh, Nagaland and Manipur.
Similarly three Myanmarese States border India — Kachin, Sagaing and Chin. Myanmar
shares land border with the other major Asian power, — China, and also shares
borders with two Southeast Asian States — Thailand and Laos to its east. Besides
this, Myanmar’s border with Bangladesh to its north-west is also crucial from
India’s perspective because it provides an alternative and a crucial route to
Myanmar and Southeast Asia.

Major factor that draws India’s attention to Myanmar is the problem of growing
Chinese influence in Myanmar and influence in the Indian Ocean. Chinese think-
tanks and policy makers are much afraid of Indian Ocean becoming India’s Ocean and
as such, Chinese Navy extended its naval operations into the Indian Ocean and
sought strategic outposts on Myanmarese Islands. ‘Factors such as these could have
led India to station a tri-service Far Eastern Command in the Andamans and Nicobar
Island. Both India and China understand Myanmar’s maritime significance. For
India, in the south is link by the Bay of Bengal and in the south-west by the
Andaman Sea. Myanmar’s Coco Islands and India’s Andaman and Nicobar islands are
attached to each others through Indian Ocean. And as for China, which otherwise
has no opening into the Indian Ocean can easily gain access through Myanmar.

‘Moreover, India is continued concerned with China’s increasing engagement with

Myanmar’s Military Junta, especially in improving the naval facilities including
the setting up of four Electronic Listening Posts along the Bay of Bengal and the
Andaman Sea. India wants Myanmar to ensure that the area west of Chindwin River
remains free of Chinese or Pakistani influence. It is important to seek stability
on the north-eastern border by ensuring economic prosperity of the region
especially in view of the fact that it is a land bridge to the south-east Asian
region. Indo-Myanmar bilateral relationship is much important to India since
India’s Look East Policy is destined to shape our attitude towards the Asia
Pacific for the foreseeable future. External Affairs Minister of India Pranab
Mukherjee recently says that India’s Look-East Policy has been the main driving
force for improvement in the bilateral relations. ‘India seems to be formulating a
three-pronged approach to its Look East ambitions:
1) Continue seeking rapprochement with Burma
2) Redouble efforts to develop the northeast
3) Engage with its other regional neighbor — China.
While India’s concerns are understandable, Myanmar’s Military Junta also appears
to be at a crucial point in its existence. They have becoming realised that they
are being stifled by China and, must look for an alternative in India —
particularly in view of India’s rising economic potential and mutual strategic and
security interests.

‘The South Asia Analysis Group, however, points out six reasons for the strategic
importance of Myanmar to India:
1) Myanmar is located at the tri-junction of East Asia, South Asia and South East
Asia.
2) Myanmar is the second largest of India’s neighbours and the largest on the
eastern flank.
3) Myanmar provides the Eastern littoral of the Bay of Bengal. An unfriendly
Myanmar hosting foreign naval presence would pose a threat to Indian security.
4) Myanmar has a big border with China in the north contiguous with the Sino-
Indian disputed border which has many implications.
5) India has both a land border (1640 km) and a maritime boundary with Myanmar in
the Bay of Bengal. Four Indian states (Arunachal Pradesh, Nagaland, Manipur and
Mizoram) border Myanmar (Kachin & Chin States and Sagaing Division)
6) China can gain access to Indian Ocean through Myanmar.

Myanmar also plays an important role in the economic reinforcement of India and
North East India as a particular. Myanmar is an India’s gateway to ASEAN as it is
the only country of this grouping which has a land and maritime boundary with
India. With India becoming a summit level partner of ASEAN and a member of the
East Asia Summit, improved relations with Myanmar will be beneficial in many
respects. ‘Besides, Myanmar and India are members of some sub-regional groupings
such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation (BIMST-EC), Forum on Regional Economic Cooperation among Bangladesh-
China-India-Myanmar (BCIM) and the Mekong Ganga Cooperation (MGC).

China has raised its economic profile in South East Asia, particularly in Myanmar
despite the sanctions imposed by the west. India should not be left behind
especially in view of the large oil and gas resources available in Myanmar and
much needed by India. Moreover, there is also need for major security
considerations between India and Myanmar. In connection with insurgency in the
north-eastern States of India, some of the insurgent groups have established camps
in Myanmar and operating from Myanmarese territory. Smuggling of arms, drug
trafficking and narco-terrorism is also a major security concerns between two
countries. Illegal immigration from Yunnan into Northern Myanmar and association
of Chinese workers in road construction activities also evokes bilateral
deliberation. There is a need to regulate border trade in order to curb drug
trafficking and smuggling.

KOLODYNE MULTI-MODAL TRANSPORT PROJECT

Conceived and proposed by India’s Ministry of External Affairs (MEA) in 2003, the
project has already received approval from the Myanmarese government. Meanwhile,
it obtains in-principle approval from the Planning Commission too. MEA has
entrusted RITES for preparation of Detailed Project Report (DPR) for this project.
RITES submitted its report to the MEA in October, 2003.

The initial total estimated cost of the project was reported to be US$ 103
million. At the initial stage, the agreement between Government of India and
Government of Myanmar is that, Government of Myanmar was to provide US$ 10
million, and the rest by the Government of India. But, the Myanmar Government,
known as State Peace and Development Council (SPDC) — run by a group of
Generals, later conveyed its inability to fulfill its commitment of US$ 10
million. SPDC has though consented on the proposal, but showed reluctance to
invest in the project, and only assured to provide free land for the project. So,
the Government of India has agreed to provide the amount in the form of a Line of
Credit to the Myanmar Government. Barely days after US President George W. Bush
was in India during March 2006, criticising the military regime in Yangon,
President A. P. J. Abdul Kalam travelled to Myanmar to strengthen bilateral
cooperation. Kalam, in a small gesture to the international and domestic
concerns, did mention India’s hopes for the restoration of democracy in Myanmar at
the end of his visit. During this visit, President Abdul Kalam announced the
decision of India agreeing to provide the amount in the form of Line of Credit.

Then, a meeting, attended by the Principal Secretary to the Prime Minister and the
Foreign Secretary of Government of India, along with a delegation of Mizoram
government officials was held in the Prime Minister’s office on January 19, 2007
to study the Detailed Project Report prepared by the RITES. Superceding the
previous decision, the meeting decided that India will extended to Burma a soft
loan of US$ 10 million at an annual interest of 2.5 percent to cover the expenses
of its share of the Kolodyne Multi-Modal Transport Project. The Prime Minister
Office (PMO) says, “The total estimated amount for the Kaladan project is pegged
at Rs 860.95 crore. Myanmar had to provide 10 million US dollars as its share.
Since Myanmar was unwilling to invest the money, India agreed to provide a soft
loan at about 2.5 per cent annual interest. The Ministry of Finance has confirmed
the amount being sanctioned. The Centre is keen to have an alternative route to
the sea from the Northeast.”

In March/April 2006, an inter-ministerial meeting convened by the MEA decided to

designate Hmawngbu in Lawngtlai District as the Trade Point on the Indian side of
the border. A meeting between the high ranking officials from Light Infantry
Battalion (Myanmar) and the engineers from Mizoram was also organized in
Lawngtlai, a border town where many issues related to the development of the
project were discussed. During the visit of India’s foreign minister Pranab
Mukherjee to Myanmar on January 19-21, 2007 where he met the Prime Minister Gen
Soe Win and Planning and Economic Development Minister U Soe Tha with his
counterpart U Nyan, elaborate discussions were held on the Kolodyne project in
respect of investments.

India and Myanmar have been giving final touches to the Joint Project. While the
world’s attention remained fixed on the pro-democracy movement in Myanmar, India
determine to go ahead and not hesitate on signing the agreement with the Militant
Junta, paving the way for development of the Sittwe Port, an important component
for implementing Look East Policy. India and Myanmar are likely to seal the deal
soon. The papers were lying with the Myanmar Government and indication was that
the other side was ready to shortly sign the deal.

‘While the two countries are giving final touches, out of the three components of
the project (Road, Water and Port), road and water are easy while the port is
difficult. The source of continuing disagreement was the control of the port.
Since India is investing heavily in this project, it wants to retain control of
the port. This is not being accepted by Myanmar. They expressed reservations over
India’s earlier proposal where India wanted to develop the port and operate it for
some time before transferring its use.

So, India softened its stand and offered Myanmar immediate use of the Sittwe Port
once it is ready for navigational purposes and agreed to hand over the Port soon
after its completion. The new offer made by India to Myanmar is a major shift in
India’s strategic thinking. It also gives an idea of the level it can go to in
accommodating Myanmar ‘s sensitivities. It is confirmed that the revised offer has
been approved by the MEA. India’s new offer to Myanmar on the development of the
Sittwe port has been approved by External Affairs Minister Pranab Mukherjee
himself.

TECHNICAL FEASIBILITY OF TRADE ROUTE

RITES (Rail India Technical Economic Services) prepared the Technical Feasibility
Study Paper (DPR) for this Trade Route between India and Myanmar through the
Sittwe Port to India-Myanmar Border via. River Kolodyne. In this paper, there is a
Specialist Input from reputed institution, such as — Central Mining Research
Institute (CMRI), Nagpur, Indian Institute of Technology (IIT), Delhi and National
Institute of Oceanography (NIO), GOA. The Feasibility Study recommended Sittwe to
Kaletwa to be Waterway and Kaletwa to India-Myanmar Border as Highway by NH-54.
So, the project components are mainly three parts:
1) Development of Terminal at Sittwe Port
2) Development of Inland Waterway System
3) Development of Highway

Development of Terminal at Sittwe Port basically means development of Port and

Inland Water Transport (IWT) facilities at Sittwe including berths for ships and
IWT vessels, cargo handling system, covered and open storages and other
infrastructure facilities. Planning of the facilities proposed at Sittwe Port have
been carried out considering the following:
1) Annual Volume of Cargo : 1,00,000 tons.
2) Type of Cargo : Break-Bulk (General Cargo)
3) Average Ship Size : 6,000 DWT (Initial) 20,000 DWT
(Ultimate)
4) Berth Occupancy : 50%
5) Draft Along Side Jetty : 7.2m (Initial) 9.5m (Ultimate)
6) Physical Dimensions of Port Jetty : 219mx15.2m
7) Transportation Equipment : 4 Tractors, 16 Trailers & 4 Fork Lift
Trucks
8) Total Backup Area Requirement : 240m x 120m
Besides these, handling equipment at port jetty (landing stage or small pier) is
proposed to be 1 General Cargo Crane of 10 ton capacity with a maximum outreach of
25.5 m with hook attachment suitable for general cargo operations. Two types of
vessel — Sea Vessel and IWT Vessel are proposed for this port.

Proposal for Development of Inland Waterway System includes:

1) A minimum depth of 2m is available from Sittwe to Paletwa.
2) Deepening, widening and other river training works are required further
upstream upto Kaletwa.
3) Blasting of rocks outcrops and removal of landslides and sand shoals at
specific locations.
4) Selection of vessel suitable to Waterway system.
5) Transhipment IWT terminal at Kaletwa.

Detail proposal for Development of Highway includes the following:

1) Project Road Length : 62 km (Kaletwa to India-Myanmar Border)
117 km (India-Myanmar Border to NH-54)
2) Carriageway Width : 3.75 m (Kaletwa to India-Myanmar Border)
3.75 m (India-Myanmar Border to NH-54)
3) Roadway Width : 8.8 m (Kaletwa to India-Myanmar Border)
8.8 m (India-Myanmar Border to NH-54)
4) Culverts : 387nos (Kaletwa to India-Myanmar Border)
461nos (India-Myanmar Border to NH-54)
5) Bridges : 11 nos (Kaletwa to India-Myanmar Border)
2 nos (India-Myanmar Border to NH-54)

Major activities to be taken on Kolodyne Multi-Modal Transport Project includes

upgradation of Port of Sittwe and River Kolodyne from Sittwe to Kaletwa in
Myanmar, construction of road from Kaletwa to Myanmar-India border in Myanmar and
construction of road from NH-54 to India-Myanmar border in India. Moreover,
Detailed Project Report (DPR) recommended scopes of work are:
1) Hydrographic surveys for Sittwe Port approach channel, harbour and river.
2) Topographic surveys and Geo-Technical investigations for Waterway and Highway
3) Surveys at Navigational Hazards (rapids and shoals) and rock blasting
requirement by CMRI
4) Numerical midel studies and river by Indian Institutes of Technology (IIT),
Delhi and National Institute of Oceanography, GOA

CONCLUSION
We cannot avoid or escape from the inexplicable process of Globalisation. It may
not appropriate to try and resist or oppose the massive international game of
Globalisation. India has decided to be an active player in this process, in which
Mizoram as well as north-east is an important part and parcel. Hence, all we need
to do is to prepare for the challenge we must face. ‘Completion of the Kolodyne
Multi-Modal Transport Project assumes great urgency as it will provide a vital
component to the economic growth of the whole northeast India, offering a trade
route, — an outlet to tap the economic potential of India’s immediate eastern
neighbours.

THE AUTHOR — ROCHAMLIANA IS THE GENERAL SECRETARY OF ZORAM RESEARCH FOUNDATION,

AIZAWL, MIZORAM