Guwahati, Jul 7 (PTI) Union Shipping Minister Sarbananda Sonowal on Monday said the ambitious Kaladan project between India and Myanmar, aimed at reducing the Northeast's distance from the rest of the country, will be operational by 2027.

Addressing a press conference here, Sonowal said the distance between Aizawl and Kolkata will be shortened by 700 km once the project is ready.

"The Sittwe port (in Myanmar) is ready. Now, work is going on to develop the road connectivity to Aizawl from Myanmar. The entire Kaladan Multimodal Transit Transport Project will be operational by 2027," he said.

Sonowal said his ministry is investing Rs 1,000 crore in developing the waterways of the project, while other agencies are taking care of the rest.

He said the Northeastern region will play a critical role in reviving the economic prosperity of India.

"PM Narendra Modi said that transformation should be done through transportation. As per his direction, we want to develop Northeast as the business hub of South Asia. For that, waterways will play a crucial role," he said.

The Kaladan Multimodal Transit Transport Project (KMTTP) was jointly identified by the two countries to create a multi-modal mode of transport for the shipment of cargo from the eastern ports of India to Myanmar, as well as to the Northeast, through the Southeast Asian country.

Sonowal said that the Minister of External Affairs is the nodal agency for the KMTTP, which is being developed as a friendship project between India and Myanmar.

"The Sittwe port was inaugurated in 2023 and I received a 2,000 MT cargo ship from Kolkata, marking the full operational capability of the port. Once the entire KMTTP will be commissioned, the 1,800 km road distance between Aizawl and Kolkata will be shortened by 700 km," he said.

The first cargo sailed from Syama Prasad Mookerjee Port in Kolkata to Sittwe port in the Rakhine state of Myanmar.

The Sittwe port has been developed under a framework agreement between India and Myanmar for the construction and operation of a multimodal transit facility on the Kaladan river.

The Sittwe port connects to Paletwa in Myanmar through an inland waterway and from Paletwa to Zorinpui in Mizoram through a road.

Goods from Kolkata to Sittwe port can be shipped to Teknaf port in Bangladesh, which is just 60 nautical miles from Sittwe. From Teknaf port, goods can be transported by road to Sabroom, which is 300 km away.

Sabroom has an integrated customs border point between Bangladesh and Tripura. Sittwe port and the Kaladan project will immensely benefit Tripura by way of a significant reduction in transportation time and logistics costs.

Development of KMTTP has faced logistic challenges with the navigability part proving to be more difficult than the surveys indicated. There were also law and order challenges in the areas of Myanmar bordering Mizoram.

Asked about the status of the works to connect Mongla and Chittagong ports in Bangladesh, Sonowal evaded a direct reply and said: "With the bilateral relations with our neighbouring nations, we continue to develop our waterways." Despite the political turmoil, cargo movements along the rivers of Bangladesh is continuing and around 4 million MT of goods are being transported annually through the neighbouring nation, he added.

"Our ships are operating through Bangladesh. We have bilateral agreements and both sides respect that," the minister said. PTI TR TR SOM

Bilateral transport agreement enabling a multimodal corridor enhances cross border cargo movement while requiring customs integration. The Kaladan Multimodal Transit Transport Project is implemented under a framework agreement between India and Myanmar to establish an integrated multimodal corridor; the Ministry of External Affairs is the nodal agency, Sittwe port was developed under the agreement and connects via inland waterways and roads to inland terminals, and the project requires coordination of bilateral transport agreements, customs facilitation at integrated border points, and interagency investment and operational oversight amid navigability and security constraints.