Context

India has recently secured rights to operate the Sittwe port in Myanmar after Chabahar Port in Iran.

• The Ministry of External Affairs (MEA) has given the green light to the proposal for India Ports Global (IPGL) to manage all operations at the port situated on the Kaladan River.

About Sittwe Port Agreement

• Port Name: Sittwe
• Location: Myanmar
• Operator: India Ports Global Limited (IPGL)
• Project Context: The Sittwe Port is part of the Kaladan multi-modal transit transport project.
• Objective:  To connect Kolkata, an eastern Indian seaport, with Sittwe seaport in Myanmar via sea routes.
  • Additionally, it seeks to establish a connection from Sittwe Port to Paletwa in Myanmar using the Kaladan river waterway.
  • Furthermore, it aims to link Paletwa to Zorinpui in Mizoram through a road component.
• The project’s primary goal is to provide an alternative shipping route for goods to the northeastern states.

Impact of approval of Sittwe Port Agreement on Indian Economy

• Reduced transportation costs and distance: Sittwe port would provide an alternative route for shipping goods to India’s northeastern states which will help significantly in reducing the distance and cost compared to the current route via Kolkata.
• Enhanced connectivity: The Kaladan multi-modal project, of which Sittwe port is a part, creates a new route connecting eastern India to Myanmar and India’s northeast. This improves overall trade connectivity.
• Reduced dependence on Siliguri Corridor: Sittwe port would  lessen reliance on the Siliguri Corridor, famously known as the “chicken’s neck,” which is a narrow strip of land between Bhutan and Bangladesh.
• Strategic significance: This initiative will Strengthen India’s strategic presence in the Indo-Pacific region, countering China’s Belt and Road Initiative (BRI) influence in Myanmar.
• • It will help in  improving  maritime security and anti-piracy efforts.
• Boost to North-East India: Sittwe port will Provide a swifter and cheaper route for transporting essential goods and finished products to and from India’s northeastern states. 
  • This can increase economic activity and trade in the region due to  access to new markets.