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Kaladan project will transform Northeast into Trade Hub of Bay of Bengal: Sonowal

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HT Bureau

GUWAHATI, July 15: Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal on Tuesday highlighted the Kaladan Multi-Modal Transit Transport Project (KMTTP) as a “transformative gateway” that will reposition Northeast India at the heart of regional trade and connectivity under the BIMSTEC framework.

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Addressing the BIMSTEC Ports Conclave, the minister said the project is expected to be fully operational by 2027.

According to an official statement, the Kaladan project was the focus of a dedicated session titled Kaladan Corridor: Catalysing Bay of Bengal Port Connectivity and Regional Trade Flows.

The session examined how the India-Myanmar initiative, linking Kolkata Port to Sittwe Port by sea and onward to Mizoram via inland waterways and roads, would drastically cut transit time and trade costs for Northeast India.

“This project is not merely a bilateral initiative but a model for seamless regional connectivity,” said Sonowal. “As envisioned by our dynamic Prime Minister Narendra Modi ji, Kaladan will unlock immense opportunities by linking landlocked neighbours like Bhutan and Bangladesh to global trade routes.”

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The Kaladan project is part of India’s larger Act East Policy and aligns closely with the BIMSTEC Master Plan for Transport Connectivity (2018–2028).

Once completed, it is expected to accelerate inclusive growth, diversify trade routes, and integrate India’s Northeast with broader South and Southeast Asian economies.

The minister also referred to the recently signed BIMSTEC Agreement on Maritime Transport Cooperation (AMTC), calling it a key policy instrument that will complement projects like Kaladan.

Draft Standard Operating Procedures (SOPs) under the AMTC are currently under formulation to facilitate harmonised customs protocols, improved shipping services, and inter-port cooperation.

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“Kaladan will serve as a blueprint for future regional supply chain networks, especially under the AMTC framework,” Sonowal said. “It reflects how the Northeast, with its strategic location, will play a pivotal role in economic growth and connectivity in the Bay of Bengal region.”

The session generated several key recommendations, including the need to replicate similar corridors to link landlocked BIMSTEC members such as Nepal and Bhutan, develop interoperable infrastructure, and strengthen maritime-land transport synergy.

For India’s Northeastern states, particularly Mizoram, Tripura, and Assam, the Kaladan project offers new access to global shipping routes and promises to lower logistics costs for local industries.

Meghalaya, Arunachal Pradesh, and Nagaland are also expected to benefit from stronger integration into supply chains and expanded warehousing and logistics investment.

The project, the minister said, will enhance trade in agriculture, handicrafts, and manufacturing while also boosting tourism and employment opportunities in the region.

“By linking ports, trade corridors, and value chains, Kaladan can truly become a cornerstone of our shared vision for prosperity and sustainable development in the Bay of Bengal,” Sonowal noted. “Under the leadership of PM Narendra Modi, the Northeast is being empowered to become a growth engine for New Bharat.”

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