Kaladan Multi-Modal Transit Transport Project is a project that will connect the eastern Indian seaport of Kolkata with Sittwe port in Myanmar by sea; it will then link Sittwe to Mizoram via river and road transport. The Project is scheduled for completion in 2014 according to Governor of MizoramVakkom Purushothaman. This project will reduce distance from Kolkata to Sittwee by approximately 1328 km and will reduce the need to transport good through the narrow Siliguri corridor, also known as ‘chicken’s neck,’. Initially India had tried to persuade Bangladesh to offer transport and transit rights to the northeastern states. However, Bangladesh has consistently refused to grant such rights, including access to its Chittagong port, which is less than 200 km away from Agartala, the capital of Tripura.
The project is being piloted and funded by the Indian Ministry of External Affairs. The preliminary feasibility studies 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.
Kaladan Multi-Modal Transit Transport Project is at present facing problems such as underestimation of the road length in Myanmar and plans to construct hydro-electric projects — Chhimtuipui and Lungleng — on two tributaries of the Kaladan river followed by another project downstream. That the first two projects are being built by one public sector undertaking and the third is being constructed by another PSU has also led to coordination issues.Due to construction of this hydro electrical projects, Navigation of boats could be effected.