An opportunity and a challenge in Northeast
In the last few years, India prioritised enhancing railway development in Manipur and Mizoram, inching closer to the border with Myanmar.
The inauguration last month of India-financed Sittwe Port in Myanmar, a crucial component of the Kaladan Multimodal Transit Transport Project, has granted New Delhi’s Northeast (NE) essential sea access, bolstering its economic potential by connecting it to regional trade and transportation networks. Simultaneously, there is progress on the India-Myanmar-Thailand Highway, albeit at a slower pace. To further enhance connectivity, developing a missing cross-border railway link between India, Myanmar and Thailand will serve as a crucial multimodal connection between South and Southeast Asia, stimulate economic growth, and unlock fresh avenues for business ventures in the region.
In the last few years, India prioritised enhancing railway development in Manipur and Mizoram, inching closer to the border with Myanmar. The best example of this push is the 236 km Jiribam-Imphal-Moreh link in Manipur, initially proposed in 2004; 93% of the work on the Jiribam-Imphal section is complete. The second section of this route extends in Myanmar from Tamu to Kalay (128 km), with plans to connect it further to Thailand as part of the Trans-Asian Railway Network. Additionally, the development of the 51.38 km Bairabi-Sairang line in Mizoram, is also in the pipeline. These developments not only place the Northeast on India’s railway map, but also underline the potential for railway development that can be extended to Myanmar and Thailand.
The recent impetus for railway connectivity is driven by multiple factors. A recent report published by the Centre for Social and Economic Progress, Connectivity and Cooperation in the Bay of Bengal Region, identifies three significant drivers.
First, it is a significant component of Prime Minister Narendra Modi’s capital connectivity project, aiming to connect all northeastern state capitals with road and rail networks to unleash the region’s economic potential. In the last three years, the region saw the initiation of 19 railway projects. Notably, 40% of the work on these projects has been commissioned. Second, rail connectivity in the Northeast is crucial to India’s foreign policy priority in the neighbourhood geared towards strengthening inter-regional connectivity between South and Southeast Asia. Third, increasing emphasis on expanding rail connectivity also comes against the backdrop of China’s increasing investment in the development of pan-Asian railway connectivity in Southeast Asia where infrastructure linkages between Myanmar and Thailand are crucial. In August 2021, China inaugurated a high-speed railway line from Chengdu to the Myanmar border, and recently resumed work on a railway running from southern China to the Myanmar coast in Rakhine State.
Despite the potential, there are several challenges to achieving seamless rail connectivity between India, Myanmar and Thailand. First, while significant development is underway in India’s Northeast, there is also a need for the upgradation of rail infrastructure in Myanmar, which given the political and economic conditions, will likely fall to New Delhi. The Asian Development Bank has estimated that Myanmar requires transport investments of approx. $60 million.
Second, the heterogeneity in rail gauge systems poses a hurdle. India operates on a broad gauge, Myanmar on a narrow gauge, and Thailand on a standard gauge, necessitating alignment adjustments and the development of dual gauge systems. India is already developing a dual-gauge system in Bangladesh and is well placed to extend best practice learnings.
Third, India and Myanmar face high freight costs, infrastructure gaps, and limitations in rail service operating procedures. The cumulative cost of rail transportation, including first and last-mile logistics, remains one of the highest in the region and needs to be addressed.
The 2021 military coup in Myanmar resulted in a decline in official development assistance and loans for critical infrastructure projects. Consequently, India is now tasked with a greater responsibility to lead cross-border investment and development efforts. To address the challenges in constructing railway lines from India to Thailand via Myanmar, India must also actively engage with international financial institutions such as the World Bank, Asian Development Bank and European Investment Bank. This collaboration is essential to overcome barriers and ensure that the project adheres to international standards, enabling high-quality connectivity – a priority in India’s neighbourhood policy. With concerted efforts and strategic partnerships, India can pave the way for enhanced regional integration and economic growth through robust railway connectivity in the Indo-Myanmar-Thailand corridor.
Riya Sinha is associate fellow, Centre for Social and Economic Progress, New Delhi. The views expressed are personal
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