This article is in continuation of the previous article Kyaukpyu port: Chinese Port In Myanmar Threat To India
On 2nd Jan, 2024, officials from China and Myanmar met in Naypyidaw, Myanmar’s capital, to finalise a supplementary agreement for the restart of the Kyaukpyu deep-water port project. Latest reports suggest that during the signing ceremony, Xi Guohua, president of CITIC Group, a Chinese state-owned enterprise, emphasised the port’s importance as a key component of Beijing’s Belt and Road Initiative and the China-Myanmar Economic Corridor. Notably, the project is regarded as critical for enhancing practical cooperation between the two countries.
The original 2018 agreement stipulated that CITIC would maintain a 70% stake in the port, serving as a key route for China to access the Bay of Bengal and facilitate the import of oil. However, specific details regarding the supplementary agreement, including any changes to ownership or operational aspects, have not been disclosed publicly.
The report underscores the strategic importance of the Kyaukpyu port within the 1,700-kilometer China-Myanmar Economic Corridor. Despite the ongoing military conflict in Myanmar and the increased isolation of the military regime due to international sanctions following the 2021 coup, the authorities seek to revive Chinese-backed projects.
The Kyaukpyu port’s geopolitical significance is emphasized by its direct access to the Indian Ocean, providing a military advantage over the Chinese navy. China has strategically invested in various ports, including those in the western and southern parts of Kyaukpyu, a new naval base in Cambodia, commercial ports in Hambantota (Sri Lanka) and Gwadar (Pakistan), as well as a comprehensive naval base in Djibouti. This expansion aligns with China’s broader maritime strategy and geopolitical interests in the region.
Why is it a threat to India? A few 100 Kms away from this port is an Indian Submarine base. Ofcourse, Chinese will get easy access to Bay of Bengal which under normal conditions Chinese ships reach after crossing a choke point called strait of Malacca. Strait of Malacca is so busy and narrow that any ship or submarine crossing the area has to come to the surface.
Plans for the Kyaukphyu Special Economic Zone or KP SEZ project were first announced in 2013. The project is also called CMEC, just like CPEC in Pakistan. The CMEC is a 1700-kilometer, inverted y-shape corridor. Read more about it here: Chinese Port In Myanmar Threat To India
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Gist is, the recent signing of the supplementary agreement signals the revival of the Kyaukpyu deep-water port project, reinforcing its pivotal role in the China-Myanmar Economic Corridor and broader geopolitical considerations in the Indian Ocean.