The objective of the Kaladan Multi-Modal Transit Transport Project is to provide connectivity to Mizoram from ports through Sittwe port in Myanmar. The project includes a waterway component of 158 km on Kaladan river from Sittwe to Paletwa in Myanmar and a road component of 109 km from Paletwa to Zorinpui along the India-Myanmar border in Mizoram. The present distance between Kolkata to Mizoram is approx. 1850 km with a travel time of about 7 to 8 days. During rainy days, roads are often blocked because of landslides and other issues, which leaves a part of North-East completely disconnected. Due to the KMMT project, the distance will reduce to about 930 km and also reduce travel time by 2 to 3 days. Major commodities like food grains, fertilizers, construction materials, fruits and machinery will move via this route.

The improvement of this corridor will take the pressure off the flow of goods through the Siliguri corridor, also known as the "Chicken's Neck", a narrow land-bridge that connects India's North Eastern States to the rest of the country. Once complete, the project will belong entirely to Myanmar. The project is being financed by the Indian Government under the category of "Aid to Myanmar".

The project is being piloted and funded by the Ministry of External Affairs, India. The preliminary feasibility studies were carried out by Rail India Technical and Economic Services (RITES). The Inland Waterways Authority of India (IWAI) is a nodal agency appointed for construction work on Sittwe port and the boat jetty in Paletwa, as well as the dredging work. M/s. Essar Projects Limited, a division of the Essar Group, appointed in May 2010 is the main contractor for the project. India has already completed the rest of the Kaladan project work in Myanmar. This includes the construction of the Sittwe Port on Lakadan river mouth in Rakhine, construction of a river terminal 158 km upstream at Paletwa and dredging of the Kaladan river. The project is expected to be operational by 2020.

On the Indian counterpart, work is on to extend the Aizawl-Saiha National Highway by 90 km to the international border at Zorinpui. Also, an INR 6,000-crore project is underway for the four-laned 300 km highway from Myanmar border to Aizawl to ensure the faster movement of goods.

Once operational, the Haldia International Container Terminal will play a major role in cutting off 900 km to bring Mizoram closer to the world. HICT, a terminal operated by the J M BAXI GROUP has a 432-meter-long jetty equipped with 2 Paramax Rail Mounted Quay Cranes. The total area of the container yard is 45,000 sq. meters (1436 ground slots) equipped with 4 Rubber Tyred Gantry Cranes, 3 reach stackers and 16 internal transfer vehicles. HICT can provide scheduled services, better delivery lead times and service reliability to the cargo moving to North East India through KMMT.