A Landmark Movement of Goods between Bengal and North East India Via Bangladesh in Maritime Industry

A Landmark Movement of Goods between Bengal and North East India Via Bangladesh in Maritime Industry

Author: 

Ashish Gupta
PGDM (Law) Student Batch 2019-2021
Adani Institute of Infrastructure Management, Ahmedabad

Introduction

As “It is very landmark historical movement in Indian maritime Industry for development of new maritime relations between India and Bangladesh as declared by our Union Shipping Minister Mansukh Mandaviya”. (times, 2020)

The first movement of container ships led from Kolkata Port to Agartala in Tripura State via Chittagong Port Bangladesh.

Since “Indian ports and shipping Industry plays a vital role in sustainability of economic growth into the trade and commerce of India. As the country has long peninsular coastline geographically which is about 7517 km and it is 16^th largest maritime Industry in the World”. As the trade is most vital economic  driver for every country so the Indian Government played a pivotal role in supporting the growth in Indian maritime sector by allowing Foreign Direct Investment of 100 percent  under automatic route through port .The government facilitates ten year tax holidays for companies to develop, maintain and operate ports, inland waterways and inland ports in India. (trishala, 2020)

“According to Ministry of Shipping around 95 percent of India’s trading by volume and seventy percent of value” done by maritime transport.

Another factor was emerging into maritime sector was due to rising delays and high incurring costs through high road and road congestion in recent years led to transporting goods by Sea route across countries worldwide.

As far as Market Size the share of Inland water transport cargo traffic  to logistics and shipping market is lower at 0.5 percent with china at 8.7 percent and Europe at 7 percent, which gives major boost for container infrastructure in India due to container traffic showing growth of 15 percent by escalating the containerization of commodities  such as textiles, electronics ,automobiles and still potential for agricultural commodities such as rice, sugar, maize for transporting in bulk. (trishala, 2020)

 

(Source: (post, 2020) )

Majorly, India’s Look policy and due to over capacity utilization at the west coast ports provide the east coast ports the more opportunity for port development.

The Strategic landmark movement of goods between India and Bangladesh

As “under India – Bangladesh agreement on use of Mongla and Chittagong ports by north east coastal route in India”. This was happened with the recent second addendum in India- Bangladesh protocol route which is definitely becoming a enabling for growth livelihood and economy of the region.

So Now we will understand,

What is India – Bangladesh Protocol second addendum on Inland water transit and trade and Why it is important?

 As this “protocol on Inland water transit and trade happens between India and Bangladesh under which inland waterways can transit through specified routes of the other country”. It was first signed in 1972 after Bangladesh independence and renewed in 2015. It can facilitate trade with improved reliability and cost effectiveness. The second addendum includes IBP route and new port development declaration.  Under the protocol it was decided by both countries that 50:50 cargo sharing is permitted. (IAS, 2020)

 

Recent updates on maritime relations between India and Bangladesh.

As it is great benefits for economic growth specially for “India North- Eastern States as it will reduce the transport time and cost to north east coastal route. And the first trial movement has been started between container ship from Kolkata port to Agartala Via chattogram port of Bangladesh”. (times, 2020)

As per report the “vessel MV Shejyoti is carrying four transit containers laden with TMT steel bars and Pulses were onloaded”. “The containers were offloaded at chattogram port and unloaded at Agartala”. The whole process of movement would be coordinating with help of high commission of India at Dhaka and port authority at Bangladesh and Tripura Government. (post, 2020)

As the opening of this route strengthens the long stand friendship between both the countries. So it creates win-win situation for both countries. It will not only reduce logistics cost but will create jobs and boost investment in North East States and promote business services for Bangladesh for movement of Indian goods. (post, 2020)

 

Bibliography:

 

1.    https://www.drishtiias.com/daily-updates/daily-news-analysis/protocol-on-inland-water-transit-and-trade. (n.d.). Retrieved from www.dristhiias.com.

2.    IAS, D. (2020, july 21). International Relations. Retrieved from dristhiias.

3.    Milleniumpost, m. (2020, july 21). historic-movement-of-goods-between-bengal-to-north-east-india-via-bdesh-flagged-off. Retrieved from milleniumpost.

4.    times, h. (2020, july 21). landmark-movement-of-goods-between-bengal-and-to-north-east-india-via-bangladesh-flagged-off. Retrieved from hindustantimes.

5.    trishala, s. (2020, july 21). Insight into Indian Maritime Industry and Ports in India. Retrieved from aivp.