BD-India SOP deal tomorrow

Syful Islam | Published: November 14, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Bangladesh and India will sign tomorrow (Sunday) a standard operating procedure (SOP) accord on coastal shipping service aimed at slashing the carrying cost of goods between the two trading partners, officials said.
"No barrier to launch of the shipping service will exist after the signing of the SOP," shipping secretary Shafique Alam Mehdi told the FE Friday over telephone, before leaving for New Delhi where the signing ceremony will be held.
He said Bangladesh has some vessels ready for commencing the service. The vessels will move on routes connecting bilateral coasts.
"I am going to New Delhi a day before the scheduled visit. The Indian shipping minister will remain present during the SOP signing," said Mr Mehdi.
Replying to a query, the shipping secretary said transit fee for India's use of Bangladesh territory for carrying goods, signing a memorandum of understanding (MoU) on movement of passenger and cruise vessels between Bangladesh and India, and IDA assistance of the World Bank for dredging Indo-Bangladesh protocol route would be discussed during his Delhi visit.
"We are hopeful that India will agree on the transit fee we fixed after well research. We are not going to impose bank guarantee against transit of goods," he said.
Bangladesh has fixed Tk 192 as transit fee for per tonne of Indian goods to be carried through its territory. Of the total sum, the National Board of Revenue will charge Tk 130 as customs duty, Bangladesh Inland Water Transport Authority will realise Tk 10, and Roads and Highways Department
(RHD) will charge Tk 52 for the entire 51 kilometres of road.
Bangladesh and India signed a coastal shipping deal during the Dhaka visit of Indian Prime Minister Narendra Modi last June. The deal is meant for reducing transportation cost of goods to and from India by two-thirds as vessels will move along bilateral coasts.
Presently vessels plying to and from Bangladesh and India pass through ports of Singapore or Sri Lanka in a sort of detour. After formal launching of the coastal service the vessels will be plying bilateral coasts, cutting voyage time by three-fourths, officials said.
A senior official at the ministry of shipping (MoS) told the FE the SOP is a crucial prerequisite for starting voyage of vessels. Five months back, Bangladesh sent the final version of the SOP which recently got consent from India.
He said as shipping secretaries of two countries are sitting in New Delhi on November 16-17, the two sides are now signing the SOP.
"All the formalities from Bangladesh side are complete. We are ready to start the shipping service, provided the SOP is signed," director-general of the department of shipping (DoS) M Zakiur Rahman Bhuiyan told the FE earlier.
Asked about the number of vessels ready to set out on the voyage, he said two world-class vessels, built for inland shipping, will also be plying in coastal shipping service. Some two to three more will join the fleet by December.
Mr Bhuiyan said an informal trial run of coastal shipping service, from private sector, was already held several months back. The MV Rodela, a private-sector vessel, since then, has been carrying goods from India through bilateral coastal route.
He said presently maximum goods of Indo-Bangladesh trade are being transported through land ports. Steps have to be taken to divert those to river route since the service will be cheaper than land freight.
The coastal shipping service will use five Bangladeshi and four Indian ports of call. The five Bangladeshi ports are Chittagong, Mongla, Payra, Ashuganj, and Pangaon. The Indian ports are Paradip in Orissa, Visakhapatnam in Andhra Pradesh, Haldia in Paschimbanga and Kakinada port near Chennai.
Â Â Â Â syful-islam@outlook.com