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Indo-Bangla coastal shipping service becomes uncertain

Syful Islam | December 13, 2014 00:00:00


Launching of coastal shipping service between Bangladesh and India has become uncertain due to the lack of fit vessels, sources said.

Until now no Bangladeshi vessel is found fit for the service. Officials could not confirm when a trial-run of the service will be held.

The launch of the service is already delayed by two months.

"Introduction of the Indo-Bangla coastal shipping service is being delayed time and again due to non-availability of suitable vessels. I am not sure when it will start, but trying to do so by year- end," director general of department of shipping (DoS) Zakiur Rahman Bhuiyan told the FE.

He said none of the 18 private sector vessels, a list which was forwarded by the Bangladesh Coastal Ship Owners Association (COAB), was found fit for voyage to Indian ports.

"Recently we have sent drawing and design of 12 vessels to Indian authority. We are waiting for their response for physical visit of the vessels," Mr Bhuiyan said.

He also said the DoS is trying to hold the trial launch of the service by MV Rodella, a cargo vessel owned by Chittagong- based Prantik Group. The vessel has classification society certificate but needed international insurance before starting the journey. "Presently, we are not getting response from traders who will use the coastal shipping service. Owner of MV Rodella said he will buy international insurance policy only after getting adequate cargo for the trial-voyage," the DoS director general said.

Mr Bhuiyan said some private companies are building container vessels and some are on their way to import vessels.

"Once adequate numbers of vessels are available, the owners themselves will establish business channel to run the coastal shipping service. Launching of the service is a government's mandate, and we are trying our best to start it," he added.

The Bangladesh-India Joint Consultative Commission at a meeting on September 20 last agreed to commence the trial run of coastal service by October 15 for better connectivity and reduction of transportation cost of goods.

To help start the service the Indian Registrar of Shipping (IRS) has relaxed many conditions for Bangladeshi vessels to run through Indo-Bangla coasts. Despite the relaxation of conditions no Bangladeshi vessels could comply for the same.

Vessels have to be equivalent to River Seal Vessel Type IV (RSV-IV) in accordance with the circular of Indian Directorate General of Shipping to ply for coastal shipping service.

The vessels should have coverage of third party liability insurance alongside having coastal master, coastal mate, coastal chief engineer, coastal second engineer or officials and seafarers in accordance with the convention on Standards of Training, Certification and Watchkeeping (STCW).

Failing to get suitable vessels from private sector the department of shipping had approached Bangladesh Shipping Corporation (BSC) and Chittagong Port Authority (CPA) to send vessels to start the trial run of the service.

However, three vessels, owned by CPA for Chittagong-Pangaon route, are yet to get registration from the government authority concerned and lack classification society registration thus found unfit for the coastal shipping service.

On the other hand, it was found that the BSC- owned vessels are suitable for sea route, not for coastal route, since their operating cost will be very high.

A marine official said Bangladeshi ships do not maintain class and none are fit for long voyage through coastal routes. He said most of the Bangladeshi coastal vessels have no insurance coverage from P&I Club or registration from any classification society.

The coastal shipping service is considered as low-cost and easiest way to carry goods between the two countries.

According to a study of the Asian Development Bank (ADB), once coastal ships start plying, trade imbalance between the two countries will come down by US$1.0 billion.

The coastal shipping service will use three Bangladeshi ports and four Indian ports. The three Bangladeshi ports are-- Chittagong, Mongla and newly built Payra. The Indian ports are-- Paradip in Orissa, Visakhapatnam in Andhra Pradesh, Haldia in Paschimbanga and Kakinada port near Chennai.

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