Revised draft proposals finalised

Talha Bin Habib | Published: January 19, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Bangladesh has finalised the revised draft proposals on coastal shipping agreement with India, putting in place some new clauses relating to third-party insurance, officials said.
Besides, another clause has also been incorporated in the draft proposal, under which Bangladesh ship owners will require having certificates from IRS (Indian Registrar of Shipping) for plying coastal shipping between the countries.
"We have made minor changes in the previous draft proposals. We will send it to Indian government through our Ministry of Foreign Affairs shortly for signing bilateral coastal shipping agreement for mutual benefits," a joint secretary of the Ministry of Shipping (MoS) who is involved in the process told the FE Sunday.
The official said the country has already sent Standard Operating Procedure (SOP) to India seeking their consent before signing the coastal shipping deal.
He said India has urged Bangladesh to take certificate of local ships from IRS.
The state- run Sadharan Bima Corporation of Bangladesh is now working to take the responsibility to look after the insurance of the ships that will run through coastal line of the two countries.
Earlier, the two countries have made progress in two vital issues -- settlement of insurance for ships and determining the standards of the ships.
Sadharan Bima Corporation of Bangladesh and General Insurance Corporation of India will act as the coastal vessels' insurers in their respective countries, Commodore M Zakiur Rahman Bhuiyan, director general of the Department of Shipping, toldÂ the FE.
Bangladesh imported goods worth nearly $5 billion from India in the fiscal year (FY) 2013-14.
Many of these goods were brought to Chittagong or Mongla port via a third port such as Singapore or Colombo, which pushes up both freight costs and time.
"The costs will be one-third through direct coastal vessels," an influential leader of Bangladesh Cargo Vessel Owners Association told the FE.
Bangladesh imports goods through Visakhapatnam port in Andhra Pradesh, Haldia port in Kolkata or any other ports in India via Colombo or Singapore, which makes sea cargoes costlier -- up to $110 per tonne.
talhabinhabib@yahoo.com