The first-ever container cargo from Kolkata via Bangladesh’s Chattogram port has reached Agartala. 

On July 16, Union Minister Mansukh Mandaviya flagged off the first trial container ship — MV Shejyoti — from Shyama Prasad Mukherjee Port in Kolkata.

The ministry of external affairs termed it a historic milestone in the Indo-Bangladesh connectivity and economic partnership.

It will help in further development of the northeast region. It will enhance business services and revenue generation in Bangladesh while the logistical sector will also get a big boost

India-Bangladesh agreement

India and Bangladesh signed a memorandum of understanding (MoU) on the use of the Chattogram (Chittagong) and Mongla ports in 2015.

Both countries signed an agreement in October 2018. 

In 2019, during the visit of PM Sheikh Hasina to India, a Standard Operating Procedure (SOP) wherein Bangladesh allowed the use of its Chattogram and Mongla Ports for movement of goods to and from India through its territory was signed.

According to the SoP, goods reaching Chattogram and Mongla sea ports would be carried by road, rail, and water routes to:

* Agartala (Tripura) via Akhaura

* Dawki (Meghalaya) via Tamabil

* Sutarkandi (Assam) via Sheola

* Srimantpur (Tripura) via Bibirbazar.

What are the highlights of the agreement?

Indian transshipment goods would enjoy a 28-day free-stay after offloading at the port as per the international transshipment agreement.

With this, the northeast region which was earlier connected to the mainland by the ‘Chicken’s Neck’ corridor and through curvy mountainous roads will now have access to seaports.

The new venture will provide an alternative and shorter route to connect the northeast region through Bangladesh, reducing distance and time taken in transportation of goods for India and is a win-win for both the economies.

Job creation, investment in the logistical sector, enhanced business services and revenue generation are advantages that will accrue to Bangladesh. 

Bangladeshi vessels and trucks will be utilised to move the Indian cargo. 

Considering the small size of the northeast economy, and the availability of road and rail infra through Indian territories, port officials in Kolkata do not expect a huge movement of transshipment cargo through Chattogram at this juncture. 

However, any availability of such cargo, will help improve the viability of Kolkata-Chattogram coastal shipping. 

The charter-hire rates on this sea route is currently ‘reasonably high’, due to one-sided (India to Bangladesh) nature of the trade and non-availability of return cargo. 

To solve the problem, India invited Bangladesh to use Kolkata for third-country movement of cargo. The proposal is yet to be accepted. 

Meanwhile, the high rates reduce the availability of cargo, adding to the waiting time and costs. Addition of transit cargo, may therefore help improve the flow, reducing the transport costs for India-Bangladesh trade.

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