DIVIDED BY BORDERS, UNITED BY LOGISTICS

India is using multimodal logistics in Bangladesh to connect north-eastern states and Bangladesh aims at skipping transhipment through Singapore by using Indian west coast ports for its exports. Dr Mashiur Rahman, Adviser on Economic Affairs to Prime Minister of Bangladesh, explains how India and Bangladesh are rising over their geographic constraints by collaborating to improve and use logistics infrastructure smartly

Q. India is going to use Mongla and Chattogram Ports. It has already begun using transit and transshipment facilities through Bangladesh which will help the development of India’s north-eastern states. What are the benefits to Bangladesh?

India had requested Bangladesh to allow it to use Chattogram Port even before our prime minister’s visit there in 2010. Our response was that India could use not only Chattogram, but also Mongla Port. It gives greater flexibility in operations if both ports are used. Say, if one port is congested for the time being, the other may be used. We took into consideration the need of Nepal and Bhutan, for whom Mongla is more convenient. Later, the two countries finalised the standard operating procedures on use of the two ports. You see, both the ports are used by foreign ships for trade with Bangladesh. In case of India, use of the ports is linked to transit through Bangladesh – agreements in this regard had existed since the partition of the subcontinent. Multimodality is a new dimension to transportation around the world. Indian goods will be carried across Bangladesh using road, rail, and inland water routes, whichever is convenient. They also need to store up the goods for some time. That needs warehouses. Right now we are not planning the whole thing together, but bit by bit, one after another. We are now improving roads for our own needs. India is also investing in improvement of the rail links. The Akhaura-Agartala train link is being established with Indian finance. Our benefit is that India will give us fees or charges for using our ports, inland water routes, roads and railways.

Q. A committee was formed to fix fees for transporting Indian goods through Bangladesh. However, its recommendations were not accepted. Why?