IMPORTANCE OF PROTOCOL ON INLAND WATER TRADE & TRANSIT (PIWT&T) BETWEEN INDIA & BANGLADESH FOR NORTH-EAST REGION. PART -II


IMPORTANCE OF PROTOCOL ON INLAND WATER TRADE & TRANSIT (PIWT&T) BETWEEN INDIA & BANGLADESH FOR NORTH-EAST REGION

 PART-II

In continuance to the article posted on the blog on 3rd April 2021, an attempt is made in Part-II of the article explaining further on the strategical importance of the existing Protocol between India & Bangladesh for NE States of India and its neighbouring countries, the various MOUs & Agreements, issues & challenges, cargo potentials and development strategies & policies.

1. Further Strategical Importance of PIWT&T
1.1 Act East Policy & other economic initiative

India’s “Look East Policy” started in the year 2004 and subsequently renamed as” Act East Policy” (during 2014) paved the way for looking NER as a new way of development and economic integration with the rest of Asia mainly North East and South East Asia, in particular. Thus, it has increased the focus of the Government of India in developing the North-Eastern Region for looking towards a partnership with the Association of Southeast Asia Nations (ASEAN) countries, both within BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and the India-ASEAN Summit dialogue as integrally linked to economic and security interests, particularly for India’s East and North-East region.

The proposed BCIM (Bangladesh, China, India & Myanmar) economic corridor (Fig-1) conceived by the Peoples Republic of China linking Kolkata with Kunming, the capital of Yunnan province of China through Bangladesh, Manipur & Mizoram in NER, Mandalay of Myanmar with future linkage to Thailand and Laos has also been considered not only as a game-changer for this region in Asia, but is also pivotal for India’s ‘Act East’ Policy. This has facilitated further in the emergence of    economic initiative for BBIN (Bangladesh-Bhutan-India-Nepal) corridor and the need for strengthening of PIWT&T as explained earlier.
               
                                                                                                                                                                         



Fig-1 : BCIM economic corridor  


1.2 Various Agreements and MOUs
  To bring about significant reduction in logistic cost and faster delivery of the EXIM cargo to Bangladesh & other land-locked countries under BBIN MV (Motor Vehicle) agreement, the concept of the ‘Third country’ EXIM Trade under the provision of Coastal Shipping & PIWTT by allowing transhipment through Indian Ports on the East Coast was conceived and Coastal Shipping Agreement between India and Bangladesh was signed during 2015 (Fig-2). 




  Fig-2: Agreement for coastal shipping   

The creation of these economic corridors has been important for further initiatives of India with a host of other policies, projects and MOUs for developing and strengthening of marine trade and connectivity.
Some of these are: -
Declaration of SOP (Safe Operating Procedures) under Coastal Shipping Agreement on 15th November 2015 for facilitating the RSV (River Sea Vessels) Type-III & IV from seven (7) designated Indian Ports in east coast to equal numbers of sea and riverine ports of Bangladesh as in the table below for Bilateral and Transit Cargo movement.

Sl.No
Designated ports in East Coast of India
Designated Ports in Bangladesh
1.
Kolkata
Chittagong
2.
Haldia
Mongla
3.
Paradeep
Khulna
4.
Visakhapatnam
Paira
5.
Kakinada
Pangaon
6.
Krishnapatanam
Ashugonj
7.
Chennai
Narayangonj

MOU for development of fairway on protocol routes mainly used for transit cargo movement through dredging operation on the river system Padma, Meghna and Yamuna with financial assistance of India.
MOU for the Use of Chittagong and Mongla Ports for the movement of Goods to and from India and further movement to NER by using the protocol routes, rail and road infrastructure of Bangladesh with the objective of reducing the logistic cost of the export cargo (Fig-3).
MOU for the movement of the passenger ferry and vessels between India and Bangladesh.
Agreement for development of transit port at Ashugonj for container handling with the connectivity of rail & road mode to Tripura through Indian Investment.

Agreement for development of Sherpur as Transit for providing connectivity to south of Assam.

Development of Jogighopa as a MMLP (Multi Modal Logistic park) & trans-shipment terminal for movement of cargo to Bhutan besides the NE States has been taken up along with notifying Dhubri & Jogighpa terminal of IWAI and Munshiganj River & Chilmari terminals of Bangladesh for custom clearance centres.

Development of suitable terminal at Maia in West Bengal on the river Padma and Sonamura on the river Gumti in Tripura.





    Fig-3: Agreements for Coastal shipping and use of Mongla & Chittagong Ports

2. Strategic Interest of India
India-Bangladesh trade has flourished over the last few years. India’s exports to Bangladesh in 2019-20 (July-June) were US$1096.38 million and imports from Bangladesh during the same period were US$5793.60 million. In the last five years, total trade between the two countries is reported to be grown by over 40% showing the upward trend. Total Indian investments (Foreign Direct Investment) in Bangladesh as registered with Bangladesh Investment Development Authority are US$3.11 billion with an upward trajectory which in future as estimated may be US$9 billion. In the last 15 years Bangladesh’s exports to India have grown 10-fold. During the same period, India’s exports to Bangladesh have grown 6 times. Bangladesh is now India’s biggest trade partner in South Asia. The rapid industrialization with the establishment of over 100 Economic Zones and 15 SEZ for RMG (Ready-Made Garments), perfume, FMCG, sea food etc for export to overseas including NER & mainland India, there has been steady growth in the bilateral trade with the strategically importance of PIWT&T.
3. Potential cargo/traffic
The recent studies conducted by IWAI through the reputed consultants like of M/s Earnest & Young Pvt Ltd, M/s I-Maritime Consultancy Pvt Ltd, and M/s Howe Engineering Project (India) Pvt Ltd, reveal the huge potential of divertible cargo projection from rail and road mode to IWT. The potential commodities for bilateral(inter-country) cargo traffic besides fly ash, stone chips & boulders may be the cotton & fabrics, RMG (Ready-Made Garments), FMCG & perfume, steel & steel product, clinkers and cements, containers of general and refrigerated and POL & gasoline from RML, etc.The potential commodities of transit traffic may be food grain, fertilisers & FRM, bitumen, automobiles, project cargo (ODC), plastics, agricultural products including horticultures with refrigeration facilities in the vessels or containers, etc.
4.  Issues, challenges and constraints
In the present scenarios because of the various issues, challenges and constraints for developing and ensuring the efficient inland navigation system through some of the designated IBP Routes and the ports of call, it has not yet been feasible in achieving the objectives of the protocol fully. These issues and constraints are mainly: -
Lack of suitable Inland navigation system i.e., fairway with adequate water depth & AtoN mostly in the routes presently used for transit cargo to NER in the river Yamuna and Meghna system.
Lack of adequate terminal facilities & infrastructure, including MMT (Multi Modal Terminal), logistics and first & last mile connectivity  
Lack of adequate return cargo from NER & Bangladesh
Absence of safeguarding against navigational and other security hazard in the no-man's-land.

Absence of customer friendly Custom and clearance procedures
Absence of suitable Policy frame work & regulation for sustainable development of the navigation system and cargo promotion
Tariff and para-tariff barriers,


Mis-match with disparity on the standards of the fleet of Indian and Bangladesh with respect to construction, equipment and manning.
Lack of suitable transit ports & transhipment facilities.

5. Development projects & strategy: - As per the provision of the protocol, both the countries are committed to developing and maintaining the fairways & port infrastructures within their territories. Bangladesh has been successful in all the major waterways including DCC (Dhaka- Chittagong- Corridor) for achieving the new height in inland navigation system. But there are still gaps, particularly on the routes mainly used for transit cargo movement despite of the financial assistance from India since the signing of the Protocol. However, with the increased importance of the protocol, recently there have been the orientation of the policies including the required coordination and cooperation from both the countries in facilitating the sustainable and vibrant inland navigation system through the protocol routes and its ports for higher bilateral trade and Transit cargo to NER specially in the emergence of Tripura as the new gateway to the north-east & beyond. As a result, dynamism in the implementation of various plan & schemes for fairway development, port infrastructures & aids to navigation through the increased bilateral financial assistances, world Bank funding have been observed. The regulatory framework with simplification, harmonization of the protocol rules and regulationsfig2part2 & custom procedures, with the requirement of Institutional strengthening and capacity building in both the Governments have been acknowledged & the initiatives for appropriate actions & measures.

         
 
 By S. Dandapat, Former Chief Engineer (Project & Marine), IWAI & Sr. Consultant to Howe Engineering Project(I) Pvt Ltd, Ahmedabad. Email Id: Suvadandapat@gmail.com, Mobile No: +919717622733


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