Summary: 

The government of Bangladesh will not encourage companies to reroute export-import commerce through Indian ports because no special facilities are provided and a local deep-sea port is on the horizon. Concerned authorities also made this choice because they believe Bangladesh may not be able to receive any preferential treatment from Indian ports in comparison to regional transshipment ports in Singapore, Colombo, and Port Klang.

Context:

The Matarbari deep-sea port is currently under construction, and vessel traffic is anticipated to begin operations by 2026. However, according to insiders, the government of Bangladesh will not encourage companies to reroute export-import commerce through Indian ports because no special facilities are provided there and a local deep-sea port is on the horizon. Concerned authorities also made this choice because they believe Bangladesh may not be able to receive any preferential treatment from Indian ports in comparison to regional transshipment ports in Singapore, Colombo, and Port Klang. They also note that in order for the mother-vessel operators to begin shipping operations on this route, they would need to deploy a sufficient number of feeder vessels between Chittagong and Indian ports. They have stated that it is unclear if the operators of mother or feeder vessels will consent to deploy vessels on this route based on business prospects. At present, Bangladesh’s yearly gross external trade amounts to approximately US$120 billion, with the majority of that amount passing via Chittagong seaport. Nonetheless, a few years ago, growing traffic at the Chittagong port compelled Bangladeshi merchants to search for speedier ways to transport goods from export to import. A 13-member Bangladeshi team was headed by SM Mostafa Kamal, a joint secretary at the Ministry of Shipping, on a port visit to Chennai, Krishnapatnam, Vishakhapatnam, Kolkata, and Haldia in early July. The purpose of the familiarization trip was to observe the Indian ports’ infrastructure, commercial viability, and technological feasibility. It also planned to examine what extra services the Indian ports could provide if Bangladeshi enterprises used them for export trade.

In response to a resolution reached during the Indo-Bangla shipping secretary-level meeting held in Dhaka, the delegation from Bangladesh visited ports in India. Mr. Kamal informed the Financial Express on Wednesday that during the delegation’s visit to the ports, the members of the delegation requested in writing a list of any extra services that might be provided to Bangladeshi companies operating out of the ports in order to facilitate their export-import operations with foreign countries. “However, one and a half months have passed by since their visit, but the Indian port authorities didn’t communicate further,” he stated. “We will hold a meeting of the delegation members soon and submit a report to the ministry,” he stated. Mr. Kamal believes that the Matarbari deep-sea port, which is scheduled to open in a few years, would suffer a significant loss if traffic were to be diverted to Indian ports. 

Picture and Article Sources: The Financial Express, Business Post