MEXICO: Improved connectivity in the South Asian region, both through road links and waterways, is being leveraged by the Centre as a means to enhance regional co-operation and foster intra-regional trade. The latest among these measures is the standard operating procedure (SOP) India and Bangladesh signed to operationalise an agreement on coastal shipping last Sunday.
The pact is aimed at promoting bilateral trade and bring down the transportation cost of export-import cargo. Apart from this, India has also signed a proposal to facilitate free vehicular movement with Bhutan, Bangladesh and Nepal (BBIN) and is also working on operationalising a 3,200-km road link from Moreh (India) to Mae Sot (Thailand). According to the India-Bangladesh SOP, both countries will have to treat each other’s vessels as per international sea transportation norms.
Besides, the two sides have also agreed on using river sea vessels (RSVs), which are smaller in size, for Indo-Bangladesh coastal shipping. A senior government official said, “The deep draft ports on the eastern coast of India can be ‘hub ports’ for the onward transportation of cargo to Bangladesh via the coastal mode through RSV category of vessels. The Indian ports will attract enhanced cargo and also the overall transportation cost to Bangladesh will get reduced. Besides, the opening of coastal shipping between India and Bangladesh would enable the movement of cargo to the North East through coastal shipping up to Chittagong and thereafter by road/inland waterways.”
