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Cabotage: India and Bangladesh move closer to coastal shipping cooperation
INDIA and Bangladesh have taken a significant step towards the introduction of coastal shipping services between the two nations after their governments agreed on a standard operating procedure to operationalise a coastal shipping deal reached in June.
"The standard operating procedure will pave the way to promote coastal shipping between India and Bangladesh, and would enhance bilateral trade between the two countries by bringing down the cost of transportation," said a press statement issued by India's Ministry of Shipping, reported IHS Media.
The new rules have coastal vessels of both countries treated the same as mainline carriers. "India and Bangladesh shall render same treatment to the other country's vessels as it would have done to its national vessels used in international sea transportation."
The statement noted that trade moving to and from Bangladesh is currently transhipped via Colombo, Sri Lanka, and Singapore, involving long delays and significant additional costs.
To attract more operators to the sector, the two sides also agreed to permit "river-sea" category vessels for coastal operations. "It is not profitable for big vessels to operate between seaports in the two countries. Under such circumstances, there is a need for smaller ships to provide direct connectivity of eastern seaports of India with Chittagong and other ports in Bangladesh," the ministry said.
New Delhi believes the coastal shipping cooperation with Bangladesh will generate more cargo volume for ports on the country's east coast, particularly Kolkata.
"The standard operating procedure will pave the way to promote coastal shipping between India and Bangladesh, and would enhance bilateral trade between the two countries by bringing down the cost of transportation," said a press statement issued by India's Ministry of Shipping, reported IHS Media.
The new rules have coastal vessels of both countries treated the same as mainline carriers. "India and Bangladesh shall render same treatment to the other country's vessels as it would have done to its national vessels used in international sea transportation."
The statement noted that trade moving to and from Bangladesh is currently transhipped via Colombo, Sri Lanka, and Singapore, involving long delays and significant additional costs.
To attract more operators to the sector, the two sides also agreed to permit "river-sea" category vessels for coastal operations. "It is not profitable for big vessels to operate between seaports in the two countries. Under such circumstances, there is a need for smaller ships to provide direct connectivity of eastern seaports of India with Chittagong and other ports in Bangladesh," the ministry said.
New Delhi believes the coastal shipping cooperation with Bangladesh will generate more cargo volume for ports on the country's east coast, particularly Kolkata.
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