India, Bangladesh have signed Standard Operating Procedure for operationalising the Agreement on Coastal Shipping.The agreement was signed in June 2015 in order to improve the bilateral trade by reducing the logistic costs of EXIM transport.
Key facts of Standard Operating Procedure(SOP):
- The SOP has been framed as per the terms & conditions of the Agreement on Coastal Shipping and its provisions have been agreed by the both nations.
- It would pave the way to promote coastal shipping between India & Bangladesh and further enhance bilateral trade by bringing down the cost of transportation of import export (EXIM) cargo.
- It would in turn facilitate trade and transportation of goods between the two neighbours through coastal or inland waters.
- India And Bangladesh would stipulate same treatment to each other’s national vessels on similar grounds of national vessels used in international sea transportation. The two sides also have agreed to use of vessels of River Sea Vessel (RSV) category for Indo-Bangladesh coastal shipping.
Advantages of agreement Connectivity to North East India:
It would enable opening of coastal shipping between India & Bangladesh. Thus, help to enhance the movement of cargo to the land-locked North-East Indian states through coastal shipping up to Chittagong or thereafter by road & inland waterways.
Hub ports:
The deep draft ports on the eastern coast of India can be used as hub ports for the further onward transportation of cargo via coastal mode through RSV category of vessels to Bangladesh.
Attract enhanced cargo:
Indian ports will be able to attract enhanced cargo and help in reducing the overall transportation cost to Bangladesh.
Trans-shipment ports:
Indian ports can also serve as trans shipment ports for transportation of cargo from Bangladesh. Thus, it will enhance throughput as a result of Indo Bangladesh coastal trade.
India And Bangladesh sign SOP for operationalising Agreement on Coastal Shipping
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