Bangladesh allows Indian cargo through Chattogram, Mongla ports

New Delhi: India can now use two crucial Bangladesh ports - Chattogram and Mongla - for shipment of its cargo, which will cut time and cost significantly, Union Minister Mansukh Lal Mandavia said on Monday.

The development comes against the backdrop of a pact signed by both the nations on October 5 in presence of Prime Minister Narendra Modi and Bangladesh Prime Minister Sheikh Hasina here.

"Prime Minister Modi's successful foreign policy initiative has resulted in Bangladesh allowing use of Chattogram and Mongla Ports for movement of goods to and from India..," Shipping Minister Mandaviya told media persons.

The use of these two ports will reduce the distance between Kolkata and northeast region significantly.

The standard operating procedure (SOP) on use of Chattogram and Mongla ports has been finalised after the two countries signed an MOU on June 6, 2015, and an agreement on October 25, 2018, the minister said.

During the visit of Bangladesh PM Hasina, an SOP was signed by the two countries, which allowed India to use Chattogram and Mongla ports for movement of goods.

The agreement and SOP permit the movement of goods in Bangladesh through waterways, rail, road or multi-modal transport.

"Eight routes are provided under the Agreement which would enable access of North East Region (NER) via Bangladesh. The routes are: Chattogram/Mongla Port to Agartala(Tripura) via Akhura, Chattogram/Mongla Port to Dawki (Meghalaya) via Tamabil, Chattogram/Mongla Port to Sutarkandi (Assam) via Sheola and Chattogram/Mongla Port to Srimantpur (Tripura) via Bibirbazar and vice versa," Ministry of Shipping said in a statement.

The conclusion of the SOP on Chattogram and Mongla ports will reduce distance, time and logistic cost for transport of goods and is a win-win situation for both the economies, it said.

"Three landlocked states of India viz Assam, Meghalaya and Tripura will get access to open sea trade routes from Chattogram and Mongla ports via Indian ports. Tripura will be connected to Chattogram Port through the MaitreeSetu on Feni river at Sabroom in South Tripura and Ramgarh in Bangladesh. While Agartala is 135km from Sabroom, Chattogram port is 75km from Sabroom," the statement said.

Cargo transportation through IBP waterway route from Kolkata/ Haldia to the northeast is limited to 2,000-tonne vessels. Now, larger ships carrying cargo destined for northeast can call at Chattogram and Mongla ports thereby increasing trade volumes and reducing logistics costs, it added.

"The expected cargo to North East is construction material, iron & steel, fertilizer, consumer goods, POL, cement etc. Foodgrains, fruits, organic products, tea, fish, jute etc are the cargo expected to be transported from the North East to various parts of India through Chattogram and Mongla ports," the minister said.

On shipping and maritime affairs, India and Bangladesh have had very close cooperation in the last few years.

Under the Protocol on Inland Water Transit and Trade, in addition to the five Ports of Call (POC), Dhubri (India) and Pangaon (Bangladesh) have been added and both the countries have agreed to add for more POCs.

"Dredging has commenced under an MOU signed by the two countries on the development of fairway in selected stretches of Bangladesh waterways with Government of India bearing 80 per cent of the project expenditure and the balance by Government of Bangladesh. Cruise services have also commenced between the two countries promoting people to people contact after an MOU and SOP were signed," the statement said.