Bangladesh customs has given the green light to India to use regular cargo routes through the country in order to transport food supplies from West Bengal to the mountainous northern regions of India, which are currently struggling with agricultural and industrial production.
This follows a request by the Indian government to Bangladesh to open its Chittagong and Mongla seaports for Indian domestic cargo being transported to the northeast of the country.
It’s a move that has, however, raised concerns about congestion for shippers using the Chittagong port.
India’s trucks from West Bengal to Agartala have, until now, been forced to travel 1 650 kilometres through Guwahati to deliver goods. Now they are able to use an alternative route through Bangladesh which spans a few hundred kilometres, reducing their travelling times and associated costs, and bypassing Bangladesh customs.
This agreement was initially signed in 2018. But despite several trials, a lack of electronic locking infrastructure, permissions to allow regular transit, and pending new customs laws, it was delayed till this year.
Now Indian cargo will be delivered at Chittagong and Mongla ports by ships. Thereafter it will be transported by trucks to the northeastern states. The containers will be sealed, locked and escorted by customs officials.
Bangladesh stands to gain revenue from port dues, transhipment fees, processing fees, road use fees, scanning charges, escort fees and administrative fees.
However, shippers remain concerned about the congestion which may arise due to increased volumes of goods. It is believed that Chittagong and Mongla do not have the capacity to sustain this influx of goods, considering they are already struggling with overcrowding.
