Bangladesh Eyes Indian Ports for Export Efficiency and Cost Reduction

A delegation from Bangladesh visited Kolkata to explore using eastern Indian ports for exporting goods, aiming to cut costs and time, officials said on Friday. The 13-member team, led by S M Mostafa Kamal, Joint Secretary of the Ministry of Shipping, included representatives from key ministries, private stakeholders, and ports in Bangladesh. They visited the Syama Prasad Mookerjee Port (SMP) between July 9 and 12.

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The delegation also evaluated other east coast ports such as Chennai in Tamil Nadu, Visakhapatnam, and Krishnapatnam in Andhra Pradesh. The visit aimed to assess the potential for transshipping Bangladesh's export cargo through SMP, Kolkata, leveraging India's strategic location and infrastructure. Analysts noted that Chittagong port in Bangladesh is highly congested, prompting Dhaka to explore Indian ports via existing Indo-Bangladesh protocol routes to ease congestion.

Potential Benefits of Using Indian Ports

During the visit, the delegation met with top officials from SMP, Kolkata, and other stakeholders. They discussed the advantages of using Indian ports for transshipment. These benefits include the availability of empty containers, shorter transit times compared to other major eastern Indian ports, dedicated vessels for Bangladesh-India routes, and optimized operational costs.

SMP Deputy Chairman Kolkata Samrat Rahi highlighted a cost comparative analysis showing that shipping export cargo from Chittagong to SMP would be more economical for further shipping to third countries than transshipping through ports like Colombo. "Two-way vessel movement will reduce overall transportation costs, enabling a win-win trade proposition for both nations," he said.

Future Development Plans

SMP officials presented future development plans during the meeting. These plans include direct voyages between SMP, Kolkata, and China; vessel movement between SMP, Kolkata, Chittagong, and Yangon port; the introduction of a Night-Navigation System; and extended allied service facilities at SMP, Kolkata.

The delegation's visit was a follow-up to the India-Bangladesh Shipping Secretaries Level Talks (SSLT) held in Dhaka in December 2023. The visit concluded with optimism from both sides. The Bangladeshi delegation assured that a report would be submitted to their Ministry of Shipping and communicated to India through diplomatic channels.

Strengthening Bilateral Trade Relations

This development is expected to strengthen Indo-Bangladesh bilateral trade relations. It aims to boost export-import trade and pave the way for a new era in maritime connectivity between the two nations. The delegation's visit underscores the importance of regional cooperation in enhancing trade efficiency.

SMP Chairman Rathendra Raman, Deputy Chairman of Haldia Docks A K Mehra, and senior officials from the Inland Waterways Authority of India were also present at the meeting. They discussed various aspects of improving maritime connectivity and trade efficiency between India and Bangladesh.

The visit aimed at assessing the potential for Bangladeshi exports to be transshipped through SMP, Kolkata. Leveraging India's strategic location and infrastructure could significantly benefit both countries' trade dynamics. The discussions highlighted how using Indian ports could help decongest Bangladeshi ports while optimizing costs.

The Bangladeshi delegation's visit marks a significant step towards enhancing maritime trade relations between India and Bangladesh. By exploring new avenues for transshipment through Indian ports, both nations stand to gain economically while improving logistical efficiencies.