India and Bangladesh agree new coastal shipping arrangement

DSC_0200The union cabinet has approved an agreement on coastal shipping between India and Bangladesh for coastal movement of goods between the two countries.

“Exim trade between India and Bangladesh would be benefited by way of reduction in freight charges. It will also improve the utilisation of port capacities of Indian ports and open up new opportunity for Indian coastal vessels. It will also help in decongestion of roads especially at the land custom stations/integrated check posts at the Indo-Bangladesh boarder,” an official statement said.

The Indian ports serving as trans-shipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade, it said, adding that both the nations shall render the same treatment to the other country`s vessels as it would have done to its national vessels used in international sea transportation.

India`s trade with Bangladesh has grown rapidly during the past few years. Bangladesh is now India`s largest trade partner in south Asia.

Currently, there is no significant cargo movement between the sea ports of Bangladesh and India as it is not profitable for the big ocean going vessels to operate between the ports of the two countries.

Therefore, to reduce the cost of shipping operations, a lower but pragmatic standard of vessel known as River Sea Vessel (RSV) has been prescribed for coastal shipping.

The RSV category has significantly lower construction and operation costs without compromising on safety. For Indo-Bangladesh coastal shipping, the RSV category of vessel has been agreed upon by both the countries.

Instagram Posts from the IIMS @iimsmarine

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

Show details
Performance & Marketing Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages. This also helps us optimise our marketing campaigns. User data sent to Google Analytics may be used for ad personalization and measurement of our ad campaigns. Keeping this cookie enabled helps us to improve our website.

Show details