Professional Documents
Culture Documents
By Professor A. R. Bhuyan
Organized by
Introduction
Instances of transit of traded goods between two trading partners through territories of third countries are very common. Transit facility between BD and India existed in rail and waterways till the outbreak of the 1965 war. After 1971, transit facilities through waterways were reintroduced, which exist till today. SAFTA treaty 2004 provides for transit facilities in all modes of transport, rail, water, air or road by all SAARC countries.
The proposal for allowing transit facility to India, launched in the mid1990s, drew instant reactions in Bangladesh.
Introduction Contd...01
The issue at hand is not that of trade between Bangladesh and India, but that of movements of goods from one part of India to another part of that same country through the territory of BD. The issue is hotly debated. Arguments for or against the proposal have been put forward regarding its costs and benefits. Most such views, for or against, appear conjectural, and are not based on any serious study or sound economic reasoning. This paper opens up the issue, presents some basic facts, and attempts a qualitative assessment of the opportunities and disadvantages for BD. Any quantitative estimate made here is highly tentative. More serious study will be needed to quantify the benefits and costs for both the two countries.
Introduction Contd.02
The Reasons why transit is an important issue: BD is located between the western parts of India and its Eastern and North Eastern States, physically separating the two parts of India. Because of this geographical separation, transportation between the two parts of India takes place by long-winding railways and hazardous mountainous roads along the Shiliguri corridor, causing huge cost to the Indian economy in terms of time and resources.
Shiliguri Corridor (Chicken Neck) is about 17 miles connecting New Jalpaiguri in the West and Kuchbihar in the East.
Introduction Contd..03
What We Need to know about Transit: a) The existing road infrastructure in Bangladesh and whether it will permit transit facility b) The cost of road development and maintenance c) The required security measures and their costs d) Convenient points/routes through which transit will be allowed e) The items of cargo that can be legally moved f) What type of fees can be charged for transit g) What methods/procedures are followed by other countries in matters of transit h) Possibilities of using alternative modes, such as rail or IWT, or a combination of road and rail, or rail and IWT, or all three transport modes.
Transshipment relates to transfer of cargo from one carrier to another. These carriers may belong to the country which transships the cargo. Ex: Indian cargo enters Benapole, is unloaded there and loaded in a BD vehicle, then unloaded at Tamabil (Meghalaya Border) or Akhaura (Agartala Border) and reloaded in Indian carriers.
Godagari (Rajshahi)-Goalondo. From there one sub-route is to Dhubri, and another sub-route is via Chandpur to Chhatak or Zakiganj Border of Assam.
3. 4.
Transit declined to a trickle because of lack of round-the-year navigation as well as absence of night navigation. Benefit accrued to BD in revenue was small. Transit by Rail: Rail link between Chittagong and Assam as well as between Calcutta Port and Assam via East Bengal was discontinued as a result of the partition of India in 1947.
The hunch among the Indian traders is that only 80% of the current goods traffic across Shiliguri, or 8 million MT, may be transited every year.
Possible Entry and Exit Points in Bangladesh along Land Routes for Transit of Indian Goods.
Western Side i. ii. iii. iv. Banapole Petrapole Boder Rohanpur Sindbad Border Hilli Balurghat Border Banglabandh Phulbari Border i. ii. iii. Eastern Side Tamabil Meghalaya Border Akhaura Agartala Border Chittagong Belonia Border
437 650
Hili Akhaura
Banglabandh Tamabil
404
876
Banglabandh Akhaura
Rohanpur Tamabil Rohanpur Akhaura
627
763 416
* From Indian point of view, Benapole Tamabil and Benapole Akhaura routes may be viable.
Recommendations
Transit facility to India appears feasible but a serious study will be needed to examine its benefits and costs. Alternative routes and modes of transport rail and IWT may be examined. Lessons should be drawn about legal, administrative and logistical aspects of transit transportations from international experience. Transit facility to India can be allowed on economic ground but at the same time BD should also be given the facility to transit export and import cargo to Nepal and Bhutan through convenient routes across the Indian territory.
Recommendations Contd01
The concern over abuse of transit right for moving forbidden items drugs, military weapons etc. can be addressed by introducing modern techniques of scanning and sealing advices. A transit agreement will be acceptable only if the benefits of allowing transit are overwhelmingly in favour of Bangladeshs national economic interest.
Thanks