Transhipment of Indian goods

T. M. Tonmoy Islam Vanderbilt University Nashville, Tennessee, USA
Bangladesh is almost totally surrounded by India from the west, north and east. The northeastern states of India are land-locked in the sense that goods need to travel large distances, circumventing Bangladesh, to reach other parts of India. According to the government of Tripura, the distance between Agartala and Kolkata (formerly Calcutta) as the crow flies is only 350 km. However, if one travels between these two cities by circumventing Bangladesh, the distance is greatly increased to almost 1700 km, according to the Department of Tourism of the Government of India. Goods following the traditional, longer route require more time and resources to reach the economic centres of India. This bottleneck to trade may be said to be one of the causes for the under-development of that region. Bangladesh can help in the development of the north-eastern region of India, and in the process, earn some substantial revenues by allowing transhipment of Indian goods across Bangladesh.

Transhipment is not a new thing in this world. A number of countries depend on transhipment to earn substantial amount of revenues. The Internet have a list of the 15 busiest transhipment centres in this world under the heading "World's busiest transhipment port." It shows that Singapore is the busiest port, while Colombo is one of the top 15. Just by handling goods for their re-export to other countries, these ports earn a substantial amount of foreign currencies.

To maximise benefit for Bangladesh through transhipment, the government can stipulate that only Bangladeshi trucks or trains will tranship Indian goods when they are travelling across Bangladesh. The goods can be custom-checked and sealed in containers at Akhaura (the Bangladeshi town situated very close to Agartala). Bangladeshi trucks or trains can then ferry these goods to Benapole, where they can pass customs again before handing them to India. The goods may even be taken from Akhaura to Chittagong so that they can be shipped to Kolkata. A special branch of the law-enforcement agency can provide security to these goods to prevent theft. The construction of the Padma Bridge will help to make this facility even smoother. For the transportation of goods on Bangladeshi soil, the government can ask for a 'transhipment and security of the goods' fee from India. Providing transhipment facilities can also create job opportunities in the transportation sector and in the clearing and forwarding industry of Bangladesh.

Bangladesh can also provide India with a list of 'acceptable' goods that can be transhipped across Bangladesh. The goods on the negative list cannot be allowed to be transported across Bangladesh. Our country can also stipulate to India that, in order to avail this transhipment opportunity, India should allow Bangladesh full access to tranship goods over Indian soil to Nepal and Bhutan. This way, trade between Bangladesh and the land-locked countries of Nepal and Bhutan can increase. India has recently opened trade with China through the Nathu La Pass in Sikkim. Bangladesh may even stipulate to allow it to trade with China through the Nathu La Pass. This way, China can be linked with Bangladesh by road, making trade smoother between these two countries.

Prime Minister Begum Khaleda Zia called for faster integration of the Saarc region economically at the "Saarc Council of Ministers" in Dhaka on August 1, 2006. The previous Awami League government tried to provide transhipment facility to India, but it met with violent opposition in Bangladesh. However, in the economic interest of the country, transhipment of Indian goods should be allowed across Bangladesh.