BD unlikely to reroute external trade through Indian ports

Bangladesh government won't encourage businesses to use Indian ports for rerouting export-import trade as no special facility comes therefrom and a local deep-sea port is forthcoming, sources say.

Vessel traffic from the under-construction Matarbari deep-sea port is not far off now-its operation is expected by 2026.

Officials concerned also have taken such a decision as the Indian ports may not be able to offer to Bangladesh any special facility compared to the regional transhipment ports in Colombo, Singapore and Port Klang.

They also point out that deployment of a adequate number of feeder vessels between Chittagong and Indian ports would be necessitated by the mother- vessel operators to launch shipping service on this route.

It is not clear whether the mother-or feeder-vessel operators will agree to deploy vessels on this route by considering business prospects, they have said.

SM Mostafa Kamal, a joint secretary at the ministry of shipping, led a 13-member Bangladeshi delegation early July to visit ports in Chennai, Krishnapatnam, Vishakhapatnam, Kolkata and Haldia.

The familiarisation trip aimed at observing the technical feasibility, commercial viability, and infrastructure facilities at the Indian ports and to discuss what additional facilities they can offer if Bangladeshi businesses use the ports for external trade.

The Bangladeshi delegation undertook the visit to Indian ports as a follow-up to a decision made at the Indo-Bangla shipping secretary-level meeting held in Dhaka.

Mr Kamal told the FE Wednesday that, while visiting the ports, the delegation members asked the port authorities to let them know in writing what additional facilities can be offered to Bangladeshi businesses for carrying out third-country export-import business using the ports.

"However, one and a half months have passed by since their visit, but the Indian port authorities didn't communicate further," he said.

"We will hold a meeting of the delegation members soon and submit a report to the ministry," he added.

Mr Kamal thinks cargo diversion to Indian ports would entail a big loss for the Matarbari deep-sea port which is expected to start operation in a few years time now.

Bangladesh's total annual external trade now stands at some US$120 billion maximum of which is being transported through Chittagong seaport.

However, increased congestions at the Chittagong port few years back forced Bangladeshi traders to look for alternative routes to carry export-import cargoes in a faster way.

As such, the issue was discussed at the India-Bangladesh shipping secretary-level meeting in 2023. At the meeting decision was made on assessing the technical feasibility and commercial viability of using the Indian ports, the officials said.

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