Reform can enhance Bangladesh's foreign trade 50pc, end smuggling: ADB

The Asian Development Bank foresees a pickup in the country's foreign trade as it offers financial aid for bolstering Bangladesh's nine land ports through refurbishing and removing cumbersome customs procedures.

Officials said Wednesday the Manila-based development financier has proposed providing US$144.5 million for upgrading the capacities of the frontier ports with India and Myanmar.

In a communication with government, the ADB says if the government goes for reform and trade-facilitation works, the foreign trade volume will increase by 50 per cent, cargo shipment-and customs-clearance time will be reduced by 50 per cent and smuggling will be prevented.

"Since Bangladesh is going to graduate as a developing nation in 2026, its cargo- handling, customs-clearance and other capacities in the border areas will have to be boosted," it is quoted as saying.

The lack of capacity and complex customs and clearance procedures at the land ports are hampering Bangladesh's foreign trade heavily and acting as key factors for a poor position in the World Bank Group's 'Ease of Doing Business' report.

A senior Economic Relations Division (ERD) official says the government is going to take up $152.5 million project for modernising cross-border trade. "The ADB alone will provide $144.5 million and the rest amount will be spent by the government."

Bangladesh Land Port Authority (BLPA) and the National Board of Revenue (NBR) would implement the proposed project, he adds.

The border ports up for upgrading include Darshana, Birol, Sonahat, Sheora, Bibirbazar, Teknaf, Akhaura, Sonamasjid and Tamabil.

"We have already discussed with the ADB. The development partner has assured us of bankrolling the project," the ERD official says.

Under the South Asian Subregional Economic Cooperation (SASEC), the lender will provide the funds under 'Integrated trade facilitation sector development programme'.

The NBR will install integrated customs building with IT equipment, laboratory, chemical and other product detectors for modernising the customs-and cargo- clearance systems for smarter trade transactions.

The BLPA will construct administrative building, cargo-transshipment docks with canopy, storage warehouses, X-ray cargo-scanning facility, weighbridge, drivers' restroom, and truck-parking areas.

Meanwhile, the ADB has requested the Bangladesh government to do reform in some areas of foreign-trade facilitation aiming to enhance the capacity and speed of the customs and other procedures at the land ports to cope with foreseen trade growth.

The ministries of commerce, shipping, and finance, NBR, BLPA, Chittagong Port Authority, and Mongla Port Authority have already implemented a lot of projects for giving a facelift to the ports which failed to upgrade the services at an expected level.

Bangladesh has 181 customs stations for the use of land ports. Of those, the government has declared 24 land customs stations as land ports while 12 are now operational.

Of the 12 existing ports, seven-Benapole, Burimari, Akhaura, Bhomra, Nakugaon, Tamabil, and Sonahat-are now under the direct supervision of the land port authority.

The remaining five-Sonamasjid, Hili, Banglabandha, Teknaf and Bibirbazar -- are being operated on BOT (build-operate-transfer) basis through private operators.

There are 12 new land ports under construction, namely, Biral, Darshana, Bilonia, Gobrakura-Koraitali, Dhanua-Kamalpur, Ramgarh, Tegamukh, Chilahati, Daulatganj, Sheola, Balla, Bholaganj.

Only one of the land ports of Bangladesh conducts trade with Myanmar and all the rest with India.

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