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Even before the independence of Bangladesh, the waterway was one of the key modes for the movement of freights with India like it was historically the case through the railway. Most of the railway network of Bangladesh was also built and developed in the British period, starting with a 53-km long broad-gauge track between Darsana and Jagati, in 1862. The record also shows that steam navigation in inland waterways began in the mid-nineteenth century with passenger services between Kolkata and key river ports of erstwhile East Bengal. The river routes were relatively cheap compared to road transport. Nevertheless, since the independence of Bangladesh in 1971, the importance of waterways started declining, as the country became focused more on developing roads and highways. The emphasis on roadways has also put the developmental issues of railway to the backburner. Bilateral trade with India also largely depends on roadways, although waterways are still used to carry freight.
In 1972, two countries signed the Protocol on Inland Water Transit and Trade (PIWT&T) in accordance with Article VIII of the Indo-Bangla bilateral trade agreement. The protocol was signed to make mutually beneficial arrangements for the use of their waterways for commerce between the two countries. The protocol also allowed the passage of goods between two places in one country and to third countries through the territory of the other. So far, it is one of the few Indo-Bangla bilateral deals that is still working.
The protocol was initially renewable every two years. Later, in 2015, with a few amendments, the deal became renewable every five years. The relevant section of the protocol said: "It shall automatically be extended for successive five years unless either Government terminates the protocol by giving a written notice of its intention to terminate to the other Government at least six months before end of term. In case of termination, it shall cease to operate on the expiry of the respective term. But termination shall not affect the actions taken or agreements reached pursuant to this protocol."
Consequently, the protocol was formally renewed on May 20, 2020, extending the scope. Two new routes and five new ports of calls were included in the protocol, making the total number of routes and ports of calls ten and eight, respectively. As the renewed period of five years will end on Tuesday next, it is to see what the governments on both sides of the border do. Suppose the governments maintain silence and neither side gives any notice for termination. In that case, the protocol will get another five years of extension, with the current terms and conditions unchanged. The automatic renewal will be effective from May 21, 2025. So far, there has been no indication from any of the governments to terminate the deal, especially when the two countries' bilateral ties have come under serious strain.
In the face of a mass uprising, Sheikh Hasina, the autocratic prime minister of Bangladesh, resigned and fled to India for shelter. Since then, the two neighbouring countries' bilateral relations have deteriorated. New Delhi's unconditional support to Hasian and persistent intervention in the domestic affairs of Bangladesh during one and half decades of the Hasina regime made the people of Bangladesh angry and disappointed. Hasina unleashed a reign of terror and oppression in Bangladesh with the backing of India. Her regime brutally killed around 1,400 people during the student-led mass uprising when more than 20,000 were also injured. As Hasina took shelter in Delhi on August 5 last year, a new era of Indo-Bangla ties has also emerged where Bangladesh signalled for a balanced and mutually respectful relationship. As Hasina had turned the country almost into a 'vassal state' of India, her ouster irritated the Indian establishment. Even after nine months of the fall of Hasina, India is yet to accept the reality in Bangladesh, making it difficult to restore normalcy in bilateral relations.
Nevertheless, bilateral trade is going on as both countries are interdependent regarding many products and services, and it is not easy to shift the sources of imports within a short period. The trade and transit cargo movements under the inland waterway protocol routes have also continued, though the volume has declined. The Bangladesh Inland Water Transport Authority (BIWTA) statistics showed that the total volume of cargo carried under the protocol declined by 13 per cent to 4.13 million tonnes (MT) in FY23 from 4.74 MT in FY22. In FY24, the volume declined further by 2.50 per cent in FY24 to 4.02 MT. The official statistics also showed that during the first half (July-December) of FY25, the water vessels carried some 1.97 MT of cargo in various protocol routes. Despite adding new routes under the protocol five years ago, most of the routes remained unused.
The protocol's main objective is to reduce the cost of bilateral trade and allow India to transfer goods using Bangladesh's inland waterways. It is also known as a river transit facility.
Around 99 per cent of the cargo was carried under the inter-country trade arrangements, which means a negligible amount of cargo was transited through Bangladesh waterways from one part of India to another part. Another interesting feature of the cargo movement under the protocol is the dominance of Bangladeshi vessels, as around 99 per cent of the trip is conducted by Bangladeshi ships. It indicates that Bangladeshi water vessel owners have gained significantly in carrying bilateral trade cargo.
Against the backdrop, it is clear that the importance of the protocol is there, and both countries need to continue the arrangement for bilateral trade. The protocol also provides necessary transit routes for India to connect the northeastern region, known as the seven-sisters, with mainland India. Though the usage of transit routes is small, keeping them open is helpful for India in reducing the cost of transferring products from one part to another. Bangladesh also needs to continue the facility for the neighbouring country as the movement of transit cargo is still limited and does not bring additional pressure on the movement of local cargo vessels. It is to see whether both governments will go for auto-renewal of the protocol or amend the agreement.