India, Bangladesh to open new trade connectivity route on September 3

India, Bangladesh to open new trade connectivity route on September 3

   Kautilya Academy    27-08-2020

On September 3, 2020, a Bangladeshi vessel will transport a cargo of cement to Tripura as part of the efforts to boost connectivity between the two countries.

India and Bangladesh have chosen to open another shipping lane from September 3, 2020, to advance provincial network by growing the extent of inland water transport systems that will empower exchange support the district. 

On September 3, a Bangladeshi vessel will ship a payload of concrete to Tripura as a major aspect of the endeavors to support network between the two nations. The vessel will convey 50 metric huge amounts of concrete from Premier Cement Ltd. of Bangladesh. 

The course which will interface Sonamura in Tripura to Daudkandi in Bangladesh has been operationalized under the understanding marked by the two nations in May 2020 to support riverine exchange. 

Key Highlights: 

• The new course among India and Bangladesh will encourage respective exchange with improved unwavering quality and cost-adequacy for the business network. 

• The understanding marked among India and Bangladesh in May 2020 was to help exchange by including two new courses and five additional ports for improving the availability to India's north-eastern states and to decrease the transportation costs. 

• according to the conversations between Bangladesh Inland Water Transport Authority and Inland Water Authority of India, the primary development will be on 93 km Daudkandi-Sonamura course.

• Customs formalities for the pilot movement will be completed at the land customs station at Srimantapur-Bibirbazar.

Trade relations between India and Bangladesh:

India and Bangladesh had in 1972 signed the Protocol for Inland Water Trade and Transit for the inland waterways connectivity between the two countries for the bilateral trade and for improving connectivity to India North-eastern states.

The protocol was further expanded with a signing of the second addendum on May 20, 2020, that further added two new routes and five ports of call, taking the total number ports of call to 11 and routes to 10.

During the fiscal years 2019-20, around 3.5 million tonnes of cargo was transported through inland waterways.

As per the official, the connectivity provided by the existing and the new routes is more essential amid the COVID-19 pandemic as it will be key to faster, economical, greener, and safer transportation for the business communities of both the countries.  

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