BANGLADESH

Bangladesh and India have agreed to form a joint committee to look into the possibility of transhipment of Indian goods from deeper draft vessels to shallow draft vessels at any point in Bangladesh.

"We have taken the decision today," said joint secretary of shipping ministry Mohammad Alauddin after a meeting of the standing committee of Protocol on Inland Water Trade and Transit (PIWTT) Monday.

He led the Bangladesh delegation at the meeting, held after 14 months, that continued for over 24 hours in two days and signed the agreed upon minutes.

Under the existing system, Sherpur and Ashuganj are the transhipment points where vessels or mode of transport can be changed for goods destined from one part of India to another.

"The committee will submit its report as soon as possible," Alauddin said.

BANK GUARANTEE

The bank guarantee clause in PIWTT has been retained and will be applicable to transhipment of goods, the joint secretary said.

"Indians opposed the provision but we will retain it," he said.

National Board of Revenue issued a circular in August last year under which bank guarantee is needed for all transhipment goods.

ASHUGANJ PORT

The joint secretary said the government is interested to operationalise Ashuganj river port for transhipment-related activities, but due to infrastructural problems, it is difficult to happen now.

"We don't have any infrastructure at Ashuganj port. For transhipment activities, we need to develop it," he said.

Bangladesh allowed three commercial cargo transhipments on trial basis last year and before that over dimensional cargoes for Palatana power plant went from Kolkata to Tripura through Ashuganj.

NEW TRANSHIPMENT POINT

In the meeting, Indian side proposed to declare Chattak as a new transhipment point but Bangladesh side asked for a formal proposal from the neighbouring country, Alauddin said.

"After receiving the formal proposal, we will look into the matter," he said.

Sherpur was the first transhipment point since 1972 and Ashuganj was declared second point in 2010.

MAINTENANCE CHARGE

India has agreed to increase the maintenance charge to Tk 100 million from existing Tk 55 million, Alauddin informed.

The Indian government every year provides Bangladesh Tk 55 million for maintaining transit routes in the country, he said.

Alauddin said the next meeting of the standing committee will be held in July this year.

The issue of transit and transhipment has become a thorny one between Bangladesh and India when Delhi failed to sign an interim Teesta agreement during the visit of Indian premier Manmohan Singh to Dhaka last year.

Bangladesh signed PIWTT under Bangla-Indo trade agreement in 1972 and it will expire on March 31 this year.

The next renewal meeting of PIWTT will be held in March.