Transit and Transhipment: Implications for Bangladesh and Overall Impacts on Bangladesh

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Recommended: Economic development of Bangladesh

1. INTRODUCTION

1.1 Background

Transit and transhipment issues have raised a lot of controversy inside Bangladesh in recent years. In Indo-Bangladesh trade talks, 'Transit' refers to the passage across Bangladesh territory of Indian goods to and from the North-Eastern States of India using Indian-owned surface transportation, while 'Transhipment' refers to the same movement using Bangladesh-owned means of transport. The issue is a matter of geographic and economic necessity for India, while for Bangladesh it has security, political and economic dimensions.

Transit facility between BD and India existed in rail and waterways till the outbreak of the 1965 war. After 1971, transit facilities through waterways were reintroduced, which exist till today. SAFTA treaty 2004 provides for transit facilities in all modes of transport, rail, water, air or road by all SAARC countries. The proposal for allowing transit facility to India, launched in the mid-1990s, drew instant reactions in Bangladesh.

1.2 Objectives

The purpose of this paper is to open up the issue, to present some basic facts, and to attempt a qualitative assessment of the opportunities and disadvantages for Bangladesh and to examine the transportation infrastructure to determine the possibilities of transhipment.

1.3 Scope

The issue of transit / transhipment needs to be examined against the infrastructure capacity in Bangladesh including roads, railways, waterways, and sea and river ports. This analysis will help to pin point specific areas where improvement and development will be required.

1.4 Methodology

This paper is prepared based on the secondary data analysis from various sources of books, newspapers, journals and websites.

2. NECESSITY OF TRANSIT...

... middle of paper ...

...e only if the benefits of allowing transit are overwhelmingly in favour of Bangladesh’s national economic interest.

Works Cited

1. Rehman Sobhan. (1999). Transforming Eastern South Asia. Dhaka, UPL.

2. Gulshan Sachdeva. (2000). Economy of the North-East. Delhi, Konark Publishers Pvt. Ltd.

3. Gurudas Das. (2000). Border Trade – North-East India and Neighbouring Countries. New Delhi, Akansha Publishing House.

4. Bangladesh Railway. (2000). Information Book. Dhaka: Author.

5. Bangladesh Bureau of Statistics. (2007). Statistical Pocketbook of Bangladesh. Dhaka: Author.

6. Government of Bangladesh. (2007). RHD Road Network Database Annual Report. Dhaka: Author.

7. Abdul Hafiz, M. (1999, August 24). Transit: A Matter of National Security. The Daily Star, p. 9.

8. Abdul Bayes. (1999, August 07). Transhipment should be Transparent. The Daily Star, p.10.

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