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India Okays Deal on Indo-Bangla Coastal Shipping

Maritime Activity Reports, Inc.

June 1, 2015

 The Indian government has approved an agreement on coastal shipping between India and Bangladesh for cheaper cargo movements between them.  

 
“The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the agreement on coastal shipping between India and Bangladesh to carry out coastal movement of goods between the two countries,” said an official statement.   
 
The Indian ports serving as trans-shipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade, it said, adding that both the nations shall render the same treatment to the other country's vessels as it would have done to its national vessels used in international sea transportation.
 
Allowing coastal movement of goods will lead to a steep reduction in freight charges for exporters and importers from both countries. It will also enable better utilisation of capacities of Indian ports and open up new opportunity for Indian coastal vessels.
 
The pact will also help decongest roads, especially at the land custom stations/integrated check posts on the Indo-Bangladesh border.
 
Currently, there is no significant cargo movement between the sea ports of Bangladesh and India as it is not profitable for the big ocean going vessels to operate between the ports of the two countries. 
 
Therefore, to reduce the cost of shipping operations, a lower but pragmatic standard of vessel known as River Sea Vessel (RSV) has been prescribed for coastal shipping. 
 

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