India and Bangladesh sign SOP to operationalize agreement on coastal shipping




India and Bangladesh signed the Standard Operating Procedure (SOP) in New Delhi, to operationalize the “Agreement on Coastal Shipping” signed between the two countries in June, 2015. The SOP will pave the way to promote coastal shipping between India and Bangladesh and would enhance bilateral trade between the two countries by bringing down the cost of transportation of EXIM cargo. The two sides have also agreed upon the use of vessels of  River Sea Vessel (RSV) category for Indo-Bangladesh coastal shipping.

India and Bangladesh have a Bilateral Protocol on Inland Water Transit and Trade (PIWTT) for operation of inland vessels on the river protocol routes between river ports of Haldia, Kolkata, Pandu, Karimganj and Silghat in India and Narayanganj, Khulna, Mongla, Sirajganj and Ashuganj in Bangladesh. This protocol between the two countries has facilitated the movement of EXIM trade as well as cargo bound for the North Eastern states of India.

Advantages of  the Agreement:

1) The opening of coastal shipping between India and Bangladesh would enable the movement of cargo to the North East through coastal shipping upto Chittagong and thereafter by road/inland waterways.

2) The deep draft ports on the eastern coast of India can be ‘hub ports’ for the onward transportation of cargo to Bangladesh via the coastal mode through RSV category of vessels.

3) The Indian ports will attract enhanced cargo and also the overall transportation cost to Bangladesh will get reduced.

4) 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.

Try This…

President of India Pranab Mukherjee on 28 May 2015 gave his assent to the Constitution (119th Amendment) Bill, 2013. It is related to ________________.

ANSWER
Answer – India – Bangladesh Land Boundary Agreement (LBA)