Bangladesh grants permanent access to Chattogram and Mongla ports

02 May 2023 CW Team

By allowing India to use the ports of Chattogram and Mongla for cargo vessel transit and trans-shipment, Bangladesh has made a crucial strategic move.

Bangladesh's National Board of Revenue (NBR) published a permanent standing rule that states, “The permanent transit order was issued by the NBR following the completion of trial runs for the operationalization and regular movement of goods." This decision will shorten and reduce the cost of shipping products to India's northeastern states and West Bengal, while also strengthening regional connectivity in the Bay of Bengal.

Bangladeshi ports, the NBR, customs, and other taxing parties will be charged in accordance with the country's tax and VAT rules. According to the directive, this will include expenses for documentation, transhipment, security, scanning, administrative charges, an electric lock and seal fee, and toll fees for utilizing Bangladeshi highways.

Chattogram Port, located in Bangladesh's southern area, serves as the country's principal seaport and is located near the Karnaphuli River. More than 90% of Bangladesh's export-import trade is handled by the port.

Mongla Port, Bangladesh's second-largest seaport, is located near the Bay of Bengal's coastline. Previously, India faced significant time and cost challenges when transporting goods to its northeastern states.

However, officials from both countries recently revealed that the new decision to allow India access to the Chattogram and Mongla ports will address these issues, resulting in shorter transportation times and lower transportation costs. This conclusion was made following bilateral consultations between the two countries.

By using the Mongla port, India can further improve connection between these states and the rest of the country by avoiding the tiny Siliguri Corridor, colloquially known as the 'Chicken's Neck.'

As a result, eight routes have been identified for connecting India's Northeastern region through Bangladesh's seaports, including Chattogram or Mongla Port to Agartala (India) through Akhaura (Bangladesh); Chattogram or Mongla Port to Dawki in Meghalaya (India) via Tamabil in Sylhet city (Bangladesh); Chattogram or Mongla Port to Sutarkandi in Assam (India) through Sheola (India); and Chattogram or Mongla Port to Srimantpur in Tripura (India) via Bibir Bazar (India).

By allowing India to use the ports of Chattogram and Mongla for cargo vessel transit and trans-shipment, Bangladesh has made a crucial strategic move. Bangladesh's National Board of Revenue (NBR) published a permanent standing rule that states, “The permanent transit order was issued by the NBR following the completion of trial runs for the operationalization and regular movement of goods. This decision will shorten and reduce the cost of shipping products to India's northeastern states and West Bengal, while also strengthening regional connectivity in the Bay of Bengal. Bangladeshi ports, the NBR, customs, and other taxing parties will be charged in accordance with the country's tax and VAT rules. According to the directive, this will include expenses for documentation, transhipment, security, scanning, administrative charges, an electric lock and seal fee, and toll fees for utilizing Bangladeshi highways. Chattogram Port, located in Bangladesh's southern area, serves as the country's principal seaport and is located near the Karnaphuli River. More than 90% of Bangladesh's export-import trade is handled by the port. Mongla Port, Bangladesh's second-largest seaport, is located near the Bay of Bengal's coastline. Previously, India faced significant time and cost challenges when transporting goods to its northeastern states. However, officials from both countries recently revealed that the new decision to allow India access to the Chattogram and Mongla ports will address these issues, resulting in shorter transportation times and lower transportation costs. This conclusion was made following bilateral consultations between the two countries. By using the Mongla port, India can further improve connection between these states and the rest of the country by avoiding the tiny Siliguri Corridor, colloquially known as the 'Chicken's Neck.' As a result, eight routes have been identified for connecting India's Northeastern region through Bangladesh's seaports, including Chattogram or Mongla Port to Agartala (India) through Akhaura (Bangladesh); Chattogram or Mongla Port to Dawki in Meghalaya (India) via Tamabil in Sylhet city (Bangladesh); Chattogram or Mongla Port to Sutarkandi in Assam (India) through Sheola (India); and Chattogram or Mongla Port to Srimantpur in Tripura (India) via Bibir Bazar (India). See also:Bangladesh permits India’s use of 2 ports to transport goodsSonowal dedicates projects worth Rs 148 cr in Chennai, Kamarajar Ports