The freight charge for the Bangladeshi and Indian ships plying each other’s territories under the coastal shipping agreement will be the same for both the countries.This was outlined in the draft Standard Operating Procedure (SOP) of the coastal shipping agreement, signed during Indian Prime Minister Narendra Modi’s visit to Bangladesh last June.The SOP will be finalised at the shipping secretary-level meeting of the two countries, which is due to take place later this month in New Delhi.Once the SOP is finalised, the two countries’ ships will ply each other’s coastal waters to transport cargo, a move that will slash transport costs by two-thirds.At present, trade between India and Bangladesh is conducted through Colombo or Singapore, due to which the cost goes up and so does the transit time.For instance, the freight charge for carrying one tonne of rice to Bangladesh from India would be between $30 and $35, whereas it costs $90 now.Now, importers need to pay $1,700-$2,400 as freight charge per container with 4,000-5,000 tonnes of capacity and wait 30 to 40 days to get their consignmentThey would need to pay only $400 for carrying the same amount of goods, which would reach Bangladesh in eight days, according to Bangladesh’s shipping industry people.The shipping charges will be fixed by the maritime authorities of both the countries, and a joint shipping committee of the two countries will review the freight charges from time to time.As per the draft SOP, 14 ports (seven in each country) have been named as ports of call.In Bangladesh, the ports of call are Chittagong, Narayanganj, Khulna, Mongla, Sirajganj, Ashuganj and Pangaon.In India, the ports are Kolkata, Haldia, Paradip, Kakinada, Visakhapatnam, Krishnapatnam and Chennai.Besides, they can announce any port as port of call from time to time through discussions.Ports of call are ports where a ship docks in the course of its journey to load /unload cargo, obtain supplies, or to have repairs done.Four routes have been identified for inter-country trade.Each country will maintain the river routes in its territory in navigable condition and provide all the essential pilotage and conservancy services, including hydrographic surveys and supply of charts.
