India, Bangladesh to Launch New Riverine Trade Route on Sept 3

India and Bangladesh are set to operate a new riverine trade route on 3 September, when a Bangladeshi vessel will transport cement cargo to Tripura as part of efforts to enhance connectivity between the two countries.

The road linking Sonamura in Tripura to Daudkandi in Bangladesh is being initiated under an agreement signed by both sides in May to enhance riverine trade by introducing two more routes and five more ports in order to increase connectivity to the north-eastern states of India and to cut transport costs, reports Hindustan Times.

Following discussions between the Inland Water Authority of India and Bangladesh Inland Water Transport Authority, the first pilot movement on the 93-km Daudkandi-Sonamura route is expected to be held on September 3, people familiar with developments said on condition of anonymity.

Bangladeshi vessel MV Premier will carry 50 metric tons of cement from Premier Cement Ltd of Bangladesh to Tripura via the Gumti River, people said. Customs formalities would be done at the Srimantapur-Bibirbazar Land Customs Station, they added.

“The new route will facilitate bilateral trade with improved reliability and cost-effectiveness for the business community,” said one of the people cited above.

India and Bangladesh signed the Protocol for Inland Water Trade and Transit in 1972 for inland waterways connectivity between the two sides for bilateral trade and to improve connectivity to India’s north-eastern states. The protocol was expanded with the signing of a second addendum on May 20 that added two new routes and five ports of call to takes the total number of routes to 10 and ports of call to 11.

During fiscal 2019-20, about 3.5 million metric tonnes of cargo were transported via the inland waterways.

“The connectivity provided by the existing and the newly added routes is all the more pertinent amid the Covid-19 crisis as it will be key to economical, faster, safer and greener transportation for the business communities of both countries,” the person said.

The other new route – Rajshahi-Dhulian-Rajshahi – will help increase the infrastructure in Bangladesh and reduce the cost of transporting goods such as stone chips to northern Bangladesh. Land customs stations on both sides are also expected to be decongested.

In the context of India's concerted efforts to boost economic aid and connectivity with key neighbors in the border standoff with China, the new riverine trade route is being operationalized.

Last month, India handed over 10 railway locomotives to Bangladesh, reflecting a renewed focus on its “neighbourhood first” policy. This came close on the heels of the first cross-border container train reaching Bangladesh with 50 containers of FMCG goods and fabrics and the first trans-shipment of container cargo from Kolkata to Agartala in the landlocked north-eastern region via Bangladesh’s Chattogram port.