The shipping cost for exports to India through Bangladesh’s waterways will decline by 30 per cent compared to road transport, boosting bilateral trade in the process, according to experts.
“Water transport will have to be used for outgoing shipments in order to ensure economical use of resources while saving the environment from pollution at the same time,” said Mohammed Mezbah Uddin Chowdhury, secretary of the shipping ministry.
Chowdhury made these comments while addressing a programme commemorating the country’s first food shipment to India through inland waterways.
The Bangladesh Inland Water Transport Authority (BIWTA) organised the shipment, consisting of 40,000 cartons of litchi drinks produced by local conglomerate Pran. A typical river-going ship can carry 1,200 tonnes of product while it takes at least 70 to 75 trucks to carry the same volume of cargo by road.
For this reason, shipment costs through waterways is cheaper than road transport.
“However, local exporters do not utilise this facility and for this reason, Indian ships carrying fly ash into Bangladesh leave empty handed,” Chowdhury said.
Md Jafar Uddin, secretary for commerce, urged Pran to build up its capability to export quality products at competitive prices to help the country face its post-graduation challenges once it leaves the least developed grouping in 2026.
Uddin expressed hope that Pran will be able to help cover the decline in exports during the transition period with its diversified product base.
He also asked the company to establish an edible oil plant to cater to local demand with reasonable prices.
Addressing the programme, Khalid Mahmud Chowdhury, state minister for shipping, said Pran’s market acquisition in India is a proud moment for all of Bangladesh.
Praising the private sector’s contribution to the economy, Chowdhury said that Bangladesh is now a major exporting country.
Besides, the government is increasing its fleet of dredgers to ensure navigability of all river routes to facilitate river transport for cargo, he added.
Ahsan Khan Chowdhury, chairman and chief executive officer of Pran-RFL Group, said they are ready to ship products through river routes.
Around 15,000 workers are employed in Pran’s industrial zone, from which the company exports products to 145 countries.
Anwarul Ashraf Khan, a member of parliament from the Narsingdi-2 constituency, also addressed the programme, presided over by commodore Golam Sadeq, chairman of BIWTA.
The consignment of 40,000 litchi drinks set sail for Kolkata via Narayanganj-Sheikbaria of Khulna yesterday.
The ship will travel around 710 kilometres to reach its destination on March 24.
The ship is sailing under the protocol of inland water transit and trade between Bangladesh and India.
However, it is not the first time a Bangladeshi company has used waterways to export goods to India.
Premier Cement, a leading local cement manufacturer, opened the door in this regard on September 3 last year by shipping 50 tonnes of cement to India’s north-eastern state of Tripura.
Now, the cement maker sends five to six consignments each day.
Pran exports around 150 products to India, including fruit drinks, chips, snacks, sauce, ketchup, noodles, jelly and spices.
It sends these items to 28 Indian states, including Assam, West Bengal, Uttar Pradesh, Bihar, Gujrat, Tripura, Punjab, Tamil Nadu and Kerala.
There is a huge demand for Bangladeshi processed food in India, especially in West Bengal and seven sister states.
Pran is constantly trying to supply products that meet the needs of the people of India and its exports to the country are growing at an annual average of about 10 per cent.
Source : The Daily Star
