• Monday, August 20, 2018

India for changes in coastal shipping pact with Bangladesh

Discussion in 'Bangladesh Defence Forum' started by Black_cats, Aug 10, 2018.

  1. Black_cats

    Black_cats FULL MEMBER

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    India for changes in coastal shipping pact with Bangladesh
    Published: August 09, 2018 12:06:59

    https://thefinancialexpress.com.bd/...stal-shipping-pact-with-bangladesh-1533794819

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    Container shipping lines and port operators are seeking a change in the bilateral coastal shipping agreement signed between India and Bangladesh to permit transshipment of Bangladesh cargo from Indian ports.

    The India-Bangladesh coastal shipping agreement covers only origin-destination cargo between the two neighbouring countries, according to a report by www.thehindubusinessline.com.

    “We have started discussions with authorities in Bangladesh to allow transshipment of their cargo from Indian ports,” Capt Deepak Tiwari, Chairman of the Container Shipping Lines Association (CSLA) of India, said. “Chittagong port in Bangladesh is heavily congested; so why not take advantage of that,” he said.

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    The Shipping Ministry will separately pursue an amendment to the pact, a Shipping Ministry official said.

    Garment cargo from Bangladesh is currently sent to the UK via the transshipment hubs of Colombo or Singapore.

    Recently, India denied request from a major UK-based retailer to transship its garment cargo from Bangladesh through Chennai as this was not allowed in the coastal shipping agreement, the Ministry official said.

    “There is a case for re-visiting the bilateral coastal shipping agreement signed between India and Bangladesh to include transshipment cargo as well,” said Vinita Venkatesh, director, Krishnapatnam Port Container Terminal Pvt Ltd.

    To facilitate transshipment, Chennai Customs has issued a notice stating that coastal vessels will now get Import General Manifest (IGM)/ Export General Manifest (EGM) rotation number for transshipment containers.

    Chennai Customs has also given green signal to sea-air transshipment of cargo from Chennai to West Asia based on a proposal from Orient Shipping Line. Besides, the Chennai Customs is evaluating the possibility of allowing transloading (re-stuffing into new containers) of Bangladesh garment cargo for an exporter who wants to transship the cargo to UK via Chennai instead of Singapore, the Ministry official said.
     
  2. TopCat

    TopCat ELITE MEMBER

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    Good proposal. But the deal should be reciprocal.
     
  3. bluesky

    bluesky SENIOR MEMBER

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    The deal cannot probably be reciprocal. Chennai or other Indian Ports will receive BD coasters/small vessels with containerized goods for transshipment on the larger Ocean-going vessels. The same formula will also be used for the imported goods destined for BD.

    Chittagong Port, being technically a river port, itself cannot handle large Ocean-going ships because of the shallow draft, and Ocean-going ships cannot anchor here. So, India is proposing BD goods to be transhipped in Chennai instead of other deep seaports like Colombo or Singapore. Chittagong cannot reciprocate. Even the future Payra Port can be used only for the nearby Kolkata Port.
     
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  4. Gibbs

    Gibbs SENIOR MEMBER

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    Why would Bangladeshi exports transship through Indian ports when Indians themselves use Colombo and Singapore for theirs ? Logistics doesn't mean having a deep water port itself, It requires a gamut of other efficient services that make the operation faster

    Thats the reason only a handful of ports like Singapore, Jebel Ali and Colombo are coincided hubs not dozens of others in the region
     
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  5. bluesky

    bluesky SENIOR MEMBER

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    Wiki says the draft at Chennai is 17.0 m. It is good enough to be a deep sea port. This port has also container terminals and loading/unloading facilities for containers. India wants BD to use this port instead of Colombo for the transshipment.

    Anyway, it is just an Indian proposal. BD will certainly not do something impulsive that will hurt its foreign trade. However, I wonder if India can be reliable considering the mindset of Indians. Colombo and Singapore ports are more efficient, no doubt.
     
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  6. Gibbs

    Gibbs SENIOR MEMBER

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    Again just because it's a deep draft port does'nt necessarily mean it can facilitate to be a transshipment port, I have been trying to explain this to some Indian posters here as well who think by just building a port that has deep water berthing facility will automatically make it a transshipment hub with major container lines lining up there, Does'nt work that way especially regards to their much hyped up Enayam in TN and Vizhinjam in Kerala built by Mr. Modi's main benefactors Adani's but infrastructure alone wont make ports viable, Cos in maritime logistics other aspects matter, Clearing time berthing times, red tape, return times, Transparency etc.. Shippers look for efficiency and value for money and those aspects takes decades to be established
     
  7. Bilal9

    Bilal9 ELITE MEMBER

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    Transshipment has nothing to do with Draft and everything to do with location, efficiency and speed of handling as mentioned by some other posters here.

    There are specially designed container ships being made to Zhejiang shipyard design in China which can handle 12m draft requirement in river ports like Chittagong. Maersk Chittagong is one of these new generation ships serving Chittagong. I have mentioned this in some of my previous posts. A search will find these posts.

    Bangladesh will soon have other ports that have deeper draft such as Matarbari/Sonadia where 19m draft will be the norm. Payra will also have deeper draft but not as deep as Matarbari.

    When Matarbari comes on line, it can handle 60,000 DWT container ships which can go directly to European ports, no need to transship anywhere like Colombo, or Singapore, much less Chennai.
     
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  8. Turingsage

    Turingsage FULL MEMBER

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    Thats fine but in the interim why would you stop your own exporters from having a choice and some competition that would/may reduce shipping costs, offer choice in scheduling and greater flxibility. Hating India enough to cut off your own nose to spite your face does not make economic sense. Fortunately Bangladeshi businessmen are not morons sitting in foreign countries passing useless advice.
     
  9. Bilal9

    Bilal9 ELITE MEMBER

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    I have reported your name calling and further derailing tactics like this will get you banned.
     
  10. Turingsage

    Turingsage FULL MEMBER

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    Since you cannot read . It says Bangladeshi businessmen are NOT morons. I have not said anything about you except to say people living comfortably in the West they hate and pronounce policies for Bangladeshi businessmen should allow Bangladesh to formulate policy
     
  11. Bilal9

    Bilal9 ELITE MEMBER

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    Chittagong Port getting congested is a propaganda manufactured by Indian port authorities (Chennai and Kolkata) so they can get a piece of the Bangladesh container traffic business.

    There are a couple of issues with transshipping at say Chennai.

    First - Chennai is not a world class shipping hub like Colombo. much less Singapore. Efficiency and volume wise it cannot even compete with Chittagong, much less with Colombo, even further less with Singapore.

    Second - If you have to find a ready ongoing (one stop) connection on ships that are going to say the EU countries or USA, good luck doing that in Chennai. These consolidated-load mega carrier container ships call at Colombo and Singapore but not Chennai. Colombo and Singapore remain the places where overwhelming majority of transshipment from/to Bangladesh take place.

    Kolkata ports (mainly Haldia) is even more out of the question. Their equipment and efficiency can be compared with maybe Mongla, our least developed container port. No disparagement here, just facts.

    Even if Chennai and Kolkata were choices to transship to/from, Bangladeshi shippers won't use them. They have terrible experiences regarding efficiency of Indian ports. I talk to forwarders and shippers in Chittagong port on a regular basis. Some happen to be my friends at the Chittagong club...when it comes to dealing with Indian ports its always a thumbs down situation.

    Chittagong congestion is in the historical past, they imported plenty of gantry cranes, added plenty of dock acreage at the New Mooring docks and congestion is no longer an issue. When Payra and Matarbari goes online, things will be even less critical...

    [​IMG]

    So Indian port owners' dream of getting container traffic from here and building their port capacity on the back of Bangladeshi business will remain just that - a dream.
     
    Last edited: Aug 11, 2018
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  12. bluesky

    bluesky SENIOR MEMBER

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    No, no. instead of using Chennai @Bilal9 wants BD to build ships in Zhejiang shipyard in China for use in a shallow draft port like Chittagong. But, how many years the shipowners will take to build these and the point is it is the owners' decision whether to heed his specialized advice or not. Will they unnecessarily spend a billion dollars to build ships in China? So, his advice is no solution.

    The GoI is forwarding a business proposal to the GoB to use Chennai. Now, it is the GoB who will accept it or not and then it is the ship operators who will decide to use Chennai or not. I am personally not optimistic about Chennai because it cannot substitute Colombo.

    Matarbari Port is ten years away, and the Payra Port at least five years. However, in my humble opinion, the international operators of large Ocean-going ships may not use these two ports because the goods/containers in such ships are not all destined for BD alone. There can be goods for Thailand, Burma, Indonesia, India, and others.

    It means that even we have Matarbari, still, we will have to depend upon other deep seaports. However, Matarbari can be an anchorage point for large ships if this port serves BD, Indian NE, Kolkata, Nepal, Bhutan, Burma West, and Kunming.

    So, it is an unwise thinking that the large ships will come to Matarbari instead of Colombo or Singapore where the ports are fitted with terminal facilities required to distribute goods via the smaller coastal ships.

    Hi, will you stop this kind of heinous act? Are you an old woman whining at every opportunity? It is a discussion forum where people have the right to express their opinions. But, you are here waiting to report people and get them banned. You must have a very complex mind that surprises me.

    You talk as if you are the real father of the nation and defender of Bangladesh. What is your own contribution to this Forum except that time to time you send photographs of sweetmeats, polau/korma, layered tea in colors/shades, flats that look like an office building?
     
    Last edited: Aug 11, 2018