Tk.1,330/ton Transit Fee Proposed for Indian Goods

[integra]

Are you absolutely sure about that mate? Cause I don't know, these graphs paint a "slightly" different picture.

I know next thing you are going to say is, that there is informal cross border trade blah blah blah, so here's the figure for that too,

====================================================
Source: Economic synergies between Bangladesh and North East India-Dr Atiur Rahman, 2009

Source: Bangladesh's Export Opportunities in the Indian Market-Rahman et.al.2010

The import is raw materials such as limestone , alumino-silicate, ores and similar. This will keep on increasing
as more infrastructural projects increases in bd. The economy of NE is'nt still developed enough so they can't buy
anything worthwhile. Secondly the natives are more comfortable to use Chinese stuffs rather than BD or Indian stuffs except tripura which has a biasness towards BD .

 

[eastwatch]

BTW, I just came across another report by a consultancy firm (Castalia Advisors) who have performed an analysis on the same. (Here's the link: Powered by Google Docs )

According to their recommendations, the optimal charges should be around US$ 55 per truck, when each truck has a capacity of 15 tons. So, the charges should be US$ 4 per ton, not US$ 19 per ton.

I think, BD proposal of transshipment fee is an interim one. It will be finalized after a long negotiation. Presently, BD does not have the infrastructure to deal with Indian trucks that would want to go straight to Meghalaya or assam. Only we, the locals, know how painfully we travel and cross the rivers.

The present cargo transhipment arrangement is a temporary one only to serve the Patiala Power Plant in Tripura. BD needs to build or widen a few hundred kms of wider roads and numerous bridges, or overhead expressway to accomodate a heavy traffic of goods from a neighbouring country.

So, who will bear the expenses to build up this additional infrastructure that may cost $10 billion or more? Unless India is ready to pay, there arises no question of transshipment. It does not serve our national interest. However, I think, the present (BoB + river + road) route that is being used for Patiala may be used for the transshipment of Tripura bound cargo only in the future.

 

[twoplustwoisfour]

I think, BD proposal of transshipment fee is an interim one. It will be finalized after a long negotiation. Presently, BD does not have the infrastructure to deal with Indian trucks that would want to go straight to Meghalaya or assam. Only we, the locals, know how painfully we travel and cross the rivers.

The present cargo transhipment arrangement is a temporary one only to serve the Patiala Power Plant in Tripura. BD needs to build or widen a few hundred kms of wider roads and numerous bridges, or overhead expressway to accomodate a heavy traffic of goods from a neighbouring country.

So, who will bear the expenses to build up this additional infrastructure that may cost $10 billion or more? Unless India is ready to pay, there arises no question of transshipment. It does not serve our national interest. However, I think, the present (BoB + river + road) route that is being used for Patiala may be used for the transshipment of Tripura bound cargo only in the future.

If you go through the report, Chapter 5 deals with the costs associated with this project, including all capital costs. Let me quote from the report:

We have used data from four sources to estimate current road construction costs of a standard construction National Road in Bangladesh—that is a two lane highway with a crest width of 12.2 metres and a pavement width of 5.5 to 7.3 metres. They are:

1. The Bangladesh Roads and Highway Department (RHD) estimates1 that the current capital cost of road construction for a two lane National Road
standard road is 60 million Taka (Tk.) per kilometre—around $US0.851M at current exchange rates

2. From the World Bank’s Road Costs Knowledge System (ROCKS), average construction costs for a two lane highway—the standard of most of
Bangladesh’s national roads—in the Asian region is given as $US0.875M per kilometre in year 2000 dollars. Escalating to 2010 dollars (by the US CPI)
gives an approximate current of $US1.105M per kilometre

3. The Bangladesh Roads and Highways Department (RHD) reported in 1999 that the value of road assets was approximately $US 7.4 billion. Escalating that value and applying that to the road network at the time and assuming that regional roads are half the cost per kilometre of the national roads—
reasonable as many are only single lane and zila roads (feeder roads) are one third the cost of national roads gives a cost for national roads as $US0.841M per kilometre; and

4. A selection of major road widening, upgrading and improvement projects—in essence new construction—provided by the RHD showed an average
estimated expenditure of $US0.943M per kilometre. The sample of seven high priority projects totalled over 1200 kilometres of road.

These four sources all confirm similar costs and thus we have used the average—a construction cost of $US0.935M per kilometre for a national highway standard road.

So yes, this tariff takes into consideration all capital costs as well as maintenance costs envisaged for a new 2 lane highway.

 

[notsuperstitious]

Has any Bangladeshi here thinking of preserving our captive market in NE? I mean why are we allowing Bharti a short cut route using our land that will saved them in Billions. Do you guys not think that Bharat is desporate to devolope chicken neck NE before it come under our dominance.

I am sorry but you guys are short sighted. We will pay heavyly if we allow enemy Bharat to use our land.

NE to come under your dominance? I hear all you guys talk of annexing assam, NE and what not. In the same breath you keep calling India imperialistic and hegemonic in every post.

By accusing India you are only trying to hide your own wet dreams, it can be said.

We, in both scenarios, laugh at you.

 

[SR 71 Blackbird]

Yes, therefore you should use that power to eliminate some open toilet that your people use.

BD- per capita income-$1565
IND-per capita income-$3290

BD-HDI 0.469
IND-HDI 0.519

Source:Wikipedia.

 

[integra]

BD- per capita income-$1565
IND-per capita income-$3290

BD-HDI 0.469
IND-HDI 0.519

Source:Wikipedia.

Unfortunately that still does not describe the open toilet phenomenon.
Even Botswana has per-capita income of $15,450

so what?

 

[twoplustwoisfour]

Unfortunately that still does not describe the open toilet phenomenon.
Even Botswana has per-capita income of $15,450

so what?

Unfortunately, that still does not justify your trolling by bringing in the Toilet situation in India every time you are defeated in an argument.

 

[SR 71 Blackbird]

Unfortunately that still does not describe the open toilet phenomenon.
Even Botswana has per-capita income of $15,450

so what?

Per-capita expenditure on sanitation & water supply:

IND-$5.5 per capita.
BD-$3.6 per capita

 

[damiendehorn]

Well the best for all concerned is for Bangladesh to set the rates it feels is the most profitable for it, and then india can decide if it wants to use the access route or not. i think $20 per ton is fair, if you guys think you can't afford it don't use it, simple.

 

[Bang Galore]

Well the best for all concerned is for Bangladesh to set the rates it feels is the most profitable for it, and then india can decide if it wants to use the access route or not. i think $20 per ton is fair, if you guys think you can't afford it don't use it, simple.

Valid point. BD is free to ask for any price it wants with the corollary being that India is then free not to take that option. The point here however is to achieve a mutually acceptable solution since reciprocity on other matters would clearly be dependent on flexibility shown. BD should certainly not feel burdened by the requests but surely everyone understand that a rigid stand would only cause counter rigidity on matters where BD has an interest. The idea is to achieve a good working relationship between BD & India, something that is a bit of a lost cause with members on this forum. It is quite idiotic the way some members here argue against this on the grounds that NE will be developed or that a market there would be lost. Any rigidity on BD's part would almost certainly carry the risk that India will do the same; how that would help BD is beyond my comprehension.

 

[LaBong]

Valid point. BD is free to ask for any price it wants with the corollary being that India is then free not to take that option. The point here however is to achieve a mutually acceptable solution since reciprocity on other matters would clearly be dependent on flexibility shown. BD should certainly not feel burdened by the requests but surely everyone understand that a rigid stand would only cause counter rigidity on matters where BD has an interest. The idea is to achieve a good working relationship between BD & India, something that is a bit of a lost cause with members on this forum. It is quite idiotic the way some members here argue against this on the grounds that NE will be developed or that a market there would be lost. Any rigidity on BD's part would almost certainly carry the risk that India will do the same; how that would help BD is beyond my comprehension.

I don't think you got the bold part right, that certainly isn't the idea of majority of Bangladeshis here.

 

[damiendehorn]

Please give examples of where india will show "flexibility and reciprocity" that may persuade Bangladesh to be flexible as well. If it costs Bangladesh to build and maintain the route a certain amount why should Bangladesh not charge that FULL amount to india, that would make no economic sence. So i come back to the main issue, indian always say that they are not a charity, and that its business, so Bangladesh should look at this as a business venture and try to get the maximum revenue from this.

 

[Bang Galore]

Please give examples of where india will show "flexibility and reciprocity" that may persuade Bangladesh to be flexible as well. If it costs Bangladesh to build and maintain the route a certain amount why should Bangladesh not charge that FULL amount to india, that would make no economic sence. So i come back to the main issue, indian always say that they are not a charity, and that its business, so Bangladesh should look at this as a business venture and try to get the maximum revenue from this.

That would depend on where you might need/ want flexibility. In any case it's your call, just as long as you realise that in international relations, actions- positive or negative always have consequences that are derived from them . I cannot argue with any degree of certainty whether a particular amount is the right one to be charged or not, whether it is economically feasible or not. It may very well be fair & acceptable to all concerned, if so great! My point here is about the attitude of some members where everything is seen as a chance to twist a knife in. Just reminding those that it is usually a two way street. Is it anybody's argument that BD would never require anything from India? Something that might seem appealing if you live far away from BD & therefore will never suffer the consequences of one's rhetoric. Looks like the present BD government sees it differently. The future lies in co-operation not in unnecessary confrontation.

 

[Bhairava]

Please give examples of where india will show "flexibility and reciprocity" that may persuade Bangladesh to be flexible as well. If it costs Bangladesh to build and maintain the route a certain amount why should Bangladesh not charge that FULL amount to india, that would make no economic sence. So i come back to the main issue, indian always say that they are not a charity, and that its business, so Bangladesh should look at this as a business venture and try to get the maximum revenue from this.

Some thing like river water sharing ?

 

[CaPtAiN_pLaNeT]

This is quite disturbing in terms of economics... if India has been charged only for its uses... not any duty... it is because if bangladesh only get operational cost, and road damage cost... then from where BD will get profit and what is the reason behind giving bhartis the transit... above all there is these so called transit (which in reality is a corridor) infrastructure building cost... Does it even economically feasible for bd to give bhartis transit under present circumstances... Even bd is not getting any prefferential duty free access to Indian market to make some extra profit... fir this curtasy of duty free transit... It will be suicidal for bd to give duty free transit tot he bhartis... As it will only make NE India economically developed... which is in no way a good deal for bd in the mean time not gaining anything under present circumstances...