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

[fallstuff]

Suez Canal


When first built, the canal was 164 km (102 mi) long and 8 m (26 ft) deep. After multiple enlargements, the canal is 193.30 km (120.11 mi) long, 24 m (79 ft) deep, and 205 metres (673 ft) wide as of 2010.[2] It consists of the northern access channel of 22 km/14 mi, the canal itself of 162.25 km/100.82 mi and of the southern access channel of 9 km/5.6 mi

An oil tanker going from Saudi Arabia to the United States has 2,700 miles longer to go when taking the route south of Africa rather than the canal

The canal has no locks due to the flat terrain, and the minor sea level difference between each end is inconsequential for shipping.

There is one shipping lane with passing areas in Ballah-Bypass near El Qantara and in the Great Bitter Lake. On a typical day, three convoys transit the canal, two southbound and one northbound. The first southbound convoy enters the canal in the early morning hours and proceeds to the Great Bitter Lake, where the ships anchor out of the fairway, awaiting passage of the northbound convoy. The northbound convoy passes the second southbound convoy, which moors in Ballah-Bypass . The passage takes between 11 and 16 hours at a speed of around 8 knots (15 km/h; 9 mph). The low speed helps prevent erosion of the canal banks by ships' wakes.

By 1955 approximately two-thirds of Europe's oil passed through the canal. About 7.5% of world sea trade is carried via the canal today. In 2008, a total of 21,415 vessels passed through the canal and the receipts from the canal totaled $5.381 billion with the average cost per-ship at roughly $251,000.


link:

Suez Canal - Wikipedia, the free encyclopedia

 

[fallstuff]

Online toll calculator
Suez Canal

Date: 13-Apr-11 07:54:15
Type: Bulk Carrier
Double Hull: 0
Condition: Laden
Suez Nrt.: 100000
Beam: 60 Ft
Draft: 35 Ft
Tiers of Containers on Deck: 7
SDR: 1.59586

Estimation basis the data provided by your goodselves
Canal Tolls $339,519.00
Additional Canal Tolls $61,113.00
Additional Pilotage $900.00
Mooring/Projector $2,353.00
Pilotage $398.00 (Basis one movement/ No overtime)
Light Dues $10,000.00
Port Dues $3,000.00
Cleaning Expenses $150.00
Ministry Fees $1,350.00
Port Authority Transit Fee $250.00
Quarantine $60
Immigration Fees $25
Port Police $15
Sailing Permit $50
Tug Escort $25,534.00





Total Transit Cost $444,742.00

 

[fallstuff]

Tolls
RORO carriers, such as this one at Miraflores locks, are among the largest ships to use the canal

Tolls for the canal are decided by the Panama Canal Authority and are based on vessel type, size, and the type of cargo carried.[31]

For container ships, the toll is assessed per the ship's capacity expressed in twenty-foot equivalent units or TEUs. One TEU is the size of a container measuring 20 feet (6.1 m) by 8 feet (2.44 m) by 8.5 feet (2.6 m). Effective May 1, 2009, this toll is US$72.00 per TEU. A Panamax container ship may carry up to 4,400 TEU. The toll is calculated differently for passenger ships and for container ships carrying no cargo (“in ballast”). As of May 1, 2009 the ballast rate is US$57.60 per TEU.

Passenger vessels in excess of 30,000 tons (PC/UMS), known popularly as cruise ships, pay a rate based on the number of berths, that is, the number of passengers that can be accommodated in permanent beds. The per-berth charge is currently $92 for unoccupied berths and $115 for occupied berths. Started in 2007, this charge has greatly increased tolls for such vessels.[32] Passenger vessels of less than 30,000 tons or with less than 33 tons per passenger are charged on the same "per-ton" schedule as freighters.[33]

Most other types of vessel pay a toll per PC/UMS net ton, in which one "ton" is actually a volume of 100 cubic feet (2.83 m3). (The calculation of tonnage for commercial vessels is quite complex.) As of fiscal year 2008, this toll is US$3.90 per ton for the first 10,000 tons, US$3.19 per ton for the next 10,000 tons, and US$3.82 per ton for the next 10,000 tons, and US$3.76 per ton thereafter. As with container ships, a reduced toll is charged for freight ships "in ballast".

Small vessels up to 583 PC/UMS net tons when carrying passengers or cargo, or up to 735 PC/UMS net tons when in ballast, or up to 1,048 fully loaded displacement tons, are assessed minimum tolls based upon their length overall, according to the following table[citation needed]:


Panama Canal - Wikipedia, the free encyclopedia

 

[Roybot]

Is this a notable amount? only 76 Million USD? Is this the little amount India unwilling to pay, or unable to pay?

To be honest, its not really a big amount, but you should realize that Government of India won't be paying this amount, rather the transport companies will, who in turn will charge more from the small businessmen and traders. And for those small traders 76 Millions dollars/ year is a very big amount. Having said that, am not an advocate for free transit, Bangladesh should be duly paid by the Indian Government whatever extra money is required for maintenance of the highways that Indian freight would use. Just like India is selling electricity to Bangladesh at domestic rates, India expects Bangladesh to see our transit as its domestic freight. And this is just the beginning, small favor or two, and both the countries will keep reaping benefits from here on. Neither India nor Bangladesh is going anywhere, we will always be neighbors , these sorta deals helps in strengthening the relationship. Once again feel free to disagree.

Jei India te guest der Ordhek ta sondesher poorotai khete request kora hoe, jei desher mishtir dokane KG er baatkhara paoa jaena - oi desh amader ki ditey parbe. Such a 2 poor neighbor (India & Myanmar) we have.

My grasp of Bangla is not that great, but I believe you are saying that, "What do you expect from a country, where the guests aren't even asked to finish their sondesh, and where the sweet shops have dodgy KG weight which are equal to 250 gm?" Something along these lines right?

Well mate stop going to shonky sweet shops, and blame your hosts for not asking you to finish your sondesh. I have had entirely different experience both in Bangladesh and West Bengal, where I have been quite literally force fed.

Be it India, Pakistan or Bangladesh, one thing that I ll never believe is that, someone complaining about being not treated properly as guests.

 

[Roybot]

Online toll calculator
Suez Canal

Date: 13-Apr-11 07:54:15
Type: Bulk Carrier
Double Hull: 0
Condition: Laden
Suez Nrt.: 100000MT
Beam: 60 Ft
Draft: 35 Ft
Tiers of Containers on Deck: 7
SDR: 1.59586




Total Transit Cost $444,742.00

So thats just 4.4USD/Metric Tonne?

 

[eastwatch]

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As you can see almost 100% funding is coming from foreign organizations, in the form of loans and donations, nothing from Bangladesh Government, not that there is anything wrong with it. Similarly in the case of constructing the 7 Billion USD " 500km 2 Lane Highway" which according to some people here will only facilitate India, the funding will also come from International organizations, who mind you will only fund the projects which they think is economically feasible. So if organisations like World Bank and Asian Development Bank think that this proposed "highway" won't be economically viable, project won't go through, end of the story?

Your conclusion is correct that foreign loans are used to build the important part of the physical infrastructures of Bangladesh. This phenomenon says two things. One is, BD does not have either the expertise or the construction machineries needed to build a huge river bridge like Jamuna or Padma.

It also says BD cannot provide an adequate fund, including foreign currency, to build unilaterally a gigantic bridge. So, all the international lending agencies come forward to finance, and we build it. But, then we pay back the money and the interest. So, what happens finally? We pay our own money to develop our infrastructure. It is borrow, build and pay back.

Now, what are you getting at by mixing up ADB/WB/IMF funds with the expenditure for a $500 million highway? It is a different issue. You must understand that we will be a) investing this $500, b) we will be spending another $10 m for maintenace/repairing, and c) another $100 million to recarpet the road every 10 years. So, the yearly cost is $70 million. Why should we be that dumb to build such a road that will earn us a yearly $70 million only if India sends 1700 trucks every day.

So, India has two options. Either you use the BoB+Ashuganj+Agartala route, or we build a road and you pay us $100 million fee every year. The latter will bring us a $30 million gross operating profit. You see, interest rate for the borrowers in BD is about 13%. So, a 30% gross will be enough to cover all the overhead costs. But, I must propose that India uses BoB route at $19/tonne fee, because it will save the country a lot of money.

 

[TopCat]

I don't know what the exact structure of Suez transit toll is, but it includes Port disbursement fee, Port clearance fee, insurance, tug boat fee etc. All these are legitimate fees for service provided at a port. Additionally Suez Canal has a huge operating cost, which must also be recovered from the ships passing through. Roads on the other hand do not have these costs.

Comparing a port facility to road facility is just downright dumb.

the point was not to compare the amount of charge but whether charging somebody transit fee is morally right or wrong when the recipient country had alternate route to do business with.
Suez canal is a important revenue earner for Egypt. I dont think its only the operating cost they are charging there.

PS: when India does not even consider shooting at civilian a morally wrong thing, why should we even discuss morale in transit fees.. Are we nutts???

 

[Roybot]

Your conclusion is correct that foreign loans are used to build the important part of the physical infrastructures of Bangladesh. This phenomenon says two things. One is, BD does not have either the expertise or the construction machineries needed to build a huge river bridge like Jamuna or Padma.

It also says BD cannot provide an adequate fund, including foreign currency, to build unilaterally a gigantic bridge. So, all the international lending agencies come forward to finance, and we build it. But, then we pay back the money and the interest. So, what happens finally? We pay our own money to develop our infrastructure. It is borrow, build and pay back.

See I understand that it is indeed the Bangladeshi people who eventually end up paying back these loans. But the point I was trying to make was, that even if say Bangladeshis government decides to go ahead with making that, "7 Billion USD" highway (under Indian pressure ofcourse), it will be these organizations(WB, ADB, IB) and such who finally get to decide if they want to fund the project, on the basis of economic feasibility and security of the loaned money.

So if these banks deem the project feasible, on the basis of the revenue it will generate, would you still have an objection to it?

Now, what are you getting at by mixing up ADB/WB/IMF funds with the expenditure for a $500 million highway? It is a different issue. You must understand that we will be a) investing this $500, b) we will be spending another $10 m for maintenace/repairing, and c) another $100 million to recarpet the road every 10 years. So, the yearly cost is $70 million. Why should we be that dumb to build such a road that will earn us a yearly $70 million only if India sends 1700 trucks every day.

I don't understand why India alone should fork the bill for the maintenance. Are you telling me that Bangladeshis won't be going anywhere near the highway? Highway that runs through the breadth of the country? I know you will say that the Highway won't be connecting Bangladeshi industrial centers, but surely that could be worked out?

What I mean is, make a 4/6 laned highway connecting your major cities and the roads that lead to Indian borders on either side will be linked to it?

So, India has two options. Either you use the BoB+Ashuganj+Agartala route, or we build a road and you pay us $100 million fee every year. The latter will bring us a $30 million gross operating profit. You see, interest rate for the borrowers in BD is about 13%. So, a 30% gross will be enough to cover all the overhead costs. But, I must propose that India uses BoB route at $19/tonne fee, because it will save the country a lot of money.

Someone gave an example of Suez canal, they charge 4USD/MT as opposed to 19USD/MT demand of Bangladesh. Even if we take your estimate for ($10M every year+$100M every ten years)=$200M every ten years, the maintenance and operational cost for the Suez canal is much more than $200M!

Which leads us to the point that Iajdani made, why Bangladesh should give India a fair deal. For that we ll have to wait till all these deals come to fruition, transit, electricity import, installing power plants, and then we can conclude if this is just one way traffic of giving fair deals.

I personally am against this transit bs, India should just man up and build its infrastructure in the North East, which it will eventually, then why not now.

 

[twoplustwoisfour]

Now, what are you getting at by mixing up ADB/WB/IMF funds with the expenditure for a $500 million highway? It is a different issue. You must understand that we will be a) investing this $500, b) we will be spending another $10 m for maintenace/repairing, and c) another $100 million to recarpet the road every 10 years. So, the yearly cost is $70 million. Why should we be that dumb to build such a road that will earn us a yearly $70 million only if India sends 1700 trucks every day.

How much do you believe shall be the life of the highway? Lets be conservative and put it at 25 years only.
Then with an upfront cost of $500 mn, annual maintenance of $10 mn, recarpeting cost of $ 10 mn per year, and revenue of $70 mn per year, the IRR for this project comes out to an even 10%.

A 10% return for an asset which you would yourself be using as well, and which would be financed through soft loans and grants, is a good deal IMO.

 

[eastwatch]

How much do you believe shall be the life of the highway? Lets be conservative and put it at 25 years only.
Then with an upfront cost of $500 mn, annual maintenance of $10 mn, recarpeting cost of $ 10 mn per year, and revenue of $70 mn per year, the IRR for this project comes out to an even 10%.

A 10% return for an asset which you would yourself be using as well, and which would be financed through soft loans and grants, is a good deal IMO.

It is our privilege that we use a highway that has been built inside our own country. But, since India wants to use this road, then either it totally pays the construction, repairing and recarpeting costs or it uses the Ashuganj mud road to Agartala, from where they will have to turn northward to go to NE through all those hilly pitfalls. It is a much longer distance indeed than the 500m road.

 

[twoplustwoisfour]

It is our privilege that we use a highway that has been built inside our own country. But, since India wants to use this road, then either it totally pays the construction, repairing and recarpeting costs or it uses the Ashuganj mud road to Agartala, from where they will have to turn northward to go to NE through all those hilly pitfalls. It is a much longer distance indeed than the 500m road.

And indeed India would be paying the construction, repairing and re-carpeting costs over the years, besides offering you a 10% return. That is what the transit fee is for.

If you want the money upfront, then B'Desh has no right to ask for a transit fee or even use the asset.

 

[NALANDA]

Guys

I was interacting with a Indian Govt official looking after the issues. As per him, they are divided on the issue of seeking transit from BD or developing highway through Chicken Neck ( which though costly is feasible and preferred by defence and some other ministry). What he told that GOI will at the most wait for a year for this to materialise and if not will dump it...infact the pressure is already building to scarp this deal...and have your own state of the art highways from your own areas as the highway will develop all Indian areas while the one from bd will developtheir areas.....peopel need to understand that a highway, wherever it is made, puts the economy of the areas on adrenalin for growth.

My message for BD friends are ......just chill, don't abuse us....india has been asking for transit in the past but this will ulitimately not happen.....

 

[Roybot]

^^^There we go, I have been saying this all along. Now Bangladeshis will start saying that building highways through chicken neck corridor is not possible and the argument will go round and round. Am outta this thread.

 

[senselesstalk]

Bangladesh needs India as much India needs Bangladesh as good neighbours. You can replace friends, enemies but not your neighbour.

 

[eastwatch]

It is surprising to note that India has been waiting for a long 62 years, but has not yet docided whether to build an all-weather highway through the chicken neck. It is certainly a better option for India. It creates a non-friction atmosphere with BD. BD people are tormented at the thought of India using our roads without paying virtually any money.

But, a chicken neck route will be a detour to many of the NE areas. For Koochbihar, western Assam and part of Meghalaya this route will be cost-effective, But, most affected will be Tripura and territories east, north and south of it. I wish people in those places will accept a lower income and higher price than the rest of India.