Infrastructure not ready for transit

From left, Gowher Rizvi, the prime minister's adviser on international affairs; Faruk Khan, commerce minister; Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh (ICCB); AB Mirza Azizul Islam, former finance adviser of caretaker government; Mashiur Rahman, the prime minister's economic affairs adviser, attend a dialogue on transhipment and transit at Ruposhi Bangla Hotel in Dhaka yesterday. ICCB and The Daily Star co-organised the discussion. Photo: STAR

Recommendations
* Make a comprehensive strategy on transit
* Allow transhipment on limited scale for now, not transit
* Make public government report on transhipment and transit
* Upgrade infrastructure for future transit
* Put Myanmar and China in transit loop
* Fix market bearable fees and charges for carrying goods
* Place transit issue for debate in parliament
* Sign a separate agreement on transit with India. Do not rely on past protocols or a test run of transit
* Make a focal point for transit or transhipment

Analysts yesterday suggested the government upgrade infrastructure first to allow transit to India.
They also stressed the need for strengthening roads, waterways, railways and inland container depots.
M Rahmatullah, a transport and communication expert, said the road infrastructure of the country is not ready to tolerate axle loads right now.
He suggested the government allow transhipment on a limited scale for a limited period, as the country's infrastructure is not up to the mark.
India is seeking transit through roads, waterways and railways although none of the three modes is ready.
“So, a limited transhipment for a limited period is an ideal option for the government,” he said at a seminar on “Transhipment or Transit” for India?
The International Chamber of Commerce Bangladesh (ICCB) and The Daily Star co-organised the discussion at Ruposhi Bangla Hotel in Dhaka.
He also said the Indian government should spend more on developing infrastructure along its bordering areas to pave the way for transit in near future.
“I prefer container movement through flat vehicles, because Bangladesh is not ready for other kinds of vehicles now,” said Rahmatullah, also a member of the government's core committee on transit and transhipment.
On the use of railways for transit or transshipment purposes, he said Bangladesh has no physical railway communication with India.
It will take at least three years to start railway communication with India, he said. Also, the Indian locomotives cannot come to Bangladesh due to a lack of infrastructure.
He said, in some cases, Indian trucks are now carrying goods from Ashuganj in Bangladesh, which will further worsen the existing dilapidated road infrastructure from Ashuganj port to Indian border.
Without building infrastructure, goods should not be allowed for transit or transhipment through Ashuganj, he said.
Rahmatullah also urged the participating countries to tighten security at the ports if the transit and transhipment are to be allowed.
The ports are also incapable of providing security and scanning goods due to a dearth of modern infrastructure and equipment.
“Scanning of goods at the ports is important, because it is done worldwide,” he added.
Transit fees should be levied in line with international norms and standards, he said.
“We should continue negotiation with India to ensure a win-win situation,” he said.
Former commerce secretary Sohel Ahmed Chowdhury also favoured transhipment, saying the country's infrastructure is not ready for transit now.
If transhipment is allowed, everything will be under the control of Bangladesh and at the same time the infrastructure will also be upgraded gradually, he added.
“Transit and transhipment are trade issues. So the focal point of those issues should be the commerce ministry,” he said.
Bangladesh Tariff Commission Chairman Mozibur Rahman, who is also the chairman of the government's committee on transit and transhipment, said a report has already suggested the fees and charges for developing infrastructure.
The report was submitted to the government a few months ago, he added.
Amjad Khan Chowdhury, president of Metropolitan Chamber of Commerce and Industry, urged the governments of both Bangladesh and India to invest more in developing infrastructure.
Transit will bring opportunities in trade with India, and Bangladesh's performance will increase if infrastructure is upgraded, he said.
Annisul Huq, president of Saarc Chamber of Commerce and Industry, expressed concern over a lack of security at the ports.
“We need to wait for some days for allowing transit,” he said.
Prime Minister's Adviser on International Affairs Gowher Rizvi suggested the government develop domestic infrastructure to carry the goods of transit.
The volume of business will not increase unless the local infrastructure is developed, he said.