Transit facility may boost Mongla prospects

Mongla: The shipping ministry has proposed that the government should pursue a regional transit agreement involving four south Asian countries to increase the use of Mongla sea port and Banglabandha land port.


The ministry sent a letter to the foreign ministry on September 24 requesting it to pursue the matter with three South Asian neighbours as the ministry believed the utilisation of Mongla port could be increased significantly if a direct transport link could be set up through Bangladesh, Bhutan, India and Nepal.


‘We have sent the proposal for revamping Mongla port and also for increasing trade with our neighbours through Banglabandha land port,’ said a high ministry official. Banglabandha land port in Pancha-garh is only 35 kilometres off Nepal and 55 kilometres off Bhutan.


Mongla sea port is responsible for 13 per cent of the total import and 8 per cent of the export and it remains underutilised.


The ministry officials said if the proposed agreement comes into effect, Bangladesh would be greatly benefited because the pact would pave the way for land-locked Nepal and Bhutan to carry out their export import through Mongla port on cheaper alternative route to Kolkata/Haldia in India.


They said Bangladesh would benefit from substantial freight and port charges from Mongla port, providing access to Bhutanese and Nepalese exports while Bangladesh exports can also penetrate deeper the Nepalese and Bhutanese markets.


India has, however, for long denied Nepal and Bhutan transit facilities for sending goods overseas through Bangladesh. Bangladesh has denied India transit for the movement of its goods to and from north-eastern India.


‘Nepal and Bhutan are eager to expand their business with Bangladesh. But unless India allows some corridor, it will be hard for them to reap benefits,’ the official said.


A foreign ministry source said the ministry was yet to pursue the proposal with the countries concerned because of the volatile political situation over three months. He said chances were slim to move the proposal forward during the remaining period of the caretaker government.