India seeks transit facility through 15 routes in Bangladesh: report

Discussion in 'Foreign Relations' started by Ray, Apr 18, 2011.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    This is the latest on the trade and transit with Bangladesh.

    There is of course still a long way to go.

    If the treaty is accepted, then it will help Bangladesh's trade with Nepal and Bhutan and will help India by having a shorter route to the NE.

    It will go a long way in improving relationships as well as each other's economy.

    However, the BNP may not be pleased!
     
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  3. GPM

    GPM Tihar Jail Banned

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    1. India is not land locked, so B'desh can turn down the request.

    2. If it benefits BD in trade with Nepal and Bhutan, it is their outlook. For records sake, India did not accept Nepal request for transit through B'desh.

    3. What if B'desh demands reciprocal transit routes to China and Burma? Will India accede, national interests be damned?

    I BD accepts it will be a miracle.
     
  4. Virendra

    Virendra Moderator Moderator

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    Good movement. A web of roads between India, Bhutan and Bangladesh will help all, most of all the NE.
    But I think there's going to be heavy bargaining from the other side as they know that they're helping us relieve pressure from the 10 km wide chicken's neck up north.


    Regards,
    Virendra
     
  5. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Correct me if I am wrong, but this does not include transit of military goods. Then not much of military value to this facility
     
  6. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    GoI is working hard to develop the NE region and use that as a stepping stone to integrate Myanmar and Bangladesh into the Indian economy. Remember, as a major economy, it is in India's interest that all its neighbors have India as its largest trading partner to create an economic incentive to stick with India.

    At present, we have the strange anomaly of China being the bigger trading partner of Bangladesh than India, even though we are right next door.

    Also, this will help to transport non-lethal supplies for the military as well. A lot of goods can be of dual use. Food, cement, power plants, computers e.t.c. can all be used by the military as well.

    Ammunition tanks e.t.c. might draw some arched eyebrows.

    However, Bangladesh still has revoked a mutal defence treaty that India and Bangladesh signed in 1972. So the clause might be invoked as well.
    http://news.google.com/newspapers?i...3625&dq=india+bangladesh+defence+treaty&hl=en
     
  7. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    What exactly BD is charging for this facility?, This one is not clear enough

     
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    A step in the right direction for India to develop the north east and also better ties with BD. BNP has always been a party pooper as far as BDs relations with India go.

    The charges look clear $4-50 per tonne of cargo depending on which route is taken. $4-10 would sound reasonable and anything more would be outright greedy. India could also offer to build the infrastructure along all these corridors. For India this could come in handy if there was a war with China and it chokes our chickens neck. We should have movement of military equipment too included in the treaty, may be at a later stage if not now.
     
  9. Virendra

    Virendra Moderator Moderator

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    We should assert on Bangladesh that they've owed us atleast that much, ever since 1971. We need to have military goods and infrastructure (to whatever extent possible) included in the transit scope. Only then we can realise the full security potential from creating such a web of connectivity infrastructure. Anything going towards NE should not be viewed decoupled from its security value.

    Regards,
    Virendra
     
  10. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Yusuf, I think anything above USD 4 is greedy, as they are not providing any cargo handling facility, just transit charge
     
  11. Yusuf

    Yusuf GUARDIAN Administrator

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    Nitesh if it is less than the current cost and also easier to transport using BD, a little extra money would not matter. $50/ton sounds ubsurd. I think the fee is inclusive of customs handling.

    They too realise that high transit charges would not generate good business.
     
  12. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Agree with you yusuf to certain extent, but I feel it is more of temporary facility asked, something like 10-15 years. till the time India improves own infrastructure, then these roads will be competing between themselves for transits :)
     
  13. Yusuf

    Yusuf GUARDIAN Administrator

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    Nitesh the terrain to connect to NE is such that it's better to have a deal with BD.
     
  14. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Well what are comparable transit rates in other countries? I think Panama canal and suez canal, which just uses water transit charge between $5-20 depending on type of cargo and the amount as well. While CAR countries change between $13-$22 for using roads/rails for transit for Afghanistan. While through Pakistan its between $4-10 per tonne. Air India actually subsidises the cost for Afghanistan by charging 20 cents per tonne for first 400 tonnes of fresh produce.

    I guess the more traffic Bangladesh sees, the cheaper it will get due to economies of scale. Having a competing route will obviously be the best bet to increase competition. E.g. by India improving its infrastructure along the chicken neck.
     

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