CPDDialogueonAdvancingBangladesh-IndiaEconomicCooperation:ModalitiesandChallengesThursday,March4,2010,CIRDAP,DhakaRegionalConnectivityforTradinginRegionalConnectivityforTradinginTransportServicesPresentedbyDr.M.RahmatullahFormerDirector,Transport1pUN-ESCAP,BangkokPresentationOutlinezIntroductoryremarksOtitifBldhttdizOpportunitiesforBangladeshtotradeintransportserviceszLearningfromexperiencesofotherzLearningfromexperiencesofothercountrieszHowtogoaboutregionalconnectivity?ggyzImplicationsofrecentjointcommuniquesignedbyBangladeshandIndia2zConcludingremarksIntroductoryRemarkszTransportcost,asignificantdeterminantofcompetitiveness.•DuelackofregionalconnectivityinSouthAsiaandpoortradefacilitationatbordercrossing,logisticcostsare13-14%ofthevaluecomparedto8%inUSAUSA.zTransportconnectivitiesbetweenSouthAsiancountriescontinuetoremainfragmented,despiteexistenceofbasicinfrastructuresesteceobascastuctueszIndianwagonscomeuptotheborder,andBRLocospulltheminsidezNointer-countrytruckmovement.Goodsare3ytransshippedattheborderIntroductoryRemarkszBefore1947,tradeofNE-IndiausedtomovefthroughtheterritoryofwhatisnowBD.Upto1965,railandIWTtransitwasallowed.•A20feetcontainertakesatleast30-45daystomovefromNewDelhitoDhakaandcostsaroundmovefromNewDelhitoDhakaandcostsaroundUS#2500/=butbyrailitcouldreachin4-5daysandwouldcostaroundUS$850/=only.(SeeMap)•TeashipmentfromAssamtoEuropetravels1400ppkmthrough“chickenneck”becausenoagreementexiststouseChittagongport.•SouthernborderofTripuraState75kmfromChittPtbtIdidtl1645k44ChittagongPort,butIndiangoodstravel1645kmtoKolkataport.TheTransAsianRailwayinSALackofConnectivities:TheConsequencesTheTrans-AsianRailwayinSA5LackofConnectivities:TheConsequencesMAP2:Bangladesh,NepalandBhutan6OpportunitiesforBangladeshzBangladeshhasauniquegeographicallocation,with3-landlockedcountries/territories(Nepal,Bhutan,NE-India)atthehinterland(SeeMap)hinterland.(SeeMap)zIftransportconnectivityisprovidedtothesecountries,BDcouldbenefitbytradingin“TransportServices”.zCurrentlyBDhastradedeficitwithIndia,tradingin“transportservices”couldreducethisdeficitzItiscrucialtorealizethatthesetransportserviceshavenomarketoutsidethesub-region,similarly,thesub-regionalcountriesalsoneedtorecognizethatnocountryotherthanBDcanprovidethesetransportservices.7MAP2:Bangladesh,NepalAndBhutanMAP2:Bangladesh,NepalAndBhutan8OpportunitiesforBangladeshzBangladeshisfortunatetohaveMonglaportwithsparecapacity,andpotentialfordevelopingadeep-seaport,butitsdevelopmentneedssubregionalpatronageneedssub-regionalpatronage.zPoliticalleadersandpolicymakersneedtorecognizevariousopportunitiesandconstraintsthatBDhas,andseekregionalpatronagewithproperconnectivitiesprovidedtothembyroadpatronagewithproperconnectivitiesprovidedtothembyroad,railandIWT,tomakeBangladesha“transporthub”forthesub-region.zIndiahasbeenaskingforquitesometimeaccessofNEIndiatozIndiahasbeenaskingforquitesometime,accessofNE-IndiatoChittaongport.Similarly,NepalandBhutanhavebeenaskingforaccesstoMonglaport.z“Transit”thereforenolongeranissueonlybetweenIndiaand9z“Transit”,therefore,nolongeranissueonlybetweenIndiaandBD,asNepalandBhutan,bothwanttransitthroughIndiaandBangladesh.LearningfromExperiencesofotherLearningfromExperiencesofotherCountriesClarificationofsometermsz“Transit”inNE-IndiancontextmeansIndiangoodspassingzTransitinNE-IndiancontextmeansIndiangoodspassingthroughBDusingIndianownedfleet.z“Transshipment”inNE-IndiancontextmeansmovementofIndiangoodsacrossBDusingBD’sownedfleet.z“Corridor”meansastripofterritorythatrunsthroughthatofanothercountry,andsecuresaccesstosomedesiredplace.zAlltransit/transshipmenttrafficshouldbesubjectedtopjinspection,scanningandsupervisionbyBDauthorities.z“Security”concernslinkedtotransit/transshipmentneedtobespelledoutclearly.SofarbothBDandIndiadidnotfaceanysecurityproblemalongtheIWTtransitrouteandNepal-BDtransit1010securityproblemalongtheIWTtransitrouteandNepal-BDtransitroute.LearningfromExperiencesofotherLearningfromExperiencesofotherCountrieszRotterdamPortprovidingseaaccesstoseverallandlockedEuropeancountriesandearninghugelandlockedEuropeancountries,andearninghugeamounts.(seemap)zBandarAbbasandChabaharportsinI.R.I.pprovidingsea-accesstocountriesofCentralAsia(see2maps)BldhdIdibthhldlldzBangladeshandIndiabothhavealreadyallowedtransittoeachotherforbilateraltraffic.zBangladeshcould,therefore,resolveconnectivity11g,,yissuesub-regionally,byprovidingconnectivitytoallthe3-landlockedcountries/territoryatatime.Rotterdam–HubPortforEuropeRttdTheNetherlandsRotterdamGermanyFrankfurtViennaAustriaBandarAbbasPortProvidingAccessToCentralAsianCountriesThroughTARUzbekistanCetasaCoutesougKyrgyzstanKazakhstanTurkeministanTajikistanBandarAbbasChabanarBandarAbbasChabanarPortProvidingAccessToCentralAsianCountriesThroughAHKazakhstanUzbekistanKyrgyzstanTurkeministanTajikistanAfghanistanBdAbbChabanarBandarAbbasMumbaiHowtogoaboutRegionalConnectivity?SelectionofappropriatemodezDuestructurallimitationofBDroads,railwayshouldbepreferred,ypmodeforregionaltrafficzDuetogaugedifferences,transshipmentofgoods/co