Lok Sabha Question No. 200 (STARRED), answered on 2016-03-10
Subject: Coastal Shipping
Ministry: SHIPPING
Asked by: C. MAHENDRAN

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA STARRED QUESTION NO.200 TO BE ANSWERED ON 10 th MARCH, 2016

## COASTAL SHIPPING

## *200.   SHRI C. MAHENDRAN:

Will the Minister of SHIPPING be pleased to state:

## पोतप�रवहनमंत्

- (a) whether India and Bangladesh have signed the Standard Operating Procedure (SOP) for operationalising the Agreement on Coastal Shipping between both the countries and if so, the details thereof;
- (b) whether the said Agreement is likely to pave the way to promote coastal shipping between India and Bangladesh and further enhance bilateral trade by bringing down the cost of cargo transportation and if so, the details thereof;
- (c) whether this will also enhance the movement of cargo to the landlocked North East Indian States; and
- (d) if so, the details thereof?

## ANSWER

MINISTER OF SHIPPING (SHRI NITIN JAIRAM GADKARI)

(a)to(d): A Statement is laid on the Table of the House

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO.200 TO BE ANSWRED ON 10th MARCH, 2016 RAISED BY SHRI C. MAHENDRAN REGARDINGCOASTAL SHIPPING.

(a): Yes,  Madam.        India  and  Bangladesh  have  signed  a  Standard  Operating Procedure (SOP) for operationalising the Agreement on Coastal Shipping between the two countries on 15 th November, 2015 at New Delhi.

The  SOP  is  designed  to  promote  and  facilitate  the  day  to  day  commercial operations  of  the  vessels  plying  between  the  two  countries  in  accordance  with  the agreement  and  minimize  any  unnecessary  hindrance  in  operation  for  the  optimum benefit to the peoples of the two countries.   It sets out the routes of the voyage and responsibilities of each country with respect to conservancy and pilotage, port dues and other charges, handling facilities, supply of bunkers, purchase of essential stores, repair facilities, removal of wreck, settlement of disputes, assistance to be provided by either country  to  the  vessels  of  the  other  in  distress,  ports  of  call,  registration  and  issue  of identity cards.

- (b): Yes,  Madam.        At  present,  the  connectivity  through  the  sea  route  with Bangladesh  is  via  the  ports  of  Colombo  and  Singapore.      The  long  sea  route  adds significantly to transportation costs for EXIM trade.   The coastal shipping agreement would allow movement of smaller ships and provide direct connectivity for eastern sea ports of India with Chittagong and other ports in Bangladesh.  This would provide the following benefits.
- (i)  Improve seaside connectivity and also provide competitive freight rates.
- (ii) Indian ports will attract enhanced cargo and overall transportation cost to Bangladesh would get reduced.

(iii)The  deep  draft  ports  on  eastern  coast  of  India  may  become  hub  ports  (transshipment) for the onward transportation of cargo to Bangladesh via coastal mode through river-sea vessel (RSV) category.

(iv)  Reduce  traffic  congestion  at  'Petrapole'  and  'Benapole'  on  Bangladesh  side  and facilitate smooth movement of EXIM cargo between the two countries.

(c)&(d):Yes, Madam.   The said costal shipping agreement allows vessels to move from Indian coastal ports to riverine ports in Bangladesh which are closer to the border areas of North East Indian States.   Since water transport is a comparatively cheaper mode of transport  vis-a-vis  road  transport,  the  cargo  destined  for  the  Indian  North  Eastern Region  may  move  by  smaller  ships  to  the  riverine  ports  of  Bangladesh  and,  thus, provide an alternative access to these states in an expeditious and cost-effective manner, in  addition  to  the  existing  circuitous  land  routes.      Further,  the  Motor  Vehicles Agreement for the regulation of passenger, personal and cargo vehicular traffic between Bangladesh, Bhutan, India and Nepal would also facilitate the movement of cargo for North East Region by road through Bangladesh.