Home ›› 09 Mar 2022 ›› Opinion
Centuries ago, goods were transported from one country to another through the time consuming sea route. The ships carrying the goods took a very time to reach destination countries. Finding no alternative ways exporters and importers were obliged to select the marine route. Although at present there is an option to send and receive goods through air routes, the international traders feel more comfortable in using marine routes to ship goods. Marine route needs less cost for goods transportations though it is time consuming. For the need of the country on an emergency basis, goods are shipped through air routes. Besides the two traditional routes, the traders’ also use rail and road routes for carrying goods among land-locked countries. Multimodal transport is the combination of different means of transport, in order to facilitate the movement of cargo. When it comes to this mode of transportation, there is more than one kind of vehicle necessary to take the goods to their final destination, by the use of trucks, trains, ships, airplanes or some other mean of transport for the delivery. And multimodal connectivity means how effectively and efficiently multimodal transport practically operates in an economy.
The four South Asian countries Bangladesh, Bhutan India and Nepal have been trying to ensure connectivity for a long time through the “Motor Vehicle Agreement (MVA)” signed in 2015. Unfortunately, execution of the much-needed MVA is yet to take place even after six years of signing of the agreement. Multimodal connectivity among South Asian countries is the need of the hour. Some South Asian leaders, who visited Dhaka last year, reiterated their desire to enhance multimodal connectivity. Leaders of Maldives and Sri Lanka also put emphasize on multimodal connectivity while talking to their Bangladeshi counterparts.
At the end of March last year, leaders of five South Asian countries stepped in Dhaka at the invitation of Prime Minister Sheikh Hasina. Their visit to Dhaka amid the pandemic situation led to positive developments in a number of areas. Mainly, they came in order to be a part of celebrations of the golden jubilee of Bangladesh independence and birth centenary of Bangabandhu Sheikh Mujibur Rahman. There was a flurry of activities regarding Bangladesh economy through signing of a number of Memorandum of Understandings ( MoUs). Hopefully, the signed instruments are set to turn Bangladesh economy into competitive one in terms of growth rate.
The visiting leaders praised Bangladesh economy in view of several macroeconomic indicators. Bangladesh’s well-earned reputation was not achieved within a short period of time. The drive for achieving economic development has needed a few decades. The hard-working Bangladeshi-born people are the source of economic development, no doubt. More than twelve million foreign remittance earners living abroad are key contributors among others. The expatriates’ role in bolstering foreign exchange reserve has been immense. The visionary programmes, undertaken by the government in the last ten years, stimulated us to discharge our duties towards the economy.
During the discussions on various issues between Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi, five MoUs were signed. The two visionary leaders promised to strengthen bilateral trade ties among others. Regarding the connectivity issue, the visiting Indian prime minister made assurances about allowing Indian territory. Mainly, Bangladesh needs Indian support for availing transit facility while transporting goods among Bangladesh, Nepal and Bhutan. The recently inaugurated Dhaka-Jalpaiguri rail service is expected to facilitate transportation of goods apart from enhancing people-to-people connection. The rail link might be expanded up to Nepal and Bhutan.
Visiting Nepalese President Bidya Devi Bhandari went back to Nepal with positive messages from the Bangladesh side. The good message is that Nepal has been given the permission to use three major sea ports– Chattogram, Mongla and the under-construction Payra. In addition to this, Bangladesh welcomed Nepal’s proposal to use the domestic air network of Bangladesh. According to the latest talks, flight operations are set to be launched between Syedpur airport of Bangladesh and Biratnagar of Nepal soon. The plan for inclusion of the Rohanpur-Singbad rail route in the Nepal-Bangladesh transit protocol is underway. The two nations are expected to get immense economic benefits through road, rail and waterways connectivity. Air cargo flights between Syedpur and Gelefu in Bhutan is expected to start quite soon. In this regard, Bangladesh responded positively to the Bhutanese proposal. A direct train service between Bhutan and Bangladesh has been finalized during the meeting between the two premiers. It is to be noted here that the train route runs through Indian territory from Bangladesh Chilahati station. So, India’s consent is needed to execute the agreement.
Sri Lankan Prime Minister Mahinda Rajapaksa also focused on robust regional connectivity while talking to Sheikh Hasina. The two nations are going to be linked through air and sea connectivity that promises to bring huge economic benefits. Sri Lanka exported goods worth $ 133 million to Bangladesh in 2018. On the contrary, Sri Lanka imported from Bangladesh goods valued at $ 37 million in 2019. Also, foreign direct investment in Bangladesh from Sri Lanka is around $ 400 million. In view of economic activity, Bangladesh needs to make a big leap in respect of widening trade. It is good news that Sri Lanka has agreed to sign a Preferential Trade Agreement before signing the FTA. Sri Lanka also agreed to sign the Coastal Shipping Agreement and Standard Operating Procedure on the feeder services between Chattogram and Colombo soon.
Geographically, Bangladesh’s location makes it a strategic gateway to India, Nepal, Bhutan and other East Asian countries–country director at Dhaka office of the World Bank said. World Bank country director in India said “the eastern sub-region is poised to become an economic growth pole for South Asia.” The World Bank is currently supporting Bangladesh in many ways to strengthen regional and trade transit. The World Bank report titled “Connecting to Thrive: Challenges and Opportunities of Transport Integration in Eastern South Asia” emphasized on connectivity between Bangladesh and India. The report revealed that Bangladesh could increase its real income by 11.3 per cent by allowing Indian vehicles in the northeast-southwest and northwest -southeast corridors while the real income of India will increase by 5.6 per cent from the move. Bangladeshi exports to India might increase by 297 per cent while India’s export to Bangladesh is likely to rise by 172 per cent from transport connectivity. The recently released report said that all districts in Bangladesh will benefit from integration. Besides, half a dozen Indian states bordering Bangladesh would also be benefited to a great extent from multimodal connectivity between these neighbouring nations.
It is high time to be connected country-to-country and people-to-people. Apart from land connectivity, all regional countries have to emphasize on sea connectivity. High income countries in the world heavily depend on the sea route that requires comparatively less cost for transportation of goods. Sea and land connectivity with Bangladesh is expected to hasten development pace in the days to come. Bangladesh-Bhutan-India-Nepal ( BBIN) Motor Vehicles Agreement ( MVA) agreement and Bangladesh-China-India-Myanmar ( BCIM) economic corridor need to start functioning soon. Besides, under-construction road belt consisting of India, Myanmar and Thailand is set to contribute to Bangladesh economy much if Bangladesh joins. Bangladesh economy is set to gain more compared to other South Asian nations if regional connectivity plan is implemented. Nevertheless, Bangladesh government’s plans to build eight express ways domestically, helps to be connected among Asian nations. It is a praiseworthy decision, according to most experts. The initiative of the Bay of Bengal Industrial Growth Belt (BIG-B) also will help foster connectivity in the days to come.
The writer is an economic affairs analyst and PhD fellow.
He can be contacted at mazadul1985@gmail.com
