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Expanding Bangladesh, India, Nepal rail connectivity to boost regional economy

by Maritimegateway
September 7, 2020
in News
Reading Time: 4 mins read
A A
rail track

September 7, 2020: There are four traditional routes to move globally. Among the routes, rail route is comparatively cost effective and safe for travelling a long way. It is important to note that the citizens belonging to developed nations prefer to train journey. Besides, the world’s leading economies are now constructing rail tracks for economic progression.

South Asian countries lag behind in respect of developing rail route except India. But, the region is now moving fast towards regional rail connectivity considering demand for regional trade. After a long gap, Bangladesh-India -Nepal are in a race to re-establish and construct rail connectivity.

Half a dozen rail routes across Bangladesh started to provide service in past 10 years. Many routes are waiting to be opened soon. It is indeed a good news that many abandoned rail routes between India and Bangladesh have been reopened. Out of the erstwhile 6 rail links that existed, four Broad Gauge inter-country rail links between the two countries are now operational.

The Radhikapur-Birol rail link was the latest to be put back in operation during Prime Minister Sheikh Hasina’s visit in April 2017. Apart from these, work on the remaining two new rail links is underway. The 7th new rail-link between Agartala and Akhaura is being financed under grant assis tance of India. The ‘Maitree Express’ between Kolkata and Dhaka and the 2nd Maitri Express between Khulna-Kolkata was conducted during Sheikh Hasina’s visit to India in April 2017.

The decision of resuming age-old rail routes came against the backdrop of regional economic activity. Special thanks to the premiers of Bangladesh and India for taking such steps.

Dhaka and New Delhi tried open international passenger train service between the two nations at first. Under the move, the train named “Moitree Express” was launched in 14 April, 2008 amid festivity and runs between Dhaka and Kolkata. Another passenger train named ‘Bandhan Express’ was inaugurated on November 09, 2017 from Kolkata and on November 16, 2017 from Khulna. The move was undertaken aiming to ease communication between the two neighboring countries. The Bandhan Express runs between Khulna and Kolkata via Benapole ( Bangladesh) -Petropole ( India).

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Apart from passenger train service, freight trains have been operating since long for carrying stones and fly ash. Bangladesh and India have been operating freight trains through Rohonpur-Singabad, Benapole-Petrapole, Darshana-Gede and Birol-Radhikapur boarders. In view of coronavirus epidemic, Bangladesh and Indian railways have recently decided to utilise the freight service for transportation of goods due to COVID-19.

Following the decision, freight trains were used to transport onion instead of stones and fly ash. The recently launched first container train, carrying essential commodities, is another step towards closer ties between the two neighbours.

Bangladesh and Nepal inked the transit agreement and the protocol to the transit agreement in 1976 and indentified six ports of calls for the movement of transport vehicles to and from Nepal. The ports of calls were Mongla port, Chattogram port, Biral ( Pashchimbanga, India), Banglabandha, Chilahati and Benapole . The protocol was made amendment considering present context and geopolitical issues. Under the protocol, six entry and exit points – both in Bangladesh and Indian sides – were fixed for Nepalese vehicles to enter and exit from Bangladesh. Two routes have been proposed as new rail link. The first one is Rohonpur- Zero Point- Singabad (Pashchimbanga)-Jogbani ( Bihar) , Birat Nagar ( Nepal ) . The distance of first route is 217 KM. With 514 KM distance the Second one is Rohonpur- Zero Point- Biral (Pashchimbanga)- Radhikapur (Pashchimbanga) –Roxol ( Bihar)-Birgunj ( Nepal)

In January 2010, Bangladesh and India agreed to allow Nepal use the Rohanpur and Singhabad broad gauge railway link as another transit point. Later in September 2011, India permitted Bangladesh and Nepal to use a new rail route for facilitating transit of cargo. Subsequently, in April 2019, Nepal sent a letter of exchange to include the Rohanpur railway station as an additional transit entry and exit point. On the contrary, Kathmandu signed a letter of exchange with New Delhi in February 2016 to use Singabad to expand trade with Bangladesh.

Nepal had been doing groundwork since long aiming to expand trade activity with Bangladesh. As part of the move, the signing on Free Trade Agreement ( FTA) with Nepal was nearly finalized. The decision of signing FTA with the landlocked mountainous nation would be executed soon. Besides, Nepalese foreign minister Gyawali placed a proposal to Bangladesh in respect of using Saidpur airport for trading purposes also, but Bangladesh is yet to reply on this issue.

In 2018-19 FY, Bangladesh exported goods worth US$ 38.5 million to Nepal and imported goods worth around $ 18.13 million. Some 26,255 Bangladeshis visited Nepal in 2018. According to a published report in a local daily, exports to India from Bangladesh was US $ 361 million in 2012 where the volume increased to US $ 873 million in the first half of 2018. Nevertheless, recently signed Comprehensive Economic Partnership Agreement (CEPA) and trans-shipment deal would turn both economies into prosperous.

According to the South Asian Free Trade Area (SAFTA), Nepal now maintains a list of 998 sensitive products for least-developed countries ( LDC) and 1,036 sensitive products for non-LDCs that are not entitled to preferential trade benefits. Bangladesh also maintains a list of 987 sensitive products for LDCs and 993 products for non-LDCs. Historically, Nepal stood by Bangladesh duting the 1971 Independence War.

The need for rail connectivity with India is essential as it is one of Bangladesh’s largest trading partners. Transportations of goods to and from India by road is costly and time consuming. Broad gauge rail network from Biratnagar to Singabad was inaugurated in 2004. Following the similar rail track Bangladesh put in place broad gauge track in 2015.

The Bangladesh, Bhutan, India and Nepal – Motor Vehicle Agreement (BBINMVA) is expected to significantly boost connectivity by road. The trial run of Cargo Movement on Trucks from Kolkata to Agartala via Dhaka and Dhaka to New Delhi via Kolkata and Lucknow took place in August 2016. The Motor Vehicle Agreement along with rail connectivity will boost regional economic activities quickly.

Source: https://newsnextbd.com

Tags: India Bangladesh connectivityIndia trade with Nepal
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