Regional Connectivity

8/7/2019 Regional Connectivity

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Group- 3

Md. Arifur Rahman 65

Md Ismail Hossen 19

Md Iqbal Hossain 63 Subrata Banik 49

Subrata Saha 81


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Regional Connectivity & Trade

The surface transport networks in South Asia still

continue to remain fragmented due to various

historical, political and economic reasons as wellas lack of cooperation among the member

countries. This is happening despite the fact that

the basic infrastructure and facilities to establish

mutually beneficial intra-regional and inter-regional transport linkages already exist in many

countries.


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Bangladesh and India took certain initiatives

recently and signed a joint communiqu onJanuary 12, 2010 to strengthen cooperation

covering wide ranging issues with emphasis on

trade, transport connectivity and water

sharing.

India


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Present state of the transport system in Indiaand Bangladesh

Railways

Indian trains travel only up to the border stations inside Bangladesh. Bangladesh prohibits themovement ofbroad gauge fully loaded wagons

across the Jamuna bridge, although a dual gaugerailway network nowexistsup to Dhaka.

Roads

Nearly 70-80% of all overland tradebetween Bangladesh and India passesthrough Benapole borderpoint.

Inland Water Transport (IWT)

Theseroutes are highlyunderutilized,

Lack ofsufficient navigational aids,

There is no inter-countrypassengermovement by IWT.


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Limited movements of passengersare taking place between India-Bangladesh, both by rail and roadtransport (buses).

Passengermovement (India to Bangladesh)

With regard to passenger movement bybus, there are 3-established routes

between India and Bangladesh.

1. Dhaka to Kolkata.2. Dhaka and Shiliguri (Assam).3. Dhaka to Agartala.


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Currently Nepal and Bhutan are using Kolkata

port for their export and import trade, where

they face considerable congestion. Recently

Kolkata port is also facing siltation problem.

This could be one of the reasons as to why

India has asked for use of Mongla Port, to

which Bangladesh has agreed.

Nepal and Bhutan


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(1) Allowing the use of Mongla and

Chittagong Sea Ports by Nepal, Bhutan

and India for movement of goods by

road and rail.

(2) Making available broad gauge rail link

for transit traffic between Nepal and

Mongla Sea Port of Bangladesh.

Areas open up for transport facilitiesbothbilaterally and sub-regionally


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Present state of the transport system in

Nepal and Bangladesh

Railways

Nepal's export and import traffic uses Kolkata port,

which is often congested compared to Bangladeshseaport of Mongla, which has spare capacity and adirect broad gauge link with Nepal through Indianborder point. But for this route and Mongla port to beused for third country trade of Nepal, India has to agreeto such transit arrangement.

Roads

In the context of Nepal-Bangladesh, although India has

allowed a route (by road) between these two countriesacross the Chicken Neck for bilateral trade, yet goodsare required to be transshipped at Banglabandh borderpoint.


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Bangladesh-China Relations

China is one of Bangladeshs largest trading partners andChinas contribution to Bangladeshs infrastructural

development is also noteworthy.

Beijing has become a key source of funds for Bangladeshsinfrastructure development.

Bangladesh-China Cooperation Agreement on the PeacefulUsage of Nuclear Energy, that was signed in 2005.


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Trade and Investment:

China has already become the largest trading partnerof Bangladeshsupplanting India.

The Bangladesh-China bilateral trade volume increased fromUS$1.1 billion in 2002 to US$4 billion in 2008.

A remarkable increase in Chinese investment in Bangladesh Totaltrade between China and Bangladesh was around US$3.5 billion for2007.

Increasing Chinese export and investment in Bangladesh, especiallyin telecommunications, manufacturing, RMG, powerand agriculture.


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Md Ismail Hossan 19


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Consequences of poor connectivity in

Bangladesh` A container usually takes 30-45 days and costs US$ 2500/=

per 20' container to move from New Delhi to Dhaka, as the

maritime route is via Bombay and Singapore/ Colombo to

Chittagong Port and then by rail to Dhaka.

But the same container could have been moved to

Dhaka within 4-5 days at a cost of US$ 850/= per 20'

container, if direct rail connectivity and container movements

are allowed between New Delhi and Dhaka.

` India and Myanmar are jointly implementing Kaladan

project to link Sittwe port of Myanmar with Mizoram, partlythrough Kaladan River and partly by road. This would be

quite an expensive alternative for India to have access to NE-

India via Kolkata Port, Sittwe port, Kaladan River and road.

If there was transport cooperation with Bangladesh, India

could have used a much shorter route (around 600-700 km)

across Bangladesh.


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Opportunities for Bangladesh

Bangladesh has a unique geographical locationwith 2-land locked countries, namely Nepaland Bhutan, 1-territory which is almostlandlocked, namely Northeast India at itshinterland

Bangladesh is fortunate to have two sea ports(Chittagong and Mongla) and potential fordeveloping a deep sea port.

Bangladesh is fortunate to have MonglaPort with about 80% and Chittagong portwith around 40% spare capacity at thepresent level of efficiency and use ofTechnology.

Trading in transport services with India.


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If Bangladesh opens up its transport system to provideregional connectivity, it could emerge as a transporthub for the sub-region comprising Bangladesh, Nepal.Bhutan and NE-India.

In order to build friendship and confidence in the mindsof neighbouring hinterland countries, (Nepal, Bhutan andIndia) Bangladesh should consider opening up itstransport system to the neighbours through road, rail andIWT links, to make Bangladesh a transport hub.

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Lost of opportunity of not creating

connectivity

. From FY 2003 to 2007, Bangladeshreceived FDI of $43 million from India,

whereas Nepal and Sri Lanka received

FDI of $76 million and $358 million

respectively. We lag behind out

neighboring countries because of our

indecisiveness and failure to foresee the

benefits of an economic tie-up.


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Issues related to transit and

transshipment of Bangladesh Transit by definition means the action of

passing through from one place or point toanother. In the North-Eastern sub-regionalcontext, Transit refers to movement acrossBangladesh territory of Indian goods/containers

to and from NE-India, using Indian ownedtransport fleet.

Transshipment means transfer ofcargo/containers from one form of transport toanother. In the context of North Eastern Sub-region, Transshipment means movement of

Indian goods/containers across Bangladeshusing Bangladesh owned transport fleet.


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To resolve connectivity issue it is need toAdopt sub-regional approach

1. Construction of Akhaura to Agartala double trucking raillink project.

2. The Asian Highway (AH) project.

3. Bangladesh's Deep Sea Ports project at Sonadia southof Chittagong.

4. Proper utilization of Mongla and Chittagong Sea Portproject.

5.T

heT

rans Asian Railway (TAR)project .


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Construction of Akhaura-Agartala

rail link

This would call for construction of around 14km rail link between Akhaura (BR) and

Agartala (Indian Railway), based on joint

survey of BR and IR to decide alignment.

Once completed, Agartala will have direct raillink to Chittagong port.

India has already developed MG rail linkbetween Karimganj and Agartala.

In future, Akhaura-Agartala-Karimganj raillink will become a direct competitor to the

existing BDrailway Akhau

ra-Kulau

ra-

Mahishasan rail link. This will have adverse

financial implication on BRs earning in

future, unless negotiations are made to charge

some transit fees to compensate for the loss.


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Md Iqbal Hossain 63


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Asian Highway

Known as great Asian Highway

Initiated by the United Nations in 1959

Considerable progress achieved during

the 1st phase of the project (1960-1970)Intergovernmental agreement on AH project was signedon November 18,2003

55AH routes among 32 member countries approximately87500 miles

Consists of three pillars endorsed by the ESCAPcommission at its forty-eighth session in 1992, comprisingAsian Highway, Trans-Asian Railway (TAR) and facilitationof land transport projects.


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Asian Highway Network


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Countries Link With Asian Highway

Agreements have been

signed by 32 countries to

allow the highway to cross

the continent and also

reach to Europe. Some ofthe countries taking part in

the highway project are

India, Sri Lanka, Pakistan,

China, Japan, South Korea

and Bangladesh.


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Classification and Design Standards


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Measuring ADB's Contribution to the

Asian Highway

ADB financing (in terms of loan amount in US dollars


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Benefits of Asian Highway

The Asian countries are expected to derive the following benefits: Integration of regional economy through boosting trade and

commerce

Enhanced economic and social interactions through promotingtourism

Regional cooperation in harnessing natural resources tomaximize economic benefits

Fostering trust, stability and peace among the membercountries


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Associated risks of Asian Highway

Increased exposure to HIV/AIDS and other life threateningdiseases

Increased risks of human and drug trafficking

Increased risks of environmental degradation

Increased risks of terrorist attacks on people and transportinfrastructures


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Asian Highway In Bangladesh

The Asian Highway routes

link Bangladesh to India and

Myanmar and link the major

seaports of Chittagong and

Mongla with the capital,Dhaka.


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Importance of the AH for Bangladesh

AH is the gateway between South Asia and East Asia.

AH facilitate Bangladeshis international trade and tourismwith other SAARC countries, ASEAN countries & China

AH facilitate trade and foreign direct investment.


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development

`completion of the AH network formulation for the whole of Asia;

` measures for upgrading of AH routes, both inter-city roads and city \

bypass;

` development of an AH data base;

` reviewing of road safety issues;

` review of road environmental issues should also be considered

` review of provisions for road maintenance policy;

` measures to promote a system of uniform road signs and signals;

` measures to improve border crossing facilitation measures;

` Organization of periodical meetings to monitor progress andpromote experience sharing.


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Subrata Banik 49


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Deep seaport


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Proposedsite----Sonadia Island


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Connectivity

India

Myanmar

Nepal

Bhutan

China


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Why Sonadia Island

water depth of14-mcd(meter cubic depth)

Havingthree- kilometers (km) long accesschannel and 300-metre (long) jetties

Quality of land is better than other site

Less possibility ofearthquakeandseaquake

Better environmental aspects and accesstoutilityservicesandroadnetworks

The deepseaportasaregionalhub to

facilitate maritime tradewithtwoprovincesofChina andsevenstates knownasseven

sistersof Eastern India,inadditionto

Myanmar, Nepal andBhutan.


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CapacityofDeep Seaport

The annualcontainerhandlingcapacitywillrisetonearly30lakh

TEUs (tenequivalentunits)

The cargohandling capacity

wouldbe morethan10 crore

tonnes.

AnnualrevenueincomeoftheChittagong Portwillalsoincrease

bymorethanTaka 2000 crore.

Source: The Independent, December 23, 2009


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Sources OfFund

CPA will fund 30percentofthe port's estimated building

cost

The rest collected under alocal private-public

partnership scheme (PPP) and

loans from the World Bank

(WB) and the AsianDevelopment Bank (ADB)


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CostEstimation

Phase Estimated Time Estimated Cost

First phase 2015 Tk 15,000 crore

Second phase 2035 TK 9900 crore

Third phase 2055 Tk 1,100 crore

Estimated Total Cost (3 phases) TK 26000 crore


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Contribution On Economy

The deep-sea port will boost export-import trade

Economic growth will increase by 1.5 %

The port will generate massive employment andearning opportunities

During the first phase of the port construction, thecountry's GDP will grow at the rate of.11 % to 1.63 % a

year.

The total impact on GDP in five years is expected to be5.02 %


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Contribution On Economy

Capacity to handle cargo will massively increase

The carrying cost of both incoming and outgoing goods willcome down significantly as the port will become a regional hub

handling a massive traffic

Example: India can save 12%-18% transportation cost.

The deep-sea port would generate additional income

Create new jobs and industries

Reduce freight rates for containers and general cargo vesselsShorten shipping times for both exporters and importers

It can serve mother vessel if massive flood occurs


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ChittagongPort


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WhyChittagong port

Heart of the economy of Bangladesh

Creates the opportunity of flexible and cost-effectiveforeign trade with all the South Asian countries as

well as other Asian countries

Geographical location for international trade

Sufficient and low-cost labor readily exists

Function as a regional commercial center Availability of railway route


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Use ofChittagongPortby NE-India

NE-India need to travel around 600-700 kminstead of 1500 km by using Chittagong port

NE-India can save 12%-18% transportationcost


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ProblemsofChittagongPort

The ships have to cross a nine nauticalmile long channel foranchoring at the terminal because of tidal port.

Chittagong port is peripheral to the global maritime trade andso there are few incentives for trans-shipment on the

significant Asia-Europe route compared to major ports in the

region such as Colombo or newer ports in India.

In 2006 there are 33 attacks on vessels for lack of security.

Lack of political stability

Bureaucratic complexity in decision making.


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ProblemsofChittagongPort

Lack ofAutomation System

Lack ofmodern technologyfor loading and unloading goodsinto/from ships

329.48 acres (which is 19% out of total 1708.63 acres) of landbelonging to the port is currently under illegal possession.

Overstaffing

Laborstrikes

Cumbersome customsprocedures

Outdatedandinefficientworkrules

outdatedandinflexible management


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Recommendation

Scope for further enhancement(Chittagong port has still 40%spare capacity)

Capacity of Chittagong port can increase by making

Chittagng-Akhaura section of the railway Implementation ofdouble trucking projects

Automation System

Use ofscanner

Employment ofexpertise in every sector


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Subrata Saha 81


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MONGLA PORT


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GEOGRAPHICALPOSITION OF MONGLA

PORT:

Mongla Port is situated at the East

Bank of Pussur River near the

confluence of Pussur River and

Mongla Nulla at a distance of 65

Nautical miles from the Fairway

Buoy situated (Lat. 21026.9'NLong. 89034.4'E) in the Bay of

Bengal.


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Currently Nepal and Bhutan are using Kolkataport for their export and import trade, where theyface considerable congestion. Recently Kolkata

port is also facing siltation problem. This could beone of the reasons as to why India has asked foruse of Mongla Port, to which Bangladesh hasagreed.


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Mongla Port has large spare capacity, as only 20% of itscapacity is currently used. Once Nepal, Bhutan and Indiastart using Mongla Port, it would be possible to justifyeconomically, the extension ofrailway link from Khulna toMongla Port and construction a railway bridge overRupsa River

Continue


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TAR project was initiated inthe early 1960s

In order to providing a raillink between Singapore andIstanbul through South Asiawhich would provideconnection with rail systems inEurope and Africa.

TAR is network of 81,000kilometers of lines serving 28UNESCAP countries by theend of 2007


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South-East Asia: Cambodia, Indonesia, LaoPDR, Malaysia, Myanmar, Singapore,Thailand, Viet Nam : 12,600 km

North and North-East Asia: China, DPRK,Mongolia, Republic of Korea, RussianFederation : 32,500 km

Central Asia and Caucasus: Armenia,Azerbaijan, Georgia, Kazakhstan,Kyrgyzstan, Tajikistan, Turkmenistan,Uzbekistan : 13,200 km

South Asia + Islamic Republic of Iran andTurkey: Bangladesh, India, Islamic Republicof Iran, Nepal, Pakistan, Sri Lanka, Turkey :22,600 km

Total: 80,900 km


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several gaps in the network

different railway gauges inuse

no definite linestandards/requirements

no traffic facilitationmeasures


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outline gauge: defined by thedimensions of the highest and

widest container load to be carried

on the TAR network.

axle loads: maximum loadpermitted to bear vertically on

track through rail vehicle axles;

and

desirable running speeds: definedby transit time which can be

competitive with the other modes

of transport, particularly sea

transport.


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It would provide reliable and efficient

rail links to facilitate the internationaltrade of Bangladesh with other SAARCcountries, the ASEAN countries, China& Europe.

TAR would also promote internationaland domestic tourism in Bangladesh.

A part of the sea-cumrail/ road systemof TAR would facilitate trade in

Bangladesh.


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Regional Connectivity

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