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New India-Bangladesh train service to lower shipping costs
https://www.joc.com/rail-intermodal...in-service-lower-shipping-costs_20180323.html
Bangladesh Special Correspondent | Mar 23, 2018 1:09PM EDT
Dhaka, Bangladesh. Photo credit: Shutterstock.com.
Shippers are applauding the scheduled March 27 trial run of the India-to-Bangladesh freight train service — with regular service set to begin within two months — that will provide shippers with a cheaper, quicker, non-truck transport option.
Moreover, the train has the potential to substantially reduce transport costs from about $800 by truck to about $730 by train per TEU; transport time will also take days instead of about two weeks or longer.
The first freight train between Bangladesh and India in the two nations’ history will arrive at Dhaka from Kolkata on March 27, carrying mainly apparel industry and consumer goods.
Container Corporation of India Ltd.’s (CONCOR’s) train will transport 60 TEU in its debut journey, which will be treated as a trial run. Officials expect to start regular service within two months, after removing any bottlenecks identified during the trial trip.
Shippers and business groups are enthused by the train service because transport via train will be cheaper and quicker and it will give shippers a non-truck transport option.
“The train service will be a good option for us since we face congestion and lack of storage facilities at the Benapole Land Port while importing goods by road from India,” Bangladesh Garment Manufacturers and Exporters Association president Siddiqur Rahman told JOC.com.
Rahman said the service will make importing easier, as the train will take only a day to reach Dhaka from Kolkata, whereas transporting goods via other means takes two weeks.
Rahman, an apparel goods supplier for export for most of the top, global brands, said an off-dock will be set up near the Bangabandhu Bridge area, where the train will arrive, in order to facilitate export-import.
Apparel accounts for 80 percent of Bangladesh’s export market, generating $34 billion in GDP for the country.
Sk Mahfuz Hamid, managing director of Gulf Orient Seaways Ltd, the local partner of CONCOR, told JOC.com the train will reach the Bangabandhu Bridge area in the Sirajganj district in about 24 hours, where the containers will be unloaded.
“Once we get permission from the bridge authority, we will bring the train directly to Dhaka or the Gazipur industrial zone, where a majority of garment factories are located,” he said.
The train transport advantage
Hamid said the train transport per TEU cost from Kolkata to the Bangabandhu Bridge area is $480. Transporting the container from there to factories in Gazipur or Dhaka will add another $250.
On the other hand, truck transport per TEU from Kolkata to Dhaka costs $800 and the transit time is about 22 to 25 days, he said. Trucks must wait weeks in the Benapole Land Port area because of congestion and administrative procedures, he said.
Hamid said the debut train will also carry some goods on the return trip to India.
Assistant director for interchange traffic at Bangladesh Railway Kalikanta Ghosh said the train has a huge potential, since businesspeople want to save time and money.
“I think we will be able to run 10 to 12 voyages a month when the regular service is launched shortly,” he told JOC.com. “We are getting a tremendous response from importers and exporters.”
Federation of Bangladesh Chambers of Commerce and Industry President Shafiul Islam (Mohiuddin) told JOC.com trade is growing between Bangladesh and India and the train service will support that trend.
“When the infrastructure is ready, the cost of doing business goes down. The train service will be much easier than carrying goods through trucks,” he said.
Mohiuddin, also a top apparel exporter, said a multimodal transport service facilitates trade and opens doors of opportunity for exporters and importers.
“Good transportation options increase the availability of goods to consumers at a cheap price,” he said, adding that Bangladesh, a developing country, must improve its infrastructure to facilitate further growth.
Bilateral trade between Bangladesh and India totaled $7 billion in 2017.
Bangladesh’s primary imports from India are cotton, cotton yarn, cotton fabrics, vehicles, nuclear reactors, boilers, machinery and mechanical appliances, cereals, human-consumable vegetables, iron and steel, and consumer goods.
Bangladesh’s primary exports to India are woven garments, knitwear, home textiles, agri-products, frozen food, leather and leather products, footwear, raw jute, jute goods, and bicycles.
https://www.joc.com/rail-intermodal...in-service-lower-shipping-costs_20180323.html
Bangladesh Special Correspondent | Mar 23, 2018 1:09PM EDT
Dhaka, Bangladesh. Photo credit: Shutterstock.com.
Shippers are applauding the scheduled March 27 trial run of the India-to-Bangladesh freight train service — with regular service set to begin within two months — that will provide shippers with a cheaper, quicker, non-truck transport option.
Moreover, the train has the potential to substantially reduce transport costs from about $800 by truck to about $730 by train per TEU; transport time will also take days instead of about two weeks or longer.
The first freight train between Bangladesh and India in the two nations’ history will arrive at Dhaka from Kolkata on March 27, carrying mainly apparel industry and consumer goods.
Container Corporation of India Ltd.’s (CONCOR’s) train will transport 60 TEU in its debut journey, which will be treated as a trial run. Officials expect to start regular service within two months, after removing any bottlenecks identified during the trial trip.
Shippers and business groups are enthused by the train service because transport via train will be cheaper and quicker and it will give shippers a non-truck transport option.
“The train service will be a good option for us since we face congestion and lack of storage facilities at the Benapole Land Port while importing goods by road from India,” Bangladesh Garment Manufacturers and Exporters Association president Siddiqur Rahman told JOC.com.
Rahman said the service will make importing easier, as the train will take only a day to reach Dhaka from Kolkata, whereas transporting goods via other means takes two weeks.
Rahman, an apparel goods supplier for export for most of the top, global brands, said an off-dock will be set up near the Bangabandhu Bridge area, where the train will arrive, in order to facilitate export-import.
Apparel accounts for 80 percent of Bangladesh’s export market, generating $34 billion in GDP for the country.
Sk Mahfuz Hamid, managing director of Gulf Orient Seaways Ltd, the local partner of CONCOR, told JOC.com the train will reach the Bangabandhu Bridge area in the Sirajganj district in about 24 hours, where the containers will be unloaded.
“Once we get permission from the bridge authority, we will bring the train directly to Dhaka or the Gazipur industrial zone, where a majority of garment factories are located,” he said.
The train transport advantage
Hamid said the train transport per TEU cost from Kolkata to the Bangabandhu Bridge area is $480. Transporting the container from there to factories in Gazipur or Dhaka will add another $250.
On the other hand, truck transport per TEU from Kolkata to Dhaka costs $800 and the transit time is about 22 to 25 days, he said. Trucks must wait weeks in the Benapole Land Port area because of congestion and administrative procedures, he said.
Hamid said the debut train will also carry some goods on the return trip to India.
Assistant director for interchange traffic at Bangladesh Railway Kalikanta Ghosh said the train has a huge potential, since businesspeople want to save time and money.
“I think we will be able to run 10 to 12 voyages a month when the regular service is launched shortly,” he told JOC.com. “We are getting a tremendous response from importers and exporters.”
Federation of Bangladesh Chambers of Commerce and Industry President Shafiul Islam (Mohiuddin) told JOC.com trade is growing between Bangladesh and India and the train service will support that trend.
“When the infrastructure is ready, the cost of doing business goes down. The train service will be much easier than carrying goods through trucks,” he said.
Mohiuddin, also a top apparel exporter, said a multimodal transport service facilitates trade and opens doors of opportunity for exporters and importers.
“Good transportation options increase the availability of goods to consumers at a cheap price,” he said, adding that Bangladesh, a developing country, must improve its infrastructure to facilitate further growth.
Bilateral trade between Bangladesh and India totaled $7 billion in 2017.
Bangladesh’s primary imports from India are cotton, cotton yarn, cotton fabrics, vehicles, nuclear reactors, boilers, machinery and mechanical appliances, cereals, human-consumable vegetables, iron and steel, and consumer goods.
Bangladesh’s primary exports to India are woven garments, knitwear, home textiles, agri-products, frozen food, leather and leather products, footwear, raw jute, jute goods, and bicycles.
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