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Monday, February 27, 2012
Front Page
Transit to spin $44m a year
http://www.thedailystar.net/newDesign/news-details.php?nid=224057
Transport expert Rahmatullah says earnings to shoot up once total infrastructure in place
M RahmatullahStaff Correspondent
Bangladesh could earn about $44 million a year by providing transit to India and its neighbours over the first five years while developing infrastructure for the facility, a transport expert said yesterday.
If the infrastructure was ready in five years, Bangladesh would annually earn half a billion US dollars from the sixth and $1 billion from the 16th year.
Additionally, there would be an investment boost alongside other positive impacts in various sectors, said M Rahmatullah, a member of the government committee on transit, during a dialogue at Palli Karma-Sahayak Foundation.
The country would need three to five years to get its transport system in top gear for taking the load of the entire transit traffic, he said.
"For Bangladesh, transit will open up new avenues of opportunities. It will make out a case for India and China investing in deep-sea port in Bangladesh.
India will also be a major gainer, mainly due to reduction in time and cost of goods transport between its north-eastern states and the rest of the country.
Indian traders might save up to $50 a tonne through getting the transit facility, he said, suggesting the neighbouring country share the savings with Bangladesh.
Depending on routes, Rahmatullah said, the savings in transport costs could be $4-50 a tonne against an estimated 18 million tonnes of yearly transit traffic.
Of the cargoes, 16 million tonnes would possibly move between the north-eastern Indian states to its mainland. The remaining 2 million tonnes would be international cargoes through Bangladesh ports, said Rahmatullah.
Bangladesh would require $7.0 billion over the next decade to develop its transport system, including roads, rails and waterways, for transit, he added.
He suggested the Bangladesh government impose charges for maintenance and operation of infrastructures.
"There have to be some charges. It is allowed under WTO [World Trade Organisation] rules. Bangladesh has the right to charge."
Rahmatullah also favoured charges for environmental costs, congestions and overheads.
To reap the advantage of transit faster, he suggested both Bangladesh and India speed up infrastructure building by removing procedural delays.
As an immediate solution, he recommended transhipment in the meantime of making railway and other infrastructures ready for transit. Another option, he said, could be a joint-venture trucking company by investors from Bangladesh, India, Nepal and Bhutan.
The vehicles under the joint venture would have double registration and a special colour for smooth transportation, he said.
Khondaker Azharul Haq, a water expert, said there was a lot of confusion about the gains for Bangladesh. It must be clear how much in terms of benefits the country would get out of allowing the transit facilities.
"It is quite clear that transit will be beneficial for everyone," said Pinak Ranjan Chakravarty, a former Indian envoy to Dhaka.
Front Page
Transit to spin $44m a year
http://www.thedailystar.net/newDesign/news-details.php?nid=224057
Transport expert Rahmatullah says earnings to shoot up once total infrastructure in place
M RahmatullahStaff Correspondent
Bangladesh could earn about $44 million a year by providing transit to India and its neighbours over the first five years while developing infrastructure for the facility, a transport expert said yesterday.
If the infrastructure was ready in five years, Bangladesh would annually earn half a billion US dollars from the sixth and $1 billion from the 16th year.
Additionally, there would be an investment boost alongside other positive impacts in various sectors, said M Rahmatullah, a member of the government committee on transit, during a dialogue at Palli Karma-Sahayak Foundation.
The country would need three to five years to get its transport system in top gear for taking the load of the entire transit traffic, he said.
"For Bangladesh, transit will open up new avenues of opportunities. It will make out a case for India and China investing in deep-sea port in Bangladesh.
India will also be a major gainer, mainly due to reduction in time and cost of goods transport between its north-eastern states and the rest of the country.
Indian traders might save up to $50 a tonne through getting the transit facility, he said, suggesting the neighbouring country share the savings with Bangladesh.
Depending on routes, Rahmatullah said, the savings in transport costs could be $4-50 a tonne against an estimated 18 million tonnes of yearly transit traffic.
Of the cargoes, 16 million tonnes would possibly move between the north-eastern Indian states to its mainland. The remaining 2 million tonnes would be international cargoes through Bangladesh ports, said Rahmatullah.
Bangladesh would require $7.0 billion over the next decade to develop its transport system, including roads, rails and waterways, for transit, he added.
He suggested the Bangladesh government impose charges for maintenance and operation of infrastructures.
"There have to be some charges. It is allowed under WTO [World Trade Organisation] rules. Bangladesh has the right to charge."
Rahmatullah also favoured charges for environmental costs, congestions and overheads.
To reap the advantage of transit faster, he suggested both Bangladesh and India speed up infrastructure building by removing procedural delays.
As an immediate solution, he recommended transhipment in the meantime of making railway and other infrastructures ready for transit. Another option, he said, could be a joint-venture trucking company by investors from Bangladesh, India, Nepal and Bhutan.
The vehicles under the joint venture would have double registration and a special colour for smooth transportation, he said.
Khondaker Azharul Haq, a water expert, said there was a lot of confusion about the gains for Bangladesh. It must be clear how much in terms of benefits the country would get out of allowing the transit facilities.
"It is quite clear that transit will be beneficial for everyone," said Pinak Ranjan Chakravarty, a former Indian envoy to Dhaka.
