First director container to Bangladesh

India is consistently looking to strengthen the ties with its neighbouring Nations. Many agreements were signed between India and Bangladesh including the transmission line, road agreement etc. Now, the First MV 1 Harbour vessel will be sent to Bangladesh.

Flash points

• The first direct container MV Harbour-1 Vessel between India and Bangladesh carrying cotton was flagged off from Krishnapatnam of Andhra Pradesh to Chittagong
• A standard operating procedure was signed between India and Bangladesh in November 2015 to move commercial cargo between the two countries
• The operating vessels will be treated as domestic vessels and not as foreign vessels
• It will play a key role in addressing the traffic congestion at Petrapole (India) and Benapole (Bangladesh)
• It will enjoy complete Protection and Indemnity (P&I) coverage insuring cargo from the point of loading to the final destination and till the time the parcel reaches the final consignee

Benefits of the agreement

• Earlier, the shipments were carried out through Singapore or Colombo and now with the new agreement the shipping will come down to 3-5 days
• The deep draft ports on the eastern coast of India can behub ports for the onward transportation of cargo to Bangladesh through River Sea Vessels (RSV).
• Cargo moving on road may take upto 30 days but now the time taken will be greatly reduced

Exports of both nations

• India exports raw cotton, cotton, steel, tyres and minerals, among others, which are valued at 6 billion dollars per annum to Bangladesh
• Bangladesh exports goods like textile yarn, fish, mineral fuels, cement, bran and husk which worth half a billion US dollars to India

Key points

• Bangladesh Capital- Dhaka
• Currency- Dacca
• PM-Sheik Haseena