India and Bangladesh signed the Standard Operating Procedure (SOP) in New Delhi to operationalize the “Agreement on Coastal Shipping” signed between the two countries in June, 2015.
- The SOP was signed in the presence of Minister of Shipping and Road Transport Nitin Gadkari and Minister of Shipping of Bangladesh Shafiq Alam Mehdi.
- The coastal shipping agreement will enable a huge saving in logistic costs of export-import transport between the two countries.
Key points of SOP:
SOP had been framed as per the terms and conditions of the agreement on coastal shipping and both India and Bangladesh had agreed to its provisions.
- Bringing down the cost of transportation of EXIM cargo.
- Both Nations shall render the same treatment to the other country’s vessels as it would have done to its national vessels used in international sea transportation.
- The two sides have also agreed upon the use of vessels of River Sea Vessel (RSV) category for Indo-Bangladesh coastal shipping.
Advantages of the Agreement:
- It will enable the movement of cargo to the North East through coastal shipping upto Chittagong and thereafter by road/inland waterways.
- The deep draft ports on the eastern coast of India can be “hub ports” for the onward transportation of cargo to Bangladesh.
- The Indian ports will attract enhanced cargo and also the overall transportation cost to Bangladesh will get reduced.
- The Indian ports serving as trans- shipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade.
Keys
Bangladesh Currency – Bangladeshi taka
Bangladesh Capital – Dhaka
Bangladesh PM – Sheikh Hasina
Bangladesh Prez – Abdul Hamid
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