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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.
Continue
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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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Thankyou forbeing with us