What Is The Coastal Shipping Agreement Between India And Bangladesh?

The Coastal Shipping Agreement between India and Bangladesh is a bilateral arrangement aimed at promoting maritime trade and improving coastal shipping connectivity between the two neighboring countries. It allows vessels registered in either country to operate along the coastal routes of both nations and access designated ports, thereby enhancing trade efficiency and reducing transportation costs.

Key Features of the Coastal Shipping Agreement

1. Scope and Coverage

The agreement permits Indian and Bangladeshi coastal vessels to ply between ports in both countries.

It covers designated sea routes and specified ports for the purpose of coastal shipping and cargo movement.

2. Vessel Eligibility and Registration

Only vessels registered as coastal vessels under respective national laws qualify to participate.

These vessels must meet safety, environmental, and operational standards as per the regulations of both countries.

3. Customs and Documentation

Simplified customs clearance and documentation processes are adopted to facilitate smooth cargo movement.

Both countries coordinate on port procedures to minimize delays and bureaucratic hurdles.

4. Trade Facilitation

The agreement encourages the use of coastal shipping as a cost-effective and environmentally friendly alternative to land transport.

It supports bilateral trade growth by reducing transit times and costs.

5. Regulatory and Operational Framework

Each country regulates coastal shipping within its territorial waters.

The agreement includes provisions for dispute resolution and cooperation on maritime safety and security.

6. Use of Inland Waterways

The agreement is linked with inland waterway transport initiatives, leveraging river and canal systems for cargo movement where applicable.

Objectives of the Agreement

• Promote maritime trade and connectivity between India and Bangladesh.
• Enhance utilization of coastal shipping routes to decongest land transport corridors.
• Foster regional economic integration and cooperation.
• Support sustainable and efficient transport solutions in the Bay of Bengal region.

Legal Framework

The agreement is grounded in the principles of international maritime law, coastal shipping regulations of both countries, and bilateral treaties.

It aligns with the Inland Vessels Act in India and equivalent maritime laws in Bangladesh.

Coordination between respective maritime authorities ensures compliance and smooth implementation.

Example

Scenario:
A coastal vessel registered in India transports goods from Kolkata Port to Mongla Port in Bangladesh.

Process Under Agreement:

• The vessel follows designated coastal shipping routes allowed under the agreement.
• It completes simplified customs documentation at both ports.
• The cargo moves efficiently, avoiding extensive land transit and reducing cost.
• Both Indian and Bangladeshi authorities monitor vessel safety and regulatory compliance.

This enhances bilateral trade and optimizes shipping operations between the two nations.