MEA Cites Port Congestion, Blames Bangladesh’s Actions For Suspension Of Transshipment
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Bangladesh had taken several restrictive measures with regard to trade before India suspended the transshipment facility.
India suspended the transshipment facility it extended to Bangladesh, in the beginning of 2020, earlier this month. (IMAGE: DALL-E/AI)
India on Thursday explained its position on the suspension of the transshipment facility to Bangladesh, with the Ministry of External Affairs (MEA) stating that the move was prompted by logistical constraints while also urging reporters gathered to “look at the actions Bangladesh has taken before this”.
At the weekly press briefing, the MEA Spokesperson Randhir Jaiswal said the decision stemmed from mounting congestion at Indian ports and airports.
“As far as trade issues are concerned regarding the transshipment facility, we had taken that measure due to the congestion at our ports and airports,” he said. “I must remind you to please look at the actions Bangladesh has taken before this.”
A transshipment facility refers to a process where goods or cargo are transferred from one ship, vehicle or transport mode to another at a port or hub before being sent to their final destination.
People privy to the developments, who spoke to CNN-News18, pointed to three decisions by Dhaka that may have contributed to the current status of the transshipment facility.
First, Bangladesh halted the import of yarn from India through land ports, citing cost disparities, the aforementioned people said. The move triggered sharp criticism from Bangladesh’s garment exporters, who called the decision “suicidal” for the readymade garments (RMG) sector.
India introduced the transshipment facility for Bangladesh in 2020, enabling Bangladeshi exporters to use Indian Land Customs Stations (LCSs) for transporting goods to third countries such as Bhutan, Nepal and Myanmar. The initiative was designed to simplify trade processes, reduce logistical expenses, and support Bangladesh’s readymade garment (RMG) sector by lowering both transit time and costs.
The decision followed a visit by Prof. Yunus, Chief Adviser to Bangladesh’s interim government, to Beijing, where he made controversial statements. He advocated for stronger Chinese trade relations with northeastern India and suggested the use of Bangladesh’s ports in the process.
The people mentioned above also noted the second action by the Bangladeshi government, which involved the appointment of a panel that, citing financial losses and inactivity, recommended the complete closure of three land ports on the India-Bangladesh border. The same panel also suggested suspending operations at another key port.
Third, Benapole Customs House, which is one of the busiest land ports in Bangladesh, has reportedly formed a dedicated investigation and management unit to boost revenue oversight and enforcement, leading to tighter regulatory scrutiny along the trade corridor.
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