Bangladesh's use of Indian transshipment facility will boost the country's international trade and enhance competitiveness, economists and business leaders told the FE on Thursday.
They gave the opinion, as the first bonded, cross-border, land-air transshipment from Bangladesh departed the Indian airport of Kolkata for European destination.
Commenting on the development, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Shafiul Islam Mohiuddin said it will raise competitiveness of the country's businesses.
"In this globalised world the businesses look for cost effectiveness. If we find that exporting our goods through the Indian ports is more feasible, we can definitely use that option."
Simultaneously it will also compel the authorities concerned here to raise competitiveness of the local airports, he added.
Dr Zaidi Sattar, Chairman of Policy Research Institute of Bangladesh (PRI), said Bangladesh's use of the Indian transshipment facility will increase its competitiveness and will also benefit consumers.
Providing transshipment facility to other countries to facilitate trade is an international convention.
"We are living in the 21st century, and our goal is to become a developed country. Bangladesh and India are good neighbours, who want to maintain a constructive economic relationship."
"So it is very natural that these states will use each other's transshipment facility to reduce international trade transaction cost."
"I do not think there is any problem in adopting such a move, if security issues are properly taken care of," he noted.
Professor Dr Mustafizur Rahman, Distinguished Fellow of Centre for Policy Dialogue (CPD), said the transshipment facility will offer another (viable) option for local businesses.
"But it will also point finger to the importance of raising the capacity of our own airports," he opined.
About the first Bangladeshi cargo exported through Kolkata airport, the Bangladesh High Commission in Delhi said Expo Freight Limited (EFL), the company concerned, introduced a tailor-made logistics solution to handle such cargo transshipment between the two neighbouring countries.
The EFL offices in Bangladesh and India worked jointly in handling the cargo of apparel products.
Bangladeshi trucks carried the cargo, weighing 4.1 tonnes, to Indian trucks at Bangladesh-India border through Benapole-Petrapole ports. From there, the cargo was taken to Kolkata airport via GPS-enabled trucks.
Finally, it was air freighted for the terminal destination in Europe within the specified timeframe, the high commission added.
Through the trial initiative, Kolkata turns out to be a strategic and useful transshipment doorway to Bangladesh for inbound and outbound air transportation, Indian ministry concerned said in a statement.
EFL Group CEO S Senthilnathan said, "We are proud to enrich our ties with Bangladesh through this initiative. Alternative solutions of this nature will enable us to enhance efficiencies of our logistics operations to promote international trade."
EFL is considering this breakthrough to be instrumental in positively impacting business growth beyond borders, he added.
