SOP to operationalise Coastal Shipping Accord

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 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

By: Vishal