Bangladesh, India Explore Coastal Shipping Link to Boost Bilateral Trade

A delegation from the Bangladesh Ministry of Shipping, led by Commodore Jubair Ahmed of the Department of Shipping, visited India’s eastern coast ports: Paradip, Visakhapatnam, and Haldia, to assess the feasibility of launching direct coastal shipping services. At Paradip Port Trust, discussions focused on cargo-handling capacity, port facilities, and operational readiness.

Currently, trade between Bangladesh and India is routed through transshipment hubs like Singapore and Colombo, resulting in higher costs and longer transit times. The proposed coastal route aims to eliminate this inefficiency by establishing direct maritime connectivity. Bangladesh proposed this during talks in Dhaka regarding the renewal of the Inland Water Transit and Trade (PIWTT) protocol from 1972, which India accepted, leading to the feasibility study visit. Bangladeshi vessels already handle most riverine transport under PIWTT. If coastal services begin, these vessels could take on new roles, though most of the nearly 2,000 Bangladeshi ships will require upgrading, as only about 80 meet current international standards.

Trade volume stands at approximately $4.5 billion in imports from India and $1 billion in exports to India, with exports increasing thanks to relaxed restrictions on Bangladeshi garments. On the Indian side, Paradip Port, with an annual handling capacity of 76 million tonnes, far exceeds Chattogram Port’s 45 million tonnes. Paradip is also expanding, including new oil and multipurpose berths to accommodate vessels up to 125,000 DWT.

Officials on both sides believe that this coastal link could transform regional trade logistics, reducing dependence on distant transshipment hubs and strengthening direct maritime connectivity between Bangladesh and India.