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A Study on Indian Participation in the Protocol of Inland Water Transit & Trade (PIWTT)

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A Study on Indian Participation in the Protocol of Inland Water Transit & Trade (PIWTT) A study on Indian participation in the Protocol of Inland Water Transit & Trade (PIWTT) Sponsored by the High Commission of India in Bangladesh and Investment & Technology Promotion Division, Ministry of External Affairs, Government of India Mahboob Ahmed Senior Consultant and Managing Director Shipwrights Resources Limited House # 102 (1st Floor) Road # 102, Block-F Banani Dhaka-1213, Bangladesh 1 Table of Contents Contents Page No. I Introduction to the Study 3 Section-I Ii Points of Entry & Exit on the PIWTT route 5 iii River Routes & Ports of Call 6 Section-II iv 7 Regulatory & Procedural requirement for Indian Vessels V IWAI rules & Applicable vessel & cargo related charges 8 9 BIWTA rules & Applicable vessel & cargo related charges vi Applicable Charges for Indian vessels for transit & 11 transshipment (by modal): vii Customs & Immigration procedures in the PIWTT route 12 viii Freights earned by the Indian vessels 13 Section-III ix Review of transit/ transshipment activity by Indian Shippers 14 under PIWTT x Current outlook of transit & transshipment activity 17 Section-IV xi Evaluation of dismal participation of Indian Vessels under PIWTT Section-V 21 State of Transshipment Infrastructures 24 Section-VI xii Challenges & Opportunities 26 2 A Study on Indian Participation in Transit and Transshipment trade under the PIWTT (The following report had been developed after extensive interactions with number of Indian shippers and ship operators based in Kolkata, IWAI, State & Central Government officials, political personalities and private business people accumulated in a recent FICI NE connectivity Summit held in Agartala (21-23 Sept., 2016), Tripura Introduction The PIWTT has taken a new dimension in recent times for east west connectivity by inland waterways. World Bank has extended their hands in funding intensive dredging of the protocol river routes in particular for improving the navigational conditions for better connectivity between India and Bangladesh throughout the year. The recent agreements between the four SA countries for example BBIN motor vehicle agreement (MVA) and Coastal shipping agreement between India and Bangladesh have further provided impetus to the PIWTT by creating more transshipment opportunities for quicker access to NE from the mainland India. The development of NW-I under ‘Jal Marg Vikas’ project by the Ministry of Road Transport, Highways & Shipping in India (assisted by WB) have created an opportunity for connecting it with NW-2 (Brahmaputra river) through the protocol route will soon create a far greater east-west connectivity from Allahabad to Pandu/ Silghat in Assam. This development if taken up by the governments of India & Bangladesh will create huge opportunities for Indian shippers & ship operators in near future. Recent connectivity conferences organized by FICCI in Shillong (2015) and Agartala (2016) have witnessed active participation by the concerned central & state government officials, representatives from international organizations such as WB, ADB, JICA, IUCN & UNCTD, Businesses and other stakeholders from across 3 India & Bangladesh including NGO’s and Environmentalists. There had been a general consensus among the participants that waterways connectivity is more sustainable and most appropriate means of transportation which will help maintain the echo diversity of NE India so unique and important to the region. However, in recent times the Indian participation in transit and transshipment under PIWTT remained insignificant or yet to pick up. Partly due to the fact that the cargo transportation at commercial level between the NE and the mainland India through Kolkata under PIWTT is yet to begin. Mainly for two reasons, one being the time factor (travel time+ unloading at Ashugonj) and the other is the navigability issue particularly for direct transit trade, have together appeared discouraging for the stakeholders. In spite of this fact, the opportunities for quicker movement of goods and increased number of Indian participation (both at shipper and ship level) is possible through intermodal transportation (by nominating more than one inland river transshipment port) which will be discussed later in the recommendation section. 4 Section-I Points of Entry/ Exit in the Protocol route a) To & from Kolkata: Hemnagar in West Bengal/ India and Angtihara (Sheikbaria) in Khulna/ Bangladesh. River connecting: Behari Khal river b) To & From Pandu/Silghat in Assam India: Dhubri in Assam/ India and Chilmari in Bangladesh (both being the Customs/ Immigration check post) 1.6km No man’s land exists between Daikhawa (furthest point north of Chilmari) and Dhubri River connecting: NW-2 Brahmaputra/India & Jamuna/ Bangladesh c) To and from Farakka/ WB in India and Rajshahi in Bangladesh: Dhulian in India and Godhagari Ghat (Rajshahi) in Bangladesh. Route earmarked for Indian transit traffic River connecting: Ganges/ India and Padma (in Bangladesh) d) To & from Karimgonj (lower Assam): Karimgonj / India and Zakigonj/ Sylhet, Bangladesh Route primarily used for Indian transit traffic River connecting: Barak river (India) & Kushiara river in Bangladesh e) Transshipment Port for transit cargo using surface transport to NE India via Akhaura/Bangladesh and Agartala land port in Tripura : Ashugonj river Port in Brahmanbaria (planned to be developed as a modern transshipment hub for both containers and bulk cargo including ODC’s). Currently is used as bulk cargo port 5 River Routes & Ports of Call: 1. Kolkata-Haladia-Raimongal-Chalna-Khulna-Mongla-Kaukhali-Barisal-Hizla- Chandpur-Narayangonj-Aricha-Sirajganj-Bahadurabed-Chilmari-Dhubri- Pandu-Silghat. 2. Silghat-Pandu-Dhubri-Chilmari-Bahadurabad-Sirajganj-Aricha-Narayanganj- Chandpur-Hizla-Barisal-Kaukhali-Mongla-Khulna-Chalna-Raimongal-Haldia- Kolkata. 3. Kolkata-Haldia-Raimongal-Mongla-Kaukhali-Barisal-Hizla-Chandpur- Narayanganj-BhairabBazar-Ashuganj-Ajmiriganj-Markuli-Sherpur- Fenchuganj-Zakiganj-Karimganj. 4. Karimganj-Zakiganj-Fenchuganj-Sherpur-Markuli-Ajmiriganj-Ashuganj- Bhairab Bazar-Narayanganj-Chandpur-Hizla-Barisal-Kaukhali-Mongla- Raimongal-Haldia-Kolkata. 5. Rajshahi-Godagari-Dhulian. 6. Dhulian-Godagari-Rajshahi. 7. Karimganj-Zakiganj-Fenchuganj-Sherpur-Markuli-Ajmiriganj-Bhairab Bazar- Narayanganj-Chandpur-Aricha-Sirajganj-Bahadurabad-Chilmari-Dhubri- Pandu-Silghat. 8. Silghat-Pandu-Dhubri-Chilmari-Bahadurabad-Sirajganj-Aricha-Chandpur- Narayanganj-BhairabBazar-Ajmiriganj-Markuli-Sherpur-Fenchuganj- Zakiganj-Karimganj Bunkering Facility Points under PIWTT: Vessels of one country may be bunkered at the following points of other country: Bangladesh India Sheikbaria Kolkata Mongla Budge Budge Khulna Haldia Barisal Namkhana Chandpur Karimganj 6 Section-II Regulatory/ standard procedures and charges applicable for Indian vessels entering Bangladesh with transit/ transshipment cargo bound for NE India Regulatory standards/ procedures and charges applicable are unique to each partner country and their regulatory bodies. The following describes those related to transit and transshipment cargo and vessels only. A. Regulatory & Procedural requirements as per IWAI office, Kolkata (India) Following Procedure is being followed for allowing Indian flag Ship/Barge Operator to operate under PIWTT between India & Bangladesh. a) The vessel must have minimum RSV-II certification for plying the PIWTT route. b) The Indian Shipping agent firm submits an application along with Trade License, Deed Agreement signed with Bangladesh Agent, Latest Income Tax clearance certificate, PAN number and self attested photograph requesting to operate under IWT & T protocol between India & Bangladesh. c) On receipt of same this office issues a letter to the agency to attend the office of Director, IWAI, Kolkata along with the original documents on a specific date for verification of the same. 7 d) After completion of verification of documents IWAI issues a letter to the firm intimating that Authority has approved his request for registration as Shipping Agent to operate as a Barge operator on Inland Water Transit & Trade Protocol between India & Bangladesh. e) The shipping agent after verification of records submits applications on day to day basis seeking inward / outward permissions for Bangladesh vessels which are processed accordingly. Note: IWAI office in Kolkata have recently introduced online submission and approval procedures. B. Applicable charges payable to IWAI in Kolkata/ India for transit & transshipment trade through the India-Bangladesh protocol route. 1. Cargo vessel related charges: 1.1 Indian Rs. 0.02 per GRT per km in the Protocol route within Indian territory. 1.2 Berthing charge at Kolkata & Haldia ports: Indian Rs. 1000 for per day/ 24 hrs. or part thereof (Day: 6AM to 6AM) 1.3 Pilotage charge: Indian Rs. 750 per day or part thereof per pilot. 2. Cargo related charges: 2.1 Dry Cargo (bulk): Rs. 1 per ton 2.2 Liquid Cargo : Rs. 1 per ton 2.3 Containerized Cargo: Rs. 50 per TEU (20’) & Rs 75 per FEU (40’) 2.4 Transit Shed Charges: 7 days free time. Rs. 5 /mt per day for next 14 days. Rs. 10 per mt/day for further 14 days. Beyond 35 days, penalty and other legal measures will apply. 8 2.5 Open Storage Charge: 7 days free. Rs 1 per ton/ day for next 14 days. Rs 2 per ton/ day for further 14 days. 3. Movement of over dimensional cargo (ODC) Charges: Indian Rs. 1.50 per ton / km inclusive of waterways usage within Indian territory of the Protocol route and all vessel related charges. 4. Crane usage Charges: Indian Rs. 800 per shift/ 8 hrs for 5 (five)
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