UNB, Dhaka :
Bangladesh will require to spend $ 1.8 billion in road, ports and land port infrastructures to develop functional transit routes for transit traffic prior to its introduction among the South Asian countries, estimates a new study.
Of the amount, about $ 257 million is needed for transit facilities at different components of seven out of eight identified transit routes, says the study conducted by Mohammad Yunus, a senior researcher of Bangladesh Institute of Development Studies (BIDS).
It says that about $ 81 million is needed to rehabilitate critical segments of routes along with the seven transit ones. About $ 26 million is required to improve the efficiency of Chittagong seaport while $ 129 million to improve the efficiency and navigability of Mongla seaport.
The figure is $ 21 million for improvement at Tamabil, Akhaura, Sutakandi, Benapole, Banglabandha, and Burimari land custom posts. Besides, the country will need to spend $ 26 million in each of the 15 years towards operation and maintenance.
The study also figures out that Bangladesh will need to spend about $ 2.1 billion over five years for development of infrastructures along with rail transit routes. Of this amount, about US$ 1.3 billion will be required the transit freight routes along four routes.
Besides, $ 78 million is prorated to transit traffic in the improvement of efficiency of the Chittagong Port. The country will require $ 64 million to spend additionally each year over the 20-year period.
In order to achieve effective regional connectivity, political commitment and greater understanding of the issues involved are of paramount importance.
The potential of integrated transport system as an engine of growth at the regional level remains largely unrealised for lack of political will, particularly in India, the report says.
BIDS researcher Mohammad Yunus, however, said political commitment has ushered into a new era for the region following the signing of landmark Bangladesh India Joint Communiqué in January 2010.
“But, the economic implications of the expressed willingness of policymakers are not in place till date,” he added.
The absence of through transport connectivity among Bangladesh, Bhutan, Nepal and India results in losses for all countries in terms of opportunity costs.
Some of lost opportunities include avoidance of delay in receipt of cargo, cutting down distance, and reducing costs. Thus, Bangladesh, Bhutan, India and Nepal all stand to gain substantially from cooperation in transport services, according to the study.
Yunus said the study provides a preliminary estimate of benefit that will accrue to the countries of the region from the opening up of transit traffic services across Bangladesh as well as benefits and costs to Bangladesh allowing the transit traffic service to flow across its territory.
Bangladesh will require to spend $ 1.8 billion in road, ports and land port infrastructures to develop functional transit routes for transit traffic prior to its introduction among the South Asian countries, estimates a new study.
Of the amount, about $ 257 million is needed for transit facilities at different components of seven out of eight identified transit routes, says the study conducted by Mohammad Yunus, a senior researcher of Bangladesh Institute of Development Studies (BIDS).
It says that about $ 81 million is needed to rehabilitate critical segments of routes along with the seven transit ones. About $ 26 million is required to improve the efficiency of Chittagong seaport while $ 129 million to improve the efficiency and navigability of Mongla seaport.
The figure is $ 21 million for improvement at Tamabil, Akhaura, Sutakandi, Benapole, Banglabandha, and Burimari land custom posts. Besides, the country will need to spend $ 26 million in each of the 15 years towards operation and maintenance.
The study also figures out that Bangladesh will need to spend about $ 2.1 billion over five years for development of infrastructures along with rail transit routes. Of this amount, about US$ 1.3 billion will be required the transit freight routes along four routes.
Besides, $ 78 million is prorated to transit traffic in the improvement of efficiency of the Chittagong Port. The country will require $ 64 million to spend additionally each year over the 20-year period.
In order to achieve effective regional connectivity, political commitment and greater understanding of the issues involved are of paramount importance.
The potential of integrated transport system as an engine of growth at the regional level remains largely unrealised for lack of political will, particularly in India, the report says.
BIDS researcher Mohammad Yunus, however, said political commitment has ushered into a new era for the region following the signing of landmark Bangladesh India Joint Communiqué in January 2010.
“But, the economic implications of the expressed willingness of policymakers are not in place till date,” he added.
The absence of through transport connectivity among Bangladesh, Bhutan, Nepal and India results in losses for all countries in terms of opportunity costs.
Some of lost opportunities include avoidance of delay in receipt of cargo, cutting down distance, and reducing costs. Thus, Bangladesh, Bhutan, India and Nepal all stand to gain substantially from cooperation in transport services, according to the study.
Yunus said the study provides a preliminary estimate of benefit that will accrue to the countries of the region from the opening up of transit traffic services across Bangladesh as well as benefits and costs to Bangladesh allowing the transit traffic service to flow across its territory.
