The government’s consent to a very low transshipment fees for Indian multi-modal transit through Bangladesh has come as a big surprise. As per media report on Wednesday the rate that Dhaka has agreed at Tk 192 per tone that includes Customs fee, fees for roads and highways and inland water transport system is far below Tk 1,058 that was recommended by the national core committee on transit fees headed by former chairman of Bangladesh Tariff Commission. The sensitive issue was on the table since November last and Bangladesh policy makers were silently bargaining. What appears highly repugnant is the fact that the government is always keeping the nation in the dark about the entire issue.
It appears that the government has abandoned claim on fees against road congestion, infrastructure development and on environmental damage. It is not taking the cost of additional manpower to operate the transit. These are common issues in such transit arrangements through third countries. But our government appears to have decided to avoid demanding such fees and to many it may be a small price of friendship with the big neighbour. Needless to say that India helped Bangladesh in our liberation war to make the country free from the occupation of Pakistani military junta. So it may expect anything from Bangladesh in return and we are happy that India has at least agreed to pay a smaller amount for it.
But we must find out as to who would pay the infrastructure development costs like building inland ports at Ashugonj and other places or repairing and enlarging roads and highways. The cost of maintenance of ports and highways is huge and we can’t understand who will pay it and who will reap the benefits. It will require huge investment from the government own resources as well as by loans from donors like the Asian Development Bank; which is lining up credit for the purpose. But many raise the question as to why Bangladesh tax payers should bear the cost when somebody else will take advantage from it.
In this respect we look positively at experts’ suggestions that favour developing a mechanism for benefit sharing of short transit routes. Under it India may agree to share part of its benefit from shortening transit route to its northeast. As per Tariff Commission report India would save $210 per truck from shortening of distance by 600 km from Kolkata to Assam. It will save time and costs for fuel and transportation to ferry the goods and there is no reason why Bangladesh should not get part of the benefits.
In our view transit fees must be upward reviewed so that it can finance the cost of infrastructure development and maintenance of roads and highways. There can’t be anything free of cost.
