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Implementation of the Bangladesh, Bhutan, India and Nepal (BBIN) motor vehicle agreement will enable the adoption of a sub-regional protocol for a cost-effective, efficient and seamless multimodal transport system, according to speakers at a webinar.
This will lead to a significant decrease in the cost of doing business and eventually increase the standard of living in the sub-region, they said at the “National Advocacy Dialogue” yesterday.
Civil society think-tank Unnayan Shamannay and CUTS International jointly organised the event under a project, styled “Enabling a Political Economy Discourse for Multi-modal Connectivity in the BBIN Sub-region”.
The speakers said integrating roadways, inland waterways, the railway and coastal shipping transport systems were important in reaching their potential.
Considering the political and economic importance, it is of paramount importance that all stakeholders reach a consensus regarding the implementation of the BBIN deal and realise the potential of establishing a multimodal BBIN connectivity protocol.
Dr Atiur Rahman, chairperson of Unnayan Shamannay, said implementing the BBIN deal and eventually adopting a multimodal connectivity protocol has become more relevant for ensuring a full economic recovery from the Covid-induced slowdown as it would generate employment.
The BBIN deal and a multimodal BBIN connectivity protocol could have a significantly positive impact on the economy, which can be attributed to consumption-led growth, the former Bangladesh Bank governor said.
So, implementing the BBIN deal could help Bangladesh reverse the Covid-induced economic slowdown, he added.
Rahman went on to say that not only the connectivity infrastructure, but also the capacity of the country’s ports and commercial hubs needs to be significantly increased to reach the full potential of trade between BBIN countries.
“There is a need to automate or digitalise the official processes associated with inter-domestic trade,” he said.
Shafiul Islam Mohiuddin, former president of the Federation of Bangladesh Chambers of Commerce and Industry, said the country has so far been unable to use its ports to their full potential.
“India is a good friend of ours but in some places, there is still a crisis of trust,” he said.
“We need to restore the relationship of trust in those places as this is very important in infrastructural development,” Mohiuddin added.
According to a study by Unnayan Shamannay, “the most important trade route between Dhaka, Chattogram or Mongla and Thimphu goes through Burimari and eventually goes over the Jamuna Bridge before being connected to Dhaka.”
“This route is a part of (the) BBIN (deal) and can also be used as a multimodal route by starting from Thimphu-Jogighopa and Jogighopa-Chilmari-Dhaka,” it said.
In the same manner, another route can be made multimodal as the rest of India can be connected to Kolkata via rail or roadways and then head onwards to Chattogram via waterways and then in the final leg, from Chattogram to Tripura via roadways, it added.
In the last two decades, the constant average growth rate (CAGR) of Bangladesh’s exports to India stood at 18 per cent whereas the CAGR of imports from India was around 12 per cent.
Bangladesh’s CAGR of exports to Nepal is around 13 per cent and the figure is 11 per cent for exports to Bhutan.
According to a World Bank estimate, seamless connectivity between Bangladesh and India would increase the former’s real income by 17 per cent while it would increase India’s real income by 8 per cent.
So, it is possible to realise this huge trade potential by implementing the BBIN deal and commence the discussion for a multimodal BBIN connectivity protocol.
Shirin Akhter, a member of Parliament, Bipul Chatterjee, executive director of CUTS International, Dr Nazneen Ahmed, country economist of the UNDP, were also present at the webinar.
(TDS)
