Bangladesh, India advance plans for direct coastal shipping link
Bangladesh and India are moving closer to launching a direct coastal shipping service aimed at lowering logistics costs and boosting bilateral trade. A high-level team from Bangladesh’s Ministry of Shipping, led by Commodore Jubair Ahmed, Director General of the Department of Shipping, recently inspected three major Indian ports—Paradip (Odisha), Visakhapatnam (Andhra Pradesh), and Haldia (West Bengal). The visit included detailed discussions at Paradip Port Trust (PPT) on port capacity, traffic handling, and infrastructure needs to support the proposed link.
At present, most cargo between the two countries is transshipped via Singapore or Colombo, adding time and expense. Commodore Ahmed said direct coastal shipping would sharply cut freight costs and transit times, offering a strong boost to bilateral trade.
The initiative was first proposed by Bangladesh in July during talks to renew the long-standing Protocol on Inland Water Transit and Trade (PIWTT), which has enabled cross-border river transport since 1972. India accepted the proposal in principle and invited Bangladesh to study its ports. A reciprocal Indian delegation is expected to visit Chittagong and Mongla ports soon.
Bangladeshi vessels already dominate river protocol routes, but officials noted that most of the country’s fleet will require upgrades to meet international standards. Of nearly 2,000 vessels, only around 80 are certified for overseas operations.
Trade between the two neighbors is growing, with Bangladesh importing about $4.5 billion worth of goods from India annually, while exports have risen to nearly $1 billion, driven largely by garments after India eased restrictions.
Paradip Port, India’s fifth largest, currently handles 76 million tonnes of cargo annually and is expanding capacity to 237 million tonnes by 2030, with new oil and multipurpose berths designed for vessels up to 125,000 DWT. By comparison, Bangladesh’s Chittagong Port manages about 45 million tonnes.
Officials from both sides believe the proposed service could transform regional logistics by reducing dependence on third-country hubs and deepening direct maritime connectivity between the two economies.
