{"id":120581,"date":"2021-11-23T18:10:41","date_gmt":"2021-11-24T01:10:41","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=120581"},"modified":"2021-11-23T18:11:22","modified_gmt":"2021-11-24T01:11:22","slug":"sri-lankan-colombo-chittagong-ranong-chennai-mumbai-chabahar-port-connectivity-potential","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2021\/11\/23\/sri-lankan-colombo-chittagong-ranong-chennai-mumbai-chabahar-port-connectivity-potential\/","title":{"rendered":"Sri Lankan Colombo–Chittagong-Ranong-Chennai-Mumbai-Chabahar-Port Connectivity Potential"},"content":{"rendered":"

MD Pathik Hasan<\/em><\/span><\/h2>\n\n\n

Sri-Lanka\nis located ideally for a direct maritime or short sea
\nconnectivity with many countries in the region.\nAs an island economy, Sri Lanka\u2019s regional connectivity has been mainly through\nits main seaport in Colombo, for south Asian countries.<\/p>\n\n\n\n

The ports of Chittagong in\nBangladesh and the ports of Colombo and Hambantota in Sri Lanka are located\nnearly 1515 nautical miles from each other. \nRobust, smooth connectivity and linkages between these ports would\nensure and facilitate more shipping, tourism and investments between the two\ncountries. Education and sports are other areas of collaboration between the\ntwo nations.<\/p>\n\n\n\n

On the other hand, Bangladesh\nand Thailand are near neighbors, connected by the Bay of Bengal. The\ndevelopment of these maritime ties would benefit both countries in terms\nof trade, investment, and regional communications. <\/p>\n\n\n\n

The two countries are in talks\nto sign a free trade agreement (FTA) to boost trade and investment. Bangladesh\nis geographically positioned as a gateway between ASEAN and SAARC with\npotential access to both for each other\u2019s export-driven manufacturers. ASEAN\nincludes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines,\nSingapore, Thailand, and Vietnam, while SAARC includes Afghanistan, Bangladesh,\nBhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. <\/p>\n\n\n\n

The Chittagong seaport is the\nmain seaport in Bangladesh. 90 percent of Bangladeshi trade is conducted through\nthe Chattagram Port Terminal, with the rest being taken up by Bangladesh\u2019s\nPorts at Mangla and Payra.    <\/p>\n\n\n\n

Thailand\u2019s Ranong Port is\nsituated on the Kraburi River of the Kra Peninsula, across from Myanmar and on\nthe Indian Ocean, coast and lies 1,220km from Chittagong. <\/p>\n\n\n\n

Thailand\u2019s Southern Economic\nCorridor project, approved by the Government in August 2018, emphasizes the\ndevelopment of Ranong port as a gateway to trade with Bangladesh, India,\nMyanmar, and Sri Lanka. Using Ranong port for trade with Bangladesh\u2019s\nChittagong, Payra, and Mangla ports will reduce the distance between the two\ncountries and boost trade. Then this connectivity can then be extended to\nIndia\u2019s Kolkata, Chennai, and Mumbai ports, Iran\u2019s Chabahar through Lankan\nColombo port. <\/p>\n\n\n\n

The launch of direct shipping\nservices amongst Colombo, Mumbai, Chennai, Chittagong and Ranong ports has\nreceived a new push as trade amongst the countries is increasing.<\/p>\n\n\n\n

Sri Lankan foreign minister GL\nPeiris recently met his Bangladeshi counterpart AK Abdul Momen in Dhaka and\nexpressed interest in collaborating in the shipping field, with cooperation\nbetween the ports of Chittagong and Colombo and Hambantota. He emphasised on\nfeeder services and coastal shipping arrangements. Both discussed bilateral commercial ties.<\/p>\n\n\n\n

Cooperation\non a transshipment hub would be beneficial to Bangladesh because of the\nreduction of time and nautical miles, a Bangladeshi newspaper reported.<\/p>\n\n\n\n

Sri\nLanka\u2019s investment in Bangladesh is around $2.5 billion. About 110 Sri Lankan\ncompanies are operating in Bangladesh. The annual bilateral trade volume is now\naround $200 million.<\/p>\n\n\n\n

Sri\nLanka is keen on a preferential\ntrade agreement with Bangladesh and is happy that technical negotiations\nhave commenced and are proceeding, Peiris said.<\/p>\n\n\n\n

On the other hand, Bilateral\ntrade between Bangladesh and Thailand reached US$837.08 million in 2019-20.\nBangladesh\u2019s total exports to Thailand in 2020 were US$35.46 million while\nimports from Thailand were worth US$801.3 million, very much in Thailand\u2019s\nfavor. <\/p>\n\n\n\n

Bangladeshi exports to Thailand\nare on an upward trend, however. This year exported values are expected to\nreach just under US$40 million, a 12 percent increase YoY. <\/p>\n\n\n\n

According to FDI stock data in\nBangladesh, Thailand is the 15th largest investor in the country. This however\nwould increase significantly if an FTA can be agreed upon, and the two\ncountries build direct maritime connectivity between Chittagong and Ranong\nports. <\/p>\n\n\n\n

There is precedent. When\nBangladesh signed FTA with the SAARC members in 2006, its imports and exports\ndoubled within ten years, being a relatively constant (there was a dip in 2011)\nand sustainable 10% GDP growth in trade per annum. <\/p>\n\n\n\n

In terms of commodities,\nThailand mainly exports cement, cereals, plastics, man-made staple fibers, sugar\nand sugar confectionery, machinery and mechanical equipment, cotton and cotton\ncloth, salt, sulfur, clay, stone, and mineral fuels to Bangladesh. <\/p>\n\n\n\n

In the reverse direction,\nBangladesh exports garments, vegetables, textile fibers, garments, animal products,\nelectrical and electronic equipment, frozen fish, and crustaceans to\nThailand. <\/p>\n\n\n\n

Direct sea connectivity between\nChittagong and Ranang can be expected to play an important role in expanding\ntrade and commerce between the two countries. The time and cost of transporting\ngoods between them can be reduced by 30 percent and are likely to play a key\nrole in building ties with other Southeast Asian countries, including Myanmar\nand India. The introduction of direct shipping between the two countries will\nencourage traders from both to expand their regional trade and investment.<\/p>\n\n\n\n

Thailand could increase trade\nties with India, Bangladesh, and Sri Lanka under the framework of the Bay of\nBengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).<\/p>\n\n\n\n

The establishment of trade and\neconomic corridors through coordination between the Look East Policy of India\nand Bangladesh and the Look West Policy of Thailand and the establishment of\nconnectivity through coastal shipping is likely to bring prosperity for all. <\/p>\n\n\n\n

Dhaka is additionally counting\non Bangkok\u2019s support for Bangladesh\u2019s bid for membership in the Mekong-Ganga\nCooperation Forum as well as the ASEAN Sectoral Partnership.<\/p>\n\n\n\n

Thailand and Bangladesh are also\nboth active partners in the Belt and Road Initiative. If Chittagong and Ranong\nport connectivity can be extended to Iran\u2019s Chabahar port through Sri Lanka\u2019s\nColombo and the International North South Transport Corridor project (INSTC)\nthrough to Central Asia and Turkey, this will create significant trade\npotential. <\/p>\n\n\n\n

Although the Maritime Assistance\nAgreement between Bangladesh and Thailand was completed in 1986 and is\ncurrently in force, changes need to be made to bring these opportunities to\nfruition. But the Bangladesh and Thailand can renew the agreement for ensuring\ntheir business interests. <\/p>\n\n\n\n

Progress is being\nmade. Thai ambassador to Bangladesh, Makawadee Sumitmor stated at a\nbilateral business meeting with the Chittagong World Trade Center in September\nthis year that there is a trade gap between the two countries. She also said\nthat the expansion of the India-Myanmar-Thailand trilateral route will boost\ntrade in this region and that she was waiting for the signing of a memorandum\nof understanding between Thai authorities and the Chittagong Port Authority to\nestablish direct shipping links by sea. <\/p>\n\n\n\n

There are huge opportunities for\nThai investors in infrastructure, light engineering, agriculture and food\nprocessing, and tourism and healthcare. Thailand and Bangladesh both could and\nshould utilize these potentials. But smooth connectivity is needed to boost the\nTrade. Colombo, Mumbai, Chennai, Chittagong and Ranong port connectivity would\nboost up the trade, expansion of tourism. India, Sri Lanka, Bangladesh and\nThailand can both benefit from this mutually rewarding sea connectivity\nproject.<\/p>\n","protected":false},"excerpt":{"rendered":"

MD Pathik Hasan Sri-Lanka is located ideally for a direct maritime or short sea connectivity with many countries in the region. As an island economy, Sri Lanka\u2019s regional connectivity has been mainly through its main seaport in Colombo, for south Asian countries. The ports of Chittagong in Bangladesh and the ports of Colombo and Hambantota […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[179],"tags":[],"class_list":["post-120581","post","type-post","status-publish","format-standard","hentry","category-md-pathik-hasan"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/120581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=120581"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/120581\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=120581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=120581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=120581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}