Context: Recently, the Union Minister of  Shipping flagged off the first trial movement of a container ship carrying steel and pulses from Kolkata port to Bangladesh’s Chattogram port.

• It will transport cargo to Assam and Tripura.
• This has been done under the Agreement on use of Chattogram and Mongla Ports for movement of India’s transit cargo through Bangladesh.
• This is the first time after 1965 that Bangladesh is allowing its ports to be used as a transit for cargo movement from any part of India to northeastern states.

Key Highlights

• India and Bangladesh have enhanced cooperation in shipping and inland water trade in recent years, under the Protocol on Inland Water Transit and Trade, in addition to the six existing Ports of Call, five more in each country have been added.
• The trial run is an outcome of discussions between the two countries at the highest level during the visit of Bangladesh Prime Minister to India in October 2019. The standard operating procedure (SOP) on use of Chittagong and Mongla ports of Bangladesh was finalized in 2019 during this visit.
• The consignment of the trial movement includes two TEUs (twenty-foot equivalent unit)  carrying TMT steel bars destined for West Tripura district and two TEUs carrying pulses heading for Karimganj, Assam.
• After reaching Chattogram, the consignment will move to Agartala on Bangladeshi trucks.

Significance of this trial

• It will provide a shorter route to connect India’s north-east region through Bangladesh.
• It will increase economic activities, employment and will bring prosperity in India as well as Bangladesh.
• Job creation, investment in the logistical sector, enhanced business services and revenue generation are advantages that will accrue to Bangladesh.