Bangladeshi vessels far outnumber Indian vessels in the Indo-Bangladesh protocol on inland water transit and trade. According to a government source, for every 100 vessels plying between India and Bangladesh along the protocol route, only three vessels would be Indian.

According to the protocol, common freight and share in the movement of cargo is to be maintained on a 50:50 ratio between the two countries.

However, this has not been possible. “Due to a number of reasons, the ratio is heavily skewed towards Bangladesh. One of the reasons has been the reduction in the fleet of the Central Inland Water Transport Corporation (CIWTC) and its disinvestment,” a government official said.

According to 2005 data on outward movement of cargo vessels, only 37 were Indian vessels whereas 784 were Bangladeshi vessels. “Private operators have not shown interest due to the high operational costs involved,” he said. “For instance, prices of diesel are higher in India compared to Bangladesh. While a litre of diesel costs Rs 34 in India (in Kolkata),

The same costs Rs 23 in Bangladesh. Further, policy demands Indian vessels to be manned by atleast 10 persons, while many Bangladeshi vessels have just two persons on-board. Labour costs, too, are higher in India,” he said. According to the official, Bangladeshi vessels require a lower initial capital cost compared to Indian vessels. Further, even the power-load ratio of Bangladeshi vessels is lower which gives them a higher fuel efficiency.

The protocol, which is renewed every six months, has designated transit routes on National Waterways (NW)-1 and NW-2. Cargo comprises mainly of flyash, gypsum and food. About 8 lakh tonne of flyash was moved between India and Bangladesh between January and June in 2006. Four ports have been designated for Indo-Bangladesh trade as per the protocol.

These are Kolkata, Haldia, Pandu and Karimganj. The protocol was put into place by the governments of the two countries to use each other’s waterways so as to provide mutual benefits to both. Under the protocol, inland vessels of one country can move in designated routes of the other for transit and inter-country trade.