BANGLADESH and India could start direct coastal shipping in October now that two countries have made progress on settlement of insurance claims and ship standards, reports the Dhaka Daily Star.
Bangladesh, India overcome obstacles to settle coastal shipping issuesBANGLADESH and India could start direct coastal shipping in October now that two countries have made progress on settlement of insurance claims and ship standards, reports the Dhaka Daily Star.
Commodore M Zakiur Rahman Bhuiyan, director general of the Department of Shipping, said Sadharan Bima Corporation of Bangladesh and General Insurance Corporation of India will act as the coastal vessels' insurers.
The two countries agreed to buy insurance up to US$10 million. On ship standards, Mr Bhuiyan said his department has asked shipowners to have 10 ships surveyed by foreign firms to see if they were capable of operating on the route.
Shipowners said the move will benefit Bangladesh as it imports nearly $5 billion worth of goods from India a year. Much is imported through Chittagong or Mongla ports via Singapore or Colombo, which is costly.
"The costs will be one-third through direct coastal vessels," said SK Mahfuz Hamid, general secretary of Bangladesh Cargo Vessel Owners Association. The new shipping line will bring jobs, he said.
