India reaches northeast through Chittagong
One of the issues India faces is cargo transportation to its northeastern areas, where agricultural and industrial production are said to be deficient. A solution was reached between the Indian and Bangladeshi governments recently to allow India to use the ports of Chittagong and Mongla as transit hubs. Being only 70 kilometres from Sabroom, one of the cities in the northeastern state of Tripura, Chittagong is expected to become the “gateway to the north,” said officials.
To reach the landlocked north, trucks had to travel over 1,500 kilometres from Bengal to deliver goods. The new agreement would reduce the distance to a few hundred kilometres, saving time and cost.
Nevertheless, analysts have raised concerns about the congestion the Port of Chittagong might experience in the aftermath of this cooperation deal. The increased volumes arriving at the port are expected to raise the challenges it faces, argue analysts.
800 Misdeclared container locked at Indian ports
Indian authorities held back the release of 800 containers containing imported heavy melting scrap at some of the country’s key ports. According to a report by India’s Economic Times, the customs authority is checking the goods’ country of origin.
The authorities believe the consignments have been misdeclared as arriving from the United Arab Emirates, which – in fact – bans the import of heavy melting scrap. A customs official told the Economic Times the shipment “needs to be checked as to where the goods are coming from.”
The National Customs Targeting Centre in India had flagged the consignment as suspicious, according to officials, who suspect the consignment came from Pakistan, Iran or Yemen.
Closure of berth causes congestion
In addition to the so far locked containers, APM Terminals Mumbai had decided earlier to close a terminal it operates in India’s Nhava Sheva Port, namely the Gateway Terminals India (GTI). This decision reportedly caused disruption at the port due to a reduction in capacity.
Earlier in March, Container News cited sources as saying, “The number of weekly calls that GTI is able to accommodate has fallen to six from the normal 13 calls.” The closure of the terminal is planned until early September when the infrastructure improvements are expected to complete.
