‘It may affect Indian exporters in Dhaka who bring goods by road for further export’

Sunil Kohli, Managing Director, Rahat Cargo said, “The MEA asserted that the transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports while logistical delays and higher costs were hindering our own exports and creating backlogs. Also, the measure was the result of ‘long standing demand’ of Indian exporters for stopping transshipment of Bangladeshi cargo, meant for shipments to third countries, through Indian ports. This will further help in rationalisation of freight rates resulting in less transportation cost to the Indian exporters besides decongesting the airports. However, this directive may adversely affect the Indian exporters based in Dhaka who used to bring their goods by road to India for further export to third countries. We also have to wait and watch as the subject decision could raise questions regarding India’s commitment under WTO provisions which mandates freedom of transit for goods to and from the landlocked countries.