India Ends Transshipment Facility For Bangladesh, Cites Logistical Challenges And Congestion

India has terminated trans-shipment facility for Bangladesh due to logistical challenges and congestion. The withdrawal is effective from April 2025, but does not affect exports to Nepal or Bhutan.

MEA spokesperson Randhir Jaiswal

Source : X

The central government has terminated the trans-shipment facility, which allowed the export of cargo from Bangladesh to third countries using Indian land customs stations en route to ports and airports. India has logistical challenges and congestion at Indian ports and airports.

Addressing the weekly press briefing, MEA spokesperson Randhir Jaiswal said, "The Transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs."

"The facility, therefore, has been withdrawn with effect from April 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory," the MEA spokesperson added.

A 13-member delegation from Bangladesh visited India from July 9 to 12, 2024, to explore the possibilities of transshipment of Bangladeshi Exim cargo through Indian ports located on the East Coast. The delegation was led by S. M. Mostafa Kamal, Joint Secretary, Ministry of Shipping, Bangladesh, and included representatives from other key Bangladeshi ministries and ports.

Earlier, the Ministry of Ports, Shipping, and Waterways, in a release, said that Agenda No. 6 in the agreed minutes of SSLT was moved by the Indian side to facilitate Bangladesh's Exim cargo through Indian ports on the East Coast using the Coastal Shipping Agreement and Protocol on Inland Water Transit and Trade (PIWTT) Agreement between India and Bangladesh.

During the presser, Jaiswal also raised broader concerns regarding the bilateral relations with Bangladesh, particularly the treatment of minorities and issues surrounding the Teesta Water Treaty. Speaking on the situation of minorities in Bangladesh, Jaiswal emphasized the need for urgent and firm action.

"We have conveyed our concerns regarding the treatment of minorities, the kind of violence that has happened against them... This violence and these atrocities against minorities cannot be wished away... We hope that the Bangladesh government will take strong action against those responsible for these atrocities," he said.