3rd of April’ 2018 must be marked as a historical day for India and Bangladesh Business community. If we analyze the earlier situation, the biggest challenge Bangladesh Export facing was huge time taken in the clearance of goods from Bangladesh congested Petrapole-Benapole border gates. It sometimes takes 3-4 weeks also. This involves a huge cost of logistics.
Export from Bangladesh- Birth of a New Era for Foreign investment
If we mention that from current Financial Year, a new era has been started, this will certainly be an accepted fact. After starting of new Container Train between India and Bangladesh. Trial run started with 60 Containers around 1200 tonne. The key advantages shall be:
- Only 24 hours from India to Bangabandhu west station (Around 117 km from Dhaka)
- Hassle free movement and it will save time as well as money
- During the festival season, like Eid, delivery from India shall be very fast.
- Due to CCost-effective logistics solutions, cross border trade between India and Bangladesh shall be very high.
- Bangladeshi customers now need to pay less for Indian goods
- Reduce pressure on Benapole Border
Overall this is going to be a win – win situation for both India and Bangladesh.
Impact on Investments in Bangladesh
Logistic is an essence for any country. Investor always look for the all the facilities as well as export incentives provided by the local government. This initiative of the Government will undoubtedly attract the new Investors and also improve the business stability in the existing business houses.
Business in Bangladesh will be easy due to these improved Logistics. Due to fast movement of goods, perishable nature goods can also be transferred and the Business of such goods must be increase due to this new corridor.
Some Challenges in this new Facility
- Capacity utilization of this facility. Jamuna Bridge over the Padma is a technical challenge.
- Low capacity utilization may impact the tariff
- Capacity utilization during return trip also a challenge
On a positive note, this is going to improve Bangladesh Business opportunities and also increase the Investment in Bangladesh Business.
Corevyan a leading management consulting firm in India/Bangladesh advising best companies from all sectors on strategy, marketing in all the sector by his network