Boosting bangladesh india bilateral trade are benapole and petrapole land ports ready to take the ch

Boosting Bangladesh-India Bilateral Tarde: Are Benapole and Petrapole Landports Ready to Take the Challenges ?

South Asian Network on Economic Modeling

Study Team Team Leader Dr. Selim Raihan, Executive Director of SANEM Associates

Md. Nazmul Avi Hossain, Senior Research Associate Md. Jahid Ebn Jalal, Research Associate Md. Sadat Anowar, Research Associate This study has been conducted by South Asian Network on Economic Modeling (SANEM) to assess business needs in the Benapole and Petrapole land ports in a collaboration with USAID Asia & Middle East Economic Growth Best Practices Project (AMEG), BTFA.

Background  This study was carried out in July 2017, SANEM surveyed more than 100 stakeholders.  The Benapole-Petrapole land customs station accounts for about 80% of land trade between India and Bangladesh.

 This study explores the business needs of these two land ports.  An average of 350 trucks enter into Bangladesh every day, whereas only 70-80 trucks enter into India from Bangladesh.

Bangladesh-India Bilateral Trade

Current Business Situation

1.

Benapole Land Port

2.

Petrapole Land Port

Broad Indicators to Analyze Current Business Situation Business Operation Hours

1.

2.

Benapole Land Port Petrapole Land Port

Infrastructure, Equipment, Transport and Space Facilities Regulatory and Administrative Procedure Utilization of Digital and Advanced Technology Capacity of the Workforce Social and Local Conditions Others

Real-time Observations and their Probable Reasons at Benapole Land Port Observation : Roads are narrow and traffic jam • Probable Reason : No initiative taken to widen the roads and make separate roads for the business cargos and consignments.

Observation : Huge paper tasks in documentation and record system • Probable Reason : No use of digital and advanced technology

Observation : Low quality of food and restaurants • Probable Reason : These issues are not prioritized by the Government and the private sector.

Real-time Observations and their Probable Reasons at Benapole Land Port Observation : Significant requirement of additional workforces • Probable Reason : Actual working hours is not more than 4 hours and a majority of the workforce in this port do not continue their work after 2 pm.

Observation : Lack of facilities for safe sanitation and drinking water • Probable Reason : Issues are ignored by the Government and also by the private sector

Business Operation Hours at Benapole Land Port in July 2017

Source: SANEM survey, 2017

Satisfaction Level at Benapole Land Port

Source: SANEM survey, 2017

Breakdown of the Infrastructure Components Infrastructure, Equipment, Transport and Space Facilities at Benapole Land Port

Source: SANEM survey, 2017

Breakdown of the Other Facilities’ Components Others facilities

Source: SANEM survey, 2017

Major Recommendations for Benapole Land Port 1. Improvement in infrastructure  Widening the Roads : The existing road connecting to Petrapole is merely 5.5 meters wide and common transports also travels on this road.  Improving the Transportation : The existing cargos/trucks of Bangladesh can carry half of the amount of loads compared to the Indian trucks which creates a delay at Petrapole while unloading.  Space Facilities: There are only 43 warehouses among which 7 are not functioning. To capacitate the trucks and cargos 60 additional warehouses are required.  Weighbridge: An additional weighbridge is required to improve the business conditions.

Major Recommendations for Benapole Land Port 2. Making the Benapole Land Port operational for 24/7 “effectively”  The working hours should be synchronized with the Petrapole Land Port  Reducing the time lags of loading and unloading of the cargos  Sample testing of the consignments  An advanced Risk Management System in place  Coordination between the two custom houses

Major Recommendations for Benapole Land Port 3. Incorporating advanced digital and technological facilities in the operations of the Benapole port  Introducing computerized system in documentation, tracking, internal

and external communication and security system  Integrated IT infrastructure and Internet facilities in all sorts of services  Introducing CC Camera and advanced scanners

4. Capacity building  Training and workshop to improve the skills of the existing workforce and recruit additional workforces. At present, there exists one-third of the

required workforce.

Real-time Observations and their Probable Reasons at Petrapole Land Port Observation : Roads are not sufficiently wide and many transports carrying common passengers travel through the same roads • Probable Reasons : No initiatives have been taken to widen the roads and no dedicated roads in facilitating the export import cargos

Observation : Bongaon area is full of cargos and trucks with consignments waiting to get in to the ICP at Petrapole • Probable Reasons : Congestion at Petrapole and in most of the cases the private warehouses make the parking mandatory for trucks and cargos

Real-time Observations and their Probable Reasons at Petrapole Land Port Observation : Only 4-5 officials were present at the Integrated Check Post of Petrapole after 4 pm • Probable Reason : Often the officials go for leave without prior notifications and even a major portion leave the working place after 4 pm

Observation : Corruption of Bongaon municipality in promoting private warehouses • Probable Reasons : Local rent seeking people with vested interest are involved in this corruption who facilitate the corrupt circle

Business Operation Hours at Petrapole Land Port in July 2017

Source: SANEM survey, 2017

Satisfaction Level at Petrapole land Port

Source: SANEM survey, 2017

Breakdown of the Infrastructure Components Infrastructure, Equipment, Transport and Space Facilities at Petrapole Land Port

Source: SANEM survey, 2017

Breakdown of the Other Facilities’ Components

Source: SANEM survey, 2017

Major Recommendations for Petrapole Land Port 1. Effective implementation of the advanced and integrated risk management system at ICP:  The present system is sufficiently advanced but it lacks proper implementation and utilization.

2. Capacity building of the workforce:  Training and Workshops on improving the skills of utilizing the existing.

Risk Management System.  Recruitment of Additional Workforces.

Major Recommendations for Petrapole Land Port 3. Improving the existing infrastructure – Widening the roads

– Establishing separate road for cargos and trucks. At the moment export-import consignments travel through the similar road where the common transports travel.

– Improving faculties for rest houses and fuel stations

4. Addressing the social and local impediments – Controlling the local rent seeking business circle – Coordinating with the Bongaon municipality .

THANKS

ANY QUESTIONS???