Myanmar, Bangladesh eyeing enhanced trade relations with coastal shipping line

By DMG 10 Aug 2022

DMG Newsroom
10 August 2022, Maungdaw  

Myanmar and Bangladesh authorities are taking steps to run a coastal shipping line to promote direct trade between the two countries, according to the Arakan State Chamber of Commerce and Industry. 

Measures are being taken to trade directly with Bangladesh’s Chittagong port, said the chairman of the Arakan State Chamber of Commerce and Industry, U Tin Aung Oo. 

“We are upgrading the way we engage in bilateral border trade, hoping that it will increase the trade volume, and trade revenue,” he said.

 Currently, goods from Myanmar are only exported to Teknaf Port in Bangladesh via the border trade camps in Arakan State’s Maungdaw and Sittwe. 

The current border trade has its disadvantages, such as high transportation costs and logistical difficulties for border traders on both sides. 

Direct transportation of cargo to inland ports will reduce transportation costs for traders, said a trader from Sittwe. 

“Merchants want to see direct transportation. It will speed up the trade flow, and the goods will be delivered directly to the market,” he said. “Currently, we are only transporting to the Bangladeshi border. There are transportation costs to transport the goods from the border to Chittagong. Of course, direct trade will be better.” 

The Myanmar and Bangladesh governments reached an agreement in 2008-09 to launch direct trade through inland ports, according to the Arakan State Chamber of Commerce and Industry. 

There have been delays because the Directorate of Inland Water Transport is reviewing the agreement between the two countries to run a coastal shipping line, said U Tin Aung Oo. 

“The department is reviewing the provisions in the agreement, and it will have to negotiate with the Bangladeshi government if it wants to change any provision,” he explained. 

Myanmar mainly exports ginger, pepper, onion and plum jam to Bangladesh through Arakan State.