Bangladesh shippers are welcoming a decison by their government and Sri Lanka to launch a joint venture container feeder service between the two countries.
The service by state-owned Bangladesh Shipping Corporation (BSC) and Sri Lanka’s national ocean carrier Ceylon Shipping Corp. (CSC) will increase competition and routing options, shippers said.
“The cooperation between two state-owned organizations and the joint venture feeder service will open another avenue for us,” Abdus Salam Murshedy, president of the Bangladesh Exporters Association, told the JOC.com.
CSC and BSC are expected to sign a memorandum of understanding (MOU) on the service during a visit to Dhaka by Sri Lankan president Maithripala Sirisena from July 13 to July 16.
The duo will develop a container feeder service to cater to the needs of exporters, importers, and local coastal traders of both countries, as well as neighbors, according to the MOU text, which said that crude oil, finished products, fertilizer, and coal will be targeted commodities.
Initially the two sides intend to establish a joint operation of feeder service between the named ports of both countries.
The CSC and the BSC will also cooperate in other shipping related areas with a view to benefit shipping industries of both sides.
“Presently private sector container feeder vessels from Bangladesh also connect ports in Sri Lanka to reach mother vessels. With signing the [MOU], we will launch state-owned [JV] container feeder services,” general manager of BSC Ataur Rahman told the JOC.com.
“Shippers will get a dependable and effective container feeder service.”
Rahman said the two companies will also explore other possibilities for collaboration in the supply chain in addition to the feeder service.
The service would be particularly useful if Bangladesh and Sri Lanka sign a free trade area agreement to boost bilateral trade, which is under active consideration between the two nations.
Bilateral trade between the two countries is in favor of Sri Lanka. In fiscal year 2015 and 2016 Bangladesh exported goods worth $30.5 million to Sri Lanka, and it imported goods worth $45.6 million from the country.
Bangladesh mainly exports woven garments, knitwear, home textile, agri-products, frozen food, leather and leather goods, footwear, raw jute, jute goods, and bicycles to Sri Lanka.
The major imports from Sri Lanka include live animals, animal products, vegetable products, animal or vegetable fats and oils, prepared foodstuffs, mineral products, and plastics and rubber articles.
-(JOC)