Bangladesh will require to spend US$ 1.8 billion in road, ports and land port infrastructures to develop functional transit routes for transit traffic prior to its introduction among the South Asian countries, estimates a new study, reports UNB. Of the amount, about US$ 257 million is needed for transit facilities at different components of seven out of eight identified transit routes, says the study conducted by Bangladesh Institute of Development Studies (BIDS).
It says that about US$ 81 million is needed to rehabilitate critical segments of routes along with the seven transit ones. About US$ 26 million is required to improve the efficiency of Chittagong seaport while US$ 129 million to improve the efficiency and navigability of Mongla seaport.
The figure is US$ 21 million for improvement at Tamabil, Akhaura, Sutakandi, Benapole, Banglabandha, and Burimari land custom posts. Besides, the country will need to spend US$ 26 million in each of the 15 years towards
operation and maintenance.
The study also figures out that Bangladesh will need to spend about US$ 2.1 billion over five years for development of infrastructures along with rail transit routes. Of this amount, about US$ 1.3 billion will be required the transit freight routes along four routes.
Besides, US$ 78 million is prorated to transit traffic in the improvement of efficiency of the Chittagong Port.
The country will require US$ 64 million to spend additionally each year over the 20-year period.
In order to achieve effective regional connectivity, political commitment and greater understanding of the issues involved are of paramount importance.
The potential of integrated transport system as an engine of growth at the regional level remains largely unrealised for lack of political will, particularly in India, the report says.
The study, however, said political commitment has ushered into a new era for the region following the signing of landmark Bangladesh India Joint Communiqué in January 2010.
"But, the economic implications of the expressed willingness of policymakers are not in place till date," he added.
The absence of through transport connectivity among Bangladesh, Bhutan, Nepal and India results in losses for all countries in terms of opportunity costs.
Some of lost opportunities include avoidance of delay in receipt of cargo, cutting down distance, and reducing costs. Thus, Bangladesh, Bhutan, India and Nepal all
stand to gain substantially from cooperation in transport services, according to the study.