Myanmar-Bangladesh maritime trade should be tried and tested between Sittwe and Chittagong first: Rakhine Businessmen
CNI News
27 August 2022
As authorities are planning to launch direct maritime trade from Yangon and Sittwe to Chittgong, business people in Rakhine State have suggested the government conduct direct maritime trade between Sittwe and Chittagong first on a trial basis.
It was learnt that authorities were negotiating for direct maritime trade at four ports in each country.
Rather than conducting maritime trade at all the ports, authorities should consider launching maritime trade between Sittwe and Chittgong on a trial basis first, Secretary of Rakhine State Chamber of Commerce and Industry U Aung Aung told the CNI.
Bangladesh-Myanmar maritime trade.
U Aung Aung said, “We told the government to conduct the maritime trade with Bangladesh from Sittwe to Chittgong on a trial basis first and expand it to other ports later when it is successful. It is likely to work. Implementing the whole project at the same time will face more challenges because there may be shortages of goods and delays on both sides. Therefore, maritime trade between Sittwe and Chittgong should be conducted first. When it proves successful, it should be expanded to other ports. Such a model might prove successful.”
Myanmar has chosen four ports including Mawlamyine, Yangon, Pathein and Sittwe while Bangladesh has chosen four ports including Chittagong.
It is difficult to start maritime trade between the two countries in the near future as it is necessary to adopt precise policies and payment systems, Ko Than Naing, a merchant from Maungdaw told the CNI.
He said, “The main issue is what is going to be exported and imported. What do importers prefer? They will have to discuss the details. Talking about the maritime trade between the two countries without discussing the details will be just imagination. Trade will not increase. If agricultural products can be exported via shipping lanes, costs will be lower. However, it will not be convenient for exports of freshwater fish. If onions, chillies and dried fish can be exported by sea, costs will be lower. So, there are some advantages.”
A border guard post in Angumaw in Maungdaw Township in Rakhine State.
It would take longer if freshwater fish are exported through direct maritime trade.
He told the CNI, “Freshwater fish are exported to Bangladesh without using cold storage systems. If freshwater fish were to be exported by maritime trade, it would take longer. So, the exports of freshwater fish will be carried out by six-wheeled or ten-wheeled trucks at the border.”
Although an MOU was signed between the two countries to launch maritime trade, shipping lines and starting points have not been known, Secretary U Aung Aung of Rakhine State Chamber of Commerce and Industry told the CNI.
A junction in Rakhine State.
He said, “We have given one more advice to use a scheduled ship which will run monthly or weekly or fortnightly. One scheduled ship from each side. The program can be expanded later. If there is a scheduled ship, we will know when the ship is scheduled. We will have to prepare. Similarly, the other side will also know when their ship is scheduled. Everything including loading and unloading and transaction will be convenient. Otherwise, there will be delays.”
Currently, transportation of goods in Rakhine State is delayed by road blockades due to armed conflicts between the Tatmadaw and the ULA/AA and goods do not fetch higher prices due to decays caused by the delays.
Moreover, border trade between the two countries has dropped since trade volume has fallen to one-third of usual levels.
