India-Bangladesh Coastal Shipping (2026): Strengthening Riverine Connectivity for Subregional Maritime Integration

India-Bangladesh Coastal Shipping (2026): Strengthening Riverine Connectivity for Subregional Maritime Integration

Policy Update

Mallika Amale

Over the last decade, India and Bangladesh, as littoral neighbours in the Bay of Bengal, have sought to revitalise maritime connectivity to deepen bilateral engagement and foster wider regional cooperation. Bilateral trade has increased substantially in recent years, despite periodic setbacks, making Bangladesh India’s largest trading partner in South Asia. In FY 2024-25, India’s exports to Bangladesh stood at approximately USD 11.49 billion, while imports were valued at around USD 2 billion, resulting in a trade surplus favouring India.

Given the current geopolitical context, robust maritime capabilities and connectivity in the Indo-Pacific is of utmost importance. India has a long coastline and multiple large ports which are important strategic and economic tools for its Indo-Pacific strategy. In this context, Coastal Shipping emerges as a key pillar for maritime cooperation between India and Bangladesh. On 6 June 2015, the first “Agreement on Coastal Shipping” was signed by the two countries with the objective of reducing logistics cost and decongesting traffic at the Indo-Bangladesh border. It improved connectivity with not only Bangladesh but also with the North Eastern Region (NER) of India, which previously was dependent on transshipment hubs such as Colombo, Singapore, and Klang. 

In order to bolster maritime connectivity between the two states, it is crucial that coastal shipping networks work in tandem with inland water transport (IWT) networks. Hence, the Protocol on Inland Waterways Transit and Trade (PIWTT) (1972) is widely referred to as the backbone of shipping between India and Bangladesh, forming the foundational framework upon which coastal shipping linkages can be developed. The PIWTT is mutually beneficial and among other things, allows both states to facilitate transit via eight Indo-Bangladeshi Protocol (IBP) river routes.

Improving coastal shipping connectivity between India and Bangladesh would facilitate the creation of a multimodal corridor linking India’s east-coast ports of Chennai, Vishakhapatnam Paradip, Kolkata with major Bangladeshi ports such as Chittagong and Mongla. This coastal linkage would further integrate with inland river ports such as Haldia, Kolkata, Pandu, Karimganj and Silghat in India and Narayanganj, Khulna, Mongla, Sirajganj and Ashuganj in Bangladesh.

image 8

(Source: The Wire)

Functioning

Coastal shipping between India and Bangladesh continues to be conducted through a bilateral framework comprising multiple agreements. The aforementioned “Agreement on Coastal Shipping,” is the primary arrangement which was signed in June 2015. The aim was to slash down freight costs, reduce transit time, and help ease congestion at land custom stations and integrated check posts at the Indo-Bangladesh border, particularly at Benapole and Petrapole. Additionally, the agreement helped improve utilisation of both river and seaport capacities and open up new opportunities for Indian coastal vessels.

Earlier, cargo movement between India and Bangladesh was largely routed via distant transshipment hubs in Singapore, Sri Lanka, and Malaysia, resulting in prolonged transit times. Following this agreement, transit time significantly reduces from approximately 27-30 days to just 6-7 days.

Under the agreement, movement of goods between coastal ports of both countries was permitted via “River Sea Vessels” (RSVs) and a mandate for mutual treatment of each other’s vessels as national vessels was agreed upon. The cooperation between the two countries is rooted in the principles of national sovereignty and mutual benefits. On 15 November 2015, a Standard Operating Procedure (SOP) was signed by both parties to operationalise the agreement. More importantly, any sea transport between the two countries is to be treated as “coastal movement” and thus eligible for a forty percent concession on vessel-related and cargo-related charges.

The coastal shipping framework cannot be understood in isolation. The PIWTT allows for transportation of cargo on the riverine network of India and Bangladesh. It comprises eight Indo-Bangladeshi Protocol (IBP) river routes.

Eight Indo-Bangladeshi Protocol (IBP) river routes:
Route 1: Kolkata – Haldia – Raimongal – Chalna – Khulna – Mongla – Kawkhali -Barisal – Hizla – Chandpur – Naraynaganj – Aricha – Sirajganj – Bahadurabad – Chilmari – Dhubri – Pandu – Silghat
Route 2: Silghat – Pandu – Dhubri – Chilmari – Bahadurabad – Sirajganj – Aricha – Naraynaganj – Chandpur – Hizla – Barisal – Kawkhali – Mongla – Khulna – Chalna – Raimongal – Haldia – Kolkata
Route 3: Kolkata – Haldia – Raimongal – Mongla – Kawkhali – Barisal – Hizla – Chandpur – Narayanganj – Bhairab Bazar – Ashuganj – Ajmiriganj – Markuli – Sherpur – Fenchuganj – Zakiganj – Karimganj
Route 4: Karimganj – Zakiganj – Fenchuganj – Sherpur – Markuli – Ashuganj – Ajmiriganj – Bhairab Bazar – Narayanganj – Chandpur – Barisal – Kaukhali – Mongla – Raimongal – Haldia – Kolkata
Route 5: Rajshahi – Godagari – Dhulian
Route 6: Dhulian – Godagari – Rajshahi
Route 7: Karimganj – Zakiganj – Fenchuganj – Sherpur – Murkuli – Ajmiriganj – Ashuganj – Bhairab Bazar – Narayanganj – Chandpur – Aricha – Sirajganj – Bahadurabad – Chilmari – Dhubri – Pandu – Silghat
Route 8: Silghat – Pandu – Dhubri – Chilmari – Bahadurabad – Sirajganj – Aricha – Chandpur – Naranganj – Bhairab Bazar – Ashuganj – Ajmiriganj – Markuli – Sherpur – Fenchuganj – Zakiganj – Karimganj

(Source: Inland Waterways Authority of India (IWAI))

On 25 October 2018, India and Bangladesh signed a myriad of other agreements for “enhancing inland and coastal waterways connectivity between the two countries for trade and cruise movements.” An addendum was signed into the PIWTT adding several other ports of call and extending PIWTT routes as well as integrating Bhutan into this framework. Moreover, an SOP for passenger and cruise vessel movement was finalised. One of the major milestones, however, was the initiation of discussion on third-country EXIM (Export-Import) trade. Collectively, all these initiatives signify substantial progress toward advancing subregional maritime integration.

Performance

The inaugural journey of the container vessel MV Harbour 1 from Chittagong to Vishakhapatnam between March 23 and 28, 2016, entrenched the coastal shipping agreement between India and Bangladesh.

According to 2023-24 DGCI&S data, Bangladeshi-linked vessels accounted for only 11 vessel entries, which is about 2.3 percent of India’s total vessel entries. This indicates bilateral coastal shipping has been low but possesses significant headroom for scaling up operations. Even though direct regular movement has been enabled, the uptake remains low. Moreover, data regarding the same is unavailable in the public domain.

Under India’s Sagarmala programme, cooperation on port-led development and improving connectivity between India and Bangladesh is in the pipeline. More crucially, at the subregional level, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) provides an institutional framework to deepen cooperation, particularly through the BIMSTEC Maritime Transport Cooperation Agreement, which will help facilitate maritime transport by harmonising procedures and promoting coastal and short-sea shipping across the Bay of Bengal. This may lead to broader subregional connectivity and economic integration. Bangladesh Shipping Minister Shajahan Khan in 2016 said,  “…the idea of sub-regional grouping between Bangladesh, India, Nepal and Bhutan is getting shape through this coastal shipping.”

Emerging Issues

  1. Navigational and Draft Constraints: Several inland riverine ports in Bangladesh and the upper reaches of the route have low draft which limits vessel size and reliability of the same. Climate change is one of the major culprits.
  2. Infrastructure Gaps and Commercial Viability: There exists a lagging infrastructure including container handler terminals, dedicated feeder services, berthing time, port hinterland connectivity, etc. on both sides. The RSV category, which is central to the agreement, has high operating cost and is in shortage which limits commercial viability. Also, shippers may prefer land and road modes due to its reliability and flexibility. Switching to newer modes may prove to be costly.
  3. Lack of Data and Monitoring: As mentioned before, no significant data is available in the public domain. There is a lack of transparent and disaggregated data on cargo flows and vessels.
  4. Regulatory and Institutional Delays: There are huge bottlenecks in relevant procedures such as customs, port formalities, cross-border approvals, visa/ shore leave for crew, vessel registration, etc. The 2023 Shipping Secretary Talks acknowledged the need to ease the visa/ shore leave facility and automatic identification systems for vessels.
  5. Security and Strategic Risks: Coastal and inland maritime shipping between India and Bangladesh traverse through sensitive maritime areas. Therefore tracking of vessels and environmental safety is a top concern.
  6. Transshipment Routes: There is a need to strengthen bilateral shipping routes lest the use of transshipment hubs and third country routes such as Singapore, Klang, and Colombo persist. As of 2025, the coastal link between India and Bangladesh indicates progress but significant delays.

Way Forward

The India-Bangladesh Coastal shipping agreement is a well-placed strategic manoeuvre, aligning with India’s long-run maritime vision and port-led development initiatives. More crucially, it paves the way for broader subregional integration in the Indo-Pacific region. The goal is to revise the agreement in such a manner that economies of both countries benefit mutually. Currently, a modest regulatory and institutional framework exists. Thus, the task ahead pertains to operational scale-up and raising awareness about the potential benefits of utilising coastal and riverine routes between India and Bangladesh.

A myriad of factors need work such as port connectivity with other models, improving transshipment facilities, increasing loading and unloading efficiency at ports, incentivising exporters and importers to use these routes, etc. to effectively improve coastal shipping between India and Bangladesh.

The foundation of coastal shipping is strong and even though uptake is low, this is a huge step towards improving India’s eastern and northeastern connectivity and promoting coastal and inland shipping. If addressed efficiently, this route could become one of the pillars for subregional connectivity and maritime logistics in the Indian Ocean Region.

References

About the Contributor

Mallika Amale is currently interning at IMPRI. She is pursuing a Master’s in International Relations and Strategic Studies from the School of International Relations and Strategic Studies (SIRSS) at the University of Mumbai. Her research interests include India’s foreign policy, maritime security in the Indian Ocean Region, and the Indo-Pacific.

Acknowledgment

The author sincerely thanks the team at IMPRI for their valuable guidance, as well as my peers for their support during the whole process.

Disclaimer

All views expressed in the article belong solely to the author and not necessarily to the organisation.

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