What is BIMSTEC Coastal Shipping Agreement? BIMSTEC Discuss Shipping Agreement (Important)

Members of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) in New Delhi discussed the promotion of coastal shipping under the draft text of BIMSTEC Coastal Shipping Agreement drafted by the Ministry of Shipping, Government of India.

BIMSTEC Coastal Shipping Agreement

What is BIMSTEC Coastal Shipping Agreement?

  • BIMSTEC Coastal Shipping Agreement aims to facilitate coastal shipping (instead of deep-sea shipping) in the region boosting trade between the member countries.
  • Agreement applies to coastal shipping- shipping within 20 nautical miles of the coastline. Requirements for coastal shipping are different from requirements of deep-sea shipping. Coastal shipping requires smaller vessels and faces lesser draft, and therefore, involve lower costs.
  • Agreement allows member countries to move cargo using coastal shipping. Once the agreement is ratified lot of cargo between the member countries can be done through the cost effective, environment friendly and faster coastal shipping route.

What is BIMSTEC?

  • One of the aims of BIMSTEC is to enhance connectivity in the region. India is the lead country in BIMSTEC for cooperation in transport and communication.
  • Other BIMSTEC member countries include Bangladesh, Bhutan, Myanmar, Sri Lanka, Thailand, and Nepal.

✍Examrace Team at Aug 20, 2021