INDIA-BANGLADESH: THE ONE-OFF RAIL SOLUTION

The trailblazing spirit of MGH Logistics resonated even during the pandemic as they handled the novel commercial rail container movement twice successfully between India and Bangladesh, for bilateral trade purpose. The achievement was a result of a lengthy pursuit of efforts by both the governments, CONCOR & Indian Railways, Indian Customs, Bangladesh Railways, CCBL and MGH.

 

PRECEDING HURDLES

Previously, when the land border was non-functional for approximately 90 days due to COVID, it caused port congestion. The other associated demurrage costs caused by longer transit time, limited capacity of the sea, congestion at land routes and high airfreight costs, made it a further inconvenient option for time-bound cross border shipments.

 

A NEW ERA IN INDIA-BANGLADESH TRADE

It was the very first rail movement enterprise that opened doors to a fast and economical route for the traders in this lane, as an alternative for the traditional sea and road movement. MGH spearheading such initiatives allowed both India and Bangladesh’s precedence over trade.

As per Mr Sunil Tangri, Commercial Head of Vardhman Textiles, " Rail connectivity will prove to be more efficient in terms of cost and time as compared to other modes for trading with Bangladesh and that in turn will boost economic trade”

 

TIME-BOUND RAIL SHIPMENT 

The train carried FMCG goods, textile and raw material for cosmetics of multiple well-renowned exporters consisted of 25 wagons (carrying 2 TEUs each) on the first consignment and 15 wagons (carrying 2 TEUS each) during its second instalment. The destination was reached with a transit time of less than 12 hours compared to 10-12 days of transit by Petrapole land port and 30 days of transit time via sea.

In fact, Mr Aviram Keshava, Head - Export Commercial, Arvind Limited, congratulated CONCOR & MGH Logistics for this long pending initiative stating, "The train service to Benapole will help the whole textile industry to commit to stringent delivery schedule

 

LAST MILE DELIVERY SUPPORT WITH UNCOMPROMISED SECURITY

The rail solution also included options for stuffing, custom clearance and last-mile delivery which made the overall process hassle-free for the exporters and importers.

During the journey, ECTS (Electronic Cargo Tracking System) seal also ensures the safety and security of the cargo which are being transported and organizations such as P&G, Arvind Limited, Vardhman Textiles, and others, were the first to avail this new service.

“I would like to express my appreciation for the support that MGH has provided in execution of the first ever container train service for exports from India to Bangladesh.”, said Mr. Sachit Dhawan of Proctor & Gamble. “This helps us get the critical stocks needed for Bangladesh business. The team has kept a close watch on local developments, provided on-ground intelligence and recommendations to P&G team during the Covid crisis.”, he continued.

 

THE FUTURE SCOPE

On seeing the efficiency of the new route and the growing opportunities that the trade-lane has to offer, the train shall now function regularly and shall complete the journey within a speedy 200 minutes time frame.

The true spirit of MGH lies in looking at a problem and turning it into an opportunity, and that's exactly what has been portrayed in this first of its kind ingenuity.

Get in touch via contact@mghgroup.com for more!