Bangladesh-Thailand trade to quadruple with direct shipping links

DHAKA: -- Feb 9 Annual trade between Bangladesh and Thailand could quadruple to $4.8 billion thanks to an agreement on Tuesday to establish direct coastal shipping links between the two countries, a Bangladeshi business leader said.

Goods shipped between the two countries currently pass through Singapore and take two weeks, a time period that should be cut to six days with direct shipping, according to a Thai transport official.

Full story: http://www.reuters.com/article/bangladesh-thailand-trade-idUSL3N15O2HD


-- Reuters 2016-02-10

The expected trade increase is still more of a plan now. Last expansion was in 2006 and without new infrastructure its use has been restricted.

"As it is not in the same league as the pending mega-investment in the Dawei deep-sea port project in Myanmar, Ranong Port will have no chance to pursue its dream of becoming Asia's pathway to the West without strong commitment by the government in collaboration with the private sector."

The government needs to also construct a four-lane highway from Bangkok to the port as well as proceed with railway double-tracking.

The biggest hurdle for the government now to expand the port, which hasn't been used yet to capacity under agreement with Myanmar, will be to find capital. A Special Zone bond might help but with Thailand's economy now teetering. it may not afford the interest rate to attract foreign capital. With agricultiral and fishing subsidies, financing of light rail and energy projects, and borrowing from foreign governments for current infrastrucutre projects, the government may not have much financial capacity to make a significant improvements now at Ronong Port.