Developing rail networks to improve economic ties and transportation efficiency- Railways holds the key to regional growth

Source: The post developing rail networks to improve economic ties and transportation efficiency has been created, based on the article “Railways holds the key to regional growth” published in “Indian express” on 4th March 2024.

UPSC Syllabus Topic: GS Paper 2-International relations- India and its neighbourhood- relations.

News: The article discusses the development of railway connections among Bangladesh, Bhutan, India, and Nepal (BBIN). This network aims to reduce transportation costs and time, improve trade, and support economic growth in these countries. BBIN railway connection 

What is the BBIN initiative?

Regional Collaboration: The BBIN Initiative involves Bangladesh, Bhutan, India, and Nepal working together to enhance regional connectivity.

Focus on Railway Development: The initiative prioritizes developing rail networks to improve economic ties and transportation efficiency.

Economic Growth and Development: By connecting these countries more effectively, the initiative aims to boost economic growth and reduce transportation costs.

For more information on BBIN initiative read here

How are railways helpful in the regional growth of these countries?

Cost and Time Efficiency: Railways reduce transportation costs and times significantly. For instance, rerouting a freight train from Kolkata to Agartala through Bangladesh cuts transit time and costs by two-thirds.

Access to Ports: Landlocked Nepal and Bhutan gain access to major ports like Chattogram and Mongla, enhancing their trade capabilities.

Economic Integration: Improved rail connectivity fosters economic interdependence and growth among BBIN countries.

Revenue Generation: Enhanced railway links can increase revenue for countries like Bangladesh through transit fees and other charges.

Environmental Benefits: Railways offer a greener mode of transport, reducing greenhouse gas emissions compared to road transport.

What are the key projects in the BBIN initiative?

Agartala-Akhaura Rail Link: This crucial link connects Northeastern India with Bangladesh, reducing the Kolkata to Agartala route from 1,600 km to just 500 km.

Khulna to Mongla Port Railway: This line in Bangladesh enhances connectivity between western, northern Bangladesh, India, and Bhutan.

Tongi-Akhaura Line Dual Gauging: Upgrading this line is part of the India-Bangladesh joint initiatives, improving connectivity and efficiency.

Hilli-Birampur Connection: This new link is aimed at enhancing cross-border rail connections between India and Bangladesh.

Jayanagar-Bijalpura-Bardibas Line in Nepal: The only cross-border rail link between India and Nepal, with plans to extend it further.

Gelephu-Kokrajhar Link Between Bhutan and India: A proposed rail line connecting Bhutan directly to the Indian railway network, facilitating easier access to Bangladesh through the Haldibari-Chilahati interchange.

How are regional rail connectivity projects being funded and executed?

Joint Funding and Execution: Unlike traditional individual country financing, these rail projects are being funded and executed through collaboration among the BBIN countries (Bangladesh, Bhutan, India, Nepal).

Support from the Indian Government: India is playing a significant role by extending lines of credit, offering assistance from the MDoNER (Ministry of Development of North Eastern Region) budget, and supplying rolling stock.

Involvement of International Organizations: The World Bank and the Asian Development Bank (ADB) are providing long-term loans and viability gap funding, contributing to the financial support of these projects.

Development Plans by Each Country: Governments of Bangladesh, Bhutan, and Nepal have also put forth their own development plans, showing commitment to the project and shared regional growth.

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Way forward

To progress, the BBIN initiative should focus on timely completion of key railway projects like the Agartala-Akhaura link and the Khulna-Mongla line. Additionally, establishing effective cross-border protocols and regulatory frameworks is crucial for seamless operation and maximizing the economic and environmental benefits of these rail networks.

Question for practice:

Examine how the BBIN initiative aims to enhance regional connectivity and foster economic growth through railway development, joint funding, and cooperation among Bangladesh, Bhutan, India, and Nepal.