Kathmandu, April 13 – Ten years following the signing of the Motor Vehicle Agreement (MVA) aimed at regulating passenger, private, and freight vehicle movement among Bangladesh, Bhutan, India, and Nepal (BBIN), these four South Asian countries have completed the draft protocol designed to facilitate seamless transportation.
The protocol is the first of its kind in South Asia. Besides the motor vehicle agreement, the BBIN countries also envisage interconnected grids for regional energy security. The BBIN-MVA aims to remove barriers and regulations for bolstering intraregional trade and connectivity through the movement of passengers, personal and cargo vehicular traffic.
Known as a sub-regional cooperation initiative under the South Asian Association for Regional Cooperation (SAARC), the BBIN stands out because SAARC itself seems to be dormant. The organization hasn’t managed to convene its summit in more than ten years, largely due to persistent tensions between India and Pakistan.
However, certain analysts suggested that India’s recent choice to revoke crucial transshipment privileges provided to Bangladesh—allowing Bangladeshi exports destined for third countries to transit through Indian land customs stations (LCSs), ports, and airports—could impede the implementation of the Motor Vehicle Agreement among the four countries involved.
On June 15, 2015, in Thimphu, Bhutan, the ministers from four countries convened: the Minister for Road Transport and Bridges of Bangladesh, the Minister for Information and Communications of Bhutan, the Minister for Road Transport and Highways as well as Shipping of India, and the Minister for Physical Infrastructure and Transportation of Nepal. They came together to sign the BBIN Motor Vehicle Agreement.
It was stated in the agreement that all required internal procedures for implementing it were finalized. This accord will facilitate smooth vehicle transit, aiding quicker and more cost-effective trade and travel across their borders. Additionally, the protocol permits initiating a pilot initiative.
As per the agreement, with the exception of Bhutan, the remaining three parties will permit all types of vehicles among themselves. The document established three classes for cargo vehicle movements: light commercial vehicles (not exceeding 7,500 kilograms), medium commercial vehicles (ranging from 7,500 to 12,000 kilograms), and heavy commercial vehicles (over 12,000 kilograms).
To finalize the protocol, trial runs took place in 2015 and 2016. These trials showed that smooth transit for travelers as well as personal and commercial vehicles could be achieved. In November 2015, a test run involving cargo transportation occurred along the Kolkata-Dhaka-Agartala corridor spanning approximately 600 kilometers. Another cargo trial commenced between Dhaka and Delhi covering about 1,780 kilometers from August 29 to September 5, 2016. Additionally, a passenger bus trial journey ran from Dhaka through India to Kathmandu starting on April 23, 2018.
As supported by the Asian Development Bank, which aids in implementing the BBIN-MVA initiative, the suggested test runs will follow these paths: from Kathmandu through Bhairahawa-Sunauli to Lucknow-Kanpur-New Delhi, and from Kathmandu via Birgunj-Raxaul to Kolkata—both connecting Nepal with India.
A test route has been suggested from Kathmandu to Kakarvitta, Panitanki, Siliguri, Phulbari, Banglabandha, and finally Mongla/Chattogram, connecting Nepal, India, and Bangladesh.
Representatives from the involved nations convened in New Delhi during March 2022 and concurred on developing a schedule-driven implementation strategy for the motor vehicle accord. They also recommended conducting additional test operations and asked the Asian Development Bank (ADB) to assist with these trials. Following this, the bank presented an approach as outlined in the memorandum of understanding for the Motor Vehicle Agreement.
The trial runs were conducted between Bangladesh, India and Nepal or only between two countries. Bhutan has signed the BBIN-MVA and given its consent to the protocol but it did not participate in the trial runs.
The Asian Highway project initiated by the ADB will serve as a crucial artery facilitating the execution of the BBIN-MVA initiative.
The ADB likewise completed research on route standardization (route-based origin-destination examination), route recognition, toll setting, transboundary motor vehicle insurance, and an assessment of the implications within theBBIN framework specific to Nepal, amongst other topics.
Authorities stated that Nepal will gain direct access to four Indian ports: Kolkata, Haldia, Visakhapatnam, and Mundra.
On January 22, the ADB conducted a presentation in Kathmandu for Nepalese private sector stakeholders, during which various Nepali viewpoints regarding the BBIN-MVA were shared. The private sector has expressed worries about their capacity to rival Indian businesses and the potential threat of ceding present market shares.
Nepalese transportation firms and their staff lack the necessary expertise for traversing Indian paths, which presents a hurdle for international logistics. Additionally, poor roadway conditions along with insufficient laboratory facilities at border checkpoints add complexity to seamless transborder shipping activities.
The ADB further highlighted poor collaboration between regulatory bodies tasked with overseeing border management. Following the agreement’s enforcement, participants anticipate an increase in vehicle inflow from India and Bangladesh into Nepal. This situation places additional financial strain on Nepalese transport operators due to the substantial tariffs imposed on vehicles, which diminishes their competitive edge.
As stated by representatives from several governmental bodies, all prerequisites, which involve gathering input from parties like the Federation of Nepalese Chambers of Commerce and Industries, have been fulfilled. On March 25, the FNCCI submitted nine key proposals and recommendations to the Ministry of Foreign Affairs for their review.
The protocol includes regulations concerning permits, fees, and charges; a vehicle tracking system; unplanned stops, accidents, and vehicle malfunctions; motor liability insurance; vehicle specifications; the quantity and capacity of transport vehicles along with additional customs matters; the transboundary movement of travelers and crew members; procedures for international transit; conditions for setting up authorized operator branches; and inventories of banned or restricted items.
The protocol likewise outlines several institutional mechanisms for implementation, as well as collaboration for investigating and combating violations; along with other matters.
According to the document, the parties involved must create an electronic system complete with necessary software and hardware within twenty-four months after signing. This platform should facilitate effective tracing of vehicles operating under the accord. Furthermore, these countries aim to develop a unified digital infrastructure designed for overseeing both vehicular and freight activities as well as enforcing security protocols.
The personnel operating these vehicles must be citizens from the participating nations. Their travels will be conducted using valid passports or equivalent identification documents.
When a visa is required for cross-border travel, the application for a visa by the drivers and crew will be supported by the copy of his/her Crew Identity Card issued in accordance with Annexure-III of the agreement. The applicant must also submit a copy of his/her driving licence. The Crew Identity Card is issued in paper form or as a smart card.
A standing National Land Transport Facilitation Committee, headed by the secretary and including delegates from every involved agency, will be established as part of this system. This committee’s role will be to oversee and ensure the execution of both the agreement and the protocol.
A joint committee for land transport facilitation will be established to oversee and evaluate the execution of the accord and act as a forum for resolving disputes through mutual agreement.
Similarly, a customs subcommittee will be set up to oversee the entry and departure of motor vehicles, as stated in the protocol.
The protocol also has provisions including for suspension, withdrawal, review and amendment of the agreement.
Furthermore, the ADB has emphasized the importance of raising awareness about the agreement's significance among key political party leaders to foster "national consensus."
The financial institution will speed up the development of road infrastructure and enhancements along the specified BBIN corridors to guarantee smooth vehicle traffic. Additionally, they will establish sufficient amenities at borders to facilitate the implementation of the accord with restricted permissions for viable pathways.
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