AGARTALA / DHAKA, June 4 (TIWN): Narendra Modi led Union Govt is in talks with Bangladesh for developing key river, sea ports so that Northeastern States benefit transportation via Bangladesh at a much cheaper costs.India is in talks with Bangladesh to explore the possibility of developing a port in the neighbouring country, Shipping Minister Nitin Gadkari said on Friday in Kolkata."Presently, Ministry of Shipping and Ministry of External Affairs are in talks with Bangladesh government to explore options in Bangladesh to develop a port and upgrade existing river, sea ports. Bangladesh government has been showing interest about it, keen to work with us," said the Union Transport and Shipping Minister. During Modi's Dhaka visit, India and Bangladesh signed a memorandum of understanding promising that Bangladesh would allow use of Chittagong sea port and Mongla river port for the movement of goods to and from India and Mongla ports might be used by waterways, rail, road or multi-modal transport. In 2012, Bangladesh had allowed the Oil and Natural Gas Corporation to ferry heavy machinery, turbines and over-dimensional cargoes through Ashuganj port for the 726-MW Palatana mega power project in southern Tripura. Bangladesh and China have long been working closely in various fields and the cooperation is now worrying India as Chinese Defense Minister Chang Wanquan visited Bangladesh on Sunday.

China and Bangladesh on Sunday agreed to deepen bilateral cooperation during a meeting between Chinese Defence Minister Chang Wanquan and Bangladeshi President Abdul Hamid at Dhaka.

Agartala via Guwahati is 1,650 km from Kolkata by road and 2,637 km from New Delhi, while the distance between Agartala and Kolkata via Bangladesh is just about 500 to 600 km, depending upon the mode of trasportation.

Transportation via Bangladesh is much easier, as road connectivity is a major issue for the mountainous north-eastern states which share boundaries with Bangladesh, Myanmar, Nepal, Bhutan and China.

India recently concluded the Chabahar port development agreement with Iran. He described the agreement as a 'game changer'. "Gas is cheaper in Iran, while in our country we have a shortage of gas. The proposed Chabahar port will give direct access for Indian goods to the markets in Afghanistan, Central Asia and Eastern Europe, bypassing Pakistan," he said.

Chittagong international port and Ashuganj river ports are around 70 km and 40 km from Tripura respectively.

Gadkari said that new greenfield ports will be set up at Wadhawan, near Dahanu in Maharashtra, Colachel near Kanyakumari in Tamil Nadu and Sagar Island in West Bengal.

"We set a target to create four crore jobs with an investment of Rs 25 lakh crore to roads and shipping sectors," he said.

The country is focusing on port-led development. "Currently, logistics costs in India is about 18 percent, while it is in 8 percent in China, 10-12 percent in Europe. Our focus is to bring down to the logistic cost to 12 percent by developing coastal shipping and inland waterways," he added.

India's Northeast Frontier Railway has started work to extend its network up to Tripura's southernmost border town Sabroom and the Bangladeshi border town and railway station in Akhaura,so that mainland India's shipping via Bangladesh will be a long term cost effective solution.