Optimal pricing policy of continental transit route: a study of Kolkata-Agartala transit route

Sen, S. K. and Mukhopadhyay, I and Gupta, S (2011): Optimal pricing policy of continental transit route: a study of Kolkata-Agartala transit route.

Abstract

The aim of this paper is to investigate the pricing policy of transhipment route for India to move cargo through Bangladesh from Kolkata port to the capital city of Tripura i.e. Agartala. Initially, Bangladesh was hesitating to allow India to provide transhipment facility for the north eastern region but India reciprocate it in right direction by providing similar facility to Bangladesh to reach the Himalayan landlocked countries like Nepal and Bhutan, thereby, actively participate in moving towards an integrated transport network for this region as a whole. The future opening of Myanmar route further gives some relief to India. Most of the cargo originates from Kolkata (Port) and terminates at Guwahati and distributed to various destinations of north eastern states. We try to investigate the pricing policy of such transhipment route for India in terms of a Bertrand type model with non homogeneous type cargo movement where the unit price of cargo transhipment taken as a proxy for such transhipment route.

• Item Type: MPRA Paper
• Language: English
• Keywords: Transhipment Route, Bertrand competition, Integrated Transport Network
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C52 - Model Evaluation, Validation, and Selection; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection

References

Acharyya, N N.1983. Assam and Neighouing States- Historical Documents. New Delhi: Omsons Publications.

Agarwal, A K.1987. Economic Problems and Plsnning in North East India. New Delhi: Sterling Publications.

Almity Programme of Actions.2003. "Addressing the Special Needs of Landlocked." Almity: The World Bank.

Arvis, J.F.2007. "Transit and the Special Case of Landlocked Countries." In Customs Modernisation Handbook, by L. and Sokol, J. Wulf. The World Bank.

Barkakati, M S.1985 British Administration in North Eat India 1826-74. New Delhi: Mittal Publications.

Bell, G J.1983. The Economics and Planning of Transport. London: Heinemann.

Bhattacharyya, N N.1989. "Geopolitics of North East India." North Eastern Geographer 21, no. 1 and 2 .

Bianco, L. and P. Toth (Ed).1996Advanced Methods in Transportation Analysis. Berlin: Springer.

Bloom D.E. and J.G.Williamson.1998."Demographic Transition and Economic Miracles in Emerging Asia." The World Bank Economic Review 12, no. 3: 419-455.

Botham, R. W. 1980."The Regional Development: Effects of Road Investment." Transportation Planning and Technology 6, no. 2: 97-108.

Das, Pushpita. 2009."Evolution of the Road Network in Northeast India:." (Drivers and Brakes, Strategic Analysis) 33:1: 101-106.

Das, T. 1987.An Operational Multi-Regional, Multi-Sectoral Transport Model for India – Date Base, Algorithms, Test and Calibration Techniques. New Delhi: Government of India, Planning Commission.

Gopalkrishnan, R. 1991.Political Geography of India's North East. New Delhi: Vikas Publication House.

Islam, Shahidul.2008. “Bangladesh-China-Northeast India: Opportunities and Anxieties”, http://www.isas.nus.edu.sg/Attachments/PublisherAttachment/ISAS_Insights_37_21102009185912.pdf (Accessed on December 12, 2009)

Mackellar L., Wörgötter A. and Wörz J. 2002.Economic Growth of Landlocked Countries. Berlin: Springer.

Marshall.A.1919. Industry and Trade. New York: Macmillan, http://socserv2.socsci.mcmaster.ca/econ/ugcm/3ll3/marshall/Industry&Trade.pdf (Accessed on December 22,2010)

Ministry of Surface Transport.2003. Motor Transport Statistics in India. New Delh: Government of India.

Radelet S. and J.D.Sachs.1998. Shipping Costs, Manufactured Exports, and Economic. Mimeo.

Rahamathullah, M.2004. "Integrating Transport System of South Asia." In Promoting Cooperation in South Asia: An Agenda for 13th SAARC Summit, by Sobhan Rahaman. Dhaka: Centre for Policy Dialague and University Press.

Reheman, Sobhan. 2000.Rediscovering the Southern Silk Route: Intrgrating Asia's Transport Infraastructure. Dhaka: Centre for Policy Dialogue and University Press.

Rephann, Terance J., and Andrew M. Isserman.1994."New Highways as Economic Development Tools: An Evaluation Using Quasi-Experimental Matching Methods." Regional Science and Urban Economics 24, no. 6: 723-751.

Roychowdhury, N R.1983.Tripura Through the Ages. New Delhi: Sterling Publications.

Sachs J. et al.2004. The Challeanges facing Landlocked Developing Countries. Vol. 5. Journal of Human Development. Siebert, Horst.1969,Regional Economic Growth: Theory and Policy. Scranton, PA: International Textbook Company.

Stone, J.I.2001. Infrastructure Development in Landlocked and Transit Developing Countries Foreign Aid, Private Investment and the Transport Cost Burden of Landlocked Developing Countries. LDC/112, UNCTAD.

Thakur, P. 1998.Profile of a Development Strategy for India's North East. Gauhati: Span Publications.

UNCTAD.2002. Landlocked Countries : Opportunities, Challenges, Recommendations. TRADE/2002/23, UNCTAD.

UNCTAD.2003.Improving Trade and Development Prospectus of Landlocked and Transit Developing Countries. DITC/TNCD/2003/7, UNCTAD.

UNCTAD.2004. Report of the Expert Meeting on the Design and Implementation of Transit Transport Arrangements. Geneva: UNCTAD, 2004.

Verghese,B.G.1998. India's North East Resurgent: Ethnicity, Insurgency, Governance Development. New Delhi: Konark Publications.

World Bank. 2004. Trade Policies in South Asia: An Overview. Volume 2, Washington, D.C.: Report 29949.

World Bank. 2008. World Integrated Trade Solution. Database, Washington D.C.: WITS.