Overburdened Chittagong port

Despite the current respite from country-wide deadlock due to political unrest, things are far from being normal in the country's main sea port. It has been reported that piling up of import merchandise awaiting clearance has already caused havoc at the Chittagong port. While complications in assessment of goods amounting to approximately Tk 50 billion has stalled clearance of the bulk of the imported goods, lack of sufficient carrying vehicles has also added to further imperil the situation

It has been learnt that the goods awaiting clearance at Chittagong port were imported during the period from January 2012 to December 2013 against a total of 1,183 consignments. Nonclearnce of the goods, besides causing serious congestion in the container yard, has resulted in unrealised customs revenue to the tune of Tk 11.50 billion. It seems there are a number of reasons for the stockpiled consignments. Although ideally, goods imported are to be cleared off the sheds within three months of their arrival, the prevailing situation in Chittagong port is believed to be due to a slump in prices of these mostly consumer products which importers fear they can not market after payment of duties and taxes. A change in the harmonised commodity (HS) code in recent past leading to changes in the description of the goods has caused a hike in the customs duties of most products. Customs authorities are reported to have put some of these merchandises on auction as per practice. This, however, has not eased the situation much

Besides the technicalities involving change in HS Codes, observers are of the opinion the crux of the problem lies in the dearth of railway locomotives and wagons to carry large numbers of containers from Chittagong port yard to the inland container depot (ICD) at Kamalapur, Dhaka. Reports quoting port sources say that presently the number of ICD-bound containers is 1,400 TEEUs, the highest in Chittagong port since last three years. Failure to dispatch the imported cargo on time to ICD has obviously resulted in unaffordable demurrages on the one hand and more importantly in shortage of supplies in local markets.

The situation calls for immediate attention from concerned quarters. Normally, 160 TEEUs of cargo containers are delivered on a daily basis from the Chittagong port yard. The need at the moment is far more, but constraints on the part of the railways in respect of both wagons and locomotives do not suggest any hope for immediate solution to the problem. Understandably, the port authority cannot solve the problem unless the Bangladesh Railways provide the respite which is not forthcoming. One option, that too somewhat complicated, could be to carry the goods through river ways to the Pangaon terminal in Narayanganj. But since there is not much initiative in sight to opt for river ways on the part of the importers, the government should do all it can to facilitate the services in river ways. While it is critically important to free the Chittagong port from congestion, relieving the importers and ensuring supplies to domestic market should also be viewed as a matter of high priority.