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Setting up of industrial units near ports

October 24, 2016 00:00:00


That the country's two ports -- Chittagong and Mongla -- will face mounting pressure in the days ahead is evident from the ongoing rush for setting up various industries in their vicinity. Furthermore, planned setting up of more export processing zones and special economic zones for both domestic and foreign investors will put an added pressure on them. Mongla Port, located in the country's southwestern region and remaining so long under-used, is particularly set to feel the pressure when neighbouring countries, including Nepal, begin using it and industrial units, sited at economic zone there, start producing goods.  

This southwestern port has every potential to become a regional port. Nepal and Bhutan will use the port, provided Bangladesh ensures better, cheaper and faster port facilities with India providing hassle-free transportation corridor for the purpose. The government, too, is trying to speed up the process of dredging the port channels to allow the big ships anchoring there. It has already approved a Tk 43.93-billion project to expand the port's facilities. On the other hand, Kolkata's Haldia port has been getting silted everyday that is likely to brighten further Mongla's prospect. It is thus quite natural that both public and private sectors, as reported in this paper last Saturday, are now queuing up for getting plots of land to set up industrial units near the port.

Meanwhile, the Mongla Port Authority, while allowing establishment of various industrial units, should not forget that it has only 2,323.80 acres of land constituting permanent port, Old Mongla, Khulna, and Hironpoint areas. Also crucial will be the consideration of the world's biggest mangrove forest, the Sundarbans, in choosing industries that do not disrupt its ecology. Already, there is quite a rush for establishing industries near the would-be Payra Port as well as the Rampal power project. With the completion of some mega infrastructure projects, the three ports at Chittagong, Mongla and Payra will witness a marked increase in traffic of cargoes.

In this context, it is important to ensure that any future crowding of industrial units near the ports does not create any serious congestion there. Policy moves are required at this stage to encourage the businesses, both local and foreign, to set up appropriate industries near the ports. Entrepreneurs' growing demand for lands near ports for locating industrial units can largely be attributed to bad road communication networks. Owners of industries have earlier seen how it becomes difficult for them, at times, to meet the deadline of buyers of the country's export goods for shipment-related problems at the seaports.    

Here, the Indian experience can be relevant to Bangladesh. India has set up logistic hubs near its seaports with private sector participation to address challenges that arise, from time to time, because of disruptions to the supply chain. Such hubs will be useful for tackling issues about despatch to, or arrival of consignments of goods, at the seaports and movement of goods inward. The government also needs to examine experience of other countries before policy moves are taken about what types of industries should be encouraged to set up near the ports.


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