Govt to seek foreign fund to build deep-sea port as Sonadia picked as best site

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FE Report
Bangladesh will secure foreign funding to build a deep-sea port at an initial cost of US$ 2.2 billion, the shipping minister Afsarul Ameen said Sunday, as experts picked up Sonadia Island as the best location for the giant cargo hub.
Afsarul Ameen said the first phase of the proposed port would be constructed by 2020 in private-public partnership, raising funds through bond and equity from the share markets and financing from foreign lenders.
"I would like to invite our development partners to actively consider the possibility of funding this project," Ameen told a workshop in the city where experts formally unveiled southern Sonadia Island as the ideal site for the country's biggest infrastructure project.
"I am sure you (development partners) will find the project viable for huge investment and we need your help to go ahead for the port. I can assure that the present government shall take every step to secure funding for the deep sea port," he said.
The minister said the port could turn Bangladesh's coast into a top global cargo hub, working as a hinterland for a stretch of a land including southern China, eastern India, landlocked Nepal and Bhutan and part of Myanmar.
"If we can implement the port in time and maintain standard of service, we can expect new Singapore or Hong Kong within Bangladesh," he said.
The minister said deep draught port is inevitable to cater to the growing exports and imports of Bangladesh, as the existing Chittagong Port is already facing congestion while mother vessels avoid it for poor navigability.
"The deep sea port will reduce cost of transportation by at least 15 per cent," he said, adding that it would make Bangladesh export more competitive in the international markets.
His comments came as government appointed Japanese firm Pacific Consultant International released its deep-sea port feasibility study, preferring Sonadia over eight other locations and declaring it has all the potentials to emerge as a "Regional Hub Port."
"Sonadia Island succeeded so far as the best optimal locations for a deep sea port out of the possible nine locations," Eddy Declereq, a PCI expert, said while unveiling the final report of the study.
The PCI study has found that the Hub could attract 10 per cent of China's total transit cargoes and its first phase construction --- which will have nine jetties for berthing of four container and five general cargo vessels --- would cost around US$ 2.2 billion.
The medium phase of the port will end in 2035 when two more harbours would be constructed and the final phase by 2055, adding six more jetties.
"Eventually, the deep seaport would allow berthing of nine mother vessels, four container and five general cargo vessels," Declereq said.
The feasibility study, which began in June 2006, also proposed a 40-kilometres railway track from Chittagong to Cox's Bazar, multi-lane roads of similar size and development of inland waterways for plying of coastal cargo vessels.
Finance advisor Dr. Moshiur Rahman, said Bangladesh would need a deep seaport very soon considering the growth of the country's foreign trade, but he said the port won't be effective unless necessary domestic infrastructure is built.
"Definitely loading and unloading activities will be faster after the construction of deep seaport. But there are some valid questions as to how roads and river routes in other parts of the country will cope with the increased traffic," he said.
He also said the government will seek public-private partnership for the development of the port, but he emphasised involvement of Chittagong Port Authority in the giant project.
He said synchronisation of tariffs with other neighboruing nations would also be an important issue if the port is designed to serve regionally.
"What will be the nature of container handling growth if we allow the neighbouring countries' to use it? This has to be analysed now," Moshir added.
He also said a clear picture should be incorporated in the project as to how the benefits of the project will equally be distributed to other parts of the country.