Four new private off-docks are set to enhance the container-handling capacity of the country's largest seaport and contribute to fast delivery of export-import goods and ease port congestion.
Investors in the Inland Container Depots (ICDs) said the annual handling capacity of export-import goods would increase by more than 30,000 TEUs (twenty-foot equivalent units) of containers by next year, thanks to new private investments worth around Tk 20 billion.
Currently, there are 19 private ICDs with an annual handling capacity of 76,000 TEUs of containers in the country.
Recently, AK Khan and Company Ltd. and Container Company of Bangladesh Ltd. received two separate primary letters of approval, issued by the National Board of Revenue (NBR) to set up off-docks in Chattogram.
Customs Export and Bond wing of the NBR issued the letters on February 11 last, addressing the Managing Directors of the two companies.
It, however, tagged conditions like handling empty containers for one year and then taking the final approval of customs before starting full-fledged operations.
In both cases, the NBR has relaxed the condition of setting up off-docks at least 20 kilometres away from the port meant for avoiding traffic congestion.
CCBL, an entity of Bangladesh railway, would also set up an off-dock on a piece of land of the Rail Division in Halishahar of Chattogram.
However, there would be no scope of traffic congestion on the road in case of the CCBL as the investors would use rail routes to transport goods between the port and the ICDs, officials said.
For AK Khan Group's ICD, the NBR relaxed the condition as it had applied for it before issuing the mandatory rule of customs imposing the 20km restriction, said a senior customs official.
He said the government allowed the investors to set up the ICDs considering the country's growing need to expedite import-export and cut the cost of doing business.
Dr Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the government should allow more ICDs to expedite delivery of import-export goods as the existing ones are not sufficient to meet the growing demand.
"There is a demand, in general, for handling around 0.2 million TEUs of containers annually by the ICDs if import contractions are applicable. Still, the port has demand for 150,000 TEUs of handling capacity," he added.
He suggested allowing the ICDs to handle more import goods to ease port congestion as most of the imported goods are unloaded and assessed in the port premises.
One of the prime causes of the port's inefficiency and congestion is handling goods inside the port, he added.
Anchorage Limited Managing Director Faisal Amin said they were now handling empty containers to comply with the NBR conditions.
"We would be able to annually handle up to 5,000 TEUs of goods after starting full-fledged operation," he added.
Earlier, the NBR allowed Bay Link and Anchorage Ltd. to operate ICDs in Chattogram.
Each of the ICDs required more than Tk 4.0 billion in investments to set up equipment, warehouse and other facilities.
Industry insiders said it's time to allow the ICDs to handle more import goods to utilise their full capacities and get return on their investments to encourage other investors.
Currently, the NBR allows ICDs to handle 38 import goods and all export goods.
A senior official at the Bay Link ICD said they would be able to go for full-fledged operation by next six months after developing required infrastructures.
He said the new ICD would have a capacity to handle 8,000 TEUs of goods annually.
Goods delivery could be expedited from ports if the government allows ICDs to handle more import goods, he added.
Secretary General of the Bangladesh Inland Container Depots Association (BICDA) said Md Ruhul Amin Sikder Biplob welcomed the new ICDs and urged the government to facilitate utilising their storage capacities.
The Anchorage Containers Depot is located in the South Kattali area, 10 km away from Chattogram port.
Dhaka-based AGC Group has invested in Bay Link Containers Depot in Barabkunda area of Sitakunda, 35 km away from the port.
The ICDs, managed by private sector investors, contribute to help ease congestion at the sea-port, facilitate fast clearance of full container loads of cargo from outside the port area.
Currently, the estimated investment in the private ICDs would be Tk120 billion while around 35,000 people work there.
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