$1.9b is needed for Ctg port expansion

Chittagong Port will need to invest US$1.9 billion for expansion of its storage capacity required to accommodate growing trade up to 2043, according to a development plan designed by a foreign firm.
Such estimation is made in a master plan prepared by German-based Hamburg Port Consulting (HPC) for overall development of the main seaport of Bangladesh which is becoming a regional shipping hub.      
The draft master plan, unveiled Sunday at a hotel in Dhaka city, estimates that Chittagong Port Authority (CPA) will have to generate nearly US$400 million annually from the investments as different charges that include storage rents.
As for the output of the money to be invested, it says the investment will cut vessel-waiting and vessel-service time with a resultant fall in the freight rates.
Shipping Minister Shajahan Khan joined the programme as the chief guest. Country director of the Manila-based Asian Development Bank (ADB) Kazuhiko Higuchi made an introductory speech at the function, attended by Chairman of the CPA Rear Admiral Nizamudidn Ahmed and other high-ups.
The plan suggests construction of three key terminals in the port area and the amount required to be invested for the purpose.
"Immediately start the planning and realisation process of the proposed terminal development," the recommendation reads.
It noted that capacity and efficiency of the Chittagong Port contribute to the competitiveness of the Bangladesh economy as a whole and, therefore, the strategic master plan needs to be implemented right now.
The master plan suggests construction of Karnaphuli Container Terminal on the existing general cargo berths at a cost of US$409 million.
A new multipurpose terminal to handle non-containerised cargoes has been suggested. It will cost US$313 million.
It also suggests the construction of port facility on the small island that surfaced on the Bay of Bengal and it will need US$1,176 million (about $1.18 billion).
And the projected growth of port's container-handling volumes will require a corresponding expansion of the relevant hinterland links like the road.
The master plan predicts that the capacity of the four-lane Dhaka-Chittagong highway will be fully utilised by 2025.
Speaking at the function, the Shipping Minister, Shajahan Khan, said Bangladesh's container-handling job would grow at a faster rate as the country agreed to allow movement of goods meant for India.
He mentioned that a joint communiqué signed between Bangladesh and India allows use of Mongla and Chittagong seaports for movement of goods to and from India by road and rail.
Bangladesh also showed its willingness to give Nepal and Bhutan access to the two seaports--Mongla and Chittagong.
He said the expansion scope of the Port of Chittagong is being reduced except for the Bay terminal.
"It is great concern for us," Mr Khan told the meet.
The CPA chairman, Nizamuddin Ahmed, said issues like global warming and green-port concepts should be taken into consideration in finalising the master plan.
He said the port is experiencing inundation during the monsoon at the yards, which never happened before.
"We saw three inches of water at the container terminals so the issue of global warming should be considered," Mr Ahmed commented.
HPC team leader Peter W Cardebring and other team members were present during the presentation on their planning work on port development.
asimharoon@yahoo.com