BD shippers find Lanka offer of using its ports not fruitful

Sri Lankan ports want increased connectivity with Bangladesh by offering their transhipment facilities including the newly launched Colombo Deep Sea Terminal.
But shipping firms said the move would not yield any positive outcome as Singapore port was much more competitive than Colombo port.
They also observed that Colombo port would have to compete with other shipping hubs, including that of Singapore, to grab market shares from Bangladesh.
Bangladesh currently handles around 12 per cent of its 1.4 million containerised cargoes through Colombo deep-sea port.
Bangladesh mainly uses Singapore for transhipping its containerised cargoes meant for the USA and Europe.
Transhipment is the shipment of goods or containers to an intermediate destination, then to yet another destination.
The reason for changing the means of transport during a journey is to combine small shipments into a large one through mother vessels that usually comprise 10000-12000 containers' capacity.
Goods both inbound and outbound Bangladesh usually tranship at transport hubs in Singapore, Colombo, PTP and PKL of Malaysia.
Bangladesh handled nearly 60 per cent of its transhipment cargo through Singapore. Then came PTP of Malaysia. The transhipments took place in the last fiscal year (FY) 2012-13.
Sources at the ministry of shipping (MoS) said use of transhipment hubs depended on the mainline operators' choices.
"Increased calls of mother vessels at the Colombo port will automatically raise the number of feeder vessels at Colombo port," said a senior official at the MoS.
Small vessels with capacity of 1000-1200 containers, called feeder vessels, connect with the mother vessels at the transhipment ports.
Officials concerned, however, suggested that a market study should be undertaken jointly by the Chittagong Port Authority and the Colombo Port Authority.
Md Shamim Ul Huq, managing director at Maersk Line Bangladesh, told the FE that Colombo port authorities want to promote their port in Bangladesh.
Mr. Huq said Sri Lanka wants marketing of its new large terminal.
Sri Lanka has built a large terminal called Colombo International Container Terminal (CICT), a joint venture between China Merchants Holding and Sri Lanka Ports Authority.
The terminal has been designed to take in not only today's large ships, Maersk's Triple E vessels, which can carry 18,000 containers, but also the next-generation 22,000 TEU capacity vessels.
Mr. Huq said the Singapore port was much more competitive than the Colombo port.
He said Colombo port would have to compete with other transhipment hubs if it wanted to raise its traffic volume.
Captain AS Chowdhury, country head of a feeder service provider, said Singapore was much more attractive than Colombo port.
"I can cite at least 100 reasons why the traffic at Colombo port is not rising," Mr Chowdhury said.
Mr. Chowdhury added many destinations of Bangladesh are located near Singapore port.
"Destinations like Malaysia, Vietnam and Thailand are very close to Singapore. For this reason many use Singapore for transhipment," he said.
He observed trade could not be possible through one way.
"The trade between Sri Lanka and Bangladesh is not significant, so there is little chance for enhancing cargo traffic movement involving Colombo port," Mr Chowdhury noted.
However, a Sri Lankan high-powered delegation has already arrived in the capital.
The team, led by chairman of Sri Lankan Ports Dr Priyath B. Wickrama, will meet shipping minister Shajahan Khan at the Secretariat today (Tuesday).
A seminar on "enhanced maritime connectivity between Bangladesh and Sri Lanka: reality and prospects" will take place tomorrow (Wednesday) in the city.
The Sri Lankan team will also take part in a joint working committee meeting at the Secretariat on April 30 (Wednesday).