BSC gets deferred payment facility for Ctg seaport use pending its fleet revival

Bangladesh Shipping Corporation (BSC) has been given an opportunity to make deferred payment of all types of charges at Chittagong seaport for an indefinite period as part of government's move to help the state flag carrier sustain until its salvage, officials said.
The state-run corporation would not have to pay the charges overdue since 2011 at the country's prime seaport until six new vessels, under construction in China, join its fleet and its financial condition improves, they added.
The ministry of shipping (MoS) recently issued such directive to the Chittagong Port Authority (CPA) based on a previous decision taken by cabinet division.
BSC late last month made the plea for allowing it deferred payment of charges at Chittagong port to help it sustain amid low earnings for lack of adequate number of vessels, sources said.
Established in 1972, the shipping corporation once had 38 vessels in its fleet and the number now dwindled to only five. Of them, MT Banglar Jyoti and MT Banglar Shourabh are engaged in crude-oil lightering and MV Banglar Kakoli, MV Banglar Kallol, and MV Banglar Shikha also do the lightering of wheat and other goods.
BSC managing director H R Bhuiyan told the FE that decision has been taken to sell the MV Banglar Kakoli and the MV Banglar Kallol since no international ports accept these age-old vessels, which were bought over 35 years back.
He said global shipping business has been passing through tough times thus many companies, including some Bangladeshi private-sector organisations, have shut down their business or are ailing.
"Earnings of the BSC also suffered a blow with very few vessels in the fleet in operation. But a high number of employees still need to be paid wages amid fall of income, which is a burden for the corporation," Mr Bhuiyan said.
He said despite the fall of income, the corporation is gradually making repayments of loans taken from Sonali Bank and Janata Bank.   
"The financial condition of the corporation will significantly change once some new vessels join in its fleet," he hoped.
  Asked how much money the BSC needs to pay to the CPA yearly, Mr Bhuiyan said the amount is not so big, but the deferred payment, whatever the amount, will be a big help for the corporation at this stage.
Elaborating on the major payment heads he said a vessel needs to pay charges against services like pilotage, berthing, anchorage, mooring, tugboat, and water bills for using a port.
Asked about the amount of payment due to the CPA since 2011, the BSC chief could not give details. "We have paid some amount of money during the period," he said.
The BSC is entrusted with the responsibility of carrying bulk cargo, food-grains and crude oil, chartering, tramping and feeder services, unloading and providing agency service and ship repairing.
With funding from the Exim Bank of China, six vessels-three bulk carriers and as many oil tankers-are under construction for the shipping corporation.
Several other proposals of funding vessel procurement for BSC are also under scrutiny of the government to give the kiss of life to the state flag carrier, according to the officials.
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