Businesses fret over container terminal teething troubles

Slow progress in making the Patenga Container Terminal (PCT) operational has disappointed the businesses as they could not reap its benefits despite completion of construction, industry-insiders have said.
Construction of the container terminal, inaugurated by the Prime Minister on Tuesday, was completed one and a half years ago, at a cost of Tk 12.29 billion, but appointment of its contractors has yet to be completed by the port authority.
Also, PCT's backup facility and its adjacent area would need customs approval and declaration as 'Customs Bonded Area' for export-import operations to get started.
Prime Minister Sheikh Hasina formally inaugurated virtually on Tuesday the newly built gateway to Chattogram seaport.
Bangladesh Shipping Agents Association (BSAA) Chairman Syed Md Arif says the businesses are not getting the facility of development works even after completion of construction of the PCT for lack of proper planning by authorities concerned of the government.
"The government is also incurring financial loss owing to such idle infrastructures that could generate revenues if operated," he adds.
Mr Arif expressed doubts over start of formal operation of the PCT shortly, saying that "it may need more than a year to get prepared for operation".
The PCT would need equipment to handle heavy containers but the process seems struggling in bureaucratic complexities, he told the FE writer.
"We have been availing the facility of New Mooring Container Terminal during the last three-four years while its construction completed in 2007," he said.
Mr Arif recommends that the government frame a proper plan for such vital infrastructures, including deep-sea port, so those might not have to sit idle after construction.
President of the American Chamber of Commerce and Industry (AmCham) Syed Ershad Ahmed said businesses were losing opportunities every day due to slow progress in making such major infrastructure operational.
He said the Public-Private Partnership (PPP) authority should speed the process of finalizing draft agreement so that the CPA can complete the process of appointment.
"Cost-benefit analysis of such infrastructure should be done to pass on its benefits to the traders as well as help the government to generate revenue just after completion of its construction," suggests Mr Ahmed, also Country Manager and Managing Director of Expeditors (Bangladesh) Ltd.
He said the Bay terminal should also be made operational in the shortest possible time as there is huge demand for such terminals for smooth export-import activities.
However, Chittagong Port Authority (CPA) secretary Md Omar Faruk said the PCT would be able to start its operation shortly but customs would have to declare its backup facility and adjacent area as bonded area.
Recently, the Chittagong Port Authority requested the National Board of Revenue (NBR) to expedite the process of its approval allowing PCT to be bonded area.
"Already the CPA has invited request for proposals (RFP) from the companies and it is expected to start working soon," said Omar Faruk, the CPA secretary.
He expects to start operation of the PCT in next one or one and a half months if all procedures completed successfully.
Construction of the 600-metre-long PCT in 26 acres of land, located in-between Chittagong Dry-dock and Chittagong Boat Club, has raised new hopes among the businesses about expediting goods-release process without congestion at the seaport.
Having three jetties and an annual capacity of handling 0.5 million TEUs of containers, the PCT is expected to ease pressure on Chattogram Customs Houses.
Mr Faruk said they were proceeding to appoint foreign-contractor Red Sea Gateway Terminal International, based in Saudi Arabia, which has already been nominated by the government to operate the PCT.
An agreement on its appointment would be finalized soon and signed within this month, he hopes.
In June 2017, the PCT got government approval and its construction completed in June 2022.
On Tuesday, the PM also unveiled the cover of the master plan for the construction of the Bay Terminal, another mega extension project of the port.

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