Ctg port's container handling capacity to double next year
Wednesday, 5 September 2012
FE Report
Chairman of Chittagong Port Authority (CPA) Rear Admiral Nizamuddin Ahmed said the the container handling capacity of the country's largest seaport will double from early next year.
Last year, the port handled more than 47 million tonnes of cargo and 1.4 million containers (20ft equivalent units).
"To improve the capacity, we've introduced a numeric container terminal, which will start operating from early next year. Once it's operational, the container handling capacity of the port will double," Rear Admiral Nizamuddin Ahmed told the BBC.
As the Bangladesh economy has witnessed growth of about 6.0 per cent for the last few years, the trade volume is also gradually increasing.
The BBC reported that officials of the CPA were confident that once the expansion plan is complete it would double the capacity of the port so that it can host at least 12 container vessels at any given time.
"We've already introduced a container terminal management system to improve efficiency in handling containers. We have also taken measures to construct new container terminals in the port," Mr. Ahmed added.
Chittagong port is strategically located close to Myanmar, China, India, while landlocked neighbours Nepal and Bhutan want to use the port to transport cargo to their countries.
The emerging economic giant India also wants access to Chittagong port to send goods to its seven north-eastern states.
If the transit agreements between Bangladesh and neighbouring countries are finalised, then Chittagong port will become a regional business hub, he added.
Experts say Chittagong port, which celebrated its 125th founding anniversary this year, can become a regional economic hub if the facilities are modernised.
"It has been the gateway to our economic growth. But the load on the port is increasing day by day. If we don't develop and upgrade it, Bangladesh will fail to meet the increasing local demand," says Prof Syed Ahsanul Alam of Chittagong University.
In addition, Dhaka can earn millions of dollars in revenue by leasing out its port facilities to other countries.
But this level of demand may not last. Neighbouring Myanmar is upgrading its deep sea port in Sittwe, about 200km south of Chittagong. The port is being upgraded with Indian assistance, the BBC report said.
The Myanmar port may have an impact on the shipping revenues of Bangladesh as India is likely to transport its cargo through the port to its north-eastern states.
Bangladesh has become a global leader in clothing exports in recent years.
One of the reasons attributed to this success story is the main Chittagong port in the south of the country.
Chittagong port handles more than 80 per cent of the country's imports and exports making it the prime port of Bangladesh.
Situated on the bank of the Karnaphuli river, close to the Bay of Bengal, Chittagong port is described as the lifeline of Bangladesh's economy.
Today, the country's main export items such as clothes, leather goods, jute, tea and frozen foods are taken through this port to the outside world.
Last year the port handled more than $60b(£38b) worth of foreign trade.
Bangladesh exported more than $19bn worth of ready made garments last year, mostly to the European Union and the United States, and most of the shipments were sent through this port.
With global consultancy firms such as McKinsey predicting that Bangladesh can double its garments exports in the next 10 years, the necessity to modernise the port has become more urgent than ever.
A few years ago, the port faced a series of problems including workers' unrest. As a result, serious congestion occurred and the average turnaround time for ships went up from two days to seven days.
Soon after, the authorities took a series of steps to improve the efficiency of the port, including allowing private berth operators to handle containers and cargo.
Though the average turnaround time for ships has been brought down to about two-and-a-half days at the moment, exporters say it should come down further, meeting global standards. For example, the turnaround time in Singapore port is less than 12 hours.
Chairman of Chittagong Port Authority (CPA) Rear Admiral Nizamuddin Ahmed said the the container handling capacity of the country's largest seaport will double from early next year.
Last year, the port handled more than 47 million tonnes of cargo and 1.4 million containers (20ft equivalent units).
"To improve the capacity, we've introduced a numeric container terminal, which will start operating from early next year. Once it's operational, the container handling capacity of the port will double," Rear Admiral Nizamuddin Ahmed told the BBC.
As the Bangladesh economy has witnessed growth of about 6.0 per cent for the last few years, the trade volume is also gradually increasing.
The BBC reported that officials of the CPA were confident that once the expansion plan is complete it would double the capacity of the port so that it can host at least 12 container vessels at any given time.
"We've already introduced a container terminal management system to improve efficiency in handling containers. We have also taken measures to construct new container terminals in the port," Mr. Ahmed added.
Chittagong port is strategically located close to Myanmar, China, India, while landlocked neighbours Nepal and Bhutan want to use the port to transport cargo to their countries.
The emerging economic giant India also wants access to Chittagong port to send goods to its seven north-eastern states.
If the transit agreements between Bangladesh and neighbouring countries are finalised, then Chittagong port will become a regional business hub, he added.
Experts say Chittagong port, which celebrated its 125th founding anniversary this year, can become a regional economic hub if the facilities are modernised.
"It has been the gateway to our economic growth. But the load on the port is increasing day by day. If we don't develop and upgrade it, Bangladesh will fail to meet the increasing local demand," says Prof Syed Ahsanul Alam of Chittagong University.
In addition, Dhaka can earn millions of dollars in revenue by leasing out its port facilities to other countries.
But this level of demand may not last. Neighbouring Myanmar is upgrading its deep sea port in Sittwe, about 200km south of Chittagong. The port is being upgraded with Indian assistance, the BBC report said.
The Myanmar port may have an impact on the shipping revenues of Bangladesh as India is likely to transport its cargo through the port to its north-eastern states.
Bangladesh has become a global leader in clothing exports in recent years.
One of the reasons attributed to this success story is the main Chittagong port in the south of the country.
Chittagong port handles more than 80 per cent of the country's imports and exports making it the prime port of Bangladesh.
Situated on the bank of the Karnaphuli river, close to the Bay of Bengal, Chittagong port is described as the lifeline of Bangladesh's economy.
Today, the country's main export items such as clothes, leather goods, jute, tea and frozen foods are taken through this port to the outside world.
Last year the port handled more than $60b(£38b) worth of foreign trade.
Bangladesh exported more than $19bn worth of ready made garments last year, mostly to the European Union and the United States, and most of the shipments were sent through this port.
With global consultancy firms such as McKinsey predicting that Bangladesh can double its garments exports in the next 10 years, the necessity to modernise the port has become more urgent than ever.
A few years ago, the port faced a series of problems including workers' unrest. As a result, serious congestion occurred and the average turnaround time for ships went up from two days to seven days.
Soon after, the authorities took a series of steps to improve the efficiency of the port, including allowing private berth operators to handle containers and cargo.
Though the average turnaround time for ships has been brought down to about two-and-a-half days at the moment, exporters say it should come down further, meeting global standards. For example, the turnaround time in Singapore port is less than 12 hours.