Delay in port projects costs businesses dear
Experts, stakeholders tell discussion
Sunday, 25 March 2018
Our Correspondent
CHITTAGONG, Mar 24: Exporters, importers and port users of the country are suffering a lot due to an inordinate delay in the process of finalising projects for Chittagong Port's infrastructure development and procurement of cargo handling equipment and lack of political commitment.
It is very imperative that the Chittagong Port Authority be empowered with proper authority to handle things independently, involve the Port's stakeholders in the policymaking process and opening a wing of the Shipping Ministry in Chittagong to expedite the decision-making on policy matters and implementation issues and arrangement of close interaction between the stakeholders and the authority, which will expedite the port's cargo delivery and shipment and ease vessels' and containers' congestion in the port that handles 92 per cent of the country's total sea-borne trade.
A healthy participation of the private sector entrepreneurs will only ensure sustainability of the country's eligibility for graduating from the LDC (least developed country) status to the developing country and advancing further towards a developed nation as envisaged by the government, said researchers, experts, port users and trade body leaders.
They made the observations and voiced their grievances at a roundtable discussion on Import-Export Trade, Problems and Potentials and Addressing the Issues. It was organised by Shippers' Council of Bangladesh at the Chittagong Club Sports Auditorium in the port city on Saturday.
Chaired by Chairman of Shippers Council of Bangladesh Md Rezaul Karim, the roundtable discussion was addressed by eminent researchers, experts, importers, exporters, readymade garment manufacturers and exporters, shipping agents, mainline operators, C&F agents, freight forwarders and truck-covered van owners, It was moderated by Head of News of Independent Television Mamun Abdullah.
Former Chairman of Chittagong Port Authority Rear Admiral RU Ahmed recommended appointment of foreign terminal operator alongside the local operators for efficient handling of cargo.
He said Sri Lanka has successfully appointed foreign terminal operators alongside the local operators, for which it has improved tremendously its cargo handling.
Dr Ahsan H Mansur, Executive Director, Policy Research Institute of Bangladesh, presented the keynote paper titled State of Affairs in Chittagong Seaport and Dhaka Airport.
Regarding the Chittagong Port's capacity he said severe congestion at the port has become a common phenomenon since 2016.
In 2017, each ship had taken on an average 10 days more than regular time required to clear the products. Traders incurred a financial loss of Tk 11.95 billion (Tk 1195 crore). Despite the volume of trade increasing drastically, the infrastructure development has failed to keep up. Lack of port terminals would render it extremely difficult to handle the projected volume of containers using the current infrastructure capacity.
In reply to a question, Member (admin and planning) of the Chittagong Port Authority Zafar Alam said there is no container or ship congestion at the port right now. Even three/four days back the port has no long list of cargo vessels in wait.
The port's situation has improved a lot compared to that one year back. The Port has already started constructing Patenga Container Terminal while construction of Laldia Terminal, Karnaphuli Terminal and Bay Terminal are in the process of finalisation.
Additional Commissioner of Chittagong Customs House (CCH) Nahida Faridee said it is no longer a lengthy procedure at the CCH as the authority has shortened its physical examination process. The activities at the CCH have improved a lot after introduction of the 24-hour working time on all days and "we are working with enhanced workforce".
She alleged that importers submit only 20 per cent bill of entry from among the submitted IGMs (import general manifest). "We want more than 60 per cent of B/E along with submission of IGM for release of the bills on the same day," she said.
She said that there was a problem with two shipping agents of a foreign shipping company, for which five vessels with a huge quantity of cargo had been floating in the Bay for weeks. But the problem was resolved last week, she said.
Former adviser to caretaker government and Executive Director of PPRC Dr Hossain Zillur Rahman said the government is making a very costly investment in infrastructure sector. The Dhaka-Chittagong Highway has been extended to four-lane highway but the travel time did not decrease, rather increased.
He said that the development of any city having a seaport in the world is very much related with the development of the port. It is evident in cases of all major ports in the world. But neither the port nor its city has been developed only because of lack of political commitment.
"When the port's performance is the indicator of national development they look at things like development of a particular area instead of thinking of the development of a port that handles over 92 per cent of the country's total sea-borne trade," he said. The businesses of the country are suffering a lot for that, he added.
Dr Khondaker Golam Moazzem, Research Director of the Centre for Policy Dialogue, said the problems of Chittagong Port and Chittagong Customs House remain despite improvement made by them over the recent times. "When we were eager to hear the stakeholders about policy guidelines we hear much about their day-to-day problems they are facing. The Chittagong Port Authority has taken a number of infrastructure development projects, though belatedly. These projects for cargo handling facilities should be expedited without facing any procedural delay," he said.
Abul Bashar Chowdhury, Chairman of the BSM Group and a leading consumer goods importer of the country, said the importers of consumer goods have to pay a huge amount of money in foreign exchange in terms of demurrage charges to the shippers as the port authority lacks equipment for handling break bulk cargo.
Even in the recent past they could get delivery of cargo within 22 to 25 days. But the port is now taking three months for giving delivery. So the demurrage could be estimated at the rate of US$ five to six thousand per day for overstay of the ships.
He said that only 20 to 25 per cent of bulk cargo is imported by containers while the remaining 75 per cent is imported in break bulk.
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