Dutch-Bangla jt venture to build $21m ICD at Sitakunda
Thursday, 20 November 2008
A Z M Anas
A Dutch-Bangla joint venture group will set up a private inland container depot (ICD) at Sitakunda, the company head said Wednesday, in a move to bank on the burgeoning port logistics trade.
The Chittagong-based BM Container Depot Limited has partnered with Pronk Participatie BV, a Dutch company, to build the ICD on 72 bighas of land, budgeted at US$ 21 million, Mostafizur Rahman, the company's managing director, said.
"It's going to be one of the largest, (and) technologically superb. We'll be using cutting-edge technology to develop the ICD," Mr Rahman, who also co-owns Chittagong Denims and Smart Jeans, told the FE.
"The ICD was supposed to be built last year. But we couldn't make it happen. Now, our plan is to establish the ICD in mid-2009," he said. "It will take at least six months to make the facility operational, once the construction work starts."
A company source said the ICD, to be located 21 kilometres off the country's premier sea port, is expected to be ready for operation sometime in July next.
Bangladesh's port logistics business, especially that of container handling, has been maintaining a white-hot growth for several years, with the growth rate hovering at 12 per cent a year.
In 2007, according to figures available with the Chittagong Port Authority, Chittagong Port alone handled nearly 1.0 million TEUs, posting 9.33 per cent growth over the year before.
Given the growth pattern in container-handling, port officials said an ICD with a capacity of 15,000 TEUs (twenty-feet equivalent unit) or 300,000 tonnes requires one year to meet the additional demand.
Officials at the BM Container noted that the proposed logistic facility would be equipped to handle 11,000 TEUs a month-of them 5,000 TEUs for export cargo and the rest for import cargo.
"Our aim is to establish a container freight station, too. The station will handle export-import cargoes passing through the Chittaging Port Container Terminal," a company official said.
Currently, 12 private ICDs are operating at Chittagong Port, with a combined capacity of 12,000 TEUs, but the demand continues to grow in view of the country's ever-burgeoning foreign trade. Managed by the Chittagong Port Authority, another ICD in Dhaka has been in operation since 1987, handling nearly 80,000 TEUs a year.
"Scope is there for private companies to increase their involvement in the container handling business. Establishment of 10 more ICDs can be a viable option," the company official said, referring to a study report.
A Dutch-Bangla joint venture group will set up a private inland container depot (ICD) at Sitakunda, the company head said Wednesday, in a move to bank on the burgeoning port logistics trade.
The Chittagong-based BM Container Depot Limited has partnered with Pronk Participatie BV, a Dutch company, to build the ICD on 72 bighas of land, budgeted at US$ 21 million, Mostafizur Rahman, the company's managing director, said.
"It's going to be one of the largest, (and) technologically superb. We'll be using cutting-edge technology to develop the ICD," Mr Rahman, who also co-owns Chittagong Denims and Smart Jeans, told the FE.
"The ICD was supposed to be built last year. But we couldn't make it happen. Now, our plan is to establish the ICD in mid-2009," he said. "It will take at least six months to make the facility operational, once the construction work starts."
A company source said the ICD, to be located 21 kilometres off the country's premier sea port, is expected to be ready for operation sometime in July next.
Bangladesh's port logistics business, especially that of container handling, has been maintaining a white-hot growth for several years, with the growth rate hovering at 12 per cent a year.
In 2007, according to figures available with the Chittagong Port Authority, Chittagong Port alone handled nearly 1.0 million TEUs, posting 9.33 per cent growth over the year before.
Given the growth pattern in container-handling, port officials said an ICD with a capacity of 15,000 TEUs (twenty-feet equivalent unit) or 300,000 tonnes requires one year to meet the additional demand.
Officials at the BM Container noted that the proposed logistic facility would be equipped to handle 11,000 TEUs a month-of them 5,000 TEUs for export cargo and the rest for import cargo.
"Our aim is to establish a container freight station, too. The station will handle export-import cargoes passing through the Chittaging Port Container Terminal," a company official said.
Currently, 12 private ICDs are operating at Chittagong Port, with a combined capacity of 12,000 TEUs, but the demand continues to grow in view of the country's ever-burgeoning foreign trade. Managed by the Chittagong Port Authority, another ICD in Dhaka has been in operation since 1987, handling nearly 80,000 TEUs a year.
"Scope is there for private companies to increase their involvement in the container handling business. Establishment of 10 more ICDs can be a viable option," the company official said, referring to a study report.