Economic viability of Pangaon ICT

The authorities concerned, reportedly, are now mulling a host of measures to ensure use of the Pangaon internal container terminal (ICT) for businesses. The measures include mandatory delivery of, at least, 50 per cent of containers carrying imported cotton and capital machinery through the terminal and pressing an increased number of vessels on the route between Chittagong port and Pangaon ICT. The fresh initiatives to infuse 'dynamism' in the operation of the ICT have been undertaken against the backdrop of a dismal performance of the latter since its launch in the first week of November last year. Only one container-laden vessel arrived Pangaon nearly a month after its launch, that too, following persuasion by the Prime Minister's Office (PMO) and the Ministry of Shipping. However, no vessel has until now left for Chittagong from the ICT. Both men and equipment at the site of this facility have been passing idle time.
In fact, the Pangaon ICT has been in operation for one and a half months, which is too short a period to make an evaluation of its performance. But the authorities concerned, apparently, are worried by the poor response from businesses with regard to use of the terminal even when the road communications between Chittagong and Dhaka had remained cut off for several weeks in the final months of 2013 because of violent political unrest. The prospect of the Pangaon ICT built at a cost of Tk 1. 54 billion jointly by the Chittagong Port Authority and the Bangladesh Inland Water Transport Authority remains bleak without adequate response from the exporters and importers. Moreover, the basic objective of the project---to ease pressure on Dhaka-Chittagong rail and road routes---would also remain unmet. The ICT authority is now reportedly thinking of offering some incentives, in the form of tariff rates, to attract businesses.
But the government which was enthusiastic about setting up the Pangaon ICT does need to explore the reason/s behind the lack of interest on the part of businesses in using the facility there when the cost saving on account of per unit container transportation is substantial. The transportation cost of a container by road is around Tk 22000 as against that of Tk 9000 through the river way. At least, two factors--- the transportation time and additional hassles might be discouraging businesses from using the facility. The time taken by a vessel to reach Pangaon from Chittagong port is 36 hours as against 09 hours needed in the case of road transportation. Since the project in question is being implemented with their money, the taxpayers have the right to know whether proper feasibility study and discussions with the stakeholders concerned were held before taking it up. Making any mandatory use of the terminal by businesses does not sound good at all.  
There is no denying that the cost is an important factor in business operations. But in the case of exports, matters particularly that of products like apparels, transportation time often gets priority over cost factor. Moreover, when the up-gradation of Bangladesh Railway and the construction of the four-lane Dhaka-Chittagong highway would be completed, the necessity of using the Pangaon ICT would be reduced further. So, it would be prudent on the part of the ministry of shipping to look at the project afresh and make necessary changes to ensure its economic viability. Otherwise, it would be another white elephant in the public sector.