Local-foreign consortium to build Mongla port jetties

A local-foreign consortium will build two key port infrastructures at the Mongla seaport under public-private partnership (PPP) to substantially enhance its container-handling capacity, as Bangladesh aspires to be a regional shipping hub.      
Officials said the setting up of two jetties with back-facilities will increase the port's capacity nearly one and a half times.
Local Sikder Group, a power-generation company, and Singapore-based Gmaps, a port operator, have tied up to build the jetties at a cost US$ 52.75 million, according to PPP office.
Contract signing between the Mongla Port Authority (MPA) and the Sikder Group-Gmaps consortium may take place within September.
The PPP office said negotiations were completed last week between the MPA and the Sikder Group-led consortium.
They will build, operate and maintain the jetties for a period of 30 years and the profit sharing will be 40:60, that is, the MPA will get 60 per cent while the rest will go to the consortium.
"After vetting, we'll organise the signing of contract between the consortium and the MPA," Abul Bashar, a deputy manager at the PPP office, told the FE.
This happens to be second public-private partnership office-conducted PPP project. Earlier, it had facilitated setting up dialysis machines in Dhaka and Chittagong through PPP arrangement.
Currently, the port authority has 100,000 TEUs (20-foot equivalent units) capacity in its five jetties and their respective back-ups.
The MPA in fact has one terminal to handle the cargoes.
But the two new jetties will have their own respective back-up terminals to store containers and break-bulk cargoes.
Each jetty will be around 183 metres in length and 40m in width, with a back-up area of approximately 22 acres, according to the PPP documents.
The terminal capacity is expected to be around 70,000 TEUs per jetty per year for containers and 240,000 tonnes per jetty per year for general cargo or break-bulks, the project director at the MPA told the FE.
The consortium will procure equipment for the operation of the two jetties.
Besides, it will make a move to raise the draught from the existing 4.5 -5.0 metres to the 7.0 metres.
If the draught rises, 700-TEU vessels can enter the port.
They will operate the jetties and terminals for 28 years.
Mongla Port is located about 131 kms inland from the Bay of Bengal on the Pussur river at its confluence with Mongla river.
It is of national strategic importance to ensure vibrant operation of multiple ports to meet the nation's increasing import and export requirements.
To that end, the government has taken steps to revitalise Mongla port to handle increased volumes of cargo.
As part of this initiative, the government, through the Mongla Port Authority, has decided to develop and operate the two partially completed jetties under PPP.
However, the objectives of construction of the jetties are to ease sea-borne trade in the country that aspires to be port hub for the region by utilising its geophysical advantages.
It will introduce enhanced levels of terminal operation and management efficiency by use of new technical know-how and methodologies.
The port's container-handling growth was stagnant at 43,000 TEUs. But its break-bulk cargo growth was more than 29 per cent in the year to 2014, according to terminal department of the MPA.
    jasimharoon@yahoo.com