No major headway in carrying goods by waterways in and around city
Jubair Hasan | Sunday, 9 March 2014
The government's move to carry containers of export-import goods through waterways in and around the capital has not made any major headway over the last three years.
Industry insiders and shipping experts have blamed issuance of operating licenses for container-carrying vessels largely on political consideration for the failure of such initiative.
They said the authorities should have considered two key factors -- experience level and companies' capability --- before awarding those.
The government, as part of its promises to lessen pressure on Dhaka-Chittagong trading route, awarded licences for importing or making container carrying vessels to 32 local companies in September 2011.
But the licence holders have failed to comply with the necessary formalities, including invoice and ship specification copies, in respect of bringing vessels for Inland Container Terminal (ICT) within the deadlines, which were changed by the Department of Shipping (DoS) on several occasions because of the failure of the companies.
When contacted, Chief Engineer of the DoS Fakrul Islam said they have sent letters to the private firms that were issued licences asking them to submit letter of intent, import order for class ship, papers on agreement with the shipyard and approved design of the vessels within April 30.
"If anyone failed to turn up with the requirements within the timeframe, their licences will be cancelled as decided by the department before sending the letter," he said.
The chief engineer said some of the firms awarded licences approached local shipbuilders to make such vessels. "We need some 12 class ships to make the ICT operational," he said.
Seeking anonymity, a senior Ministry of Shipping (MoS) official said most of the licences were given on political consideration without analysing their capacity in their respected fields, causing the delays.
Of the licence holders, some 14 companies approached local shipbuilders and seven were given orders to make such vessels.
Talking to the FE, Public Relations Officer (PRO) of Western Marine Shipyard Shahidul Bashar said they received orders from six companies - MR Global, Meer & Islam Enterprise, Bancan Shipping, Blue Water Shipping, Ariyan Traders and Nipa Paribahan Ltd.
Executive Director of FMC Group Pankaj Datta said they started making ship for Bismillah Marine Services and manufacturing agreement with two more firms will be signed soon.
"I think immaturity in the process of awarding licences and lack of guidance for the licence holders are the two key reasons behind the slow progress," he said.
But most of the licence holders did nothing significant on the issue but adopted a go slow policy over making such 'big investment' citing issues, including fare rates, availability of trained crews, full class and financial supports from banks, which remained unsettled.
"We're yet to achieve any significant progress on the investment as we're still in dark on issues like fare charges and availability of skilled crews to operate the ship," Navstar Shipping Ltd owner Shah Md Adnan Haroon told the FE.
The shipping firm was among the 32 companies which received licences for making vessels to transport containers from the country's two seaports - Chittagong and Mongla to ICTs through river ways.
"It's a new industry for Bangladesh. So, we need to think further and everything has to be cleared up, which will help the investors in their business calculations," said Mr Haroon, who currently runs two cargo vessels.
Shipwrights Resources Limited (SRL) consultant and Managing Director Mahboob Ahmed said most of the firms do not have the capacity to make or bring ships in line with the requirements of maritime classification societies.
"Key factors like experience and profile of the companies should have been taken into the consideration before giving licences as it is a business which will be linked with international trade," he said.
The need for alternate mode of transport was urgently felt in 2010 when the country's foreign trade soared 43 per cent to US$52 billion, with the Chittagong Port handling 90 per cent of the cargoes.
According to an ADB study, Bangladesh's GDP can grow by more than one per cent and foreign trade by 20 per cent if the inland water transport logistics are made efficient and competitive.
After Pangaon, four more ICTs are being built on the banks of major rivers around the capital city. But constructors said the importers and exporters will have to wait for nearly 24 months to get the benefit of the construction.