State of passenger launch business
No silver lining on the horizon
JUBAIR HASAN | Sunday, 18 September 2022
Following the inauguration of dream project Padma Bridge on June 26, 2022, passenger launch service connecting the southern districts suffered a big jolt.
Yet the owners of launches were hopeful that initial euphoria over their business would gradually return to at least near-normal. But their hope has been dashed.
The last nail in the coffin came when government hiked the diesel prices.
The business centring passenger transport on river routes is now on the verge of collapse.
Vessel operators are witnessing a drastic fall in the number of passengers in recent times, thereby biting the dust.
It is a big bite on their balance sheet with a significant rise in the operational expenses.
The poor passenger turnout at launch terminals has made the operators apprehensive about the future of their businesses, as their financial losses keep ballooning.
To avoid negative business growth, they in most cases reduced fares by 15-63 per cent, but things are yet to look up. Rather, the loss of income is hurting the investors in the sector.
"We're not getting enough passengers, so we can't cover up the expenses. Forget about profit," said Patuakhali-bound Sundarban-14 vessel supervisor Md Abdur Razzak.
Sundarban-14 used to carry 600 deck passengers on average while sailing from Sadarghat before the opening of Padma Bridge.
Now, it becomes tough to get 250 passengers even on Thursday when a large number of people leave the capital to enjoy two weekly holidays.
The operators are now counting losses as the number of passengers has reduced by more than 50 per cent while 70 per cent of their cabins remain empty.
"We normally get salaries in the first week of every month. Today is September 15, but we're yet to get it. Even we don't know when to get it. The situation is too bad," Mr Razzak said on a frustrating note.
Madaripur-bound Parabat-15 master Nurul Amin said they cannot get passengers even after reducing fares.
The fare for deck passengers has been curtailed to Tk 400 instead of the actual rate of Tk 492 while single cabin charges Tk 700 in place of Tk 1,968.
Double cabin now charges Tk 1,200 instead of Tk 3,106.
"Look at the situation of the deck. A few have bought tickets with only 80 minutes left to sail for Madaripur," he said before disembarking the vessel to allure incoming passengers at the terminal on Thursday.
Meanwhile, launch owners said their service first faced a major blow when the 6.15-kilometre Padma Bridge opened to traffic as it significantly reduced travel time of the southerners.
Sundarban Navigation Group chairman Saidur Rahman Rintu
said they somehow managed to maintain the business even after the opening of the bridge. But the latest fuel price hike comes as a final nail in their coffin with massive transport fares.
"Now, launch fare is almost the same like bus fare. It takes only three hours to reach Patuakhali from Dhaka by road while travel time through rivers is more than 10 hours. Then why will people choose vessels as a mode of transportation?"
People on lower incomes in southern districts mostly use river routes where the cost is comparatively low, but growing inflationary pressure and higher transport costs following a tariff hike in petroleum products forced them not to travel much.
"This is badly impacting our business," said Mr Rintu, also chairman of Barisal Sadar upazila.
When contacted, MV Parabat owner Shahidul Islam Bhuiyan said he joined the business in 1973 but never witnessed such a crisis in the past.
"Every Thursday is like a Chandraat (night before holy Eid) to us when passenger pressure normally goes up manifold. But last Thursday (September 15), I managed to get only Tk 1,100, excluding fuel costs. Just imagine how horrible the situation is."
Under the circumstances, Mr Bhuiyan said they decided to operate only three out of six vessels a week.
"We're now counting losses in running the service. The situation is too worse for people who run the business on bank finance. I think they're on the run," he added.
Bangladesh Inland Water-wise Passenger Carriers Association senior vice-president Md Badiuzzaman Badal said some owners started the process of selling their vessels to wind up the business.
"I've already sold two out of my four launches. I'm also looking for potential buyers for the remaining two. I don't want to take any further pain in running this business," he added.
Many others are also following in Mr Badal's footsteps for the same good cause of poor business. They are out to sell the ships as scrap items.
Seeking anonymity, an employee of Kirtankhola Launch said they incurred at least Tk 350,000 last week.
Now, the management is planning to shut their service for a certain period, he added.
Repeated attempts over mobile phone failed to take the comment of the Kirtankhola management.
BIWTA sources said 90 launches on average were running from Sadarghat to the south every day before the bridge opened. But the number has now dropped to only 60.
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