Pangaon ICT lies as lame duck for four factors

Four factors have left the Pangaon ICT (Inland Container Terminal) virtually 'non-operational' even after ten months of inauguration to facilitate freight transport to and from seaports, sources said.
The Ministry of Shipping (MoS) has identified the Achilles' heels trying to heal the ills.  
Last week, the ministry asked the Chittagong Port Authority (CPA) administrator to make the facility fully operational by addressing the problems, they added.
Prime Minister Sheikh Hasina formally inaugurated the ICT on November 07, 2013. The first container-carrying vessel reached the terminal near the capital this past May, after nearly seven months of its inauguration.
The ministry found out that the CPA has only three vessels to carry containers to and from Chittagong Port to Pangaon. The number is too inadequate to provide timely service in carrying inbound and outbound containers.
It also found the service not attractive, considering time and cost of carrying containers, compared to road haulage. A container vessel takes 1.5 to two days to reach Chittagong Port from Pangaon while a covered van needs only eight to ten hours to reach the port from Dhaka by road.
The cost of carrying goods from Pangaon to Chittagong Port by waterway is also much higher than by road.
Also, the ministry found the security arrangement of the port still poor and security of on-board cargo not enough.
The main-line operators (MLOs) of container ships are not satisfied with overall arrangement of the ICT too. Thus no exporters show interest in carrying cargo from Pangaon to Chittagong Port, sources said.
They said in the letter MoS asked CPA for carrying out time-and-cost analysis, and sit with the MLOs to resolve the problems for making the terminal fully functional.
CPA has brought three container vessels to carry cargoes to and from Chittagong Port and Pangaon. However, the vessels are yet to get necessary registration from the department of shipping, as those do not have registration from any classification society.
Sources said the MLOs are not interested to use cargoes without registration from any classification society and local shipping authority.
Contacted, commissioner of Pangaon Customs House Masudul Kabir told the FE that in the last fiscal some Tk 90 million could be realised as revenue from the terminal, while only Tk 1.3 million could be realised in the first two months (July-Aug) of this fiscal.
"Since the inauguration, no export consignment has been handled through the ICT, but it is ready to provide service for outbound cargos as well," he said.
Mr Kabir thinks that CPA needs to go for massive publicity and marketing of the terminal to make it fully operational.
He said an increased awareness of exporters, importers, freight forwarders and MLOs is needed to give a shot in the arm of the idle container terminal.
The government has built the terminal to reduce congestion at Chittagong seaport and pressure of vehicles on the busy Dhaka-Chittagong Highway.      
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice-president Shahidullah Azim told the FE that extra time consumption and high cost are the major factors behind the terminal remaining non-operational.
He said there are only three vessels to carry goods to and from the terminal. "Adequate number of vessels needs to be made available, so that we can send goods timely and do not miss our shipments," he said.
Mr Azim said bond facility in the ICT also needs to be attractive to encourage the users.