Regulatory needs keep Pangaon non-functional

CHITTAGONG, Mar 1: Pangaon Inland Container Terminal has remained non-functional for about four months even after inauguration of the ICT in spite of its commissioning with two container vessels procured by the Chittagong Port Authority.
Two major handicaps of the CPA's container vessels are absence of the vessels' P&I (protection and indemnity) insurance and the regulatory requirements, both being the main criteria for operating vessels, shipping circles said.
Sources said that the concerned vessel must have the criteria for carrying containers for feeder operation between Chittagong Port and Pangaon ICT which include the P&I club insurance, i.e., cargo insurance.
The concerned vessel shall be a class vessel duly certified by the International Association of Classification Societies (IACS) with hull class and machinery class, and a statement to that regard by the classification authority.
The vessel shall have hull insurance covering hull class certification from a class society. But both the container vessels procured by the CPA lack such facilities.
As regards the regulatory requirement, the vessel plying between Chittagong Port and Pangaon ICT must have the coverage of bank L/C (letter of credit) from the issuing bank. Sources said that the central bank (Bangladesh Bank) issued instructions for opening L/C for Pangaon Port for import and export of cargo on December 5 last year.
The other regulatory requirements include Customs, terminal operation and the equipment such as 80-ton capacity mobile crane. The Customs licence and terminal operation licence have already been issued while the CPA has called tender for two gantry cranes for Pangaon.
The Pangaon ICT will allow shifting of containerised cargo, loading and unloading of containers between Pangaon and Kamalapur ICD (inland container depot). Pangaon does not have adequate warehousing facilities.
A meeting of the stakeholders in Dhaka recently criticised the CPA for failing to make the Pangaon ICT functional, which has been built to facilitate businesses especially Dhaka-bound imports and export.
The freight forwarders, shipping agents, mainline operators, customs clearing and forwarding agents, consignees, BGMEA, BKMEA and other industries are the major stakeholders.
They said that the two vessels procured by the CPA to provide services on the Chittagong-Pangaon route lack the P&I coverage. It is very vital for attracting businesses from the stakeholders. Until the international standard is met by the CPA, the main line operators (MLOs) will not use the route, shipping sources said.
Sources said the Pangaon ICT was scheduled to enter commissioning by the beginning of 2013 which was constructed at Tk 1.54 billion at Keraniganj on the demand of the businesses of the country. Prime Minister Sheikh Hasina inaugurated the Pangaon ICT on November 9, 2013.
A senior Chittagong Port Authority official said the CPA is trying to get the vessels certified by a global classification society. Shipping executives, however, said that it will be a tough task for the port authority to get the vessels classed from the IACS club and insured from a reputed IG (P&I) club.
Sources said that the CPA has failed to purchase containerised vessels from the local shipbuilders. However, sources said that there is a vessel namely MV Rodella which is a double-hull containerised vessel built/rebuilt under permission from the DG Shipping of Bangladesh. The vessel has recently been built by DESH Shipbuilding and Engineering Ltd of Prantik Group and is classed under RINA (Registro Italiano Navale) from Italy.
The containerised vessel - MV Rodella - has the capacity to carry 128 TEUs (twenty-foot equivalent unit) of containers and the vessel's draft is 3.2 metres with the length and breadth of 80 meters and 15 meters respectively.
The vessel is currently carrying steel billet and MS rod for the re-rolling mills for not getting containers as the feeder container trade for the inland route is not in operation. The vessel is currently in operation in Bangladesh waters and can reach Dhaka from Chittagong Port in 16 hours.