Shipping costs of export-import consignments reduced by 20pc
Friday, 8 June 2007
FE Report
Finance Adviser AB Mirza Azizul Islam said Thursday the shipping costs of export-import consignments have reduced by 20 per cent following a range of reform measures taken by the present interim government to transform the country's premier seaport of Chittagong into an efficient and modern port.
"It is essential to reduce transaction costs to stay competitive in the international trade," he said while presenting the national budget for fiscal 2007-08.
He said the reform measures have led to reduction of average turnaround time of ships from nine days to four days.
Ships turnaround time means the duration of vessels' stay at the outer anchorage until sailing out by loading export cargoes.
It was 4.84 days in April, 8.74 days in March, 8.69 days in February, and 11.65 days in January this year.
The finance adviser also said overall efficiency level of the Chittagong port has increased by 40 per cent and the costs have reduced by 30 per cent.
He also said the construction of New Mooring Container Terminal (NCT) is on the way to completion.
The NCT is likely to be completed in December this year.
"And a decision has been taken to operate this terminal entirely through private management," he said.
The economic affairs committee Tuesday approved the major terms and conditions to float international tender for the country's largest container terminal, sources at the Ministry of Shipping (MoS) said.
The finance adviser in his budget speech said the technical and financial feasibility studies of the proposals for building a deep sea port have been completed.
The MoS earlier said the high powered committee selected Sonadia under Cox's Bazar for construction of the deep seaport.
Citing the importance of the Mongla port, the finance minister said the port is critical to economic dynamism in the southwestern part of the country.
"Unfortunately, due to prolonged mismanagement and lack of initiative, its effectiveness has declined," he added.
He said fertiliser import through the Mongla port has resumed after eight years.
The handling cost has fallen by 15 per cent at the port due to reform measures taken by the government, he said.
He said over 10 acres of landed property of the port have been freed from illegal occupants.
He also said: "The dredging operation to increase navigability has begun. Required reforms and development programmes will be undertaken to enhance the capacity of the port".
Turning towards the country's land ports, he said the government has taken steps to make land ports more effective.
The government has already concluded agreements to transfer six land ports to the private sector, he added.
Besides, two of these land ports have been made fully operational on a Build-Own-and-Transfer (BOT) basis, the finance adviser added.
Finance Adviser AB Mirza Azizul Islam said Thursday the shipping costs of export-import consignments have reduced by 20 per cent following a range of reform measures taken by the present interim government to transform the country's premier seaport of Chittagong into an efficient and modern port.
"It is essential to reduce transaction costs to stay competitive in the international trade," he said while presenting the national budget for fiscal 2007-08.
He said the reform measures have led to reduction of average turnaround time of ships from nine days to four days.
Ships turnaround time means the duration of vessels' stay at the outer anchorage until sailing out by loading export cargoes.
It was 4.84 days in April, 8.74 days in March, 8.69 days in February, and 11.65 days in January this year.
The finance adviser also said overall efficiency level of the Chittagong port has increased by 40 per cent and the costs have reduced by 30 per cent.
He also said the construction of New Mooring Container Terminal (NCT) is on the way to completion.
The NCT is likely to be completed in December this year.
"And a decision has been taken to operate this terminal entirely through private management," he said.
The economic affairs committee Tuesday approved the major terms and conditions to float international tender for the country's largest container terminal, sources at the Ministry of Shipping (MoS) said.
The finance adviser in his budget speech said the technical and financial feasibility studies of the proposals for building a deep sea port have been completed.
The MoS earlier said the high powered committee selected Sonadia under Cox's Bazar for construction of the deep seaport.
Citing the importance of the Mongla port, the finance minister said the port is critical to economic dynamism in the southwestern part of the country.
"Unfortunately, due to prolonged mismanagement and lack of initiative, its effectiveness has declined," he added.
He said fertiliser import through the Mongla port has resumed after eight years.
The handling cost has fallen by 15 per cent at the port due to reform measures taken by the government, he said.
He said over 10 acres of landed property of the port have been freed from illegal occupants.
He also said: "The dredging operation to increase navigability has begun. Required reforms and development programmes will be undertaken to enhance the capacity of the port".
Turning towards the country's land ports, he said the government has taken steps to make land ports more effective.
The government has already concluded agreements to transfer six land ports to the private sector, he added.
Besides, two of these land ports have been made fully operational on a Build-Own-and-Transfer (BOT) basis, the finance adviser added.