Turning Chittagong port into a regional hub
Abdur Rahim | Tuesday, 19 August 2008
THE seven North Eastern Indian states and neighbouring Nepal and Bhutan are landlocked societies. They are presently using the faraway Kolkata port for their external trade. But not only Kolkata port is a far-off destination from them, but it also suffers from inadequate handling capacities. This port is also found to be unserviceable on a large scale because of the falling level of the Hooghly channel and other natural disadvantages.
By comparison, the Chittagong is much better situated to handle the trade of the seven Indian states, Nepal and Bhutan together. It can be accessed relatively faster as well as at a cheaper cost by them. In fact, by allowing external users to draw on the facilities of the Chittagong port, the regional economy can experience uplift. Bangladesh can then gain by obtaining good amounts from the users as service fees on a regular basis for the use of its port facilities.
Again, the wider use of the Chittagong port will require expansion of its present capacities. And, this expansion can be achieved through investments. But these investments will have spin-offs in the form of creation of jobs and economic activities locally.
Not only the Chittagong port, Bangladesh can also set up more ports in the vicinity of Chittagong to service the entire region comprising the seven Indian states, Nepal and Bhutan.
It can set up even a deep seaport in the Bay of Bengal. All of these port facilities will make Bangladesh a sort of entrepot for the entire region including the Indian states as well as the countries like Nepal and Bhutan. In that case, the pressure will ease on Bangladesh's limited port facilities to service the region while it would earn a large amount of foreign currencies from the regional users by playing the role of the regional entrepot. Foreign investments will play a vital role in the establishment of these new port facilities and spare Bangladesh of the need to make its own investments. Investments to create the new ports will generate jobs and income locally.
Furthermore, the maintenance and operation of the infrastructures will create regular jobs for a large number of Bangladeshis. Besides, along with the establishment of new ports or increase in port capacities and the resultant expansion in regional trade and economic activities, services such as shipping, insurance, banking, etc., will need to expand. The expansions will have to occur within the territories of Bangladesh. Thus, the Bangladesh economy should benefit also from these multiplier effects.
By comparison, the Chittagong is much better situated to handle the trade of the seven Indian states, Nepal and Bhutan together. It can be accessed relatively faster as well as at a cheaper cost by them. In fact, by allowing external users to draw on the facilities of the Chittagong port, the regional economy can experience uplift. Bangladesh can then gain by obtaining good amounts from the users as service fees on a regular basis for the use of its port facilities.
Again, the wider use of the Chittagong port will require expansion of its present capacities. And, this expansion can be achieved through investments. But these investments will have spin-offs in the form of creation of jobs and economic activities locally.
Not only the Chittagong port, Bangladesh can also set up more ports in the vicinity of Chittagong to service the entire region comprising the seven Indian states, Nepal and Bhutan.
It can set up even a deep seaport in the Bay of Bengal. All of these port facilities will make Bangladesh a sort of entrepot for the entire region including the Indian states as well as the countries like Nepal and Bhutan. In that case, the pressure will ease on Bangladesh's limited port facilities to service the region while it would earn a large amount of foreign currencies from the regional users by playing the role of the regional entrepot. Foreign investments will play a vital role in the establishment of these new port facilities and spare Bangladesh of the need to make its own investments. Investments to create the new ports will generate jobs and income locally.
Furthermore, the maintenance and operation of the infrastructures will create regular jobs for a large number of Bangladeshis. Besides, along with the establishment of new ports or increase in port capacities and the resultant expansion in regional trade and economic activities, services such as shipping, insurance, banking, etc., will need to expand. The expansions will have to occur within the territories of Bangladesh. Thus, the Bangladesh economy should benefit also from these multiplier effects.