Pangaon terminal activities decreasing due to high freight rate

CHATTOGRAM, Nov 17: Customs-related problems, high freight rates, and a number of accidents are seen as primary reasons for the significant reduction in activities at the Pangaon Inland Container Terminal (ICT) by the Buriganga River in Keraniganj.
The Chittagong Port Authority (CPA) sources said that a total of 147 ships operated on the Chattogram-Pangaon route in 2023, while only 16 ships used the route from January to October 2024.
Despite several steps taken by the CPA and the concerned ministry, the ICT has seen a sharp decline in cargo movement. Importers have shown less interest in carrying cargo from Chittagong Port to Pangaon ICT through waterways.
Importers said that cargo carrying through waterways is more expensive than road transport and railways, so they prefer carrying their cargo by road and railway transport.
From the inception of the Pangaon Inland Container Depot (ICD) in 2013, importers have been reluctant to use the ICD.
Sources said Bangladesh Inland Water Transport Authority (BIWTA) and the CPA jointly built this inland terminal at a cost of Tk1.54 billion.
The terminal was expected to play a positive role in the country's economic development by opening up a new horizon in the transportation of exported and imported goods through waterways between Dhaka and Chittagong.
The project aimed at helping ease the pressure of cargo movements on the Dhaka-Chattogram railway and highway corridors.
The terminals have a storage capacity of 3,500 TEUS of containers and handle 116,000 TEUS containers annually.
The Chattogram-Pangaon route operated regularly; however, by late 2023, ship movements slowed significantly.
The freight rates for a 20-foot container range from US Dollar 200 to 250. The freight rate is uncompetitive compared to rail and road transport, alleged the importers.
Besides, the sinking of the Pangaon Express, owned by CPA and operated by Sea Glory, on July 6, 2023, further declined the cargo flow, with importers increasingly shifting to rail and road.
However, the CPA is now going to provide more facilities to the users of the ICT to boost the export and import through the terminal.
CPA Secretary Omar Faruk stated, "We are increasing facilities at the Pangaon terminal. Separate berths for ships will be allocated, and a fixed schedule will be implemented to prioritize ship movements. Additionally, we will provide an extra jetty, bringing the total to two."
To make waterway transportation more competitive, the CPA has initiated a plan to lower freight rates on the Chattogram-Pangaon route. Collaboration with the Customs Authority, banks, and other stakeholders is also underway to enhance terminal efficiency.
The National Board of Revenue (NBR) has joined the effort, aiming to simplify the customs clearance process at the terminal. These measures are expected to attract more users to the Pangaon ICT and boost its role in the nation's logistics infrastructure.
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