Last fiscal year, the country could not achieve its garment export target and longer lead-time at the port was one of the major reasons. Meanwhile, garment exports from Sri Lanka, Cambodia and India – all Bangladesh’s competitors in the global apparel trade – increased last fiscal year. Shorter lead-time for excellent performance by their ports was one of the reasons for better export performance. Due to delays in Chittagong port, garment exporters tend to use the expensive air shipments to maintain the strict lead-time of buyers.
The management inefficiency has to be borne by the businessmen ultimately. Delays in the port have been costing abnormally at a time when profitability declined a lot and production costs rose. Had the Chittagong port performed even at the same level as the Colombo Port in Sri Lanka, the maritime cost would have reduced a lot and Bangladeshi exporters could have sent goods to the US for 0.6 cents and 0.8 cents per kg. Many ships do not want to carry goods from the Chittagong port whereas they are interested in transporting goods at very cheap rates from the ports in Malaysia and China. Some 68 tonnes from a consignment of 700 tonnes of steel products, imported for making pre-fabricated buildings at the Rooppur Nuclear Power Plant, went missing from the Chittagong port. So, alternative mechanisms are needed for efficient management of the port. Whereas the premier port efficiency level is in troubling, the two other ports – Mongla and the newly opened Payra remain out of discussion.
The number of equipment in Chittagong port increased a lot over the years, but the operational efficiency did not. For enhancing port efficiency greater involvement of the private sector in port management, significant improvement of port governance and introduction of competition in service quality should be ensured.
