Low port capacity makes businesses incur loss

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Al Amin :
The country’s export-import businesses are facing financial losses as the Chattogram port authorities fail to improve container handling capacity comparing to the growing international trades.
Following the backdrop of low container handling capacity of the port, the owners of the private Inland Container Depots (ICDs), mostly located in Chattogram, are taking opportunities, traders said.
They said the cost of doing business is increasing gradually as they have to pay additional charges for using the private ICDs.
Such as, the ICDs charge Tk 13,755 for handling and delivery of a 20-foot import-laden container whereas the port charges only Tk 4,277, they added.
The charges include package delivery cost Tk7,930, lift cost Tk 7,000, river dues Tk 408 and an extra movement cost around Tk 4,400.
For a 40-foot import-laden container, the ICDs charge Tk 18,092 whereas the port costs only Tk 5,988, they said.
Mohammad Hatem, Senior Vice-President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The New Nation, “The capacity of the Chattogram port has not improved comparing to the current increase of the export-import volume of the country.”
“As a result, the businesses are counting huge losses for using private ICDs,” he added.
He further said along with capacity improvement of the port, the construction of Bay Terminal and Bulk Terminal needs to be completed sooner to resolve the ongoing container congestion crisis.  
This matter has also been discussed in a review meeting of the National Board of Revenue (NBR) held recently.
In the meeting, participants said that the existing container handling capacity of Chattogram port is not sufficient to face the growing volume of international trades in the country.
The average container handling growth of the Chattogram Port was 8 to 10 percent in the last five years, whereas the handling growth in private ICDs around was 5.5 percent during 2016-19, the participants observed.
The meeting also said Chattogram Port Authority (CPA) handled 30.88 lakh TEUs (twenty-foot equivalent units) in 2019 and 28.40 lakh TEUs in 2020, whereas the private ICDs have the capacity to handle 18,09,600 containers yearly.
The CPA has taken initiative to expand the port several times in a bid to facilitating the international trades but failed to implement, the meeting informed.
The CPA however said the expansion plans have not been implemented as the development activities of infrastructure and super-structure are expensive and time consuming.
The country’s apparel manufacturers no longer want to take delivery of import consignments from private ICDs alleging that it takes much time and exorbitant charges.
Preferring to take deliveries directly from the Chattogram port, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in a recent letter to the Chattogram Customs Commissioner urged for full restoration of direct port deliveries.

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