Pangaon terminal remains almost non-functional

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Staff Reporter :
Country’s businesses are shunning the river route to transport goods to and from Chittagong port via Pangaon Inland Container Terminal in Keraniganj because of higher feeder cost, different tariffs, lack of logistic support and unavailability of vessels.
Business insiders said, it costs US$204.14 to transport a 20-foot equivalent unit (TEU) of container from the Pangaon terminal to Chittagong port from industrial units in Dhaka, Narayanganj, Gazipur and Ashulia.
The same container could be transported to Chittagong port by rail for just $78.88 and by road for $150, they said.
Since functional in December, 2013, the Chittagong Port Authority (CPA) through its three container vessels has so far transported only 1,150 TEUs from the country’s first terminal at Pangaon on the bank of the river Buriganga.
 “The route could be the best alternative for exporters, especially during adverse situations, if its drawbacks could be properly addressed, Faruk Hassan, Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told The New Nation on Sunday.
Another reason for disregarding the route, he said, is that businesses have to bear additional costs, on top of the high freight charges, to get the containers to the Pangaon terminal in the first place.
Hassan, however, recommended revising down the costs to make the route and the terminal useable.
Not only that, exporters and importers can get private off-dock facilities for stuffing and un-stuffing goods before shipment and after delivery in Chittagong Port but there is no such facility in Pangaon.
Ahsanul Huq Chowdhury, Senior Vice-Chairman of Bangladesh Shipping Agents Association (BSAA), said the customs facility at Pangaon terminal is not as well-oiled as in Chittagong, while the store rent for containers in the
terminal is much higher than in Kamalapur Inland Container Depot.
Sources said a large number of exporters are unlikely to use the Pangaon Inland Container Terminal (ICT) unless shipments are made cheaper and hassle-free compared to the usage of Dhaka-Chittagong highway directly connecting the seaport.
According to exporters, the Pangaon terminal remains unutilised mainly due to the high cost of container vessels, irregular schedule and lack of container vessels, absence of freight forwarders, lack of stevedoring and other logistic supports in and around the terminal.
Most of the exporters and foreign buyers import and export garment products and related raw materials to and from Bangladesh through their appointed freight forwarders who make sure cargos are shipped safely and speedily to designated destinations, they said.
“For lack of scheduled timing of sailing from Pangaon, there always remains an uncertainly about reaching Chittagong port in time to reach the connecting feeder vessel,” said Shahidullah Azim, Managing Director of Classic Fashion Concept Ltd.
“Instead of undergoing so many hassles, if we send the consignments through Dhaka-Chittagong highway, we can get it 3-4 days earlier with lesser cost,” he added.
The terminal was formally inaugurated in November, 2013 with a view to easing the pressure of freight traffic on the busy Dhaka-Chittagong highway and rail routes. Built at a cost of Tk 1.54 billion in Keraniganj, adjacent to the capital, the terminal remained almost non-functional since then.
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