Slow progress in carrying containers by river

Issuance of licence on pol consideration invites dislocation

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Badrul Ahsan :
The government’s move to carry cargo laden containers by rivers has failed to make any headway over the last four years due to inefficiency of the private operators.
In 2011, the government issued licences to 32 local companies for importing and making container-carrying vessels, as part of its plan to lessen pressure on the Dhaka-Chittagong highway.
Insiders and shipping experts have blamed issuance of operating licenses to private operators largely on political consideration for the slow pace.
They said the authorities did not consider experience and capability of the companies.
According to official data, the licence holders have failed to comply with the necessary formalities, including submission of invoice and ship specification copies, in respect of bringing vessels for Inland Container Terminal (ICT) within the deadlines, which were changed by the Department of Shipping (DoS) on several occasions because of the failure of the companies.
When contacted, an executive engineer of the DoS preferring anonymity said, they have sent letters to the private firms asking them to submit letter of intent, import order for ship, papers on agreement with the shipyard and approved design of the vessels within November 30.
 
“As decided by the department before sending the letter, if anyone fails to turn up with the requirements within the timeframe, their licences will be cancelled,” he said.
 “So far as we know that some of the firms that awarded licences have signed agreement with local shipbuilders to manufacture the vessels and the others are in negotiation with some local and international builders to do the same,” the Executive Engineer informed.
Seeking anonymity, a senior Ministry of Shipping (MoS) official said most of the licences were given on political consideration without analysing their capacity in their respected fields, causing the delays.
Of the licence holders, some 16 companies approached local shipbuilders and nine were given orders to make such vessels, he said..
“I think immaturity in the process of awarding licences and lack of guidance for the licence holders are the two key reasons behind the slow progress,” he said.
Talking to the New Nation, Public Relations Officer (PRO) of Western Marine Shipyard Shahidul Bashar said, they received orders from several companies including MR Global, Meer & Islam Enterprise, Bancan Shipping, Blue Water Shipping, Ariyan Traders and Nipa Paribahan Ltd to make the vessels.
However, preferring anonymity, a licence holder said, he did nothing significant on the issue, but adopted a go slow policy over making such ‘big investment’ citing issues, like fare rates, availability of trained crews, full class and financial supports from banks, which still remained unsettled.
“We’re yet to achieve any significant progress on the investment as we’re still in dark on many vital issues,” he added.
The shipping firm was among the 32 companies that received licences for making vessels to transport containers from the country’s two seaports – Chittagong and Mongla to ICTs through river ways.
The need for alternate mode of transport was urgently felt in 2010 when the country’s foreign trade soared 43 per cent to US$52 billion, with the Chittagong Port handling 90 per cent of the cargoes.
According to an ADB study, Bangladesh’s GDP can grow by more than one per cent and foreign trade by 20 per cent if the inland water transport logistics are made efficient and competitive.
After Pangaon, four more ICTs are being built on the banks of major rivers around the capital city. But constructors said the importers and exporters would have to wait for couple of years more to get the benefit of the construction.
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