Finance Minister A M A Muhith has recently emphasised the need for taking 'fast action' by all concerned to ease congestion at the Chittagong Port. This will help lower the cost of doing business, he said.
The country's position, in terms of the cost of doing business, is not at all satisfactory. It is very shameful that vessels need to stay in the port for a long time for loading and unloading of goods. Due to the delay, importers are charged additionally. It's a national loss, the minister said.
In order to help ease acute congestion in the port, the government is likely to approve more Inland Container Depots (ICDs) and Inland Container Terminals (ICTs) in the private sector. Mention may be made that the ICDs facilitate quick clearance of FCL (full container load) cargo by allowing un-stuffing and delivery from outside the port area. The private sector ICTs, mainly located close to Dhaka, help carry goods to seaports through waterways, reducing pressure on highways.
Currently, some 17 private ICDs are situated near Chittagong port. These facilities store selected low-risk imported items and empty containers, conduct customs clearance formalities. They are also allowed to un-stuff and deliver some 37 items. At least seven or eight more private ICDs are needed to help deal with the present congestion at Chittagong port.
Bank in 2016, the government prepared Inland Container Depot/ Container Freight Station Policy to facilitate capacity and productivity rise in ports, door-to-door delivery of container service, and ease congestion inside the Chittagong port.
However, it seems carrying containers by road is less time-consuming apparently as it takes 10 to 16 hours for reaching an off-dock of Chittagong port. But sending the containers to the port yard from off-docks takes several hours.
On the other hand, sending containers from Pangaon ICT in Dhaka directly to Chittagong port yards takes only 16 to 24 hours to be loaded into feeder vessel directly without taking any more time. This is comparatively hassle-free, they say.
Overcrowding of vessels at Chittagong Port has, indeed, reached an alarming level during the recent times. Besides, dense fog and rough weather are affecting cargo loading and unloading, aggravating the situation further.
Recently, the country's prime seaport has experienced operators' strike, agitation of workers of lightering vessels, and natural calamities, which led to the logjam of bulk and containerised vessels. Besides, inadequate supply of lightering vessels from the Water Transport Cell (WTC) also added woes to the situation. There were instances of not supplying a single lightering vessel in a day by WTC.
Importers and shipping agents have been alleging that WTC has failed to issue required number of vessels for lightering cargo from big vessels at the outer anchorage. The WTC authority, on the other hand, blamed the importers for using the lightering vessels as godowns, not taking import cargo to respective destinations for weeks, and not releasing the vessels as per schedule.
On the other hand, the shipping companies are charging more for overstay at the outer anchorage of the Chittagong port and delayed port operations. The situation is resulting in incurring losses by the exporters and importers.
In fact, the infrastructural capacity of Chittagong port has not increased over the years to cope with the ever-increasing growth of cargo movement. As a consequence, it is the economy of the country that is being hit hard. The country's readymade garment (RMG) sector is facing the worst time as they are now resorting to air-shipment of export consignments due to delay in arrival of ships at the port.
Such unwarranted situation is leading to the failure in meeting the lead time, resulting in shifting of orders to competitor countries like Ethiopia, India, Myanmar and Vietnam. Such a situation can be reversed if fast action is taken. The port charges won't increase and time won't be wasted.
Prime Minister Sheikh Hasina, quite a number of times, directed the sea-port and the land-port authorities to keep the Chittagong and Benapole ports open for 24 hours to facilitate export-import activities. The port insiders blamed lack of necessary equipment and capacity constraints for the acute congestion at Chittagong Port. They also held bureaucratic red-tape responsible for delay in taking steps for capacity development of the port.
CPA chairman had earlier said 'landlord' port system would be introduced to reduce the port authority's involvement in Chittagong Port operation. He demanded declaring the port as a thrust sector, exempting it from paying non-tax revenue, reforming customs scanning system for quick delivery, reducing physical inspection of goods, more off-docks in private sector and review of tariff.
Port users, exporters and importers have been demanding installation of cargo handling equipment for years, but the port authority failed to procure any equipment for a decade. On the other hand, average growth of the port's cargo handling is above 16 per cent. The port has 21 rubber-tyred gantry cranes against the demand for 56. The cranes are as old as 30 years and some of them often become inoperative. On the other hand, there are only 7 straddle carriers whereas the port needs at least 15.
Many feeder vessels miss the mother vessels due to slow pace of loading and unloading. The move of the port authorities in reducing the congestion has become a new challenge for the exporters in loading their products on the ships. They blame inadequate handling equipment and shortage of jetties and yards for the congestion at the port.
The trade bodies has long been pressing for enhancing the capacity of the port through installing more jetties and yards, and increasing handling equipment. Since 2004, the capacity of the port has not increased, although its activities went up significantly with increased exports and imports.
At a recent meeting of the Chittagong Port Authority (CPA), off-dock owners and cargo handling operators, it was decided to expedite handling and delivery of containerised cargo through procurement of sufficient equipment by off-docks owners as well as the port authority.
All said and done, there should be coordinated efforts of all stakeholders, including berth operators, with Chittagong Port Authority and Chittagong Customs House to resolve the ongoing problems. The authorities should give topmost priority to resolving the ongoing crisis for averting possible damage to the export-oriented industries.
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