Port logistics play a crucial role in trade facilitation. Without improved logistics, development of a country is unthinkable. Bangladesh, which is poised to be a middle income country in near future, have advanced much in port logistics in the last decade but still the country needs to go a long way.
In recent times, experts and businesses time and again called upon the government to formulate a national logistic policy, which will also detail the nature of the future port logistics sector also.
Modern port management is vital in expanding communication, improving efficiency and overall capacity building in international trade.
To increase the capacity of the country's ports, the formulation of integrated strategies for the development of management, infrastructure, and expansion of connectivity is a crying need.
The use of modern equipment and information technology, improvement of the quality of logistics services, formulation of national logistics policies, enhancement of coordination among the relevant stakeholders and revision of customs policies are also important.
Now let us dig into the history of the development of the post logistics by giving focus on Chittagong Port as it is serving as the gateway for 90 per cent of Bangladesh's import and export cargo.
This port handled a record 3.2 million TEUs in FY 2021, with 4,209 vessel calls, and is the busiest port in the Bay of Bengal.
The majority of import shipments are destined for Dhaka, Bangladesh's capital, and largest city, 265 km from Chittagong.
The port also serves as the main gateway for Bangladesh's fast-growing exports including its garments trade, one of the largest globally.
Though recently the post has shown record growth in handling containers and cargo, in the past the scenario was bleak.
A showcase of miss-management, corruption, and inefficiency, the port was in total chaos unless the involvement of the private sector.
According to a TIB report, despite immense potential, the port's reputation has been tarnished due to a number of irregularities, corruption, bureaucratic complexities and lack of safety for ships. As a result, Chittagong port has been known as one of the costliest and riskiest ports in the world.
Interestingly, the same TIB report narrates how the scenario has changed with the involvement of private sector saying that a private company started container handling at jetty numbers 11-13 of CCT, Chittagong Port, with the aid of four expensive and modern key gantry cranes.
However, their work was previously confined to only loading-unloading of cargo. Serious problems emerged with regard to operational coordination between the private company and other multi-purpose authorities. As a consequence, objective for which the operation of key gantry cranes was handed over to private operators could not be achieved. To overcome the problem, the then caretaker government awarded operational responsibility to that company from the vessel point to the cargo-delivery point for the next two years under an agreement and the company started its operation on 7 March 2007.
This initiative was taken to reduce turn-around time and infuse dynamism in the workings of the port. As a result, the system of stevedoring and dock-workers is abolished. The whole work is being done by operators and labourers employed by this company. Still some workers have been employed from among unregistered dock workers on the basis of their experience and skill. Before the commencement of single-point operation, this company used to handle 564 containers with 4 gantry cranes on an average. This figure rose to 632 containers once the single-point operation was introduced.
So it is crystal clear that the scenario in the port drastically improved after the involvement of the private sector. Presently, several other companies are engaged in cargo and container handling operation in different terminals.
So the port logistics is improving and the local private players have contributed to this growth. Hence, it is important to keep the momentum of the work of local entrepreneurs as they have achieved expertise in handling operations in local environment. While formulating national logistics policy, the policymakers should keep in mind their contribution and expertise and give them priority they deserve.
Sensing the scope of making huge profit, a number of foreign companies are now scrambling to engage in the port logistics sector.
Foreign companies' arrival is important but they should not be given more priority in areas where the local entrepreneurs have already showed their capabilities.
If local entrepreneurs can come up with sufficient investment and expertise, then why should the country woo foreign companies at the expense of huge foreign currency?
In our neighbouring as well as in developed nations local entrepreneurs are given first priority and in the same tune we should also prioritise our local companies in future expansion projects of our port sector.
Ports and port logistics are also sensitive in terms of geopolitics. So, operational control of any section of the ports should not be handed over to outsiders when local entrepreneurs are efficient enough.
The writer is a journalist.
