October 2022 Full PDF final

LOGISTICS
LOGISTICS
Date of
start
Shipment
cost down by
As a result, import-export activities here have to be carried out beyond capacity. This has increased the pressure
in one of the country's major sea ports. The Government has taken up a project called 'Matarbari Port
Development' with the aim of reducing excess pressure on the Chittagong port and handling a large number
of ships and containers. Under this project, a deep sea port is being constructed in Matarbari. Again, all the
seaports are being developed as modern and environment friendly to meet the growing import and export
demand of the country. These development activities are progressing rapidly with the aim of making the
ports modern and world-class by 2023 and the port city as an economic powerhouse by 2035. If this development
continues, growth is likely in the economic progress of the country.
PORT OF POSSIBILITES
DIRECT ROUTES FROM CHATTOGRAM PORT
Shipping time
earlier (days)
45
20
2
40
3
23
Italy-Istanbul UK-Netherlands
(Türkiye) (Rotterdam)
Direct route
time now (days)
25 12
6
China-
Hong Kong
45
Available
vessels moving
18
3
UAE
40
20
3
Netherlands-
Spain
40
8-10%
goods carried
directly to
Europe, China
20
3
France-
Netherlands
Feb-22 Jun-22 May-22 Nov-22 Jun-22 May-22
40% 20-30% 25-30% 20-30% 20-30% 30-40%
NECESSITY OF MODERN PORTS AND LOGISTICS
The Covid pandemic has brought
to the fore the key role a country's
port plays in timely delivery of
goods, both nationally and internationally
to hold country’s overall
economy. According to the World
Bank, more than 80% of global
merchandise trade by volume is
carried by sea, with about 35%
of total volume and 60% of commercial
value shipped in containers.
Meanwhile, inefficient ports
impede the realisation of national
and international trade potential
by imposing direct and indirect
additional costs and time, which
translate into financial crises. Efficient
management of ports and
containers is thus integral to trade
More routes
to Portugal,
Slovenia,
Middle East
by 2022
FASTER
THAN EVER
Waiting time
at outer
anchorage
drops
60-65%
of vessels
able to berth
on arrival
The rest can
berth within
a day
and connectivity. The role of ports
is not limited to cargo handling, as
ports have over time become logistics
integrators, which means they
include the provision of value-added
logistics services that enable
reduction of cost, time and complexity
in carrying out import and
export operations. In this regard,
through the use of advanced technology,
enabling efficient service
delivery, the competitiveness of
ports can be enhanced to facilitate
improved trade and logistics performance.
A study titled 'Time Release
Study 2022' conducted by the
National Board of Revenue (NBR)
has also suggested adding modern
machinery and increasing the use
Route to
Slovenia will
make shipping
easier to Germany,
Portugal
MoU on
route
signed with
Thailand
NEW ROUTES, NEW
OPPORTUNITIES
Saif Powertec
launching
new Ctg-Dubai
route
of latest technology to reduce the
time of release of imported goods
from the main ports of the country.
The supply of various logistics performance
is driven by the quality
of supporting infrastructure such
as roads, railways and ports. Improved
transport efficiency, regional
connectivity, inland conditions
and port accessibility enhance a
port's competitiveness and help
create a conducive environment
for the industry. A well-connected
and resourceful port system with
enhanced logistical capabilities is
a key determinant of foreign direct
investment (FDI) in a country, and
can also act as a catalyst for regional
economic development.
PORT AND SUPPLY CONDITION
The country's nascent trade logistics
infrastructure has room for
improvement as reflected in the
Logistics Performance Index (LPI).
Bangladesh ranks 100th with a
score of 2.58, while comparable
countries such as Indonesia and
India score higher on the scale.
On the other hand, increasing
port capacity and efficiency plays
an integral role in enhancing the
country's trade competitiveness
and facilitating expected growth
in trade by providing more efficient
logistics services through
BENEFITS OF PADMA BRIDGE
Road transport costs are relatively high in most developing
countries and represent a high share of direct
supply costs. In Bangladesh, a congested transport
system and new logistics ecosystem accrue
high economic costs. According to a recent study,
the average speed of trucks on highways is about 19
kilometres per hour, which is less than half of what
it would be in a congested state. If the congested
situation is addressed, there is an opportunity to
reduce logistics costs by at most 35% depending
on the sector. In that case, Padma Bridge and Bangabandhu
Tunnel can play important role by reducing
congestion on road. Besides, Padma Bridge, by increasing
foreign investments, created the opportunity
for Bangladesh to become an international hub
of trade. Now, if an agreement can be reached as
its seaports can be used by West Bengal and other
Eastern Indian provinces, Nepal, and Bhutan, then
the true potential of regional trade will be unlocked.
Furthermore, the Mongla Port near Khulna has always
played secondary role to her counterpart in
Chittagong port as it is the preferred route for traders.
A major setback for the Mongla Port have been
the time and cost increase in the Padma crossing to
reach Dhaka or Eastern part of the country. Padma
Bridge can save almost ten hours in time and have
cost benefit of up to $1.6 billion per year by 2044. It
is safe to say that traders can now prefer to use the
Mongla Port more efficiently in both domestic and
international trade.
container handling supported by
advanced technology. In the recent
Container Port Performance
Index by the World Bank and S&P
Global Market Intelligence, Chittagong
Port ranked 341 out of 370
ports analysed, indicating room
for significant modernisation and
capacity building. That said, it
is also clear that the authorities
are making efforts to deal with
increasing trade, cargo pressure.
In 2021, Chittagong Port handled
3.2 million TEUs (twenty-foot
equivalent units) which is an increase
of 13% compared to 2020.
Demand at the Chittagong port
remained sturdy even during the
pandemic, as container growth
and vessel growth kept the port
at full capacity at around 3.1% and
9.72% respectively. Port service
levels, however, continue to be
challenged and show that there is
room for better port performance
through the expansion of port
facilities and the use of modern
technology and value-added services
to further enhance port efficiency
and logistics performance.
Padma Bridge
56 PRESS XPRESS OCTOBER 2022 OCTOBER 2022 PRESS XPRESS 57