October 2022 Full PDF final

LOGISTICS
LOGISTICS
PORT OF POSSIBILITIES
CONNECTIVITY
DEVELOPMENT
Creating direct road links
Maintaining road safety
Preventing traffic
congestion
INDUSTRIAL
DEVELOPMENT
Establishing industrial
zone in suitable,
profitable position
Creating swift link between
port and industrial zones
Forming logistics transfer
chain
GREATER COMPETITION AHEAD
How to improvise port trade
COMMUNITY
DEVELOPMENT
Tackling shortage of
skilful employee
Uplifting fishermen and
other local community
Developing Island housing
The situation of Chittagong port,
which is known as the life-line of
the economy of Bangladesh, has
improved rapidly in recent times.
Once the port users used to make
various complaints regarding import
and export, but now that is
not the case. The income of the
port is also increasing every year,
and the port authority is carrying
out various development
activities from its own funds.
According to the government's
Economic Survey, the revenue
from Chittagong Port in the fiscal
year 2010-11 was over Tk 1,453
crore. In the financial year 2015-
16 it increased to 2,030 crores.
In the recently concluded fiscal
year 2021-22, this income has increased
to about 3,600 crores.
Chittagong Port Authority (CPA)
with the help of domestic and
foreign shipping companies from
February this year to last September;
launched direct shipping services
on seven out of around 20
major routes. Direct shipping from
Chittagong has reduced shipment
costs and export lead times while
increasing port mobility. Shipping
industry insiders said that earlier
it took at least 40 to 45 days to
reach these destinations through
transhipment ports, which has
now come down to 15 to 20 days.
This not only reduced time, but
also reduced shipment costs by at
least 40 percent. Direct shipping
to Portugal, Slovenia, Thailand
and the Middle East will begin by
2022 as CPA wants more routes.
However, its deadline has not
been finalised yet. Port users say
direct shipping to Slovenia will be
another milestone, as it will make
it easier to transport goods to Germany
and Portugal. Secretary of
Chittagong Port Authority (CPA)
Omar Farooq said, “India's coastal
shipping is going on. MoU signed
on cargo transportation at Ranong
Port in Thailand. All government
level approvals have been
completed. Direct shipping is in
process on this route as well.” He
further said that garment exporters
are benefiting due to opening
of direct route to Europe. The lead
time will be reduced and this is a
milestone for the country's economy.
Due to the initiatives of private
operators and port authorities,
the operation of Chittagong
port, which was once plagued
with container or ship congestion,
has now become much smoother.
This outdoor waiting time is now
reduced; 60-65% of the ships get
berthing at the jetty on arrival. In
the last six months, many of the
ships got this opportunity within
a day. Business analysts say that
by adding more skilled operators
and investing in increasing capacity,
Chittagong port will soon become
the 'business hub' of South
Asia.
INFRASTRUCTURE
DEVELOPMENT
Modernising materials
and overall infrastructure
Increasing cargo handling
equipment and jetties
Utilising modern
equipment properly
Bangladesh has had some success in managing risk
and expanding its customer base to adapt to changing
demands. However, diversifying into high-valueadded
products and tapping into other large and
emerging markets, particularly in the East, remains
challenging. In addition, rising wage demands, pressure
on supply, and the intensity of global competition
based on increasingly efficient automation and
the structural shift in demand from fast fashion to
premium high-quality, durable goods in developed
economies have placed significant competitive pressure
on the Bangladeshi manufacturers.
The progress of Vietnam's Preferential Trade Agreement
(PTA) with the European Union (EU) will create
more competition for Bangladesh's export share in
the region.
Bangladesh's next phase of growth calls for rapid
improvements in trade competitiveness because
the country's current advantage is based on disproportionately
low wages, an advantage that is slowly
THE WAY FORWARD
Improving Bangladesh's trade infrastructure
and logistics will not
only increase the global market
share of garments and textiles,
but also diversify into new markets
and sectors. According to the
UNESCAP study, improved infrastructure
is estimated to have a
potential impact of $35.5 billion
for Bangladesh by 2030. It calls
for the development of an integrated
supply chain comprising
world-class ports, roads, storage
and transportation supported by
state-of-the-art technology for
highly competitive turnaround
and clearance times. In the sector,
a boon is forthcoming as a reputed
Saudi Arabian company have
shown interest to invest for the
operation, maintenance and modernisation
of the country's Patenga
container terminal. Opportunities
like these should be grabbed
for greater good. Recognising the
need to upgrade its ports with advanced
and modern facilities to
support the expected growth in
trade, the government has taken
some bold and timely steps such
as the Matarbari Port Project and
the Bay Terminal Project at Chittagong.
The government has
identified Chittagong Port as an
important international gateway,
critical to both the efficiency of
the transport system and the
country's economic success. For
the ports to be able to handle the
The improvements
will enable
multimodal
solutions, increase
competition and
ensure full utilisation
of the sectors’
potential.
growing export demand, timely
implementation of additional port
capacity and increasing port efficiency
will be important. Complex
projects like the Bay Terminal
project, involving world-class
port operators like Singapore’s,
will enable the port-led network
to leapfrog and achieve its goal of
eroding. Bangladesh is ranked 105th in the Global
Competitiveness Index, which suggests that logistics,
infrastructure, innovation and business dynamism
can be improved. Bangladesh needs to do
something if it wants to be at par with other coastal
countries in Asia, as suggested by the World Bank's
Index. This shows that Bangladesh's strong export
performance over the years could have been greater
if the country's domestic infrastructure needs were
met. There is a substantial need to support infrastructure
to improve trade. Achieving Bangladesh's
Vision 2041 requires significant development of enabling
trade infrastructure to enhance the country's
connectivity with international markets.
becoming a world-class port integrated
network. The bay terminal,
capable of supporting inland cargo
as well as transiting regional cargo
in the Bay of Bengal area, can
help increase the handling capacity
of Chittagong Port from the
current 3.2 million TEUs, bringing
it closer to the expected 5.6 million
TEU containers in the year
2036, as foreseen in the strategic
master plan. The improvements
will enable multimodal solutions,
increase competition and ensure
full utilisation of the sectors’ potential.
Thus, port development
is important along with timely
modernisation of road and rail
connectivity. Ultimately, every element
of the supply chain needs
to be optimised to create an efficient
and sustainable port and
logistics network. A holistic government
approach in the form of
greater coordination between relevant
ministries, authorities and
the private sector is needed to increase
the effective capacity, support
infrastructure and eliminate
distortions in the logistics service
market.
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