Chattogram port's increased berthing capacity lies unused for delay in issuing circular

The long-awaited berthing of 10-metre-draught and 200-metre-long ships at Chattogram port cannot be implemented only due to the delay in issuing an official circular.

After a trial run in January, the port authorities could not yet issue the circular in this regard, rendering the port's increased capacity fruitless, shipping agents have alleged. 

Industry insiders said because of the delay, they cannot tap the opportunity of transhipping more goods through large container ships.

In 2022, the port increased its capacity and a ship of 10-metre-draught and 200-metre-length anchored at Chittagong Container Terminal (CCT) of the port on 16 January this year on a trial run. Then, another vessel of the size anchored at Patenga Container Terminal on 26 February.

As per the rules, after increasing the capacity, the authorities had to issue a circular allowing regular operation of ships of the increased size.

In 2014, Chittagong port increased its capacity to handle vessels of 9.2-9.5-metre-draught and 186-190 metre-length.

If there is an increase in handling larger ships by the port, the authorities have to notify the main line operators, feeder vessel operators, and other companies involved in ship management through a circular.

Bangladesh Shipping Agents Association Chairman Syed Mohammad Arif told TBS, "If Chattogram port issued a circular, we could inform our key line operators. We urged the port authorities to issue a circular soon."

Chittagong Port Authority Secretary Md Omar Farooq told TBS that the issuance of a circular regarding the berthing of larger ships is under process.

A 9.5-metre-draught and 190-metre-long ship can carry 2,500 to 2,600 containers while a 10-metre-draught vessel can carry 3,800 to 4,000 containers in the port. Similarly, larger cargo ships will be able to carry more than 15,000 to 20,000 tonnes of open cargo.

Shipping sector businessmen said the cargo transportation cost and handling time will come down due to the increased berthing facility.

The port handled 4,344 ships in 2022 which is 135 more than the previous year. And 4,209 ships anchored at the port in 2021.

According to data from Chattogram Port, the port attained 2.28% growth in cargo handling in 2022 and 3.21% growth in ship handling. But its growth fell 2.60% in container handling.

In 2021, Chattogram port handled 3,214,548 twenty-foot equivalent units (TEUs) containers while 3,133,020 TEUs in 2022.

Waiver certificate complexity yet to go

Besides, despite a meeting with the shipping minister on 2 March, the complication that was created over the waiver certificate has yet to be addressed, shipping sector business people said.

Due to the waiver complexity, there is a delay in loading containers in eight ships plying the Chattogram-Colombo and Chattogram-Singapore routes.

Captain AS Chowdhury, general secretary of the Bangladesh Container Shipping Association (BCSA), told TBS, "Multiple ships of seven companies, including ships of my companies -- Sea Consortium, Crown Navigation, and Bizix – got stuck for waiver certificate complexity.  

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan sent a letter to Khalid Mahmud Chowdhury, State Minister for Shipping, to settle the waiver certificate issue.

In the letter, he said, "Waiver certificates should be issued to foreign container feeder vessels within 24 hours of application ‍and this requirement be withdrawn once or up to a point when the carrying capacity of Bangladeshi Flag Vessels is saturated/exhausted. The waiver so granted should cover the return voyage of the same container feeder vessel."

According to the Bangladesh Flag Vessels (Protection) Rules, the waiver certificate is supposed to be issued by the Mercantile Marine Office within three working days of the application, but the feeder operators said that the process is taking at least 10 or more days.

When contacted, Captain Sabbir Mahmood, principal officer of the Mercantile Marine Office, did not respond regarding the complications with the waiver certificate.