Container backlog at Ctg port rises to 90% of yard capacity

Container pile-up at Chattogram port rose to 90% of the yard capacity with the increased number of ship arrivals amid the economic recovery from Covid fallouts.

The congestion is disrupting regular activities of the country's primer seaport, said officials, as it needs at least 15% of yard space to perform day-to-day works.  

The yard, having a capacity of keeping 49,018 twenty-foot equivalent units (TEUs) of containers,  currently accommodates 43,261 units, as of Monday (10 January), which was 3,7000 just two months ago.

"The container pile-up keeps growing as the number of anchored ships increases. Besides, importers' reluctance to get their goods fast, particularly on weekends, was another reason," said Omar Faruque, secretary of the Chittagong Port Authority (CPA).

He told The Business Standard that they requested importers to get their goods released also on Friday, Saturday and other holidays to help them clear the congestion.

According to the CPA, 4,209 ships anchored at the port in 2021, while it was only 3,728 in the previous year. The busiest port handled 28,39,977 TEUs of containers in 2020, which increased to 32,14,548 the next year.

However, the port authorities could ease the container congestion in the mid last year by doubling container storing rents for a short time. But it did not continue the penalty in the face of protest from businesspeople.  

The container congestion continued to grow again since late last year.

Considering the ground reality, the CPA, in a letter to key trade bodies including Chattogram Chamber of Commerce and Industries, Bangladesh Garment Manufacturers and Exporters Association, and Bangladesh Knitwear Manufacturers and Exporters Association on 6 January, requested the importers to get their goods released also on holidays, apart from regular working days.

"The port remains open all the days. But the container delivery usually goes down to one-third on Friday, Saturday and Sunday due to importers' reluctance to come to port while many fail to process documents on Sunday, the week opening day," said Omar Faruque.

The CPA secretary said they made such requests also in August and September last year, but got little response from the importers.

In the letter, the authorities said in the last two months, goods delivery was slow on the weekend days, resulting in the congestion.

Clearing the port yard would speed up container handling, which was important for also the country's economy, it reads.

However, importers said their offices remained closed on weekends. Besides, closures of banks, clearing and forwarding agents, and other relevant offices are another barrier to work on these days.

"Traders who can manage all the required documents by Thursday can get their goods released on weekend, while the others cannot," said Syed Nazrul Islam, first vice-president of the BGMEA.

He told TBS that it was difficult to keep their (importers) offices open on those days.

"Those who have no own warehouse cannot go for releasing goods. Besides, bills of lading cannot be managed on the weekly holidays," said Mahbubul Alam, president of Chattogram Chamber of Commerce and Industries.

Both the leaders said all the relevant offices including banks, clearing and forwarding offices, must keep open if the CPA wants to see increased container releasing activities.

"We have discussed the matters with the port authorities," Alam added.

Usually, the port handles 4,000 to 4,500 TEUs per day on working days on an average, while it handles about 1,200 to 2,000 TEUs on weekends.

The majority of the goods are being delivered from the yard, while only 38 types of goods are released from private depots.

However, the port posted 13.19% growth in container handling, 14.06% growth in cargo handling and 12.63% in ship handling in 2021 year-on-year.