Importers fear losing crores as Pangaon Express remains stranded in Bay

Pangaon Express, the cargo ship that tilted and partially sank in the Bay of Bengal more than a week ago, still remains stranded amid rising fears that the sea may soon devour crores worth of imported goods the feeder vessel was carrying. 

Sea Glory Shipping, the charterer company of the ship, has signed an agreement with Exxon-Genuine JV for salvaging the ship along with the onboard containers.  

Salvage operations will commence from next Sunday. As per the salvage plan, containers will be lifted ashore first, then Pangaon Express will be taken to dock when weather is favourable. 

Mainul Hossain, manager of Sea Glory said he was uncertain when the full salvage process will be completed as weather in the vicinity of the wreck remains rough.

Sea Glory, salvaging companies, port authority officials after visiting the spot in Sandwip Channel near Bhasan Char island said rescuing the ship may not be possible before September or October.

"The fact that the ship has not been rescued yet indicates our limited capacity in rescue operations," commented Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association.

Financial loss

On 6 July, the vessel was en route to Pangaon Container Terminal from Chattogram Port carrying 96 TEUs of imported goods when the ship tilted and partially sank in rough sea. 

The ship lost three containers after they toppled overboard in the incident.   

According to officials of Saif Power, the terminal operator of Chattogram Port, importers are concerned about their goods and are constantly asking us for information on the recovery of the ship.

Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, said most of the products on the vessel are cotton or yarn raw materials and some commercially imported goods. 

Each container has goods worth about Tk60-70 lakh, he said. As such, the ship was carrying goods worth around Tk70 crore.

However, Jahir Uddin Jewel, managing director of Sea Glory said the ship and its goods are insured.

Purchase of Pangaon Express 

The port authority bought three ships – Pangaon Express, Pangaon Success and Pangaon Vision – in 2013 at Tk50 crore to transport imported goods from Chattogram Port to Pangaon Inland Container Terminal in Keraniganj near Dhaka.

According to vessel tracking website Marine Traffic, Pangaon Express and Pangaon Success were built in 2004, while Pangaon Vision was built in 2001.

At that time, the parliamentary standing committee on the shipping ministry complained about the purchase, claiming the actual price of the old ships was Tk20 crore.

The allegation of corruption came up at a meeting of the committee held on 22 January 2015, the committee's member M Abdul Latif told The Business Standard. 

The purchase was made ignoring all rules and regulations, the MP said, adding that Chittagong port has no history of buying such old ships.

He told TBS that the rundown old ships were somehow patched up and brought to Chattogram Port from China. 

The committee suggested taking legal action against those involved in irregularities and corruption, said MP Abdul Latif.

However, Md Omar Farooq, secretary of Chittagong Port Authority, told TBS that he was unaware of any allegations of corruption in the purchase of ships.

Operation of Pangaon Express

Initially, the three ships were managed by the port. 

Later in September 2015, the port authorities handed over the ships to Summit Alliance Port Limited for five years at Tk42 lakh per month rent.

However, the operation of the ships stopped in 2017 due to low demand of the route. 

In April 2022, Sea Glory Shipping Agency took over three vessels under a Bareboat Charter Agreement for a five-year tenure at Tk7.5 lakhs per month rent.

Pangaon Express started plying the route in September last year after the vessel underwent three repairs. Later the other two ships also joined this route.