'Pvt sector participation, logistics policy key to port development'

As Bangladesh is lagging behind all of its competitors in the Logistic Performance Index, which measures the quality of trade and transport-related infrastructure, a logistics policy for efficient port management and more engagement of the private sector in this area is required for future import and export growth, experts said at a seminar.

Speaking at the event titled "Efficient Port Logistic Management and Trade Competitiveness of Bangladesh" on Monday, Dr M Masrur Reaz, chairman of the Policy Exchange of Bangladesh, highlighted that Bangladesh was ranked 100 overall in the logistic performance index and 102nd in logistics quality and competence, the lowest among competitor countries.

India, Vietnam, Indonesia, the Philippines and Singapore are far ahead while only Pakistan is behind Bangladesh, he said at the event organised by the Dhaka Chamber of Commerce (DCCI) at its auditorium.

He said there were longer clearance times compared to South and East Asia competitors, while 35% of products were damaged at the ports due to the ports' infrastructure deficiency.

"Bangladesh has one of the highest logistic costs globally," he added.

"Absence of a national logistics strategy, complex regulatory system, proper policies and limited private sector participation are some of the challenges for efficient port logistic management," he said, calling for the formulation of a national logistics policy.

Stressing the importance of private sector engagement for efficient logistics management, he said public-private partnership (PPP) models in ports have succeeded, increasing investment and labour productivity.

Chief guest Md Mostafa Kamal, secretary, Ministry of Shipping,  said besides the Chattogram and Mongla ports, the Payra port will also open soon.

Recently, Abu Dhabi port showed an interest in working for the port sector of Bangladesh, he said.

Regarding logistic improvement, Kamal said the government had recently invested a lot to make the ports more functional.

Rizwan Rahman, DCCI president, said the Chattogram port has been recognised as the 64th busiest port in the world, but it was also ranked by the World Bank as the least efficient trade hub for handling containers in Asia.

This was down to lower drafting and inefficient port handling capacities, limited port yard, poor turn-around time and lack of modern equipment.  If the infrastructural capacity of the Chattogram port was increased, the cost of doing business will be reasonably lowered resulting in efficient trade lead time and investment surge. 

Lee Peng Gee, vice president, Group Business Development, PSA International Private Ltd, said the PSA is keen to participate in the development of the Bay Terminal project and was doing a feasibility study.

Once the project is completed it will enhance the connectivity of the Chattogram port.

Shamim Ul Huq, country director, DP World Bangladesh, Kabir Ahmed, president, Bangladesh Freight Forwarders Association, Syed Ali Jowher Rizvi, managing director, Summit Alliance Port Ltd, and Md Zafar Alam, joint secretary, Chittagong Port Authority, among others also spoke at the programme.