Businesses, govt officials push for foreign operators to boost port efficiency

Business leaders and government officials have urged support for the appointment of foreign operators in Bangladesh's ports to raise efficiency and align with international standards, instead of opposing such moves. 

The call came at a roundtable titled "Challenges, Opportunities and Way Forward in Shipping  and Logistics Landscape", held yesterday at the Lakeshore Heights hotel in Gulshan. 

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said foreign operators could help enhance management efficiency while enabling local manpower to learn modern technologies and international-standard practices.

He further noted, "A port is a service-oriented organisation. Such a steep rise in charges without any discussion or logical explanation is unjustified." He was referring to the sudden 40% hike in charges at Chattogram Port. 

Hatem also questioned why a government institution should seek excessive profits over service.

He also stressed the need to operationalise the Bay Terminal quickly and fully utilise the capacities of Mongla and Payra ports to help achieve the $100 billion export target. 

Beyond port reforms, he highlighted the urgency of addressing gas and electricity shortages, ensuring uninterrupted energy supply, and improving law and order to boost exports.

The event was organised by The Financial Express with the support of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), BKMEA, Conveyor Group, Bangladesh Shipping Agents Association (BSAA), Anchorage Container Depot Limited, and Bangladesh Container Shipping Association (BCSA).

Echoing Hatem's concerns, BGMEA Senior Vice President Inamul Haq Khan highlighted inefficiencies at Chattogram Port, saying container handling at the port currently takes five to six days, compared to the global standard of one to two days. 

"Often, we are forced to send goods by air to meet buyers' commitments, which costs four times more than seaway shipments," he noted.

Former Bangladesh Freight Forwarders Association (BAFFA) president Kabir Ahmed also backed the inclusion of foreign operators, saying a vested group continues to oppose such reforms. 

He further stressed the need for reforms at Biman Bangladesh Airlines and Hazrat Shahjalal International Airport, pointing out that all four Explosive Detection System (EDS) machines remain inactive.

Kabir also identified the National Board of Revenue as the biggest obstacle to logistics efficiency, urging policy reforms to improve port efficiency and hold those responsible for delays accountable.

Delivering the keynote paper, Professor Md Mamun Habib of Independent University, Bangladesh, said the country lags behind regional peers in the World Bank's 2023 Logistics Performance Index, ranking 88th compared to India's 38 and Sri Lanka's 73. 

"We are consistently weakest in infrastructure and business fundamentals, which makes it difficult to compete globally," he said.

Dr Ahmed Ullah, director general at the Chief Adviser's Office, attended the event as special guest. The discussion was chaired by Shamsul Huq Zahid, editor of The Financial Express and moderated by Shiabur Rahman Shihab, head of online at The Financial Express.

Masrur Reaz, chairman of Policy Exchange Bangladesh, said Bangladesh is already a decade behind. Stressing the need for reform, he argued that Chattogram Port must be opened to private operators. "There is no alternative to engaging a global operator at Chattogram Port to raise efficiency.''

Senior Shipping Secretary Mohammad Yousuf, speaking as chief guest, announced that construction of a multi-modal logistics hub at Chattogram's Bay Terminal would begin soon. The hub will integrate rail, road, and sea transport, alongside a new railway container terminal at Halishahar.

He said the Bay Terminal Breakwater Project, financed by the World Bank, is advancing. "A subsidiary loan agreement will be signed today [yesterday], following an earlier deal between ERD and the World Bank in Washington," he noted.

The shipping secretary also disclosed plans to develop a Port Community System to integrate Mongla, Payra, and Chattogram ports, based on a World Bank design. He requested businesses to move empty containers to off-docks or return them to ships to ease congestion.

He also mentioned that the railway adviser has agreed to hand over at least one container train on the Dhaka-Chattogram route to the private sector. A master plan for Matarbari Phase-II is also underway, including LNG and LPG terminals and a new dockyard to be constructed by CPA.

Bangladesh Garments Accessories and Packaging Manufacturers & Exporters Association (BGAPMEA) President MD Shahriar, BRVIDA President Abdul Haq, BSAA Chairman Syed Mohammad Arif, BCSA General Secretary Shamsuddin Chowdhury, Bangladesh Ocean Going Ship Owners' Association ( BOGSOA) President Azam J Chowdhury also attended the roundtable.