RMG exports get new route through Mongla Port

Mongla Port, the country's second-largest seaport, has witnessed a surge in activity and has become a key gateway for garment exports and imports, thanks to the enhanced connectivity provided by the Padma Bridge. 

This development has opened up new opportunities for Bangladesh's largest export-earning sector, the apparel industry, which previously relied heavily on the Chattogram port.

On 27 July 2022, Swedish fashion giant H&M took the initiative to ship goods from Mongla port through the Padma Bridge, aiming to reduce lead time, as reported by industry insiders and buyers eager to capitalise on the time and cost savings. 

H&M Group successfully shipped 50 TEUs of containers through Mongla port to various destinations last year. They plan to continue utilising this route in the future, provided that the government establishes container freight stations (CFS) to support its potential.

Notably, the Maersk Nesna, a vessel flying the Panamanian flag, departed from the port on 27 July last year, carrying 17 containers filled with ready-made garments from 27 factories located in Dhaka and its surrounding areas, bound for Poland.

Among the exporters, Team Group, a garment manufacturer, shipped 500,000 pieces of apparel through Mongla port.

Abdullah-Hil-Rakib, managing director of the company, said Chattogram port currently handles over 90% of Bangladesh's exports and imports, as well as about 98% of container trade. 

The opening of the Padma Bridge and the subsequent increase in export-import trade through Mongla port will reduce dependency on a single port, leading to reduced lead time, he observed.

On 6 June, products manufactured by 10 garment factories in Dhaka departed from Mongla port for export to Poland aboard the commercial ship MV Marks Kinjo, which carries the flag of Singapore.

Over the course of a year, a substantial volume of ready-made garments was exported through Mongla port via five ships. Additionally, there has been a 15% increase in the arrival of container ships.

In fiscal 2021-22, 45 container ships arrived at the port, and this number has already reached 52 in the current year.

According to Mongla port (traffic) officials, garment exporters based in Dhaka and its surrounding areas are now increasingly utilising Mongla port due to its proximity to Dhaka, which is only 170 kilometres away compared to 260 kilometres to Chattogram. 

The officials added that apparel traders are eager to import and export goods through Mongla port to save time and money since ship handling at the port has become faster and safer.

Businesses urge capacity building

Despite these positive developments, businesses have emphasised the need to increase the port's capacity, particularly in terms of container handling. 

They have urged authorities to construct container freight stations and dredge the port channel to accommodate larger vessels. Furthermore, retailers require more frequent direct vessel operations from the port to efficiently ship their goods to Europe and other destinations.

Ziaur Rahman, H&M's regional country manager for Bangladesh, Pakistan, and Africa, noted the growing preference for Mongla Port among businesspeople in Dhaka. 

Speaking to The Business Standard, he highlighted the urgency of undertaking major infrastructure works and establishing container freight stations (CFS) at Mongla port. Additionally, he emphasised the necessity for the port authority to enhance cargo handling capacity. 

"We have a biweekly vessel to Europe connection. More frequent vessel operations are needed to ship through the port," he maintained.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), praised the Padma Bridge for opening up new horizons for the apparel industry, particularly in terms of connectivity through Mongla port. 

He emphasised that the benefits of this development are already being realised. 

The utilisation of Mongla Port by apparel industries primarily located in Dhaka, Narayanganj, and Gazipur has helped reduce lead time, he mentioned, adding that Mongla port will help reduce the industry's reliance on Chattogram port, especially during times when the global apparel business faces challenges. 

He further added that in the future, apparel manufacturers are likely to invest more in the southern part of the country.

Furthermore, car imports through Mongla port have seen an increase. 

Ahsanur Rahman Arju, chairman of the Mongla Port Standing Committee of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), highlighted that it takes only three hours to transport a car from Mongla Port to Dhaka, compared to 6-7 hours from Chattogram port. This advantage has made Mongla port more attractive for car imports.

Development so far

Regarding the development of Mongla port, Rear Admiral Mir Ershad Ali, chairman of the Mongla Port Authority, revealed that a project worth Tk6,256 crore has been undertaken to enhance facilities for businesses utilising the port. 

Currently, there are 11 LPG factories, 5 cement factories, and 10 industrial factories of various types in the port area. Additionally, an economic zone has been established on 258 acres of land near the port. 

Padma Bridge has significantly increased the port's activities, resulting in a rise in the arrivals and departures of foreign ships, he concluded.