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[🇧🇩] Inland Riverine Shipping

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[🇧🇩] Inland Riverine Shipping
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Foreigners showing more interest to invest in shipping sector, says Sakhawat
FE ONLINE DESK
Published :
Dec 15, 2024 22:38
Updated :
Dec 15, 2024 22:38

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Shipping, and Labour and Employment Adviser Brig Gen (retd) Dr M Sakhawat Hussain on Sunday said foreigners have been showing more interest to invest in the country’s shipping, maritime and port infrastructure development sectors.

“The government has already taken various steps for maritime sector development, including reducing the port congestion to ease imports-exports,” he said while speaking at a view-exchange with a delegation of the Shipping Reporters’ Forum at his ministry in Dhaka.

Sakhawat Hussain said the ministry has planned to build an international stander dockyard in Matarbari Deep Sea Port with support of the World Bank, reports BSS.

He said the ministry also took steps to increase facilities of carrying passengers and goods via waterway.

Besides, the shipping ministry has taken steps to turn Mongla Sea Port into an environmental friendly green port.

The present interim government is working relentlessly for the country and its people, he added.

The adviser urged the journalists to publish objective news for the development of the country.​
 

Govt committed to ensuring security on waterways: Adviser Sakhawat
UNB
Published :
Dec 29, 2024 22:21
Updated :
Dec 29, 2024 22:21

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Adviser to the Ministry of Labour and Employment and the Ministry of Shipping, Brigadier General (retd) M. Sakhawat Hossain, has said that overall security will be ensured on all inland waterways with the cooperation of the River Police.

He made these remarks today during a meeting held at the Labour Building conference room to review the overall situation of inland vessel operations in Bangladesh.

The adviser expressed condolences for the seven lives lost on board the MV Al Bakhera on the Meghna River in Chandpur, and prayed for the eternal peace of their souls. He also expressed deep sympathy to the grieving families.

The adviser said that the district administration had already provided Tk 20,000 to each of the victim families, and the police had given Tk 10,000 for burial expenses.

He also said, "The RAB has already arrested one suspect in connection with the murders. An investigation is ongoing to determine if anyone else is involved in the crime."

He called for the continued operation of the shipping sector to keep the country's economy functioning. He also instructed the River Police to promptly receive complaints in accident-prone areas.

The meeting was attended by the Secretary of Labour and Employment, the Secretary of Shipping, and other officials.​
 

Baghabari port fading from inland water map as river silts up
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Established in the 1980s on the banks of Baral river, Baghabari river port currently offers a draft of only 7-8 feet during the dry season, which allows vessels with roughly 300 tonnes of cargo. PHOTO: AHMED HUMAYUN KABIR TOPU

Once a key supply hub for agricultural inputs and fuel to the greater northern region, Baghabari river port in Shahzadpur upazila of Sirajganj is now seeing more and more cargo vessels avoiding it due to years of neglect in navigability management and inadequate port facilities.

Fertiliser-laden vessels arriving from Chattogram now offload their consignments at Nawapara port in the southwestern district Jashore, from where the agricultural inputs are then transported to northern districts.

"I travelled to Baghabari port around one and a half years ago carrying imported fertiliser, but I was unable to reach the port directly due to navigability problems," said Md Eusuf Mollah, master of an inland water vessel.

"Now we use Nawapara port regularly instead of Baghabari to unload fertiliser," Mollah added.

He said that Nawapara port can accommodate vessels carrying 1,000-1,200 tonnes of cargo, a capacity that Baghabari cannot match.

Established in the 1980s on the banks of Baral river, Baghabari currently offers a draft of only 7-8 feet during the dry season, which allows vessels with roughly 300 tonnes of cargo.


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Although minor dredging of the nearby Jamuna channel was carried out in recent years, there has been no visible improvement in navigability in the Baral as water levels have been declining rapidly.

"Fertiliser vessels usually have a draft of 10-12 feet, but the current water level in the river is only 9 to 9.5 feet. Therefore, only ships with a draft of 7-8 feet can navigate this channel in winter," Md Asaduzzaman, in-charge of Baghabari port, told The Daily Star.

He said that during the monsoon, heavier vessels with drafts more than 10-12 feet can easily access the port.

Asaduzzaman said that over the years, both the size and the load capacity of inland vessels have increased, but the port's facilities have failed to keep pace.

These decades-old port facilities are inadequate for handling larger vessels, leaving the port yard largely empty during the dry season.

Port officials said some small cargo vessels carrying cement still arrive at the port, but fertiliser and coal-laden ships are less regular.

For hundreds of port workers, this decline in activity has put pressure on them to find alternative livelihoods.

"Around 400-500 workers had sufficient income at the port even a few years ago, now even 100-150 workers struggle to make their ends meet with the income here," said Md Jahangir Sardar, a local labour leader.

Many port workers have left the port in search of new jobs, Jahangir added.

The empty port yards have also impacted the buffer fertiliser warehouse at the port area, leaving it with insufficient stocks.

"We have a demand for 10,281 tonnes of fertiliser for Sirajganj district in January, but we currently have a reserve of 7,734 tonnes," said Md Abdullah Al Ansari, in-charge of the warehouse at the port.

Run under the Bangladesh Chemical Industries Corporation (BCIC), Ansari said the warehouse is receiving truckloads from Nawapara, but they do not arrive on time.

"Fuel-laden vessels can load a minimum of 10 to 12 lakh litres, but now each fuel-laden vessel carries a maximum of 8 to 9 lakh litres of fuel to reach the port," said Md Abul Fazal, in-charge of the Jamuna oil depot at Baghabari.

Baghabari fuel depot is one of the largest fuel depots in the northern districts, with a fuel reserve capacity of more than 7.5 crore litres.

"We have the capacity to unload three fuel ships daily at the three fuel jetties in the port, but they all arrive with reduced loads," he said, adding that if the Baral river channel is improved, fully loaded ships could be accommodated without any issue.​
 

Renewing inland water trade & transit protocol
Asjadul Kibria
Published :
May 18, 2025 00:27
Updated :
May 18, 2025 00:27

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Even before the independence of Bangladesh, the waterway was one of the key modes for the movement of freights with India like it was historically the case through the railway. Most of the railway network of Bangladesh was also built and developed in the British period, starting with a 53-km long broad-gauge track between Darsana and Jagati, in 1862. The record also shows that steam navigation in inland waterways began in the mid-nineteenth century with passenger services between Kolkata and key river ports of erstwhile East Bengal. The river routes were relatively cheap compared to road transport. Nevertheless, since the independence of Bangladesh in 1971, the importance of waterways started declining, as the country became focused more on developing roads and highways. The emphasis on roadways has also put the developmental issues of railway to the backburner. Bilateral trade with India also largely depends on roadways, although waterways are still used to carry freight.

In 1972, two countries signed the Protocol on Inland Water Transit and Trade (PIWT&T) in accordance with Article VIII of the Indo-Bangla bilateral trade agreement. The protocol was signed to make mutually beneficial arrangements for the use of their waterways for commerce between the two countries. The protocol also allowed the passage of goods between two places in one country and to third countries through the territory of the other. So far, it is one of the few Indo-Bangla bilateral deals that is still working.

The protocol was initially renewable every two years. Later, in 2015, with a few amendments, the deal became renewable every five years. The relevant section of the protocol said: "It shall automatically be extended for successive five years unless either Government terminates the protocol by giving a written notice of its intention to terminate to the other Government at least six months before end of term. In case of termination, it shall cease to operate on the expiry of the respective term. But termination shall not affect the actions taken or agreements reached pursuant to this protocol."

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Consequently, the protocol was formally renewed on May 20, 2020, extending the scope. Two new routes and five new ports of calls were included in the protocol, making the total number of routes and ports of calls ten and eight, respectively. As the renewed period of five years will end on Tuesday next, it is to see what the governments on both sides of the border do. Suppose the governments maintain silence and neither side gives any notice for termination. In that case, the protocol will get another five years of extension, with the current terms and conditions unchanged. The automatic renewal will be effective from May 21, 2025. So far, there has been no indication from any of the governments to terminate the deal, especially when the two countries' bilateral ties have come under serious strain.

In the face of a mass uprising, Sheikh Hasina, the autocratic prime minister of Bangladesh, resigned and fled to India for shelter. Since then, the two neighbouring countries' bilateral relations have deteriorated. New Delhi's unconditional support to Hasian and persistent intervention in the domestic affairs of Bangladesh during one and half decades of the Hasina regime made the people of Bangladesh angry and disappointed. Hasina unleashed a reign of terror and oppression in Bangladesh with the backing of India. Her regime brutally killed around 1,400 people during the student-led mass uprising when more than 20,000 were also injured. As Hasina took shelter in Delhi on August 5 last year, a new era of Indo-Bangla ties has also emerged where Bangladesh signalled for a balanced and mutually respectful relationship. As Hasina had turned the country almost into a 'vassal state' of India, her ouster irritated the Indian establishment. Even after nine months of the fall of Hasina, India is yet to accept the reality in Bangladesh, making it difficult to restore normalcy in bilateral relations.

Nevertheless, bilateral trade is going on as both countries are interdependent regarding many products and services, and it is not easy to shift the sources of imports within a short period. The trade and transit cargo movements under the inland waterway protocol routes have also continued, though the volume has declined. The Bangladesh Inland Water Transport Authority (BIWTA) statistics showed that the total volume of cargo carried under the protocol declined by 13 per cent to 4.13 million tonnes (MT) in FY23 from 4.74 MT in FY22. In FY24, the volume declined further by 2.50 per cent in FY24 to 4.02 MT. The official statistics also showed that during the first half (July-December) of FY25, the water vessels carried some 1.97 MT of cargo in various protocol routes. Despite adding new routes under the protocol five years ago, most of the routes remained unused.

The protocol's main objective is to reduce the cost of bilateral trade and allow India to transfer goods using Bangladesh's inland waterways. It is also known as a river transit facility.

Around 99 per cent of the cargo was carried under the inter-country trade arrangements, which means a negligible amount of cargo was transited through Bangladesh waterways from one part of India to another part. Another interesting feature of the cargo movement under the protocol is the dominance of Bangladeshi vessels, as around 99 per cent of the trip is conducted by Bangladeshi ships. It indicates that Bangladeshi water vessel owners have gained significantly in carrying bilateral trade cargo.

Against the backdrop, it is clear that the importance of the protocol is there, and both countries need to continue the arrangement for bilateral trade. The protocol also provides necessary transit routes for India to connect the northeastern region, known as the seven-sisters, with mainland India. Though the usage of transit routes is small, keeping them open is helpful for India in reducing the cost of transferring products from one part to another. Bangladesh also needs to continue the facility for the neighbouring country as the movement of transit cargo is still limited and does not bring additional pressure on the movement of local cargo vessels. It is to see whether both governments will go for auto-renewal of the protocol or amend the agreement.​
 

No disruption expected in river transport during Eid: Shipping Adviser

Published :
May 31, 2025 22:36
Updated :
May 31, 2025 22:36

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Like the previous Eid, holidaymakers are unlikely to face any trouble while travelling via waterways this time as well, said Shipping, Labour and Employment Adviser Brig Gen (retd) M Shakhawat Hossain on Saturday.

"Our government has improved the communication network in the southern region. During the last Eid, there were no problems with the waterways last Eid, and there won't be any this time either," he told journalists while visiting the Ilisha ferry terminal in Bhola during a two-day visit, UNB reports.

Responding to a query about launching government-run ferry services on the Bhola-Dhaka route, Shakhawat said, “There is currently a shortage of ferries. Some are outdated, while others are still operating on the Aricha-Daulatdia route. If we had enough ferries, there would be no issue in deploying them.”

He noted that government ferries are currently serving several locations facing transport difficulties. “We’ve deployed ferries in Maheshkhali and Sandwip and now Kutubdia has also requested one.”

The adviser said that some new ferries are expected to arrive later this year, and “we’ll be able to distribute them across different locations accordingly.”

Bhola Deputy Commissioner Md Azad Jahangir and Additional Superintendent of Police (Administration and Finance) Md Sohan Sarkar, along with other senior officials, were present during the visit.​
 

Imperative of revitalising logistics sector

Atiqul Kabir Tuhin
Published :
Jul 02, 2025 22:30
Updated :
Jul 02, 2025 22:30

It is time to prioritise the development and seamless operation of inland waterways and railways as key components of a balanced and efficient multimodal logistics network.

At a recent seminar hosted by the Dhaka Chamber of Commerce and Industry (DCCI), experts and business leaders highlighted how Bangladesh's outdated logistics system is undermining the country's global competitiveness, hampering export growth and overall economic momentum. As the country prepares to graduate from the United Nations' Least Developed Country (LDC) category, addressing these logistical shortcomings must be a top priority. Upon LDC graduation, Bangladesh will lose numerous preferential trade assistance and benefits under International Support Measures (ISM) for LDCs. These include crucial advantages like duty-free quota-free (DFQF) market access (like the EU's Everything But Arms scheme), relaxed rules of origin, and flexibilities under the TRIPS Agreement for intellectual property, especially for pharmaceuticals. At the same time, the country will see gradual withdrawal of "Special and Differential Treatment" (S&DT) provisions from various World Trade Organization (WTO) agreements, while new trade-related obligations will be imposed. These changes will drive up the cost of trade and investment. For example, one study projects that LDC graduation will result in an 8-12 per cent increase in duties on Bangladesh's exports to EU countries, directly raising overall export costs. In this context, the importance of strengthening the country's outdated logistics sector cannot be overemphasised to offset these anticipated increases in international trade costs and safeguard the nation's global trade competitiveness.

An efficient logistics system that reduces lead time and cost is what keeps the wheels of the commerce turning. From the delivery of raw materials to manufacturers to the final product reaching consumers, both domestically and globally, logistics plays a crucial role in ensuring that goods and services are delivered without a hitch, and in a cost-effective and timely manner. The global logistics market is valued at $10 trillion and it is inextricably linked to every economic activity. The sector is particularly vital for export-oriented countries like Bangladesh. Regrettably, the country is among the countries where logistics costs are among the highest. It was revealed at the DCCI seminar that logistics costs in Bangladesh is roughly 15 to 20 per cent of GDP, far above the global average of 8 to 10 per cent. This aligns with an earlier World Bank Group report titled 'Moving Forward: Connectivity and Logistics to Sustain Bangladesh's Success,' which showed sector-wise logistics service expenses in the country ranges from 4.5 per cent to a staggering 48 per cent of sales, which is far higher than that of other competing countries.

Bangladesh's stark inefficiency in logistics is also reflected in global rankings. Bangladesh currently ranks 88th out of 139 countries in the World Bank's Logistics Performance Index (LPI), trailing significantly behind regional competitors like India (38th) and Vietnam (43rd). Its performance is even more concerning in the "trading across borders" category, where it is ranked 176th out of 190 countries. The World Bank report projected that mitigating Bangladesh's excessive logistics cost via targeted short-term and mid-term reform measures could increase its export earnings by as much as 20 per cent. Even a modest 1 per cent reduction in transport costs or dwell time alone could raise exports by over 7 per cent.

Bangladesh's poor ranking at LPI stems primarily from weaknesses in its trade and transport infrastructure, including congested ports and poor road networks, which collectively lead to high logistics costs. Further hindering its performance are significant inefficiencies in customs and border management, insufficient adoption of digital tracking and tracing systems, and procrastination of shipments. These factors, alongside fragmented governance and an over-reliance on road transport, collectively undermine the country's logistical efficiency and global competitiveness.

To address this shortcomings, experts at the DCCI seminar called for modernising Chattogram and Mongla ports since about 92 per cent of the country's export takes place though the ports. They have also proposed some key reforms such as digital platforms to connect shippers and transporters, warehouse automation, digital customs solutions, and greener logistical practices to improve the overall performance of the sector. Moreover, the construction of a dedicated expressway exclusively for trucks and lorries from Chattogram port to Sitakunda was suggested as a potential game-changer for streamlining the transport of import and export goods.

An efficient logistics system, however, goes beyond just building better roads and transport system; it requires an integrated multimodal logistics network that seamlessly combines road, rail, and waterways. In Bangladesh, 77 per cent of goods are transported by road, 16 per cent by waterways, 6 per cent by railways, and 1 per cent by other means. Such an overreliance on roads is a major drawback. If a significant portion of goods loaded or unloaded at ports could be transported via launches or barges, rather than being almost entirely loaded onto trucks, it could reduce both transportation costs and logistical complexities, easing pressure on the road network while enhancing overall efficiency.

The National Logistics Policy, introduced in 2024, aims to significantly reduce this dependency on roadways to 60 percent by 2041, while increasing the share of goods transported via river routes and railways to 25 percent and 14 percent, respectively. But the policy remains unimplemented.

Bangladesh is crisscrossed by hundreds of rivers that could be used to transport goods in a cheap and environmentally friendly way. But this natural resource remains underutilised. Historically, rivers have been intertwined with the country's culture, trade and development. Almost all the major cities and industrial hubs have grown around the country's vast network of rivers and natural water resources. However, over time, this landscape has changed dramatically. The number of active rivers has dwindled, many have lost their vitality, and waterways - once the arteries of the nation's transport system - have gradually been replaced by roads as the dominant mode of transporting people and goods. This overreliance on road transport has come at a significant cost, reflected in growing traffic congestion, escalating road construction and maintenance expenses, and increasing environmental pollution. It is, therefore, time to prioritise the development and operation of inland waterways and railways as key components of a balanced and efficient multimodal logistics network.

 

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