[🇧🇩] Sea Ports/Air Ports/River Ports/Bridges/Mega Projects

[Saif]

ICDs' handling charge hike to affect export trade

Bangladesh's external trade, especially export, is now up against the wall and the factors behind this are of both domestic and international origin. At a time, when the government's ongoing talks with the current Trump administration of the US, which has imposed a 35 per cent reciprocal tariff on

thefinancialexpress.com.bd

ICDs' handling charge hike to affect export trade

SYED FATAHUL ALIM
Published :
Jul 24, 2025 23:48
Updated :
Jul 24, 2025 23:48

A view of inland container depot at Kamalapur Railway station —FE File Photo

Bangladesh's external trade, especially export, is now up against the wall and the factors behind this are of both domestic and international origin. At a time, when the government's ongoing talks with the current Trump administration of the US, which has imposed a 35 per cent reciprocal tariff on its import of Bangladesh-origin products are in an uncertain territory, the Internal Container Depot (ICD) owners have unilaterally decided to hike up export cargo handling charges to be effective, according to reports, from September 1.

This development adds a new layer of complication to an already fragile trade environment, where exporters are reeling under the pressure of increasing global competition, trade policy uncertainties and sluggish post-pandemic recovery in demand.

The timing of this enhanced export container handling fees does not seem to be sensitive to the difficulties the country's export trade is at the moment faced with. For, the Bangladesh Inland Container Depot Association (BICDA)'s announcement of enhanced handling fees might further contribute to compromising the competitive edge of the Readymade Garment (RMG), the largest export industry of Bangladesh, in the global market. Given the RMG sector's high sensitivity to cost fluctuations, any increase in logistics-related expenses could erode already thin profit margins and weaken Bangladesh's position against rival exporting countries such as Vietnam, India and Cambodia.

In fact, the ICDs, also known as off-docks, which are located in and around the port city, handle 90 per cent of the total export goods by stuffing those into containers before their shipment through the Chattogram port. Also, close to a quarter of the import containers are sent from the port to these ICDs wherefrom the import goods are delivered.

So, the positive role played by the ICDs in the country's external trade cannot be overstated. Even so, its decisions to raise container handling charges, often, like this time, made without holding prior consultations with the stakeholders including the ministry of shipping, on various pretexts including fuel prices, labour costs, equipment maintenance, devaluation of the Bangladesh Taka (BDT) against the US dollar (USD), rising bank interest rates, overall inflationary pressure and so on, have led to heightened concerns among the exporters particularly those in the RMG sector. Such unilateral pricing strategies not only disrupt budgeting and planning for exporters but also risk triggering a domino effect throughout the export supply chain - from subcontractors and freight forwarders to international buyers already wary of price hikes.

This time, too, the BICDA's tariff hike on export cargo handling will see a 36 per cent to 44 per cent increase in handing fees compared to the existing rates. Also, the handling charges for the empty containers are going to be enhanced by 31.8 per cent. However, the import cargo containers have been spared any handling tariff hike this time around. The apex body of the Bangladesh's readymade garment manufacturers and exporters, the BGMEA, says, BICDA's decision will create a big pressure on the export-oriented industry. The BGMEA has further urged the authorities to consider temporary relief or subsidies to offset the burden on exporters, especially small and medium enterprises that lack the resilience to absorb cost shocks.

Notably, some days back, the Chattogram Port Authority (CPA) itself proposed a raise in its tariffs by 70 per cent to 100 per cent across 50 service categories. But the CPA's proposal, too, could not come at a worse time, when the export sector, particularly the apparel industry was struggling against rising global headwinds that include soaring energy costs, supply chain disruptions, harsher compliance conditions and falling demands in the overseas markets, mainly in Europe and North America. The convergence of domestic cost escalations and global market contractions is squeezing exporters from both ends, raising serious concerns about long-term sustainability.

Now, as if to rub salt to the wound, the BICDA has now come up with a declaration of raised cargo handling fees on the grounds that the investment costs of their depots have risen so significantly that their capacity for expansion has become difficult. They also complained that their new ICDs are in financial straits affecting their operational viability. So, to keep those ICDs viable, exporters will have to pay, for instance, at a 60 per cent higher rate for handling a 20-foot goods-laden container and at a 81 per cent higher rate for the 40-foot-high cube containers and 45-foot containers. Other types of cargo handling fees are also going to experience similar raises. Such a unilateral decision to burden exporters with additional costs risks undermining the entire trade ecosystem. The BICDA should have taken a collaborative approach before announcing the hike.

In these circumstances, the government needs to intervene so that any decision on container handling charge hike is made through concurrence of all the stakeholders involved. Last but not least, before going for any fresh service charge hike, ICD operators should consider the overall state of the export trade, which is now in a struggle for survival.​

 

[Saif]

Ctg port tariffs poised for steep rise

Bangladesh's external trade is set to get costlier as the government Thursday approved a proposal for increasing tariffs on both goods and vessels at Chittagong seaport, in some cases up to 10 times or above, officials said. The ministry of finance gave the all-clear to the proposal submitted by t

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Export-import goods, shipping vessels to count higher charges
Ctg port tariffs poised for steep rise
Govt okays jacked-up rates, some up to 10 times higher

Syful Islam
Published :
Jul 24, 2025 23:45
Updated :
Jul 24, 2025 23:45

Bangladesh's external trade is set to get costlier as the government Thursday approved a proposal for increasing tariffs on both goods and vessels at Chittagong seaport, in some cases up to 10 times or above, officials said.

The ministry of finance gave the all-clear to the proposal submitted by the ministry of shipping for taking measures for "improving the quality of services and efficiency" at the country's prime seaport.

Chittagong Port Authority officials say the port-use tariffs have not been increased since 1986. However, it was found that tariffs for five services saw upward revision last time in May 2008.

The port users sharply reacted to the charge hike at a time when export to the United States is "under threat" from a steep 35-percent reciprocal tariff imposed by the Trump administration in addition to the existing 15 per cent.

Under the revised charges, as just approved, port dues per gross register tonnage (GRT) have been increased from $0.241 to $0.306 while pilotage charge (for 10,000 GRT vessel) incised from $357.75 to $800. The shifting charge for night has been raised from $59.60 to $80.

The tugboat charge for 200 GRT to 1000 GRT has been ramped up from $158 to $615, for 1000 GRT to 5000 GRT from $316 to $615, for 5000 GRT to 10000 GRT from $632 to $1230.

For the vessels over 10000 GRT to 20,000 GRT tug charge is re-fixed $2050 and over 20,000 GRT the charge will be $3415.

The rate for the hire of tugboat for any other purpose is increased from $158 to $512.50, ship berthing or un-berthing charge increases from $88.50 to $94.32 and mooring- occupancy charge raised from $167 to $224.85.

Also, the jetty crane charges for below-10-tonne capacity has been increased from $42 to $58.24, quay gantry-crane charge (loaded), not exceeding 21-foot, increased from $15 to $20.80, and over-21-foot-crane charge increased from $22.50 to $31.20.

The tugboat cost for fire fighting is to see over tenfold increase in the latest revision-from $30 to $325.89.

Diving-board charge increases from $178.60 to $286.21, hire for salvage-diving unit shoots up from $71.50 to $344.59, dredger rentals increase from between $2235 and $4470 to $10,281.

Entry fees for people and vehicles are also to see a significant rise. A gate pass (temporary) for one user will now cost Tk 100 in a rise from previous Tk 25 while covered van, truck, and trailer-entry charge will go up to Tk 200 from Tk 12.5.

In the multipronged rate-rise package, the port authority is raising charge for hiring dump barges from $41.70 to $68.37 while the same for explosives barges will be from $59 in the past to $98 now.

The charges for loading or discharging containers are also seeing a good rise. Boxes not over 21 feet will be charged $68 from previous $43, while boxes over 21-foot size will be charged $102 from previous $65, and over 40-foot containers will be charged $115.

The Less-than-Container Load (LCL) containers loading or discharging charge-for not over 21-foot size-will be $204 from $130, for over 21 feet will be $306 from $195, while over 40-foot containers will be charged $344.

Empty containers-not over 21-foot size-will be charged $34 in a hike from the present $22.10, over 21-foot boxes will be charged $51 from current $33.20, and the over 40-foot containers will be charged $57 for loading or discharging.

Rakibul Alam Chowdhury, a former vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), sees the government move to increase port charges as "illogical" as no exporter would be able to absorb this additional cost.

"Without any consultation with port users and without any improvement in service quality, the hike in service charges cannot be considered business-friendly," he told the FE, in an instant reaction.

Mr Chowdhury questions how the entrepreneurs would be able to run their businesses or make new investments amid such "policy and infrastructure uncertainty".​

 

[Saif]

Port needs global operator for efficiency boost: Sakhawat

Shipping Advisor M Sakhawat Hussain has said Bangladesh is “lagging behind” in global port operations and must bring in international operators to raise efficiency. On Friday, he visited the New Mooring Container Terminal (NCT) in Chattogram, where he assessed its operations and highli

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Port needs global operator for efficiency boost: Sakhawat

bdnews24.com
Published :
Jul 25, 2025 20:05
Updated :
Jul 25, 2025 20:05

Shipping Advisor M Sakhawat Hussain has said Bangladesh is “lagging behind” in global port operations and must bring in international operators to raise efficiency.

On Friday, he visited the New Mooring Container Terminal (NCT) in Chattogram, where he assessed its operations and highlighted the need for international involvement to “improve” performance.

He said that while current efforts have yielded some results, they are not enough to match the standards set by ports in countries such as Singapore and the United Kingdom.

According to Sakhawat, foreign operators can bring in the advanced technology and management systems that Bangladesh lacks, and without them, port performance will remain “limited”.

“A port only enters the international arena when a foreign operator is appointed,” he said.

He noted that the NCT had been operated by Saif Powertec Limited for nearly 18 years, and acknowledged their contribution.

The advisor, however, said the interim government is now aiming for higher efficiency through changes in management.

“No one stays in place permanently. Everyone is eventually replaced, so they too deserve appreciation,” he said.

On Jul 7, Chattogram Dry Dock Ltd, a state-owned enterprise under the Bangladesh Navy, took over the NCT operations on an interim basis for six months.

Plans are under discussion to hand over the terminal to Dubai-based DP World through international bidding.

Since the takeover, container handling at the NCT has increased by 30 percent, said Sakhawat.

He expressed confidence that the trend would continue under the next operator.

On the issue of port tariffs, he said: “The ministry has not raised the tariffs unilaterally. Inter-ministerial discussions have taken place, and talks have been held with port users.

“The hike has been made after consultations with all sides. Even now, compared with many of the world’s major ports, Chattogram’s tariffs remain significantly lower.”

Rear Admiral Mir Ershad Ali, commander of the Chattogram Naval Area, said: “In the 17 days since Dry Dock took over the NCT, the average turnaround time for ships has dropped by 10 hours, and container handling has increased by 30 percent.”​

 

[Saif]

Teesta Bridge to cut Gaibandha-Dhaka distance by 135kms

Construction work of the Teesta Bridge, much-awaited by the residents of Gaibandha and Kurigram district, has already been completed with the installation of 32 spans. The infrastructure of the bridge is now visible, and this is the biggest bridge constructed by the Local Government Engineering De

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Teesta Bridge to cut Gaibandha-Dhaka distance by 135kms
The bridge will be opened for use on Aug 2

OUR CORRESPONDENT
Published :
Jul 25, 2025 10:20
Updated :
Jul 25, 2025 10:20

Construction work of the Teesta Bridge, much-awaited by the residents of Gaibandha and Kurigram district, has already been completed with the installation of 32 spans.

The infrastructure of the bridge is now visible, and this is the biggest bridge constructed by the Local Government Engineering Department (LGED) in the country.

It will be opened for the use of people of the two districts on August 2.

The much-hyped Teesta Bridge covers the Haripur side in Sundarganj upazila of Gaibandha district and Chilmari upazila of Kurigram district.

The total length of the bridge is 1,490 metres, and all its

32 spans have been installed.

With the completion of the Teesta Bridge, millions of people of the region are beaming with new hopes and aspirations.

After the bridge is opened, especially from Kurigram, Chilmari, Bhurungamari, Nageshwari and Ulipur, the distance with Dhaka by road will reduce by about 135 kilometres.

Along with the bridge construction, river management over an area of about 3.5 kilometres is being done on both sides.

A total of 86 kilometres of connecting roads have been built on both sides of the bridge. This will prevent river erosion on one side and, at the same time, will create new employment opportunities for people on both sides.

According to the Gaibandha LGED office, the foundation stone of the bridge was laid on January 26, 2014.

But due to some complications, the construction work was started later in 2021.

The construction cost of the bridge was estimated at Tk7.3085 billion (Tk730.85 crore).

Gaibandha LGED Executive Engineer Ujjal Chowdhury told the Financial Express that the Haripur-Kurigram Chilmari bridge in Gaibandha's Sundarganj has been built by the LGED.

The bridge will simplify communication for businesses in the region.​

 

[Saif]

Poor timing for port fee hike

The decision to sharply increase tariffs at Chittagong port, Bangladesh's primary gateway for external trade, could hardly have come at a worse time. Amid an economic downturn, falling export demand and the looming threat of a 35 per cent additional duty on Bangladeshi goods entering the United Sta

thefinancialexpress.com.bd

Poor timing for port fee hike

FE
Published :
Jul 26, 2025 22:35
Updated :
Jul 26, 2025 22:35

The decision to sharply increase tariffs at Chittagong port, Bangladesh's primary gateway for external trade, could hardly have come at a worse time. Amid an economic downturn, falling export demand and the looming threat of a 35 per cent additional duty on Bangladeshi goods entering the United Statesm, this sweeping hike in port charges threatens to push already beleaguered export-oriented businesses to the brink. According to the newly approved tariff structure, charges on more than 50 categories of services including pilotage, berthing, mooring, loading and unloading, crane use, diving, dredging and entry fees are set to rise significantly, some of them by more than tenfold. Port dues, for example, will jump by over 25 per cent, while the cost of fire-fighting tugboat is set to soar to levels many times higher than before. Charges for loading or unloading containers will climb by nearly 60 per cent across all sizes. Even basic gate pass fees for vehicles and individuals will quadruple.

This escalation, reportedly based on recommendations from a foreign consultancy firm, is being marketed as a step towards aligning with international standards and improving service efficiency. A tariff structure that was created four decades ago is undoubtedly out of date for a contemporary maritime economy, and while it makes sense to rationalise fees to reflect growing operational costs and modernisation needs, such changes must take into consideration the ground realities. Chittagong port remains far from world-class in terms of turnaround time, automation, digital tracking and labour productivity. Crucially, no tangible improvements in infrastructure, service quality or operational efficiency have preceded this hike. Yet, businesses are being asked to pay more for the same subpar services at a time when their profit margins are already under intense pressure. All things considered, this is perhaps the worst possible time to demand premium prices for substandard services.

Concern is mounting among exporters that the increased port charges will seriously erode Bangladesh's competitiveness, particularly in the readymade garments sector which brings in over 80 per cent of the country's export earnings. Global buyers are already shifting orders due to rising production costs, intensified competition and labour unrest. In this context, any additional increase in shipment expenses could be the final nail in the coffin for many exporters. Since logistics costs are either passed on to consumers or absorbed by exporters, the new tariffs will likely translate into higher domestic prices for imported goods. On the export side, this may lead to more factory closures, lost jobs and a decline in foreign earnings. There is also growing apprehension that international shipping lines may seize this opportunity to raise freight charges, further driving up the cost of essentials such as food, fuel and industrial inputs, thereby worsening the inflationary burden on ordinary citizens.

It's also hard not to question the motive and the timing behind this decision. If successive governments postponed tariff reforms for nearly four decades, why has this interim administration chosen to impose them now, in the midst of a crisis? The government must understand that timing matters and this is certainly not the time to increase trade-related costs. If tariff updates are necessary, they must follow wide-ranging consultation with stakeholders and be tied to measurable improvements in service delivery. Increases in port charges should not come ahead of visible gains in efficiency, digitisation and turnaround time. Until the time when the domestic economy recovers and external conditions stabilise, policies must prioritise resilience over revenue.​

 

[Saif]

Deals with foreign firms likely by Oct to operate Ctg port facilities

Foreign direct investment is set to flow in Chittagong-seaport facilities as the interim government intends to break long-lasting FDI droughts before national elections to make its finish memorable. By October, the appointment of internationally reputed port contractors is expected to be finalised

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Deals with foreign firms likely by Oct to operate Ctg port facilities
Govt facilitators also cite other port ventures, altogether to make Bangladesh an entrepot

Doulot Akter Mala
Published :
Jul 27, 2025 23:58
Updated :
Jul 27, 2025 23:58

Foreign direct investment is set to flow in Chittagong-seaport facilities as the interim government intends to break long-lasting FDI droughts before national elections to make its finish memorable.

By October, the appointment of internationally reputed port contractors is expected to be finalised through "transparent deals", Shipping Adviser Brigadier-General (rtd) M Sakhawat Hussain told The Financial Express, as dedicated government facilitators kept clearing the messy decks to push through the foreign-investment bids.

A recent report of the United Nations Conference on Trade and Development (UNCTAD) shows an irreversible decline in Bangladesh's FDI inflow continuing for the fourth consecutive year in 2024.

The net flow of foreign direct investment (FDI) into Bangladesh declined by 13.20 per cent to $1.27 billion in 2024 from $1.47 billion in 2023, said The World Investment Report 2025.

The most lucrative investment sector in the country, as of now, is deemed Chittagong seaport areas along the Bay of Bengal that came under global spotlight in recent months, with big-name firms trying to put respective stakes on the business prospects in sight.

To pull much-sought-after foreign investment in the country's prime-port ventures, in the first take, negotiations with the aspiring investors are going full steam ahead. Among the bidders in the beeline are DP World of the UEA, PSA-Singapore and APM Terminal, a subsidiary of Danish AP Moller Maersk.

A synergy of effort from the Ministry of Shipping, Chittagong Port Authority (CPA), Bangladesh Investment Development Authority (BIDA) and Chief Adviser's Office is "progressing fast", officials said.

"Chittagong seaport has all the potential to transform into a regional maritime hub in next three years if efficiency, vibrancy in port operations is ensured," says one of the official engrossed in doing the spadework.

Attuned to the preparation, in the meantime, the port's tariff-hike proposal is in the final stages to implement that would determine Bangladesh's port -tariff benchmark to the foreign investors for the defined port services.

The CPA secretary, Omar Faruk, says the tariff proposal that received clearance from the Ministry of Finance would come through a gazette notification after law-ministry vetting.

The date of effect to the port tariffs would be mentioned in the Gazette, he adds.

"The foreign investors won't be able to set any monopolistic port tariff on the services defined by CPA, as currently Red Sea Gateway in Patenga Container Terminal (PCT) following," he told the FE writer.

Investors may set their own tariffs for additional services where their investment in equipment, logistics matter, he added.

"… the agreements would be transparent without 'hide n seek' on what the government awarding the contract and on what conditions," said the Shipping Adviser of the post-uprising government.

"So far, the shipping ministry is on a right track in port-sector decision-making…growth in container handling by dry dock in NCT is the best example," he added.

The CPA awarded Navy-led Dry Dock the piloting job to operate the New-mooring Container Terminal for six months, starting July 6, 2025, after Saif Powertec's contract expired and the government didn't allow extension.

Initially, there was doubt over slipping the container-handling ratio in the transition period after a long 15-year period operated by one company, but it proved wrong, he said.

Average container handling by the navy-run dry dock increased 7.0 per cent per day.

"We expect to sign deal on Bay Terminal by October next," he said.

On the tariff-hike move, the Shipping Adviser said the port tariffs for the CPA would be set in line with international standards.

As for foreign investors, they would set their own tariffs on the basis of their investment, operational cost and the time period to get profits out of their investment under build-own-transfer (BOT) method.

On Laldia, the adviser said APM Terminal is keen to invest here and sought some additional land but, as there is an air funnel, the process in under review.

Ashik Chowdhury, BIDA Executive Chairman, says all new terminals would need at least until 2028 to come into full operation.

"We have to depend fully on Chattogram port by that time. So, there is no alternative but to improve port efficiency within this period, reducing turnaround, clearance, customs processes."

The new chief promoter of investment notes any foreign investor first makes queries on port efficiency before making any investment in any sector.

"Our preferences would be the port operators having proven track record on port efficiency, be it local or international," he adds.

Responding to a query as to whether next political government will scrap such contract signed by the interim government, Mr Chowdhury said it is unlikely as those international deals have several legal aspects and it is not possible practically.

"There are several geopolitical and diplomatic angles of such agreements. "

There will be sustainable framework on those agreements so that it cannot be deviated, he says about the guardrails.

On LCT, shipping ministry, BIDA, CPA , CA, and IFC (the transaction adviser) are holding meeting every two weeks to proceed on to sign concession agreement by October so the investor can start construction by January of next year,

"It will take two-three years to complete the LCT construction, but we want to complete the documentary part in interim government's regime," he adds.

The FDI would then start to flow in from early next year, and by next two years, there might be $ 600 to $ 800 million worth of FDI in this LCT investment, he expects.

For the Bay Terminal, the Ministry of Shipping has appointed new Project Director. The Shipping Adviser and the internal affairs special envoy to the Chief Adviser, Lutfey Siddiqi, visited PSA-Singapore that is willing to invest in the terminal.

For Laldia port terminal, the transaction adviser of the International Finance Corporation (IFC) has submitted its report to the CPA.

The New-mooring Container Terminal, now under operation by the navy, may also get well-reputed investors, with DP World on top priority, for port operation.

On July 21, key CPA officials-including the chairman and the member (engineering)-attended a meeting at the Shipping Ministry to review the draft of the Transaction Advisory Services Agreement (TASA) supported by the Asian Development Bank (ADB).

The agreement is intended to facilitate the appointment of a transaction adviser for the construction of the Bay Terminal.

Though private sector rings alarm on port-tariff hike this time when Trump's jacked-up tariff is a major concern, the CPA may not have any other option but to raise the tariff rates that remained unchanged since 1886.

With such port tariffs, officials think, no foreign investors would find investment in Bangladesh viable.

To improve customs efficiency, the NBR chairman along with his senior members have started physical inspection of major ports, including Chittagong, Mongla, Benapole, Pangoan.

According to CPA data, the Bay Terminal will enhance the port's annual handling capacity to 5.0 million twenty-foot-equivalent units (TEUS). The CPA secretary mentions that the Matarbari terminal is also progressing fast and may start operation by next year.

"We have already signed civil construction contract with a Japanese company for Matarbari port terminal. It would enhance Chittagong port efficiency."​

 

[Saif]

Wisest option for hiking port tariff

Developing the required infrastructure is undeniably the first condition to meet before attracting foreign direct investments (FDIs) in an economy. A seaport, in this regard, acts as the gateway to international trade to drive the engine of economic growth. In that case, sooner the Chattogram

thefinancialexpress.com.bd

Wisest option for hiking port tariff

FE
Published :
Jul 30, 2025 00:54
Updated :
Jul 30, 2025 00:54

Developing the required infrastructure is undeniably the first condition to meet before attracting foreign direct investments (FDIs) in an economy. A seaport, in this regard, acts as the gateway to international trade to drive the engine of economic growth. In that case, sooner the Chattogram (Ctg) port is able to increase its efficiency to deliver quality service for its local, regional and international clients, the better for the nation's faster economic growth. To that end, the interim government is learnt to have fast-tracked its efforts to finalise deals with port development companies of global repute so the task of handing over the Ctg port's operation to them could be completed by next October, that is, before handing over power to the next elected government.

As reported earlier, the Ctg Port Authority (CPA) has raised its tariffs on a number of items including its goods, container and vessel handling services by large margins to set the benchmark so that after taking charge the interested foreign investors in port development could decide their own service charges based on it (government-fixed benchmark). The CPA secretary reportedly informed that the tariff-hike proposal has been already cleared by the finance ministry and awaiting law ministry's vetting before its publication through a gazette notification. But the local port users and stakeholders have been dismayed at the move, since the final decision of tariff raise, they claimed, has been made leaving them out in the cold. The port tariffs for some widely used services as finalised by the government are in cases 10 times higher than the current rates, they complained, though according to some port officials, the average tariff hike would actually stand at around only a 60 per cent in excess of the existing rates. Vehemently opposed to the final decision on raising port tariff rates, which are far higher than what they suggested should be (by around 10 to 20 per cent during their initial talks with the Shipping ministry), would be to the utter detriment of the country's foreign trade, especially Readymade Garment (RMG) export, which is, of late, battling severe headwinds. Worse, the port charges so outrageously enhanced will increase cost of doing all kinds of business and thereby burdening the economy and the general consumers with higher inflation. Arguments for or against the drastic port usage rates hike apart, the first thing that the government, or the Ctg port authorities for that matter, would do well to keep in mind is that however essential the move is, it should be made keeping the stakeholders in the picture. For any unilateral action in this regard might lead to a serious stalemate, which given the few months it is still left with to run, the interim government will find itself in quite a bind to resolve.

The reported assurance from the government that the frameworks for the agreements could not be scrapped by any future government as those (agreements) will be of international standards and bound by legal as well as diplomatic obligations with their possible geopolitical dimensions as well. This smacks of riding roughshod. In the final analysis, if things are left to widespread discontent of and non-cooperation from port usersand, even worse, to be settled through prolonged future court battles, that hardly bodes well for the desired development of the port and its potential to draw expected FDIs to spur the nation's economic growth.

While there is no point denying the overriding question of making Ctg port's efficiency and capacity for providing quality service to all users to match, if not excel, its regional competitors, it cannot be at the expense of national interests including those of the local users. Hiking tariff rate in anticipation of the port's questionable foreign takeover is flawed argument. The interim government would do well to look for wiser options.​

 

[Saif]

Easing congestion at Chittagong port

Bangladesh's main seaport and gateway to international trade, the Chittagong Port, has no dearth of barriers to overcome and deliver up to its full capacity. Ironically, it is the main users of the port facilities who in most cases, get in the way. So, one is hardly surprised when the Chittagong Po

thefinancialexpress.com.bd

Easing congestion at Chittagong port

FE
Published :
Aug 05, 2025 23:57
Updated :
Aug 05, 2025 23:57

Bangladesh's main seaport and gateway to international trade, the Chittagong Port, has no dearth of barriers to overcome and deliver up to its full capacity. Ironically, it is the main users of the port facilities who in most cases, get in the way. So, one is hardly surprised when the Chittagong Port Authority (CPA), the body that manages, maintains and looks after the governance and operation of the seaport, had to issue a notice threatening its main users with penal rent to be charged unless they promptly clear port yards. Notably, of late, the port's normal operation is being severely hampered as the volume of empty containers has surpassed its capacity many times over. In consequence, it is causing delay in key operations like delivery of the imported FCL (full container load) goods as well as stacking and storing of freshly unloaded containers. Since repeated warnings have fallen on deaf ears, the CPA has been constrained to declare in a notification August 7 as the cutoff date to clean up the yard following which, it warned, the section 160 of Regulations for Working of Chittagong Port (Cargo and Container) 2001, would come into force. Meanwhile, as notified, the port authority would monitor progress, if any, of the cleanup work.

There is no question that the port authority, if it is to continue serving its users, has to take, if necessary, harsh measures to keep the port's container storage space clean and in order. One would like to believe that the CPA's deadline would be met by the port users sine it is they who would ultimately suffer if the clogged up yards bring the port's normal activities to a standstill to the detriment of the country's entire external trade. It's indeed unfortunate that a humongous pile of empty containers was lying on the port's storage yard putting huge obstacles in the way of its normal functioning. It is worth noting that the Chittagong Port has a combined container storage capacity of 53, 518 TEUs (twenty-foot equivalent units) in its several storage yards. That means already large portion of the port's entire container storage capacity has been adversely occupied by the empty boxes yet to be shifted to the off-docks. So, one would earnestly like to hope that the CPA's cleaning up deadline as notified would not go unheeded by its stakeholders. Currently, the storage rent for empty containers stands at USD6 per TEU per day for the first seven days and jumps to USD12 per TEU from the 8th to 20th day of container yard usage and USD24 per TEU per day thereafter. In that case, if any action is taken by CPA after the passage of the deadline, it should be justified and any clamouring from any user feeling aggrieved at it should not stand to reason.

Since last March, the CPA has been imposing four times the usual store rent on cargo containers so that the congestion of the cargo storage space could be eased. But no visible move has been made so far by the stakeholders concerned to keep the port's container storage space free from empty containers. In the final analysis, in an arrangement where cooperation between the provider and recipient of service should be the basis of work ethic, resorting to any executive or legal action is the last option.

So, it is in the interest of all the parties, the port users and the CPA, that they would come together and agree towards further enhancing the country's premier port's service giving potential.​

 

[Saif]

Foreign operators for NCT by Dec: Bida

The authorities will appoint a foreign operator for New Mooring Container Terminal (NCT) of the Chattogram port by December this year, according to Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bangladesh Investment Development Authority (Bida).

www.thedailystar.net

Foreign operators for NCT by Dec: Bida

New Mooring Container Terminal, the largest at Chattogram port. Photo: Rajib Raihan/file

The authorities will appoint a foreign operator for New Mooring Container Terminal (NCT) of the Chattogram port by December this year, according to Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bangladesh Investment Development Authority (Bida).

He said by this time, the government also wants to appoint foreign operators for Laldia Container Terminal and for at least one terminal of Bay Terminal of the Chattogram port.

At a press briefing in the Chattogram port yesterday, Mahmud said work was ongoing to prepare an international "request for proposal" (RFP) in this regard.

The development comes after Bangladesh Navy-run Chittagong Dry Dock Limited took charge of the NCT from a private operator in early July.

With the Chattogram port's contract with the private operator coming to an end and the government showing interest to appoint a foreign firm for the container terminal, political parties are now opposing the appointment of foreign firms.

Citing national interest, the parties argued that it was not logical to appoint a foreign firm to the fully equipped terminal.

However, the government said bringing a renowned foreign port operator would increase container handling efficiency and boost the overall outcome of the port.

In the face of the opposition, the authorities let Bangladesh Navy operate the terminal for a temporary period.

At yesterday's press briefing, the Bida chairman underscored the importance of recruiting world-class port operators to keep the Chattogram port among the top-ranking ones globally.

"The government's ambition is to achieve some milestones in progress in the major port development projects by December this year," he said.

The government is currently in talks with UAE-based DP World to operate the NCT.

Mahmud emphasised that the Chattogram port must perform at its full capacity to realise the government's long-term vision of transforming Bangladesh into a global manufacturing hub by leveraging its skilled workforce.

"If the Chattogram port doesn't perform efficiently, other development projects such as Beza, Bepza, hi-tech park, and various industrialisation initiatives may stall," he warned.

He said the volume of containers handled at the NCT has increased by 30 percent while the turnaround time of vessels decreased by 13 percent in a month after Chittagong Dry Dock Limited took over the responsibility to operate the terminal.

Considering such monthly growth, container handling at the NCT might reach 1.7 million TEUs in the current fiscal whereas it was 1.3 million TEUs last year, he hoped.

"We have consistently said the Chattogram port must rank among the top global ports for our sake. To achieve this, we need to bring the world's best port operators here," he asserted.

"Our long-term plan is to increase Bangladesh's total port capacity by four to five times by 2030," Ashik added.

He also expressed hope that ongoing reforms focused on digital transformation at the Chattogram port would significantly reduce delays, hassles, and irregularities.

Responding to a question, the Bida chairman candidly admitted that the experience with Saudi firm Red Sea Gateway Terminal (RSGT) in Bangladesh has not been satisfactory.

It is worth noting that under the previous Awami League-led government, the Saudi firm was appointed as the first foreign operator of a newly built Patenga Container Terminal (PCT) at the Chattogram port.

Ashik Mahmud explained that the RSGT has struggled to achieve the expected growth in container handling at the PCT due to several technical issues.

"The RSGT has encountered complications, and a major reason for these complications lies on our side," he also said, acknowledging the government's inexperience in dealing with international terminal operators.

During the visit, the Bida chairman inaugurated a Shipping and Logistics Online Desk, KEPZ Green Channel, and the Vehicle and Container Digital Data Exchange System at the port.​

 

[Saif]

Chittagong Port is profitable, why increase surcharges?

A total of 92 per cent of the country’s import-export trade is conducted through the Chittagong Port. Imports through this port include food grains, cement, fertiliser, coal, salt, sugar, fuel oil, and edible oil, among others. Exports through the port include readymade garments, jute, jute...

en.prothomalo.com

Chittagong Port is profitable, why increase surcharges?

Kallol Mustafa
Published: 11 Aug 2025, 08: 24

Photo shows containers at the New Mooring Container Terminal (NCT) in Chittagong Port. Sourv Das

A total of 92 per cent of the country’s import-export trade is conducted through the Chittagong Port. Imports through this port include food grains, cement, fertiliser, coal, salt, sugar, fuel oil, and edible oil, among others. Exports through the port include readymade garments, jute, jute goods, leather products, tea and frozen goods. As a result, the entire economy of the country depends on this port.

Recently, news reports have said that the interim government has decided to raise various service tariffs at Chittagong Port by an average of 40 per cent in one go. Although the average is 40 per cent, the rate of increase for some services is even higher. For example, loading and unloading containers from vessels. In this sector, the charge for a 20 ft container has been proposed to be raised from 43 dollars 40 cents to 70 dollars 11 cents, an increase of about 62 per cent. Earlier, on 15 July, the private Inland Container Depot (ICD) Association announced in a circular that rates for private container handling would be increased. According to that announcement, starting from 1 September, charges will rise by between 30 and 100 per cent depending on the service.

There is already a kind of stagnation and uncertainty in the country’s economy. Added to this are concerns over Trump’s increased tariffs and the announcement of higher service charges at privately owned inland container depots. In such a situation, Chattogram's port tariff hike has come as a double blow.

The government says that charges for most port services have not been raised since 1986. While rates for five services, including port tax, berthing fees, forklift charges and other utility costs, were slightly adjusted in the 2007-08 fiscal, all other charges have remained unchanged since 1986. Therefore, the government argues, raising tariffs is necessary to expand the port’s capacity. There is, however, a catch in this argument: port charges are collected in US dollars. In 1986, the dollar stood at 30 taka 41 paisa. It is now 122 taka. So, even without any official tariff hikes, the increase in the exchange rate has automatically pushed up charges by more than four times.

Chittagong Port is a service-oriented institution. According to the Chattogram Port Authority’s annual report, one of its key commitments is to provide port services at the lowest possible cost and in the shortest possible time. As a service provider that plays a crucial role in the national economy, the justification for raising its tariffs is questionable, especially since the port is not operating at a loss. For example, in the 2024-25 fiscal year, the port earned 5,227 crore taka against an expenditure of 2,314 crore taka, resulting in a profit of 2,913 crore taka. Why would a state-run service institution that makes nearly 3,000 crore taka in profit annually need to raise tariffs in this way?

If tariffs are increased, the cost of importing consumer goods and raw materials will rise-costs that businesses will ultimately pass on to consumers. This will further fuel the already high inflation in the country. On the other hand, for export goods, transportation costs will go up, which may weaken exporters’ competitiveness in global markets.

Many fear that the tariff hike, despite the port not being in deficit, is intended to make the port more attractive for DP World. Under the previous Awami League government, electricity and fuel prices were repeatedly raised to attract private and foreign investment in those sectors. This has prompted questions about whether the same model is now being applied to make Chittagong Port appealing to foreign companies.

Both the leasing of the New Mooring Terminal to a foreign company through a PPP arrangement and the tariff hike initiative were undertaken during the tenure of the previous authoritarian government. According to information from the PPP Authority, the UAE state-owned company DP World expressed interest in investing in Chattogram's port in 2020. As reported by Bonik Barta, in 2022 Spanish consultancy firm Messrs IDOM Consulting was hired to review the port’s tariff structure and prepare new proposals. Although there had been previous efforts to review port fees, there is strong reason to believe that the process gained momentum specifically in anticipation of DP World’s investment.

In the case of exports to the United States, Trump’s additional tariffs may add to the burden. For imports too, extra tariffs will apply at every stage. Therefore, the decision to raise tariffs at an already profitable Chattogram Port must be scrapped.

DP World has a bad reputation in many countries around the world for frequently raising port tariffs. According to a report by the United Nations Conference on Trade and Development (UNCTAD), in Australia, DP World unilaterally and dramatically increased its infrastructure surcharge in order to recover its investment. At the Port of Melbourne, the surcharge per container jumped from 3.45 Australian dollars in 2017 to 85.30 dollars in 2019, an increase of over 2,000 per cent. Similar extra charges were imposed in Brisbane and Sydney, which raised concerns for Australia’s competition regulator. (Review of Maritime Transport 2019, UNCTAD, 31 January 2020)

In Bangladesh’s case, was this advance tariff hike made to prevent DP World from gaining such a negative reputation here? The interim government’s plan is to complete negotiations and sign an agreement with DP World by November of this year. After the deal is signed, the terminal will come under DP World’s control. They will collect tariff and hire staff. In return, the port will receive lump-sum payments, annual payments, and container fees. Naturally, the surcharge hike will mean that DP World’s earnings will be higher than the current rates.

Raising tariffs Chattogram's port in the present economic situation would not be reasonable. If both the port and private inland container depots (ICDs) raise tariffs, costs will increase at every stage of the import-export process. For exports, there will be an extra tariff when goods are kept at a private ICD from the factory, and another extra tariff when they go through the port for shipment.

In the case of exports to the United States, Trump’s additional tariffs may add to the burden. For imports too, extra tariffs will apply at every stage. Therefore, the decision to raise tariffs at an already profitable Chattogram Port must be scrapped. At the same time, through discussions with private ICD owners, their tariff hike should also be brought down to a reasonable level.

It is also necessary to reconsider the decision to hand over the operation of the New Mooring Container Terminal (NCT) of Chattogram port to a foreign company. After the expiry of the port’s contract with the controversial Saif Powertec Limited, the navy-run Chittagong Dry Dock Limited took charge of operating the NCT for six months starting from 7 July. This has further accelerated port operations, which demonstrates the capability of domestic institutions in port management. Therefore, considering the strategic importance and economic significance of Chattogram port, the interim government should refrain from increasing port surcharges and from handing over terminal operations to foreign companies.

* Kallol Mustafa is a writer on power, energy, environment and development economics.​

 

[Saif]

Road over Jamuna Bridge to be widened by 11ft

The Bridges Division has planned to convert the additional space into roadways which will further ease the journey towards the northern part of the country

en.prothomalo.com

Road over Jamuna Bridge to be widened by 11ft
Anowar Hossain Dhaka
Published: 12 Aug 2025, 19: 57

The railway track on the Jamuna Bridge Prothom Alo

A new rail bridge has been launched over river Jamuna. Trains no longer use the Jamuna Bridge. Therefore the authorities have decided to remove the railway track on the Jamuna Bridge. It will create an additional 11 feet space on the bridge.

The Bridges Division has planned to convert the additional space into roadways which will further ease the journey towards the northern part of the country.

Sources in the Bridges Division, the regulatory body of the Jamuna Bridge, said that they will have to do some additional work to extend the road up to the space used for the railway track. It requires funds. The interim government has agreed to the plan. Experts have been appointed to determine a suitable process for road extension, assess the cost and for design. However, this time only local experts have been appointed. The six engineering and technology universities are also involved in the process.

Speaking to Prothom Alo, Bridges Division chief engineer Kazi Mohammad Ferdaus said the work on road extension would start after getting expert opinion and their design. He hoped to start the work by the next six months.

A new railway bridge over the Jamuna River (the Jamuna Railway Bridge) was opened last February. Following this, train operations on the railway track of the Jamuna Bridge were stopped.

The 4.8-kilometre-long railway bridge, built parallel to the Jamuna Bridge, is the longest railway bridge in Bangladesh. It has two dual-gauge, double-track lines. The construction cost was about Tk 167.81 billion. The bridge was built with funding from the Government of Bangladesh and the Japan International Cooperation Agency (JICA).

The new railway bridge can be seen from the Jamuna Bridge Prothom Alo

The road bridge over the Jamuna River was opened in 1998. According to the Bridges Division, the bridge was not originally designed to accommodate trains. Later, the then prime minister Sheikh Hasina instructed that a railway track be added to the bridge. The design was modified, and a railway track was installed on one side of the Jamuna Bridge, narrowing the roadway slightly.

In 2006, cracks appeared on the bridge. After that, the speed of trains on the bridge was reduced, and heavy freight trains were barred from using it. To facilitate the movement of passenger and freight trains to the north, a project to build a new railway bridge over the Jamuna River was undertaken in 2016.

Jamuna Bridge to get back original shape
The Jamuna Bridge has four lanes. According to the Bridges Division, the width of its carriageway does not meet international standards. Compared to the Padma Bridge and other new bridges in the country, the Jamuna Bridge has a much narrower carriageway. As a result, long traffic tailbacks form on both ends of the bridge not only at weekends or the start of the week, but also during Eid and other major festivals.

Work on road extension would start after getting expert opinion and their design. He hoped to start the work by the next six months---Kazi Mohammad Ferdaus, chief engineer, Bridges Division.

Currently, an average of 22,000 vehicles cross the Jamuna Bridge daily. During last Eid-ul-Azha, a record of more than 64,000 vehicles crossed the bridge in a single day.

Experts say that under ideal standards, a four-lane bridge or road should have a divider in the middle, with each carriageway at least 24 feet wide. However, the current carriageway width of the Jamuna Bridge is just over 41 feet, meaning each direction is a little over 20 feet wide. Once the railway track is removed from the bridge, an additional 11.5 feet of space will be available. By shifting the central divider slightly, it will be possible to create nearly six extra feet of carriageway on each side.

On the other hand, the four-lane highway on either side of the Jamuna Bridge is 24 feet wide in each direction, allowing two vehicles to pass side by side with room to spare. In contrast, it is difficult for two vehicles to travel side by side on the Jamuna Bridge. According to the bridge division, there is also no walkway on the bridge for maintenance work or for staff movement. As a result, vehicles coming from the wider highway on both sides often get stuck at the bridge’s entry point because the bridge is narrower than the highway. In addition, vehicle speed slows slightly at the toll plaza.

The Jamuna Railway Bridge File photo

Officials at the bridge division said the Padma Bridge does not have this problem. Each carriageway on the bridge is more than 31 feet wide, with ample space on the sides for easy maintenance work. At present, all major bridges in the country—both existing and under construction—have a median in the middle, with a minimum width of 26 feet for each carriageway. Some bridges have even wider carriageways.

Railway track being removed

In the last week of June, work began to remove the railway track from the Sirajganj end of the Jamuna Bridge. The nuts and bolts were removed first, and now the railway track is being dismantled. Railway sources said the removal work could be completed within the next three months.

Last month, Sheikh Moinuddin, the chief advisor’s special assistant for the Ministry of Road Transport and Bridges and Railways, inspected the expansion work of the Jamuna Bridge’s carriageway and the removal of the railway line. He gave instructions for the swift removal of the railway track.

Once the road on the Jamuna Bridge is widened, vehicles will be able to move in line with the wide highways on either side. This will make travel across the Jamuna Bridge easier and reduce traffic congestion at both ends of the bridge---Sheikh Moinuddin, Special assistant to the chief adviser.

Ahmad Hossain Masum, chief engineer of western region of railways, told Prothom Alo that during the inspection by the chief advisor’s special assistant, officials from the bridge division and the ministry of railways were present. They discussed the work plan for the expansion of the Jamuna Bridge’s road. They expect to complete the railway line removal within the next three months. Meanwhile, other preparations by the bridge division will also be finalised.

It was known at the time of the Jamuna Rail Bridge project that once the new bridge was built, trains would no longer run on the road bridge. Therefore, the design and necessary preparations for the expansion of the Jamuna Road Bridge could have been made in advance, but that was not done.

The Bridge’s Division said that about two years ago it had sought the government’s opinion on expanding the road on the Jamuna Bridge’s railway track. However, the then Awami League government showed no interest in the matter.

Since the then Prime Minister Sheikh Hasina had added the railway track to the Jamuna Bridge, she was against its removal. Because of this, the bridge division did not proceed further. But after the interim government took office, when the bridge division again submitted a proposal, it was approved by Muhammad Fouzul Kabir Khan, adviser to the Ministry of Road Transport, Bridges and Railways. Soon after, at the beginning of this year, the process of appointing consultants for design preparation began.

Sheikh Moinuddin, special assistant to the chief adviser, told Prothom Alo that once the road on the Jamuna Bridge is widened, vehicles will be able to move in line with the wide highways on either side. This will make travel across the Jamuna Bridge easier and reduce traffic congestion at both ends of the bridge.​

 

[Saif]

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

Business leaders and government officials have urged support for the move to appoint foreign operators at Bangladesh’s ports to enhance efficiency and align with international standards, instead of opposing it. They made the call at a roundtable on “Challenges and Opportunities in the

thefinancialexpress.com.bd

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

FE Online Report
Published :
Aug 17, 2025 19:44
Updated :
Aug 17, 2025 19:56

Business leaders and government officials have urged support for the move to appoint foreign operators at Bangladesh’s ports to enhance efficiency and align with international standards, instead of opposing it.

They made the call at a roundtable on “Challenges and Opportunities in the Logistics Sector”, held at Lakeshore Heights hotel in Gulshan on Sunday. Dr Ahmed Ullah, director general at the Chief Adviser’s Office, attended as the special guest. Professor Md Mamun Habib of Independent University, Bangladesh, delivered the keynote address. The discussion was chaired by Shamsul Huq Zahid, editor of The Financial Express, while Shiabur Rahman Shihab, head of online at The Financial Express, moderated it.

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

Mohammad Hatem, president of BKMEA, said foreign operators could help enhance management efficiency while enabling local manpower to learn modern technologies and international-standard practices.

Referring to the sudden 40 per cent hike in charges at Chattogram Port, he said, “A port is a service-oriented organisation. Such a steep rise in charges without any discussion or logical explanation is unjustified.”Hatem also questioned why a government institution should seek excessive profits.

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

Echoing his concerns, BGMEA Senior Vice President Inamul Haq Khan said container handling at Chattogram 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 Ahmed identified the National Board of Revenue (NBR) as the biggest hurdle for logistics, urging policy reforms to improve port efficiency and hold those responsible for delays accountable.

Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA) President MD Shahriar said every truck in metropolitan areas is forced to pay Tk 50–200 in bribes, while port delays keep trucks waiting an extra three to four days, pushing up exporters’ costs. He alleged that officials at Chattogram Port Authority behave as if they are running Singapore Port, while the reality is far less efficient.

BRVIDA President Abdul Haq observed that infrastructure costs in Bangladesh are higher than global standards, whereas countries like Vietnam have reduced costs through reforms. He lamented that multiple ministries are responsible for transport but none effectively manages multi-modal transformation.

BSAA Chairman Syed Mohammad Arif criticised the recent port charge hike imposed without consultation with stakeholders, which has triggered a chain reaction of rate increases across services.

BCSA General Secretary Shamsuddin Chowdhury said berth operator appointments should be decided by container agents. He warned that Chattogram Port has already reached its maximum capacity and that alternative solutions are essential to achieving the $100 billion export target by 2030.

Meanwhile, the government said infrastructure expansion is under way.

Addressing the event as chief guest, Senior Secretary of the Ministry of Shipping Mohammad Yousuf announced that construction of a multi-modal logistics hub at Bay Terminal in Chattogram would begin soon. The planned facility will integrate rail, road, and sea transport, along with a new railway container terminal in Halishahar.

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

Tender evaluation for the Bay Terminal is expected within one to two months. Three terminals will be developed there, one each by CPA, PSA Singapore, and DP World. By 2036, the Bay Terminal is projected to handle 5.36 million TEUs, compared to Chattogram Port’s current 2.86 million TEU capacity, which is already overstretched, handling 3.3 million TEUs annually.

“Although stakeholders are pushing to expedite the Bay Terminal, it is being implemented under a PPP model on a G-to-G basis, which requires the appointment of a transaction adviser,” Yousuf explained. Ernst & Young, the previous adviser, has exited, and the ministry is now in talks with ADB to reduce costs.

A report from the new adviser is expected by October, and by December at least one Bay Terminal will be handed over to a contractor, he said. Yousuf also expressed hope that the New Mooring Container Terminal (NCT) would be handed over to a global operator under a transparent agreement by October.

On the National Logistics Policy, he said it would be amended soon, with two high-powered committees—chaired by the Chief Adviser and the Principal Secretary—already formed. An action plan under the policy is expected within a month, incorporating recommendations from the FE roundtable, the World Bank, and relevant ministries.

While physical infrastructure is vital, Bangladesh continues to create barriers to foreign direct investment (FDI), he noted. In 2023, the country received only $3 billion in FDI, mostly from the expansion of existing investors rather than new entrants. “We are lagging behind India and Vietnam in attracting FDI. Without reducing logistics costs, we will not be able to enhance export competitiveness,” one official added.

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 said 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.

On port tariffs already approved by the Ministry of Finance, Yousuf said rates will only be finalised after consultations with stakeholders. CPA stressed the need to raise revenue to finance infrastructure development but assured that tariff hikes will not be implemented immediately.

Some equipment installed at NCT, which began operations in 2007, has become faulty and needs replacement. NBR, CPA, and the Shipping Ministry are working in coordination on port reforms.

Yousuf also conveyed the Chief Adviser’s instruction to waive 7.5 per cent VAT on ship imports, as the tax is discouraging investors. However, he added, the issue must be settled in consultation with the IMF.

Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the country is “five decades behind” in logistics development, as the sector lacked a proper policy, regulatory framework, and market development until the recent logistics strategy was initiated.

He argued that higher export and production costs due to US tariffs and LDC graduation could be offset by greater logistics efficiency. Bangladesh could also benefit from shifts in global value chains and higher US tariffs on other countries, but only if it upgrades its logistics system.

Reaz criticised delays in enacting the National Logistics Policy, saying 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,” he said.

Bangladesh Ocean Going Ship Owners’ Association (BOGSOA) President Azam J Chowdhury accused the government of excluding the private sector from decision-making processes.

Delivering the keynote paper, Prof Mamun Habib of Independent University, Bangladesh, noted that Bangladesh continues to lag its South Asian peers in global logistics rankings.

According to the World Bank’s 2023 Logistics Performance Index, the country ranked 88th, compared to India at 38 and Sri Lanka at 73.

“We are consistently weakest in infrastructure and business fundamentals, which makes it difficult to compete globally,” Prof Habib said.

Key challenges, he added, include poor integration of transport networks, inadequate warehousing and distribution facilities, and delays in implementing the national logistics strategy. A lack of skilled manpower and limited adoption of modern technology further weaken the sector.

Despite these constraints, Prof Habib pointed to opportunities in the recently approved but still unimplemented national logistics strategy, growing private sector interest in ICD investment, and the potential of automation, AI, blockchain, and other digital technologies in supply chain management.

“Bangladesh must embrace automation, ethical practices, and human resource development to build a smart, resilient, and environmentally sustainable logistics ecosystem,” he stressed, calling for greater coordination among port authorities, customs, civil aviation, and regulatory agencies.​

 

[Saif]

BKMEA chief bats for foreign operators at ports to enhance efficiency

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has urged the government to engage foreign operators to run the country’s ports, saying it would boost efficiency and help local workers learn modern technologies. Speaking at a roundtable on “

thefinancialexpress.com.bd

BKMEA chief bats for foreign operators at ports to enhance efficiency

FE Online Desk
Published :
Aug 18, 2025 00:06
Updated :
Aug 18, 2025 00:06

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has urged the government to engage foreign operators to run the country’s ports, saying it would boost efficiency and help local workers learn modern technologies.

Speaking at a roundtable on “Challenges, Opportunities, and Way Forward in Shipping & Logistics Landscape” organised by The Financial Express (FE) in Dhaka, , Hatem criticised a recent 40 per cent increase in charges at Chattogram Port, calling it “unjustified”.

“A port is a service-oriented organisation. Such a steep rise in charges without any discussion or logical explanation is unjustified,” he said, questioning why a government agency should seek excessive profits.

The BKMEA president stressed the need to operationalise the Bay Terminal without delay and make full use of Mongla and Payra ports to help achieve the $100 billion export target.

He also pointed to chronic gas and electricity shortages, along with poor law and order, as major obstacles for exporters.

Hatem called for uninterrupted energy supply and stronger security measures to keep the sector competitive.

Professor Md Mamun Habib of Independent University, Bangladesh delivered the keynote address.

Shipping ministry senior secretary Mohammad Yousuf attended as the chief guest.

The event was chaired by FE Editor Shamsul Huq Zahid, while Shiabur Rahman, head of online at the newspaper, moderated it.​

 

[Saif]

Multimodal hub integrating rail, road, Ctg seaport in sight

A multimodal logistics hub integrating railway, road, and Chittagong seaport facilities will be developed near the Bay Terminal to boost Bangladesh's trade-facilitating efficiency, as efforts are geared towards US$100-billion annual export earnings. To this end, the World Bank-financed Bay Termina

thefinancialexpress.com.bd

THRUST ON LOGISTICS UPGRADE TOWARDS $100B EXPORT
Multimodal hub integrating rail, road, Ctg seaport in sight
Also planned 'port community system' interlocking three seaports on WB model, FE seminar told

FE REPORT
Published :
Aug 18, 2025 00:18
Updated :
Aug 18, 2025 00:18

A multimodal logistics hub integrating railway, road, and Chittagong seaport facilities will be developed near the Bay Terminal to boost Bangladesh's trade-facilitating efficiency, as efforts are geared towards US$100-billion annual export earnings.

To this end, the World Bank-financed Bay Terminal Breakwater Project is moving ahead, with a subsidiary loan agreement to be signed today, following an earlier deal made between ERD and the Bank in Washington, said Senior Secretary, Shipping, Mohammed Yousuf at a roundtable organised by The Financial Express on Sunday in Dhaka.

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

Three Bay Terminals will be developed by CPA, PSA Singapore, and DP World. Tender evaluation is expected within a month or two. By 2036, the Bay Terminal is projected to handle 5.36 million TEUs, compared to Chittagong Port's current 2.86-million-TEU capacity, which is already overstretched handling 3.3 million TEUs annually.

The project is being implemented under a PPP G-to-G model, requiring a transaction adviser. Foreign firm Ernst & Young has exited, and the ministry is in talks with the ADB to cut costs.

A TA report is expected by October, with at least one Bay Terminal likely to be handed over to a contractor by December, Yousuf said.

He also expressed the hope that the New-mooring Container Terminal (NCT) would be handed over to a global operator by October under a transparent agreement.

On the National Logistics Policy, Yousuf said it would be amended soon and that two high-powered committees -- led by the Chief Adviser and the Principal Secretary -- were already formed.

An action plan under the policy is expected within a month, incorporating inputs from the FE roundtable, the World Bank, and relevant ministries.

Mr Yousuf also announced plans for setting up a Port Community System integrating Chittagong, Mongla and Payra seaports, based on a World Bank design.

He urges businesses to move empty containers to off-docks or return them to ships to ease congestion at the Chittagong seaport.

The railway authority has agreed to hand over at least one Dhaka-Chittagong container train to the private sector. A Matarbari Phase-II master plan is also underway, including an LNG and LPG terminal and a new CPA dockyard.

The Finance Ministry-approved port tariffs will only be finalised after consultation with stakeholders. The CPA has emphasized raising revenue for infrastructure but assured that tariff hikes will not be forthcoming.

Some NCT equipment, installed in 2007, now requires replacement, while the NBR, the CPA, and the Shipping Ministry are coordinating on wider port reforms.

The official also conveyed the Chief Adviser's instructions for waiving the 7.5-percent VAT on ship imports to encourage investment, though the matter remains subject to IMF concurrence.

Despite progress in physical infrastructure, Yousuf notes, Bangladesh continues to lag behind India and Vietnam in attracting foreign direct investment (FDI), receiving just US$3 billion in 2023, mostly from existing investors.

"Without reducing logistics costs, we will not be able to enhance export- competitiveness," he alerts.

Director-General at the Chief Adviser's Office Dr Ahmed Ullah told the meet that the chief adviser's office has decided to revisit the logistics policy. There are many issues yet unaddressed could be added to the policy.

"Reform is going on -- the government is trying its best, but it is slow," the DG said.

Terming the sector not-enough-recognised, Editor of The Financial Express Shamsul Huq Zahid said the financial daily would organise another seminar on a larger scale to give the trade-facilitating backbones a much-needed shot in the arm.

"With increased efficiency in the logistics sector, there is possibility of increase in export and decrease in the cost for end-consumer," he said.

He also said The Financial Express would prepare a set of recommendations for the policymakers on the basis of the inputs that came out from the roundtable.

Bangladesh Oceangoing Shipowners' Association (BOGSOA) President Azam J Chowdhury appeared critical of the government for not engaging the private sector in the decision-making process.

He said, "Developed logistics sector would be able bring increasing amounts of foreign currencies."

Addressing the event, Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said foreign operators could help raise management efficiency and allow local manpower to acquire modern technology and international-standard practices.

"A port is a service-oriented organisation. Such a steep rise in charges without any discussion or logical explanation is unjustified," he said, referring to a sudden 40-percent hike in charges at Chattogram Port.

Hatem shot a question as to why a government institution should aim to make excessive profits.

He stressed the need for operationalising the Bay Terminal quickly, while fully utilising the capacities of Mongla and Payra ports to help achieve the $100-billion export target.

Also, he said, addressing the gas and electricity crises, ensuring uninterrupted energy supply, and improving the law-and-order situation are vital for boosting exports.

Other business leaders echoed similar concerns about inefficiencies at Chattogram Port -- Bangladesh's commercial lifeline, up till now -- and the need for international standards.

AmCham President Syed Ershad Ahmed notes that logistics industry in Bangladesh is still shaping. "The country's infrastructures do not involve logisticians in the building process, which in turn, doesn't help the infrastructure to utilize."

Senior Vice President of BGMEA Inamul Haq Khan notes that container handling at the port takes 5 to 6 days, compared to the global standard of 1 to 2 days. "Often, we are forced to send goods by air to meet buyers' commitments, which costs four times more than seaway shipments."

Former BFFA president Kabir Ahmed also urged the government to allow foreign operators, saying a "vested group" continues to oppose such moves. He stressed the need for reforms at Biman and Hazrat Shahjalal International Airport, where all four EDS (Explosives Detection Systems) machines remain inactive.

He identified the National Board of Revenue (NBR) as the biggest challenge for logistics, urging policy measures to improve port efficiency and punish those causing delays.

MD Shahriar, president of BGAPMEA, said every truck in metropolitan areas is forced to pay Tk 50-200 in bribes, while port delays force trucks to stay an extra 3 to 4 days, raising exporters' costs.

He also alleged that the behaviour of Chattogram Port Authority officials "suggests they think they are running Singapore Port, while the reality is far worse".

Abdul Haque, president of Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), points out that Bangladesh's infrastructure costs are higher than global standards, while countries like Vietnam have lowered costs through reforms. He laments "multiple transport ministries exist, but none effectively manages multimodal transformation".

Syed Mohammad Arif, chairman of Bangladesh Shipping Agents Association, criticised the recent port- charge hike imposed without stakeholder consultation, which has triggered a chain reaction of rate hikes across services.

Shamsuddin Chowdhury, general secretary of Bangladesh Container Shipping Association, told the meet that berth-operator appointments should be decided by container agents. He warns that Chattogram Port has already reached its maximum capacity and that alternative solutions are necessary to achieve the $100-billion export target by 2030.

The government has, meanwhile, said it is moving forward with infrastructure expansion.

Masrur Reaz, Chairman of Policy Exchange Bangladesh, finds the country "five decades behind" in developing logistics as a sector, as it was never recognised with proper policy, regulatory framework, or market development until the recent logistics policy framework was initiated.

He notes that higher export and production costs stemming from US tariffs and LDC graduation could be offset by greater logistics efficiency. "Bangladesh could also benefit from shifts in global value chains and higher US tariffs on other countries, but only if its logistics system is upgraded."

Reaz criticised delays in enacting the National Logistics Policy, saying that Bangladesh is already a decade behind since its formulation.

Stressing the need for reform, he argues that Chittagong Port must be freed from exclusive government operation and opened to private operators to realise its full potential. "There is no alternative to engaging a global operator at Chittagong port to raise efficiency," he told the seminar.

Delivering the keynote on 'Challenges, Opportunities and Way Forward in Logistics Landscape', Prof Md. Mamun Habib of the School of Business & Entrepreneurship at Independent University, Bangladesh, pointed out that Bangladesh continues to lag behind its South Asian peers in global logistics rankings. In the World Bank's Logistics Performance Index (LPI), the country ranked 88th in 2023, compared to India at 38 and Sri Lanka at 73.

"We are consistently weakest in infrastructure and business fundamentals, which makes it difficult to compete globally," the academic observed.

Key challenges, he said, include poor integration of transport networks, inadequate warehousing and distribution facilities, and delays in implementing the long-awaited national logistics strategy.

Despite the constraints, Prof. Habib sees opportunities, including the recently-approved but yet-to-be-implemented national logistics strategy, growing private-sector interest in ICD investment, and the scope for automation, artificial intelligence, blockchain, and other digital technologies in supply chain management.

"Bangladesh must embrace automation, ethical practices, and human-resource development to build a smart, resilient, and environmentally sustainable logistics ecosystem," he stressed, calling for greater coordination among port authorities, customs, civil aviation, and regulatory agencies.​