Clothing makers asked to move imported goods to warehouses

Amid the coronavirus pandemic, the Chittagong Port is facing a serious problem with a big stockpile of containers which awaits delivery to their owners.

Against the backdrop, the ministry of commerce has asked the garment sector to store their imported goods to their respective bonded warehouses instead of sea and airports in an attempt to accelerate cargo movements from the ports.

A letter issued by the textile cell of the ministry of commerce on Friday noted that around 50 per cent containers lie idle at the Chittagong port belongs to the members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

The Chittagong port has over 51,000 TEUs (20-foot equivalent units) imported containers against its capacity of 36,000 TEUs for storage.

"Hundred per cent container storage capacity of the port are fulfilled," a port official told the FE.

CPA Secretary Omar Faruk said, the CPA chairman has sent a letter to the National Board of Revenue (NBR) for shifting the containers, including ones containing readymade garment (RMG), from the port yards to 'off docks'.

"The NBR allowed more six goods for off docks, not the RMG containers. So, we have sent another letter to the NBR for shifting the RMG goods to off docks today (Sunday)," he informed.

The NBR on Saturday ordered handling more imported goods by the Chittagong-based 19 off-docks as a strategy for freeing up space.

"Additional arrangements have been made to keep several thousand containers at our overflow container yard which is adjacent to Chattogram Port. It can accommodate containers equivalent to 6,000-7,000 TEUs," he stated.

The ministry letter also noted the Chittagong port now has been congested and ship entry has been limited following the poor delivery of imported items.

It also noted that the same situation prevails in airports, especially the Hazrat Shahjalal International Airport.

There are many bonded warehouses belong to clothing manufacturers in Dhaka, Gazipur and Chattogram, according to the letter.

Although there are 4,813 active bonded warehouses, but the number of large facilities is around 500. They can store there a large number of containers, people who have direct knowledge of the matter told the FE.

But they said that the garment factories will not show the interest as the transportation cost to carry containers from ports is expensive.

Besides, they need proper security for the containerised goods.

It is believed that garment sector is not getting the delivery as many factories are closed in line with the nationwide shutdown until April 25.

Dr. Rubana Huq, president of the BGMEA, the lobby group of around 4,000 woven clothing makers, declined to comment.

Mohammed Hatem, vice president at the BKMEA, briefly spoke on the matter.

Mr Hatem said that they have already requested their members to get the quick delivery of imported goods.

"This (delivery of imported) is very important as many essential items before the holy month of Ramadan are in the pipeline", he noted.

In the meantime, shipping executives, who struggle to discharge their containers at the main sea port, told the FE that the government decision is a positive step since most containers belong to the clothing makers.

Captain AS Chowdhury, country head of Seacon, a leading feeder line plying on the Chittagong-Singapore route, said if they get their containers and keep in the bonded warehouses, it will help decongest the port.

He said this is a critical time and for this reason they will not show interest in doing this.

Contacted, Chairman of Bangladesh Shipping Agents Association (BSAA) Ahasanul Haque Chowdhury said, this was the highest number of containers lying at the port yard in the last five to ten years.

He said Chittagong Port used to deliver 6-7 thousand TEUs of containers every day. But, the rate of container delivery now is not more than 6-7 hundred TEUs per day, he said. "CPA yards are already congested with containers. So, stay time of ships has increased to seven to 10 days from two-three days earlier," he added.

The Chittagong port has slashed the number of berthing for new arrivals following space crisis, for which some 40 vessels are waiting at the outer anchorage.

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