When geography endowed Bangladesh with sea ports where even big ships, a few hundred years ago, could anchor inland such as Mirkadim, we have rested on the laurels of nature's gifts rather than developing them into a vital trade infrastructure. Actually, we have failed to move in step with time so that other ports in the region have acquired some competitive edges over us.
The World Bank's report on the" Competiveness of South Asia's Container Ports" released last Thursday highlighted some key points in this now-mainstream area of port operations.
Between the WB's eye-opening report and the statement of Qimiao Fan,country director, World Bank Bangladesh, we have a set of path-shining recommendations to work on as one of the fastest growing economies in Asia.
The WB report emphasised that Bangladesh can cut shipping costs by up to 9.0 per cent and boost its exports by 7 percent if her ports become as efficient as Sri Lanka's. And how could the level of efficiency achieved by container ports in India, Pakistan and Sri Lanka be attained by Bangladesh?The report hits the nail on its head when Bangladesh is singled out as the only country in the region 'where the private sector does not play a meaningful role in the container port sector.'
The country director for World Bank Bangladesh pointing to China shifting out of labour-intensive sectors like the apparels added that performance of Bangladesh's container ports would be the key to taking advantage of China leaving the field.
The countries in South Asia excepting Bangladesh have adopted the "landlord model" for involvement of the private sector in container ports. This model is based on separation between public port authority(not involved in port operation) and private operators(generally concessionaires).There are three other models one of which envisions a public port authority providing equipment in part or full to be operated by a private firm through hired labour. The idea is to introduce responsibility and ownership of the operations by way of inducing competition into the work environment,
Chittagong port takes three days for clearing a consignment from a ship, the longest time among the regional ports. It is important to note that this port which handles 90 percent of container traffic is caught up in double-jeopardy ,if you like!The lack of investments and the growth of exports in readymade garments in Bangladesh have impelled the port to operate at capacity causing very high turn-around and waiting times.
So there are issues of efficiency, reform and governance, apart from that of critical and massive private investments into the sector. Large and medium- size' landlord ports' are said to perform better than other types of port on average, a spectrum that includes Chittagong port.
One particular concern needs to be prioritised, although this looks challenging to be addressed rightaway. The Mongla port has a water depth of 7.0 metres and our deepest port of Chittagong is ironically as shallow as 9.1 metres. In contrast,Colombo has a depth of 18 metres at its new terminal while Jawaharlal Nehru port will be 16 metres deep. Consequently, our exports have to be 'carried in feeders to region's hub ports of Colombo, Singapore, and Tanjung Pelepas to link up with deep- sea services.
The answer to this predicament lies in developing the much-awaited deep-sea port at Sonadia. Simultaneously, the unutilised capacity of Mongla port and Payra Seaport which does not figure in the WB report but have potential for sub- regional connectivity merits commissioning within a framework-definitive road map and time-lines.
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