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Keep Dhaka-Ctg highway free from shutdown

Businesses say hartal will break the entire supply chain, delay shipment

Refayet Ullah Mirdha
Business leaders yesterday once again called for the vital Dhaka-Chittagong Highway to be spared from hartal demonstrations for the sake of supply chain continuity and export deadlines.
"This highway is a vital cog. Almost 80 percent of the goods-laden vehicles for export-import ply through it, so we must keep it free from hartals," Kazi Akram Uddin Ahmed, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said.
The businesspeople also made the demand during their meeting with opposi-
tion leader Khaleda Zia on Saturday night.
Particularly affected would be the garment sector, the country's highest export earner, for whom itisthepeak season fordeliveries.
"This is our prime season for shipments as it is Christmas next month, the bumper season for retailers in the Western world," said Atiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association.
"During hartals, our shipments remain stuck on the way to Chittagong port or the goods-laden trucks are sometimes burnt out. There is no other option but to halt the shipments.”
Keep Dhaka-Ctg highway free from shutdown
FROM PACE Bl
But holding up shipment during this important period would lead to order cancellations, monetary penalty or expensive air shipments, he said.
It costs only 30 cents to send one kilogram of goods by sea freight, but the cost goes up to $4.15 a kg in case of air shipment, according to Islam. “One major air shipment is enough to bankrupt a garment exporter.”
“The other businesses are also hampered when the goods movement is hampered on this important highway, because every business is inter-linked," the FBCCI president said.
Ahmed said the total supply chain is in disruption now due to the frequent shutdowns. "The businesses are the worst sufferers."
“We will sit with Prime Minister Sheikh Hasina to discuss the matter. We have been urging the political leaders to hold dialogues to avoid any unrest."
Meanwhile, Islam said the long-term impact of the recent spate of shutdowns, for which garment makers might fail to maintain their lead time, would be the erosion of international retailers' confidence.
India and Vietnam are already giving Bangladesh tough competition in international garment trade, he said. The Indian rupee slid significantly against the dollar in recent times but the Bangladeshi taka has been gaining against the dollar.
“This is already a cause for concern for garment exporters. The continuous shutdown will only aggravate the crisis."
Furthermore, India has planned to increase its garment exports to $30 billion over the next three years by offering various trade facilities.
“The persistent political unrest in Bangladesh will be another advantage for Indian garment business," the BGMEA president added.