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Import delivery partially to go outside Ctg port
DWAIPAYAN BARUA, Ctg
The long-awaited demand of businesses to shift the handling and delivery of import cargoes outside the Chattogram port yard is going to be realised soon, albeit partially, as the National Board of Revenue (NBR) has given the go-ahead to this effect.
In September 2022, the Chittagong Port Authority (CPA) signed a deal with Bay Cargo Centre to allow the private firm to handle and deliver imported cargoes from LCL (less-than-container load) containers at its two old sheds -- named X and Y sheds -- located around two kilometres off the main port yard.
The CPA also sought permission from the NBR. LCL is a shipping term used to describe container loads which are filled by multiple orders or goods.
The NBR last month issued a gazette, declaring 15.41 acres, including the two sheds and adjoining backup facility spaces, as the warehouse station and gave permission for loading and unloading of cargoes there.
The CPA is now preparing to sign an operational deal with Bay Cargo Centre by next month.
Port users hailed the move, saying it would significantly reduce the work pressure, improve operational activities inside the main port, and expedite the LCL cargo delivery.
They, however, expressed concerns over some issues, including the location of the sheds, the lack of experience of Bay Cargo Centre, and the possibility of a tariff hike or additional costs.
Most of the import cargoes are brought in two types of containers: FCL (full container load) containers that contain cargoes of a single importer, and LCL containers carrying cargoes used by several importers.
A major portion of cargoes is unstuffed from containers in the port yard and kept in the sheds before delivering to consignees upon customs clearance. The NBR has so far allowed containers carrying 38 types of imported items to be directly sent to private inland container depots for unstuffing, checking and delivery.
Businesses have long demanded the entire process of handling and delivery of cargoes be carried out outside the port. They argue that imports are not handled in any modern global ports presently.
The CPA has also been implementing the International Ship and Port Facility Security (ISPS) code since 2004. The code calls for moving delivery operations outside the main port area.
On average, 5,000 twenty-foot equivalent units of import containers are delivered from the port every day. Of them, around 10 percent are LCL containers. A good number of raw materials for garment factories, which have turned Bangladesh into the second-largest apparel supplier in the world, are brought in LCL containers.
Port officials say more than 1,000 trucks enter the port every day to receive the delivery of LCL cargoes. As a result, the port’s existing LCL sheds often remain overloaded while it takes one week to 10 days to secure such cargoes, alleged importers.
Kazi Ashik Ahmed, general manager of Bay Cargo Centre, told The Daily Star that they had already readied the “X shed” and were waiting for the operational deal to be signed.
CPA Secretary Md Omar Frauk said a committee of the port authority is in talks with the firm and preparing the operational modalities to strike the deal soon.
Nasir Uddin Chowdhury, chairman of the standing committee on port and shipping of the Bangladesh Garment Manufacturers and Exporters Association, said the move would speed up the delivery.
He, however, stressed the need to keep the tariffs unchanged. “Otherwise, any additional expenses will burden exporters.”
Khairul Alam Suzan, vice-president of the Bangladesh Freight Forwarders Association, said the association has always supported the initiative to take delivery activities outside the port.
He, however, said the two sheds are located in a congested area near the port’s residential areas and there are other facilities there as well. It may create gridlock in the area since a huge number of trucks and trailers would arrive to receive goods.
The location for such operations needs to be a bit far from the main part of the city to avoid traffic congestion, according to Suzan.
Bay Cargo’s Ahmed, however, ruled out the possibility of any gridlock since the adjacent road has been widened.
There is already a private ICD near the sheds, and no such jam has surfaced so far, he said.