The Role Of Chittagong Port In The Economy Of Bangladesh

The Role of Chittagong Port in the Economy of Bangladesh

MD. ABDUL KADER MBA (Finance) ID: 0925101 Since 1888 Chittagong port, the important and main port of Bangladesh with the shore base facilities, has been playing an essential part in the economic development of the country. It is considered the heart of the economy. This port creates the opportunity of flexible and cost-effective foreign trade to be carried out through this port with all the South Asian countries as well as other Asian countries for its geographical location. Moreover sufficient and low-cost labour readily exists here. For this reasons, Chittagong Port holds much potential as a highly promising regional sea-port. The ports of the world have changed significantly with the advent of containerization in trade in the seventies of the last century. The port of Chittagong, despite many constraints, continues to co cope with the changing patterns of the trade. However it is suffering from the problems of poor operational efficiency. Though, now the operational efficiency is slightly improve for taking some efficient activities e.g. improve berthing problem, curtailing the influence of trade unions, automation of Chittagong Customs House etc.

Introduction A port is a facility for receiving ships and transferring cargo. They are usually found at the edge of an ocean, sea, river, or lake. Ports often have cargo-handling equipment for use in loading/unloading of ships, which may be provided by private interests or public bodies. Often, canneries or other processing facilities will be located near by. Ports which handle international traffic have customs facilities. Bangladesh with a population of 150 million has a substantial volume of international trade of which 80% is seaborne. Although two seaports, namely Chittagong and Mongla, are the gateways, Chittagong Port handles nearly 90% of all sea-borne trade, highlighting its importance to the economy of Bangladesh in spite of all its deficiencies. It is located by the estuary of the Karnaphuli River in Patenga, near the city of Chittagong. Chittagong a vibrant port for cement and clinker, fertilizer, raw materials and in containerised manufactured products (especially ready made garments) etc. Window berthing system, complete hand over of CCT operation to private copmany, Automation of Chittagong Cutoms House was introduced enabling the sea port efficiency. 1

Contents: 1. Historical Background of Chittagong Port 2. Contribution of CP in the Economy of Bangladesh 3. Existing Structure and Modus Operandi of CP 4. Automation of Customs in CP 5. Problems of CP 6. Recommendation 7. Conclusion 8. References

1. Historical Background of Chittagong Port Bangladesh, sitting on the world’s largest delta, finds itself in a unique position as bridgehead between the two largest and most potential economic grouping of around 3 bln burgeoning consumer base –SAARC and ASEAN-CHINA. Having the longest panoramic beach- Cox’sbazar and the biggest mangrove forest-Sunderban, home of Royal Bangal tiger, its history dates back to 2500 years with rich cultural heritage having some of the marvelously unparallel geological sites. Its overseas trading tracks several thousand years back particularly with its lone natural harbour Chittagong, one of the most ancient ports of the globe renowned as Porte Grande since early centuries. The early history of Chittagong port dates back to the fourth century B.C. The Yemeni and the Arab traders of Babylon of ancient time used to trade with Arab country. Chittagong was one of the finest port in the near and far east at that time according by the famous historian Ptolemi. The Arabs came to Chittagong for trading and with the mission to spread Islam. With the gradual settlement of the Arabs in Chittagong Islam and Arabic spread in Chittagong. The well known Arab traveler Edrisi, Visited Chittagong Port in 1153 A.D. and named Chittagong in his works as “Carnful”. In 1294 A.D., C.E. Markopolo came to Chittagong from Arakin and found it as a most flourishing port. Sir John Herbert writing in 1313 A.D. the Chinese Ambassador, Chengho, stayed in Chittagong and his Arab interpreter Mahuan noted in his book that with fabourable wind one could travel from Sumatra to Chittagong within twenty days. Thirty five years after the discovery of route to India by Vasco De Gama, the Portuguese came to Chittagong under Martin Alfonso de Mello Jusaiti with five ships and two hundred soldiers. This was followed by C.E. Perix de Sampayo in 1538 A.D. who came to Chittagong with nine ships and settled in Chittagong. The army of Emperor Akbar of India inflicted a crushing defeat on the Pathan ruler of Gaur in Bengal. A large number of Pathans along with many saints took refuge in Chittagong. In 1340 A.D. Sultan Fakruddin declared independence of Bengal and Conquered Chittagong and built a road from Chittagong to Chandpur. During the role of sultan

2

Fakruddin, Ibna Batuta the famous traveler visited Chittagong and mentioned it as “Saterkoan” and found it to be a prosperous port and city. The Venetian traveler Misira in 1565 A.D. Finnish traveler Ceasar Fredrick traveled to Chittagong. From these travel records it appears that about this tome Chittagong was a developed port. The traveler Misira has written in his travel records that “every year two hundred Ship loads of salt used to be exported to ship building materials such as timber and other materials and that the Sultan of Turkey used to get their Ships built at Chittagong at cheaper cost”. Traveler, Ceaser Frederick gave an account that large quantities of silver used to be imported from Pegu to Chittagong and Chittagong Port was the main port for Silver Trade. The Portuguese took great interest in Chittagong in the Sixteenth Century and named it as “Porto Grande”. In the Seventeenth Century it was a scene of British expeditions and in 1760 it was ceded to the East Indian Company of England. Under the act of 1887 British-India ultimately led to the performing of port which was introduced on 25th April, 1888 and Chittagong Port commissioners started the function. The administrative history of the Port began in 1875 with the enactment of Indian Ports Act 1875 (Act XII) when the port officer who was also the Collector of Customs used administers the Port under Act XII of 1875. Chittagong Port was suddenly subjected of heavy pressure of more commercial activities that’s why some rapid development necessitated the reorganization of the Port Management and as a result Chittagong Port Trust was formed in July, 1960 to do away with the dual administration of the Port by the Port Commissioners and the Port Railway. Due to the challenge of modernization and the abnormal situation prevailing during the period of war of war of liberation, it was felt that more autonomy be given to the management for better administration and quick expansion of Port, hence in September 1976 by an ordinance of the Govt. of Bangladesh the Chittagong Port Authority (CPA) came into being. (Year Book’92, CPA)

Historical Background’s Summary of Chittagong Port 4th Century BC: 9th century: 16th century: 1887: 1895-1910: 1960: 1976:

Used to be called SHETGANG. Ships from Middle East and China used this Port. Omani & Yemeni traders landed in this Port. Used to be known as "PORTE GRANDE". Portuguese took great interest to use this port. Formal Port operation started from 25th April. Four Jetties were constructed to handle 0.5 million tons of cargo. Port used to be administered jointly by Port Commissioners and AssamBengal Railway. Chittagong Port Trust was formed. Chittagong Port Authority was formed. (Source: www.cpa.gov.bd)

3

2. Contribution of CP The role of the Chittagong Port in the economy of Bangladesh and in poverty reduction is critical since the port handles more than 85% of Bangladesh’s foreign trade, including the bulk of Bangladesh’s export-garments. Between 1990 and 2004, the share of trade in GDP doubled. As you all know, increasing both the port operations and the inland transportation system has long been a concern of the Government. The development partners are available, willing and ready to support these actions. Bangladesh’s Poverty Reduction Strategy gives high priority on infrastructure, specifically on power and transport, to achieve the country's economic growth and poverty reduction goals. The World Bank’s Country Assistance Strategy 2006-2009 also envisages increased support to infrastructure, with a focus on capacity expansion and improved governance. The long-standing and multi-facet problems of Chittagong Port are well known to all: slow vessel turn-round times, low labor productivity, high number of trade-unions counterparts, restrictive and corrupt practices, poor onward connection, etc. In that context, the recent actions taken by last the Caretaker Government have contributed to dramatically reverse these trends, introducing important and rapid improvements in all aspects of the port activities: 1. The statistical evidence is showing that the Chittagong Port efficiency has increased by 30% and the cost of doing business here is already 40% lower. (www.worldbank.org) 2. In parallel, the overall shipping charges for in-bound cargoes have decreased significantly after cancellation of terminal handling charges. A private operator is now in charge of operating the Chittagong Container Terminal (CCT) which has helped improve the overall handling operations. 3. The average turn around time of ships is about 4 days now, compared to 11 days even in January 2007. Although, the measured turnaround times by competitors, for example the private terminals at Karachi have an average vessel turnaround time of 16 hours and container vessels at general cargo berths require only 21 hours. Hence, there is still room for improvement in port operations. Available data on container handling charges suggests that the cost at Chittagong Port is much higher than ports in Karachi, India, and others in the region. (www.worldbank.org) 4. The port has the facilities for anchoring 10-12 ships at those three terminals at a time. The Chittagong Container Terminal (CCT) has the most sophisticated equipment, quay gantry cranes (QGC), for handling containers. The four QGCs were installed last year, at a cost of Tk 150 crore. The container handling at the CCT has been accelerated after installing sophisticated cranes. The ship-to- shore crane is used for unloading containers directly from a ship and keeping it in a certain place on the shore. This sophisticated crane has been imported from Japan. Japanese technicians installed it at the terminal and gave training to the local operators for running the cranes. 4

5. The CP has contributed to the business in Bangladesh and stimulated setting up of several container yards, expansion of port facilities to handle large container carrying trains, increase of cargo handling and storage facilities. RMG manufacturers also extensively use services of Clearing & Forwarding Agents for the purpose of customs clearance of inputs and finished goods. It is estimated that port usage fees earned from the RMG sector account for more than 40% of the income of the port authority. 6. The existing inland transport distribution system for containers in the country also needs to be improved significantly to help the port operate efficiently. The inland distribution system for transport of containers in Bangladesh currently depends mainly on road and partially by rail. 7. The DataSoft (Custom House Automation Project) Managing Director Mahbub Jaman told me that, the Chittagong Port contributes to the government exchequer both directly and indirectly. CPA earns USD 2.4 million to the government as direct taxes last financial year. 7. Finally, it is encouraging to know that the Government is planning to construct a river based ICD at Pangaon, Dhaka. The rail ICD, near Tongi, which is planned to be supported by the World Bank, will relieve congestion at the existing Kamlapur Railway ICD. The Bank will also appreciate operation and maintenance of this new ICD by the private sector. There is also an urgent need for institutional reforms of the Chittagong port. The gradual changes to management structure of the port under the Landlord Model will make it more efficient and effective, with a stronger regulatory role. In addition, the recently introduced Automated System for Custom Data (ASYCUDA++) could be further simplified to allow an efficient handling and transit of legal import-export trade flows. Grameen Bank chief Prof. Muhammad Yunus after winning the noble prize has been advocating for opening up the Chittagong Port for the foreign direct investment. To improve the public sector operator’s efficiency through the introduction of more competition from the private sector operators, it is important to finalize the Supply Operate and Transfer (SOT) concession for the New Mooring Container Terminal (NMCT) and hand over its operation and management activities to the private sector as soon as possible. The functions of the authority shall be1. To manage, maintain, improve and develop the port; 2. To provide and maintain adequate and efficient port services and facilities in the Port or the approaches to the Port. 3. To regulate and control berthing and movement of vessels and navigation within the Port; 4. To do such acts and things as may be necessary or convenient to be done in connection with, or incidental or conductive to, the performance of its functions under this Ordinance. (CPA website) 5

Statistical Information: I would like to show some statistical report which gives a clear summary about Chittagong port trading facilities Cargo Handled Calender Import (Tones) Export (Tones) Total (Tones) Year 2004 1,94,13,460 24,58,972 2,18,72,432 2005 2,29,89,122 28,95,769 2,58,84,891 2006 2,39,36,103 31,28,529 2,70,64,632 2007 2,42,36,261 33,92,974 2,7629,235 2008 2,44,92,707 37,04,862 2,81,97,569 On the above information it is for international business the import-export is increasing day by day and Chittagong Port has great contribution for that trading.

Calender Year 2004 2005 2006 2007 2008

Containers Handled Chittagong Cargo Port(TEUs) (Tones) 6,88,771 65,55,885 7,83,353 76,95,431 8,76,186 85,17,130 9,58,020 87,03,021

Dhaka ICD (TEUs) 68,567 78,660 77,567 80,714

Cargo (Tones) 4,36,088 4,83,440 3,25,305 3,31,216

Vessels Handled Calendar Year 2004 2005 2006 2007 2008

Period 2002 2003 2004 2005 2006 2007 2008

Called VSL 1622 1719 1858 1982 2078 2050 2257

No. of Vessels 1764 1892 1957 1945 2099

Turn Around Time of Vessels Sailed VSL Cont VSL Bulk VSL 1602 620 982 1720 659 1061 1764 691 1073 1892 744 1148 1957 841 831 1945 2099

Lighters VSL 3 14 0 0 6

(Source: www.cpa.gov.bd) The modernization of the Chittagong Port and other Ports is critical for Bangladesh’s economy. This will require well-coordinated efforts of the Government, Port

6

management and labour, and donor partners. A better port service is the basis for a growing market share which is in Bangladesh’s best interest.

3. Existing Structure and Modus Operandi of CP The port of Chittaging is the principal port of the People’s Republic of Bangladesh. It is situated on the bank right bank of the river Karnafulo at a distance of about 9 nautical miles from the shore line of the Bay of Bengal. River Karnafulo rising in the Lushai Hill falls in the Bay of Bengal after taking a winding course of 120 nautical miles through the districts of Chittagong Hill Tracts and Chittagong. SEWARD LIMIT: With patenga Beacon as centre an arc is drawn seaward with a radius of 5½ nautical miles till it intercepts the coast line at positions: Lat 22º18’45’’ N. 91º46’30’’ Ein the north and Lat 22º08; 13’’N. Long 91º50’00’’ Ein the South, the area enclosed within the extremities of the arc will from the Seaward limit of the port of Chittagong. UPPER LIMITS: Upper limits of the river water are formed by two straight lines, one drawn across the Karnafuli River in the North by joining the two pillars located at:Lat : 2224’33” N Long : 91º54’30”E and Lat : 22º24’56” N Long : 91º54’11”E and the other by joining the two pillars located at:Lat : 22º25’07’’ N Long : 91º53’18” E and Lat : 22º25’07” N Long : 91º53’10” E These limits include so much of the sea and of the River Karnafuli and the River Halda and the area that lie within 137.162 Metre, of high water Make at ordinary spring tide and the docks, warehouse, sheds, railway line and yards within the limits of the bounded area and such other area outside it as included in the Schedule iii of the Chittagong Port Act. The port has the following recommended Anchorage Ground:“A” Anchorage id for vessels over 30ft draft. “B” Anchorage is for vessels entering the port within 24 hours. “C” Anchorage is for vessels lightering and other vessels not scheduled to enter the Port within 24 hours. (Year Book’92, CPA) The CPA Cargo Storage Space Given Below:

7

Protected Area

No(s).

Sq. Meters

Transit Sheds 1-9

9

52,069

Warehouses A, B, D, F, P, R,O

7

26,746

Car Sheds

2

5,082

Open Dumps

90,000

Outside Protected Area Warehouses

6

Open Dumps

32,500 2,00,000

Food Department (Grain Silo), T.S.P. Complex, Cement Clinker Grinding Company & Oil Companies have their own storage facilities (covered & open) adjacent to their berths (Source: www.cpa.gov.bd)

Facilities of CPA: For Ocean-Going Vessels: General Cargo Berths ----------------- 12 Container Berths --------------------- 8

Specialised Berths for Bulk handling: Dolphin Oil Jetty (For POL) ---------Grain Silo Jetty --------------------Cement Clinker Jetty ----------------TSP Jetty ---------------------------CUFL Jetty --------------------------KAFCO Urea Jetty --------------------Ammonia Jetty ------------------------

1 1 1 1 1 1 1

Repair Berths Dry Dock Jetty ----------------------- 2

Mooring Berths River Mooring ------------------------ 10

For Inland Coasters & Vesssels: Jetty Berths (For (POL) -------------- 1

8

Concrete Berth (For Grain Handling) -Pontoon Berths (For POL) ------------Pontoon Berths (For Cement) ---------Single Point Mooring -----------------

1 3 1 10

(Source: http://en.wikipedia.org)

Financial Indicator: Indicators

Achievements Target 2002-03 2003- 2004- 2005- 2006-07 04 05 06

A. Capital Structure & Liquidity ratios: i. Debt Equity Ratio 0.0026:1 0.00 ii. Current Ratio 1.45:1 1.13:1 iii. Quick Ratio 1.26:1 1.02:1 B. Productivity Ratio: i. Turnover of Total Assets (Time) 0.18 0.16 Ii .Turnover of working Capital (Time) (Source: www.cpa.gov.bd)

0.00 0.00 0.00 1.26:1 0.95:1 0.78:1 1.14:1 0.95:1 0.78:1 0.17

0.17

0.18

There is one public sector inland container depot (ICD) that is located in Kamlapur, Dhaka. The main purpose of the depot is to ease container congestion at the port jetty. The container is brought to Kamlapur in Dhaka directly by train immediately after being unloaded from the ship. The goods are released from the depot. The export cargo is also stored at the depot. The government also allowed private entrepreneurs to set up inland container depots. A total of 10 private depots have been established in private sector located at different places near Chittagong port. The container handling at the lone public sector ICD at Kamlapur, however, is facing various problems due to inefficiency of the private handling company. The government had appointed Global Agro Trade Company (GATCO) for handling the container at the depot. The company showed inefficiency in handling the containers, as the handling equipment it installed there often.

4. Automation of Customs in CP Chittagong Custom House is the country’s main export-import hub. Under the National Burro of Customs, Chittagong Custom House (CCH) collects the indirect tax. In the national economy of our country it plays a vital role. During the current financial year targeted tax is about Tk.45, 000/ crore. 9

The much-awaited automation system for collecting taxes of imported goods launched at Chittagong Custom House from 6th Oct, 2009. Last Chief Adviser Dr Fakhruddin Ahamed inaugurate the automation system at Chittagong Custom House as chief guest. A fully automated customs administration would provide multiple benefits. First, it would increase, in a big way, the collection of revenue for the government. It would better serve honest and scrupulous business operators as it would ensure a proper system. The newly introduced Automation System for collecting taxes of imported goods will create a great opportunity for releasing the dream for double digit growth in our country. The costs of doing business fell significantly last year due to efficient cargo handling at Chittagong port. Business cost would further come down after full automation of the customs. The present annual earnings of the Chittagong Customs House can go up to Taka 150 or 200 billion from existing Taka 110 billion, provided the needed reforms are carried out in the customs administration and automation is fully introduced. Today trade facilitation is a hot topic. If the business man can clear their product without hassle and in short time, it will reduces their cost. That’s why in the highly competitive market the price of product will be cheap. This is not only useful for consumer but also business man. Now the stakeholder get improve services from the Custom House by the help computerization. Automation will drastically cut down the prevailing complex and bureaucratic customs procedures. It will also reduce the procedures for clearance and valuation of goods to 25 from 45 complex ones. The promulgation of the state of emergency in 2007, the efficiency of the premier port Chittagong increased 30 percent and the cost of running business there reduced by 40 percent, asked by the Birg. Hasan Nasir, Chittagong Artillery. He also mentioned me that, the turn-around time of ships at the port reduced to 4.48 days in the month of April whereas it was 11.65 days in January this year. The number of vessels handled per month at the port also increased to 86 from 70 in January last. The number of ships handled in January 2006 was 60. The customs’ processing of export-import documents also ran at a quick pace to keep up with the goods handling at the port. The Chittagong Port customs officials claimed that over 98 percent documents have been assessed so far within the time frame and only two percent remains pending due to various reasons. The business community expressed satisfaction over the progress made by the joint forces in stopping corruption, illegal toll and bringing discipline back in cargo handling. This will lead to increased revenue earnings by 80 to 100 per cent in a short span of time. But the automated procedures alone will not achieve the intended outcome. It will considerably check corruption. So, our expectation to the new Govt. 10

that with automation, other measures such as entrusting greater responsibility to honest and efficient officers will have to be ensured. Let the baby start walking and then leave his hand. Otherwise he will fall and not learn to walk.

5. Problems of CP The premier sea port, Chittagong, is located on the right bank of the river Karnaphuli. Its actual position is nine nautical miles inside the estuary. The port is faced with multiple problems. First of all, it is a tidal port. The ships have to cross a nine nautical mile long channel for anchoring at the terminal. The ships can move on the channel only during high tide. Chittagong port now has three terminals. General yard for anchoring bulk carrier ships, container terminal for anchoring container ships, and a newly built newmooring container terminal (NCT). The port suffers from major inefficiencies compared to regional competitors and is a significant bottleneck in the economic development of the economy. A recent report compiled by the Asian Development Bank cites Chittagong port as having: “Overstaffing, labour strikes, cumbersome customs procedures, outdated and inefficient work rules, outdated and inflexible management”. Chittagong port is peripheral to the global maritime trade and so there are few incentives for trans-shipment on the significant Asia-Europe route compared to major ports in the region such as Colombo or newer ports in India. Further, Chittagong gains little in either volume of trade or markets from connection to its hinterland. According by the International Maritime Bureau, besides being one of the most expensive one of the most expensive and inefficient in the region, the Chittagong Port has now become the most insecure port. The bureau has branded the port the most dangerous in the world released Nov, 2006. Though the CPA said that ‘it is totally false and misleading’. But it is not totally false for the example I want to show a report that in 2006 there are 33 attacks on vessels, mostly near the main port. (New age, Nov 3,2006) The ministry-centric port management system is a complex bureaucratic process. It leads to unnecessary delays and opens up opportunities for wielding political influences. The CPA has to depend on the ministry for sanctions and advices on important decisions. As a result various complexities arise with regard to delayed decision-making, increasing the harassment of port-users. According to the reliable sources, following the withdrawal of the state of emergency and re-installing of the elected government workers' organizations activated their drives and the very radical decision of one union is now at a stake. Workers organizations operating at CP at the backing of different political organizations and kept the port hostage for fulfilling their self-interests and even on a trifling ground they resorted to suspend booking and enforcing blockade and strike.

11

Moreover, uncontrolled workers' organizations disrupted normal port activities and led to indiscipline and manifold hassles and sufferings to the port users. It hampered proper planning process of the Port Authority and its implementation. (Financial Express, Jan 12, 2009) Chittagong Port and Customs both these offices are require educated, experienced, and skilled manpower, which is necessary for operating highly technology dependent environment. Because I am an employee of Chitagong Automation Project, I found that many officials working in Chittagong Customs House cannot verify importexport documents and cannot operate computers by running new Automation System, ASYCUDA++ software without the direct cooperation of DataSoft (Automation Project software developer). The major problems faced at the time of loading and unloading goods into/from ships at Chittagong Port include: unjustified formation of labour gangs, excessive bribes and tips, engaging staff from stevedoring staff union, management board, excessive bribes and tips. If tips are not paid at an agreed rate, handling time and leaving the place of work before scheduled time. Even if tips are not paid at agreed rate, handling is not done and containers are deliberately damaged. If the unadjusted unjust demands are not fulfill the equipments remain out of order. A ‘go slow’ strategy is adopted if the amount of tips is not suitable. Artificial problems are created of one is asked to work according to the schedule. Indicative container handling charges suggest that Chittagong Port (USD200/TEU including unofficial and ancillary costs) is more expensive than other ports in the region. 329.48 acres (which is 19% out of total 1708.63 acres) of land belonging to the port is currently under illegal possession. Of these, 232.31 acres are under possession of government/semi-government offices, 1.95 acres under trade unions or clubs and 95.22 acres under illegal possession of local people. (TIB Report, 2007)

6. Recommendation Bangladesh, sitting on the world’s largest delta, finds itself in a unique position as bridgehead between the two largest and most potential economic grouping of around 3 bln burgeoning consumer base –SAARC and ASEAN-CHINA. Having the longest panoramic beach- Cox’sbazar and the biggest mangrove forest-Sunderban, home of royal bangletiger, Its history dates back to 2500 years with rich cultural heritage having some of the marvelously unparallel geological sites. Its overseas trading tracks several thousand years back particularly with its lone natural harbour Chittagong, one of the most ancient ports of the globe renowned as Porte Grande since early centuries. Emerging through a devastating war in 1971, Bangladesh pushed forward amidst all odds. Per capita GNI turned 8 times of mere $70 in just 3 decades while the GNP multiplied manifolds rallying as one of the top 25 economies. Export earnings specializing on primary products kept growing on an average 10% while turning more on manufacturing sectors thus pushing general growth hovering around 6% in last 2 decades. It is good news that though different workers' organizations at Chittagong Port have activated their drives to form trade union. On the other hand, Chittagong Port Authority has requested the concerned authorities of the government to continue 12

suspension on trade union activities until the workers are unified under 'one union'. (Financial Express, Jan 15, 2009)

Shipping Minister Dr M Afsarul Amin asked the officials to work with more sincerity and devotion for further modernizing the port management. "We want to see coordinated efforts through hard work at all levels as the government is pledge-bound to do more welfare for the people," he said while exchanging views with chiefs of various departments under the ministry at his office in the city. With Shipping Secretary Sheikh AK Motahar Hossain in the chair, the function was addressed, among others, by Chairman of Bangladesh Inland Water Transport Corporation (BIWTC) ASM Ali Kabir, Joint Secretary of the ministry M Nurul Haque and Chairman of Chittagong Port Authority (CPA) Commodore RU Ahmed. Dr M Afsarul Amin laid emphasis on massive dredging in rivers to maintain navigability and said development of Chittagong and Mongla ports is a must to further modernise the port management. (Financial Express, Jan 12, 2009) The development of Dhaka-Chittagong economic corridor mainly depends on a vibrant port, particularly a deep-sea port located somewhere in the eastern part of the country. The lands located on both sides of Dhaka -Chittagong highway are supposed to be used as the base land for the corridor. A gigantic port is necessary for quick disposal of export-import items of the corridor. Besides, neighbouring India, Nepal, Bhutan and China could be used as hinterland for the port. Implementing the dream and developing a vibrant port in the region demands a dramatic change in the mind-set of the policy makers, and massive remaining of current government rules and regulations. Without opening doors for land-locked neighbours like Nepal, Bhutan, the northeastern provinces of India and the western part of China, a deep sea port is unlikely to be viable in Bangladesh. No foreign investor would come up to invest in a multibillion dollar project aimed only at Bangladesh-bound cargo. But they might be very much interested if a regional trade atmosphere is created through political decisions of the states. The requirement of money for such a massive infrastructure may be fulfilled from donor agencies or foreign investment, but a political decision first of all is prerequisite for changing the mind-set and rethinking tight rules. Many countries in the world like Singapore earn billions of dollars annually through their sea ports. Bangladesh could also go for such a scheme through building massive infrastructure and opening the door for our neighbours.

13

7. Conclusion The Chittagong port, therefore, by and large plays the role of principal gateway to Bangladesh in spite of all its deficiencies. It was also passing a critical time due to serious congestion before the assumption of power by the interim government. Politicization as pervasive as in every organ and sector of the country, the seaports were not immune to it and every trivial issue caused breakdowns in normal work and no authority was competent enough or courageous enough to introduce any reform or recommend any change to the waterfront work practices. The joint forces command at Chittagong has been working vigorously since the assumption of office by the interim government in removing all the impediments in the normal functioning of the port. They had introduced some radical changes to remove congestion and improve efficiency that were beyond the capacity of the Chittagong Port Authority earlier. They had introduced privatization in the Chittagong container terminal, brought speed and efficiency in disposing outstanding issues particularly delivery of goods and disposing of the same if not cleared within the stipulated time, clearing the space that has long been occupied by reconditioned vehicle importers, curbing the power of unions etc have been some of the welcoming measures that needed addressing for long.

8. References 1. http://en.wikipedia.org 2. Porte Grande 81, CPA , 1981 3. Year Book’92, CPA 4. Hundred Years of the Port of Chittagong, CPA, 1988 5. Problems and Potentials of Chittagong Port, TIB Report, 2007 6. Financial Express, Jan 12, 2009 7. New age, Nov 3, 2006 8. www.worldbank.org 9. www.cpa.gov.bd

14