PresentationTopic:

The advent of Inland (river) Container Terminal in the Inland Water Transport
(IWT) t f B l d h (IWT) system of Bangladesh;
an important infrastructure development long overdue for cheaper, safer
and eco friendly mode of transportation of containerized goods through
our inland waterways in the DhakaChittagong (DC) and Dhaka Mongla
Kolkata (India) IWT corridor,
andtheinvestmentopportunities,liestherein.
Keynote speaker : Mr. Mahboob Ahmed y p
Managing Director
Shipwrights Bangladesh Limited
( A consulting & design engineering house
engaged in the business of developing ICT,
Shi d d t i l i B l d h) Shipyards and container vessels in Bangladesh)
K W d KeyWords
The use of inland waterways for moving goods across 18000 miles of rivers and
canal in Europe by scores of mom & pop barge operators have come off age to haul
about 8.5 million TEU containers inland per year, by big operators today. In Asia for
example, the Yangtze river network alone handles about 70% of Chinas
international trade in containers.
On the other hand in spite of having the main hinterland of industry and commerce On the other hand, in spite of having the main hinterland of industry and commerce
in and around greater Dhaka region connected by all season
navigable rivers with the countrys two seaports, absence of inland river based
container handling infrastructures the export/ import sector of Bangladesh is container handling infra structures, the export/ import sector of Bangladesh is
deprived of the most economic and ecofriendly mode of inland transportation,
directly affecting the viable pricing of goods.
Contd.
The Dhaka Chittagong (DC) Transport Corridor TheDhakaChittagong(DC)TransportCorridor
The Dhaka Chittagong (DC) economic corridor contains about 32% of population, The Dhaka Chittagong (DC) economic corridor contains about 32% of population,
generates 50% of GDP and about 85% of our international trade through Chittagong
Port. But most of the freight & passenger traffic moves on a congested two lane
highway and on a capacity & equipment constrained railway system.
The consistent annual growth of about 11.25% in container handling in Chittagong
Port from the year 2000 onwards, will result in 3 million plus TEUs in 2020 from the
current 1.12 million, according to a recent study.
80% of these containers are Dhaka bound and origin.
Only about 20% of the Dhaka bound/origin containers moves inland, Railways
picking up about 80,000 TEUs annually leaving the rest for the road transport.
Contd.
TheDhakaChittagong(DC)TransportCorridor
(contd.)
The remaining 80% are unstaffed (import) and staffed (export) at CHT Port and
numerous other off dock terminals and moved as break bulk in overloaded, unsafe
trucks contributing to higher cost, delays, damages, pilferage and uncertainty in the
delivery of shipped goods either way.
This uncertainty has led to a bone of contention particularly between the apparel y p y pp
exporters and the consignees overseas. FOB documented goods as loose cargo
carried by covered Vans/ open trucks are being handed over to the Carriers Agent
in Chittagong risking loss/ damage to the consignment before actually on board
without any liability taken by the Agent
Contd.
The DhakaChittagong (DC) Transport Corridor TheDhaka Chittagong(DC)TransportCorridor
(contd.)
A l d i i h d h k i i h h As a result, untoward situations have prompted the exporters to take it up with the
Consignees to agree to accept consignment as FCA rather than FOB to avoid
litigation. Few have agreed, but the war is still on according to BGMEA, the apex
body for the apparel exporters body for the apparel exporters.
Constrained by rail capacity, costly container movement by road in Bangladesh is
growing faster than the investment and maintenance capacity available for the growing faster than the investment and maintenance capacity available, for the
road system.
To ensure competitive transport costs and more reliable movement of containers,
the ongoing Export Infrastructure Development Project, supported by the World
Bank, the Government of Bangladesh has planned to construct a modern railway
ICD at Dirasram, Gazipur district with 200,000TEU handling capacity, completion
d t h i k
Contd.
date however, is unknown.
IntroductiontotheInlandWaterways y
ofBangladesh
Occupying about 11% of the country, some 700 natural rivers & tributaries with an
overall 24 000 km long network crisscrossing the country Bangladesh has one of overall 24,000 kmlong network crisscrossing the country, Bangladesh has one of
the largest inland waterway networks in the world, connects almost all the
countrys major cities, towns, and commercial centers.
Withthespaceoftimeandignoranceinmaintenancedredging,12000kmof
classifiedwaterwaysin1970havenowdwindledtoabout6500km.
Contd.
Introduction to the Inland Waterways IntroductiontotheInlandWaterways
ofBangladesh(contd)
Almost 40% of the classified river network shrinks during the dry season, making Almost 40% of the classified river network shrinks during the dry season, making
navigation for mechanized vessels above 500 DWT difficult. About 4000 km of
waterways remain navigable throughout the year.
IWT system handles about 40 percent of the nations foreign trade through five IWT system handles about 40 percent of the nation s foreign trade through five
Class I perennial river Routes, navigable ( daynight) throughout the year with least
available draft (LAD) is 3.5 meter during the dry season.
The LAD in the dry season in DhakaChittagong route is 4 meter and in the Dhaka
Mongla Kolkata (India) regional IWT system is 3.5 meter. g ( ) g y
Contd.
GovernmentStrategyforIWT
Until recently, however, the maintenance of river network by dredging and
development of IWT sector had received little attention from the Government of
l d h h l l d ll d d l Bangladesh with only limited resources allocated to its development.
The Bangladesh government now have taken extensive measures to equip itself
with 9 new dredgers, enhanced fund allocation by many folds, invited private sector
participation in dredging in bigger scale than the past, to revive the dwindling river
network, the nation was proud of, once.
In2000,aNationalShippingPolicywasadoptedtointroducereformandprivate
sectorparticipationinportsandinlandwaterways,whichwasoncethedomainof
Contd.
publicsector
Inland (river) Container Terminal (ICT) Inland(river)ContainerTerminal(ICT)
-the beginning of a new era in IWT system in the beginning of a new era in IWT system in
Bangladesh
What it will do for the Bangladesh economy ? WhatitwilldofortheBangladesheconomy?
A study by the American Waterway Operators shows that the distance one gallon of A study by the American Waterway Operators shows that the distance one gallon of
fuel moves one ton of cargo is 59 miles by truck, 202 miles by train and 514 miles by
inland barge according to a World Bank report published in 2002.
d d b h h h AccordingtoasurveymadebytheChineseexperts;theenergyconsumptionratio
ofhighway,railwayandwaterwaytransportis14:1.8:1.
Environmentally speaking the ratio of emission per kilograms among roads railways Environmentallyspeaking,theratioofemissionperkilogramsamongroads,railways
andinlandwaterwaysis14.8:1.2:1accordingtoapublishedreport.
If container transportation by trucks pays full cost for road depreciation, the p y p y p ,
transport cost of containers by road is 50 times higher than that of river transport,
says experts.
C l i Th b it ll Conclusion:Theabovesaysitall
Contd.
1
st
Inland (river) Container Terminal ( Dhaka ICT) 1
st
Inland(river)ContainerTerminal(DhakaICT)
The good news is that BIWTA and CHT Port Authority jointly is building the 1
st
ICT in ThegoodnewsisthatBIWTAandCHTPortAuthorityjointlyisbuildingthe1 ICTin
Pangaon,knownasDhakaICT,onthebankofriverBuriganga,westofDhaka,witha
capacitytohandle116160,000TEUsannually.
Originallyplannedin1994,TheDhakaICTwillfinallyseedaylightinend2010tobe
operatedbyprivateenterpriseunderalongtermconcessionbiddingprocess.
A policy is also underway in the Shipping Ministry to allocate ten 100TEU capacity
container vessels initially for operating to and from Dhaka ICT , 4 for the
governments own IWT operator BIWTC and the rest 6 vessels for the private sector g p p
operators. The idea is to protect investment against over capacity.
Contd.
Inland(river)ContainerTerminal(DhakaICT)
(contd.)
RPL ICT b R P t & L i ti S i Ltd RPLICTbyRupayanPort&LogisticServicesLtd.
Rupayan Group, a leading real estate group of the country is becoming the Rupayan Group, a leading real estate group of the country is becoming the
forerunner in building the first ever 100% privately owned and operated inland river
container terminal with an initial capacity to handle 230,000 TEUs import/ export
containers on the bank of river Sitalakhya, in the district of Narayangonj, west of
Dhaka with full Customs clearance system in place.
ThededicatedcontainerTerminalisbeingdesignedbyShipwrightsBangladesh
Limited,inassociationwithSeaportInnovationsofSeaportGroupEUproviding
completedesignengineering,portoperationalsystem,turnkeycommissioning,
withstateoftheartITsysteminplaceforalmostpaperlessoperation.
RelevantgovernmentAgencieslikeCustomsandVet/healthinspection
departmentswillhavemodernfacilitieslikemobilecontainerscanningsystemand
fumigationetc. g
Contd.
RPL ICT by Rupayan Port & Logistic Services Ltd (contd ) RPL ICTbyRupayanPort&LogisticServicesLtd.(contd.)
SBLwillalsodevelop anintermodalwaterandroadtransportsystemtodeliverand
pickcontainersdoortodoorunderonebill inallthemajorindustrialbeltsaroun
DhakawithouttheneedtoentertheDhakacity.
TheRPLTerminalwillengageaboutsixteen120TEUvesselsforDhakaChittagong
route,20riverbargesforDhakaKolkataregionalIWTrouteand50roadtrailers
underafranchisesystemtooperatetoandfromitsTerminalinNarayangonj.
AccordingtoarecentWBstudytitledRevivalofInlandWaterTransport:Options
andStrategies, IWThasthepotentialtobecomeamajoractorinthetransportof g , p j p
containerbetweenDhakaandChittagongandbetweenIndiaandBangladesh.
Contd.
Investment and Business Opportunities in IWT InvestmentandBusinessOpportunitiesinIWT
systemofBangladesh
Thenewbusinessopportunitiesexistsuchasdevelopmentofnewerinland
container terminals in around Dhaka and container/ MPC Vessels for transport containerterminals inaroundDhakaandcontainer/MPCVesselsfortransport
betweenDhakaandChittagongandinlandriverbargesforcarryingcontainers
betweenIndiaandBangladesh.
Anunderstandinghadbeenreachedbythetwogovernmentsrecentlyto
introducecontainerizedtransportationofgoodsbetweenIndia&Bangladesh.
Investment and Business Opportunities in IWT system of InvestmentandBusinessOpportunitiesinIWTsystemof
Bangladesh(contd.)
BangladeshIndia Route Bangladesh IndiaRoute
IntercountrycargotrafficbetweenIndiaandBangladesh,thelaterbeingatthe
receivingend,hasgrownfrom414,000tonsin2004/05toalmostamilliontonnow.
Translatedintovalue,theimportfigurewasUSD3375.10millionin200607,export
hangingat358.08milliondollarsinthesameperiod.
B l d h i f I di i l h dl d b k h h B l l d BangladeshimportsfromIndiaaremainlyhandledbytrucksthroughBenapoleland
portwhere300Indiantrucksentereachdaytounloadcargoeswithanother300
400truckswaitinginthequeueacrosstheborderforminimum5days.
WiththeICTprojectsinDhaka,theconditionswillbeinplacetosetupcontainer
transportservicesbyinlandriverbargesthatwouldbefasterandcheaperthanthe
currentmodeoftransport.
Contd.
Investment and Business Opportunities in IWT system of InvestmentandBusinessOpportunitiesinIWTsystemof
Bangladesh(contd.)
BangladeshIndiaRoute
Facilities are in place for Container transportation by rail by Container Corporation FacilitiesareinplaceforContainertransportationbyrailbyContainerCorporation
ofIndia(CONCOR)fromacrossthecountrytoKolkata/HaldiaPortinIndiatobe
loadedonDhakaboundriverbarges.
Currentlyabout220plus7001200DWTdrycargovesselsplybetweenKolkata/
HaldiaPortandDhakaregionsthroughtheborderinginlandwaterwaysof
Bangladesh and India. BangladeshandIndia.
Contd.
OpportunitiesinShipbuilding
ThesedevelopmentsintheBangladeshIWTsystemwillbringaboutamajorboon
inthedomesticshipbuildingwith3035Classvesselsbetween16001800DWT
and about100riverbarges,ifnotmorewithabout 80TEUcapacityeach,will
havetobebuiltinthenext46years.
Shipyardswhowanttobuildshipsforexportwillnothavetowaitforordersfrom
overseasduringthecurrentinternationalmeltdownbutwillhaveanideal
opportunitytosharpentheirskillbyqualitydomesticshipbuildingofthis
magnitudeinthemeanwhile.
Thank you for your attention !