Imp of CTG Port

Technical Assistance Consultant’s Report
Project Number: 37332 (TA 4506)

March 2008
Bangladesh: Chittagong Port Efficiency Improvement

Project
Kellogg Brown & Root Pty. Ltd.

HB Consultants Ltd.
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents.
Chittagong Port Efficiency Improvement Project
CPA –STRATEGIC PLAN
TA 4506-BAN
CPA – STRATEGIC PLAN
March, 2008
Kellogg Brown & Root Pty. Ltd.
HB Consultants Ltd.
Table of Contents
Executive Summary
Abbreviations
1. BACKGROUND ..................................................................................................................................................1
2. CURRENT CPA ORGANISATION.....................................................................................................................2
3. EXISTING FACILITIES .......................................................................................................................................5
4. CUSTOMS...........................................................................................................................................................6
4.1 CLEARANCE PROCESS ..................................................................................................................................7
4.2 AUCTION HOUSE ...........................................................................................................................................7
5. OPERATIONAL REFORMS..............................................................................................................................10
5.1 TASK FORCE RECOMMENDATIONS ................................................................................................................11
6. DEVELOPMENT PROJECTS ...........................................................................................................................13
6.1 CPTFP PROGRAMME .................................................................................................................................14
6.2 OTHER CPA PROJECTS ..............................................................................................................................15
6.3 CTMS.......................................................................................................................................................16
6.4 PROCUREMENT OF EQUIPMENT – CONTAINERS ..............................................................................................17
6.5 OTHER PROJECTS ......................................................................................................................................17
7 CORE ISSUE ....................................................................................................................................................18
7.1 CPA..........................................................................................................................................................18
7.2 CUSTOMS ..................................................................................................................................................20
8 RE-ORGANISATION OF CPA ..........................................................................................................................21
8.1 PRESENT ...................................................................................................................................................22
8.2 THE PRIVATE SECTOR .................................................................................................................................22
8.3 PRIVATISATION ...........................................................................................................................................23
8.4 FUTURE .....................................................................................................................................................24
8.5 TARIFF .......................................................................................................................................................27
9 STRATEGY .......................................................................................................................................................28
9.1 ‘LANDLORD’ CONCEPT .................................................................................................................................29
9.2 CUSTOMS ..................................................................................................................................................30
9.3 GOVERNMENT ACTION.................................................................................................................................30
9.4 MASTER PLAN ............................................................................................................................................31
9.5 TIMING .......................................................................................................................................................32
9.6 NATIONAL TRANSPORT POLICY.....................................................................................................................33
10 MANAGEMENT SUPPORT .............................................................................................................................33
11 CONCLUSIONS AND RECOMMENDATIONS .................................................................................................35
Appendices 1 - 4
Executive Summary
Immediately prior to the declaration of the State of Emergency in the country and the
establishment of the Task Force groups, the port operations in Chittagong, both cargo and
marine, were organised and administered by CPA. Vessels were allocated a berth by CPA and
the stevedores engaged by the Shipping co. were then automatically also employed by CPA as
the quay cargo handler. The dock labour used for the operation were separately employed from
the Dock Labour Management Board by the Stevedores on a day by day/shift by shift basis.
Mechanical equipment used in the cargo handling operation was owned by CPA and operated
by CPA employees. The equipment was often inadequate in terms of operation, availability and
repair and also subject to illegal demands for money from the operators. CPA was unable to
control this activity.
The quayside activity, as indicated above, particularly in respect of containers, was very
congested and confused. Container cargo outturn for customs purposes was undertaken in the
cargo handling areas and by use of other groups of workers employed by the owners of the
cargo. The security, safe working and demarcation of the working areas were totally inadequate
and CPA was unable to effectively control the movement of vehicles and personnel on and
around the berths. Not only was the whole activity inefficient but this situation also provided
many opportunities for damage, pilferage and loss.
The implementation of the task Force recommendations, as detailed in Section 5, has

dramatically improved the working arrangements. There have been major changes in berth
management, organisation, security and labour employment. But if the ambition of becoming a
well regarded international port is to be achieved this is only the beginning of the work that is
needed to be done.
It is important to understand that to members of the maritime industry outside Bangladesh,

particularly first time users of the port, if there is a problem or delays in passing ships and cargo
through Chittagong Port, then the issue from the users’ point of view is simply in the use of
Chittagong Port. It does not matter to them that the actual issue causing the problem is, for
example, equipment failure, customs documentation procedures, pilotage problems and so on.
To the outside perception, the problem is in using the Port of Chittagong.
The importance of Chittagong port to the nation cannot be overemphasised and is recognised
by the requirement for a CPA Strategic Plan and its inclusion in the programme of the
GOB/ADB Good Governance initiative.
i
The key issue that needs to be addressed in the Strategic Plan is that of the future of Port of
Chittagong – not just CPA – not just port users. What is important is how the port activities are
managed and developed to meet the future needs of its customers and therefore the nation.
It is this issue that has to be considered when looking at the future structure and arrangements
to be put in place. Any organisation or group of organisations working in Chittagong port cannot
regard themselves in isolation. The actions and attitudes of all the organisations involved in the
port have to be integrated and focused on the effective and efficient work of the port in all its
aspects for the benefit of all parties. It is this important co-ordination, monitoring and developing
role that CPA will need to undertake in future.
Reform measures can take the form of revised systems, procedures, organisation and so on.
Also, reforms can take the form of changes in relationships. This latter type is more difficult and
takes longer to achieve. In Chittagong both types of reform will be required.
The past experience of Chittagong Port is the result of a catalogue of action and attitudes of
self-interested groups of port workers or port users. For the future health of the port,
confrontation must be replaced with co-operation.
The strategic aim for Chittagong over the coming 10-15 years should be to become the most
important port not only nationally but also regionally, serving the emerging markets of
Bangladesh and the neighbouring countries.
To achieve this Chittagong must progress to become a port internationally recognised, well-
regarded for its service and efficiency and a reputation for transparent, open and non-corrupt
dealing.
To reach this position will require many changes and great commitment from all the various
parties – from the GOB through to the individual workers - involved in the port activity.
This current situation has provided not only a practical example of what can be achieved with a
change in management but also a tremendous opportunity to ‘kick start’ the required process of
change. It is imperative that this is not lost and, through inaction following the ending of the
State of Emergency, the past problems are allowed to return.
The future of the port in the next 10 – 20 years will be determined by what follows when the
work of the Task Force is completed. The improvements already made have, by any yardstick,
been immense. The requirement beyond the Task Force is what is put in place to carry forward
the improvements, sustain, further develop and manage the port in the coming years. There are
many facets to the working of the port. The key to an effective and efficient port is how well all
these different elements are brought and work together. This is the co-ordination and liaison
role that needs to be taken on by the future CPA.
ii
In summary, the major elements (detailed in Section 11) recommended for action are;
A new CPA organisation-maybe with a new name-will be needed, with the new statutes,
responsibilities and devolved authorities to enable it to meet the new challenges that will be
faced by the port. Included in this will be the adoption of a ‘landlord’ port approach and the
involvement of the private sector.
A Master Plan study should be undertaken, which will include a tariff study, prioritising the
projects – both physical and organisational - that need to be done.
There should be a review of customs procedures including up-dating regulations and auction
house requirements. The location of the Auction House should also be reconsidered.
An inter-ministerial working group should be established to oversee and monitor the above
work.
A CPA/MOS Working Party should be established to plan and monitor the various stages in the
CPA re-organisation.
iii
Abbreviations
ADB Asian Development Bank
GOB Government of Bangladesh
MOS Ministry of Shipping
CPA Chittagong Port Authority
PEIP Port Efficiency Improvement Project
CPTFP Chittagong Port Trade Facilitation Project.
CHC Custom House Chittagong
KBR Kellogg, Brown and Root
ICD Inland Container Depot
NBR National Board of Revenue
DWMB Dock Worker Management Board
LPR Leave prior to retirement
BGMEA Bangladesh Garment Makers Employers Association
NMT New Mooring Terminal
iv
1. Background
Chittagong is the major port for Bangladesh, handling around 85 – 90 % of the nation’s trade.
Its importance to the country cannot be over-emphasised. From a throughput of around 1m
TEUs containers in 2007, Chittagong Port Authority (CPA) expects to be handling 2 -2.5m
TEUs in 2016. The Government of Bangladesh (GOB) earns around 30% of its revenue from
Custom House Chittagong (CHC) and Chittagong Port. Hence, the Chittagong Port Trade
Facilitation Project (CPTFP) and the associated programmes focussing on various projects for
improving port capability and performance.
The Port Efficiency Improvement Project (PEIP); T/A 4506 is part of the CPTFP. The rapidly
changing nature of the local situation has caused the Ministry of Shipping (MOS) to ask the
Asian Development Bank (ADB) to revise the original Terms of Reference (TOR) for the T/A
above to better reflect the need for a wider view of the nature of Chittagong Port’s role and
responsibilities over the coming 10 to 20 years.
When the PEIP began in mid-2006, Chittagong was characterised as an inefficient, congested
and expensive port riven through with corrupt practices and demands for illegal payments.
Corruption was not just a port issue, it was a national problem. The Consultant commented
then that ‘the reasons behind the operational problems are not all within CPA power to resolve’.
In July, 2007 the ADB instituted a ‘Good Governance’ project for the GOB and it was decided
that the re-organisation of the CPA, for which the PEIP were now asked to provide a Strategic
Plan, should be related to this programme. The following is the first Draft of this plan.
1
2. Current CPA Organisation
The current CPA organisation chart is shown at Figure 1.
The Chairman and other members are appointed by a Selection Board constituted by the GOB
through the Ministry of Establishment. The members are then responsible for the various
departments as shown.
Figure- 1
Source: CPA
2
There has been a proposal in 2005 (Figure 2) to increase the Members to four positions but this
has not yet been agreed.
Figure- 2
Source: CPA
A proposal (made in 2006) for the reduction in CPA manpower by 21% is also currently with the
Ministry of Establishment for consideration. This proposal was a reflection of the working
arrangements and the responsibilities of CPA at that time.
At 30 Dec. 2007 CPA personnel numbered 5712 against an agreed establishment of 8655
(Figure 3).
This is a level of employment associated with port activity which included CPA being
responsible for the cargo handling operation. It did not include the port labour workers who
were employed separately by the now defunct Dock Worker Labour Board (DWLB).
As shown in Figure 3, of the total 5712 number of CPA employees there is a significantly high
number (around 26%) in the over 50 age group. There is also a significantly low number
(around 5%) in the below 30 age group.
This situation is a matter of concern when looking ahead to a period of considerable change
over the next few years. With such an ‘inverted pyramid’ age structure and the restrictions
placed on CPA in terms of recruitment, as detailed in Section 7.1, it has made it impossible to
undertake any succession planning.
3
Figure-3
CPA Personnel
Dept. Class I/II Class III/IV Over 50
under 30 Total
Secretariat 5 50 13 1 55
Admin/Planning 15 166 64 9 181
Traffic 37 1341 561 Nil 1378
Marine 23 650 113 38 673
Medical 30 318 75 16 348
Finance (inc. Audit) 19 201 64 1 220
Security 10 694 162 72 704
Mechanical 55 691 98 111 746
Electrical 32 373 135 14 405
Stores 5 102 22 1 107
Marine & Hydro 37 417 108 13 454
Civil Engineering 44 397 84 13 441
Total 5712
Source: KBR/CPA
Prior to the introduction of the State of Emergency CPA employees were represented by
several Trade Unions, often politically based. Dock workers, who were employed through the
(now defunct) Dock Worker Management Board (DWMB), were also represented by various
other Trade Unions, again with political alliances. The CPA Traffic Dept., as the Licensing
authority for the Stevedore Contractors, was the point of contact rather than the contractors
themselves.
Proposals are now with the GOB for a formalisation of the closure of the DWMB and,
separately, for the recognition of only one trade union for CPA employees and one for the dock
workers in future to be employed directly by the Stevedore contractors at the berths.
Arrangements already exist for the CPA staff, as GOB Civil Servants, leaving CPA
employment.
Staff reaching 57 years of age, having completed 25 years service, can request, one
month in advance of their birthday, for ‘Leave Prior to Retirement’ (LPR). At the 57th
birthday they are then allowed to take 12 months leave on full pay prior to then being
placed on GOB pension.
4
Staff, having completed 25 years service can elect to leave CPA employment on
whatever retirement terms are then in force. This is a voluntary scheme.
Staff, who have not reached 25 years service, can be asked to leave the service, under
terms already agreed, if the post is no longer required. This is a compulsory scheme.
In the circumstances of CPA, these factors could mean any exercise for a reduction in
personnel might be eased. Conversely, for the onward health of the organisation the employee
base is limited. Human resource planning, including staff training and succession, in these
circumstances is virtually impossible.
3. Existing Facilities
A map indicating the land areas under CPA responsibility is shown at Appendix I.
The existing facilities and equipment of the Chittagong Port are as follows;
• Thirteen decaying general cargo berths used by general cargo vessels. Built in the
mid-1950’s, six of the 13 berths are used also for container ships.
• Twelve liquid and dry bulk cargo berths and jetties (five public and seven private) for
handling petroleum, oil, and lubricants (POL), grains, cement, phosphate rock,
fertilizers, and other bulk cargo. Two of the five public jetties are used for berthing
vessels awaiting repair by the Chittagong Dry Dock Ltd.
• Two new container berths, popularly known as Chittagong Container Terminal
(CCT), providing total berthing length of 450 meters.
• Six mooring berths and 14 berths for coastal and inland vessels.
• Fifteen sheds covering a total floor area of 110,911 square meters (sqm) and 16
covered warehouses covering a total surface area of 70,967 sqm.
• Container storage areas in excess of 165,000-sqm of yard area supported by
straddle carriers and tractor-trailers.
• Fifty-six shore and mobile cranes with lifting capacities ranging from two to 50 tons.
• Four Quay Gantry Crane, thirty-four tractors, 19 trailers, 43 forklifts of 3-5 tons
capacity, 19 operable straddle carriers of 35-40 tons capacity, 10 reach stackers of
7-45 tons capacity, and 20 container forklifts/top lifters of 7-42 tons capacity. Eleven
Rubber Tired Gantry (RTG) cranes of 40-tonne capacity.
• Forty-one terminal tractors of 50-tonne capacity, 12 trailers of 20’ container capacity
and 41 operable trailers of 40’ container capacity.
• Miscellaneous floating crafts, including one dredger, six tug boats, three pilot
vessels, four patrol boats, two anchor/buoy lifting vessels, three power boats, one
service boat, six mooring launches, six survey vessels, and three security boats.
5
It should be noted that, because of age and elements of maintenance and repair, not all the
above equipment or facility is either available or, importantly, capable of working to the design
capacity.
In addition, outside the port fence there are 13 private ICD facilities with a total capacity
estimated at around 33000 TEUs. Recently three companies (Icontrade, KDS and Maersk)
have been given permission to construct new ICDs. The Bangladesh Garment Makers
Employers Association (BGMEA) have also indicated their intention to build their own ICD.
It is encouraging to note that there appears to be growing interest by the private sector in the
construction of new ICD facilities in the Chittagong area.
4. Customs
Re-organising CPA in order to better manage Chittagong Port is not the only requirement for
improving port performance. A major influence on the work of the port is in meeting the
demands of the CHC. It has to be recognised that the revenue from Customs duties is of
immense importance to the nation. However, if its collection, of itself, causes problems and can
potentially be harmful to the amount of cargo passing through the port it will have a detrimental
effect on the very area that serves it.
The Customs examination of cargoes outside the port has been agreed for nine specified items
and CHC/CPA have now approved a total of 12 privately operated ICD units for this operation.
While CHC are satisfied with the operation, the cargo owners are concerned that the ICD units
are not capable of efficiently undertaking the activity by virtue of a lack of space, equipment and
also experience.
These new arrangements have certainly assisted in easing the congestion inside the port.
However, for this to be the permanent solution it will require further efforts in respect of the
ICDs themselves. Users of the services complain that these new arrangements have simply
moved the problem elsewhere.
These ICD units are part of the whole port working arrangements and this is a port issue that
will need to be resolved.
Further approaches have been made to the National Board of Revenue (NBR) to allow more
items in addition to the above nine to be allowed outside port examination.
Another aspect which has helped ease congestion is the ‘Green Channel’ arrangement
whereby some importers have been allowed to move containers from the port with CHC
formalities being completed ‘off dock’. In addition to improving the congestion issue it is claimed
that this easement has allowed some 45 RMG industries to increase productivity.
6
Port efficiency around the world is closely related with the efficiency of customs administration.
The port provides the infrastructure, logistics for landing, storage and movement of international
trade goods, while the customs authority is responsible for enforcement of fiscal, import and
other regulations applicable to such goods or cargo. Facilitation of international trade requires
that both the port authority and the customs operation to be efficient.
The efficiency of a port is affected by a poor performance by customs authorities, as with any
other port services. Reforms of customs arrangements should be addressed as are the reforms
in the Port management area, not only from the point of view of efficiency but also as a
measure to eliminate areas of corruption.
It is understood that CHC are in discussion with CPA seeking accommodation inside the port
area in an effort to speed the clearance process. Agents and others are also seeking similar
facilities. This is also an issue that a Master Plan project (as recommended at Section 9.4)
could include in its TOR.
4.1 Clearance Process
At present the working relationship between Customs, CPA, and the trade community
concerning the cargo import/export clearing process is inefficient, plagued by bureaucracy and
has been an area for corrupt practices. There is little transparency in procedures in the uniform
application of trade regulations and procedures. Outside the ASYCUDA and scanner projects
already announced, and the Task Force recommendations that CHC moves to segregate the
work of the import and export staffs there are no other initiatives to allow for the quick release of
goods, while ensuring that proper duties, taxes, and fees are paid.
The current Customs processes and procedures for import documentation consist of 13 to 16
steps and is paper based with minimal computer support. It is a cumbersome, redundant, paper
ledger and list-oriented process.
CHC claim that the installation and operation of the ASYCUDA system is nearly completed.
The Scanner project identified in section 6 is also intended to further assist in improving the
situation. However, the introduction has been slow and the two scanner units are now not
expected to arrive before mid-2008.
4.2 Auction House
Under the recently revised CHC management arrangements, although this facility is used in
relation to imported items, the management of the Auction House activities has been delegated
to the Export Commissioner, CHC.
7
The current regulations require that if an importer does not enter imported cargo within 30 days,
it is classified as unclaimed cargo (by law) and is subject to Customs auction. The auction
process for unclaimed goods requires an initial bid of 60% of the estimated value of the goods.
If not sold, the requirement is to re-auction seeking a bid higher than the one previously
received. If not sold at this time, then at the 3rd auction the items are sold to the highest bidder.
This process has been the subject of much concern because of the involvement of ‘ring’ groups
who formed together to manipulate the auction process and dramatically reduce the final
auction price. This in turn reduces national revenue.
The whole process can take one year – in some circumstances much longer. At present,
approximately 20% of the CFS storage sheds and 11% of the container yard contains
unclaimed cargo. Furthermore, because of the shortage of shed storage space, many
containers are used for storage in the port and are no longer available as an instrument of
international trade traffic. The CPA estimate that it is losing on average Tk. nine crore of
revenue every month just to facilitate stowage area to custom authority.
The current CHC auction shed is in the middle of the area designated for the proposed KCT.
Over the years CPA have requested CHC to remove the Auction House from the operational
area. Most recently, following discussions in mid-2006, a new site for the CHC Auction House
had been agreed outside the port area. However, some 18 months later, still no action had
been taken. It is understood that CHC now claim the agreed proposed site would not be big
enough, even though it is nearly twice the area of the existing site. There was also joint
agreement between CPA and CHC for improved arrangements for dealing with unclaimed
cargoes.
The location of the new site for the Auction House is clearly a major issue between CPA and
CHC.
From the point of view of CPA the existing site is a large structure and obstruction in the middle
of an area potentially required for development. As such it should be removed.
Seen from CHC point of view they currently are using a secure site within a custom fence,
convenient to them and do not wish to move to an area outside the port. Such a move giving
them problems of the secure transfer for cargoes and the security of the new site.
From the point of view of both organisations there is also the time it will take to clear, plan,
construct and bring into operation a new facility. A time scale of at least 18-24 months –
possibly longer - is anticipated.
A possible alternative solution that might be considered is the use of land currently within the
port but that is not required for future port development. For example, an area around the
8
existing No. 1 Shed where there may not be sufficient land area for the creation of new berth
with vessel cargo handling facilities but where there are existing structures that could be
adapted for storage purposes. There already exists a bonded baggage store in this area. If, as
a result of the CHC review, the amount of cargo for auction reduces this might prove a
convenient and more readily available alternative.
Another advantage of the selection of such a site could be in its availability much sooner than a
‘green field’ site outside the port and possibly reduced costs. The area around No.1 Shed is a
suggestion as an example and there may be others. The Master Plan project suggested later in
this report could be asked to make this a priority concern.
However, also for consideration is the possible amendment of the Customs regulations. It is
understood that currently the regulations do not allow for the imposition of penal duty for items
not entered for Customs duty and subsequently reported for Auction. For some items, such as
vehicles, which are commercially attractive and usually find a ready market, the current
arrangements allow an importer 30 days for Customs entry and then a further at least 25 days
before Auction. The duty taken from the Auction price is still the same as if the item had been
entered when originally landed. In the meantime the buyer/eventual owner has had secure,
cheap storage.
The number of Auctions held in 2006 was(TBA) and the figure was (TBA)for 2007.
The current position, arising from several years of trying to manage an ineffective system, has
left many cargoes still awaiting disposal after some years – some container items over two
years old and also including some that were originally foodstuff items. It is clear that the Auction
House process has encouraged some unscrupulous people to use the system for money
making not the trading of goods. It is recommended that, along with the suggestion in the
previous paragraph, the whole Auction process be reviewed with a particular aim to ensure that
those groups who originally import a consignment cannot walk away from responsibility for its
final disposal. Such regulation might deter the non-genuine importer and take away a further
opportunity of corrupt and illegal practices.
Changing regulations and premises, however, might be seen as only tinkering with the problem
when what is in fact required is a fundamental review and overhaul of the system.
The whole question of CHC regulation and the need for Auction should be examined. The
current position, as above, is fraught with difficulties and delays. Much time, effort and
resources are expended by both CHC and CPA personnel. Often the Bangladesh legal system
is also activated by interested organisations. It has already been demonstrated that the whole
of the existing arrangements are a major source of, and potential for future, corrupt dealings
and for this reason alone action needs to be taken.
9
The need for auction is brought about by the regulations. Items for auction must have an initial
record of an organisation originating the importation. It should be possible to develop a list of
regular offenders with a view to taking action against them. Also the regulations should allow for
penal duty to be paid where there is record of continual initialisation for cargoes but no
subsequent entry. In addition, it is understood that some items are put into auction that were
originally declared as non-importable. This is another aspect that requires attention.
5. Operational Reforms
A State of Emergency was declared in February, 2007 and a Caretaker Government installed.
There followed the appointment of Task Force groups whose work was to focus on, and
recommend improvements, in the working of key aspects of the nation’s activities. One such
Task Force established was in respect of Chittagong Port.
Prior to the establishment of the Task Force the port was characterised by users as expensive,
inefficient and congested with high levels of corrupt practices throughout. However, port users
had little choice in terms of use of an alternative port. The corrupt practices ensured that CPA
had little control over the management of the port activities.
The organisation of the port operations was complicated by the involvement of a variety of
organisations. In addition to CPA
• there were a large number of trade union groups (22 @ 31/12/06), many of which were
politically associated and
• a variety of stevedore companies (58@ 31/12/06), many with little in the way of
experience and equipment.
The dock labour pool numbered 4500 plus a further 1435 clerical staff. There was a rigid
adherence by the dock labour of maintaining large gang numbers (even although not used) –
typically around 10/12 men on ship, 10/12 men on quay plus clerical/documentary support of
around a minimum of 25 in addition to the CPA employed equipment drivers This pool of men
was registered for dock work by legislation.
Following industrial action by dock labour in September, 2006 there was an agreement to
increase rates by 17%. There was no ‘quid pro quo’ undertaking of reductions in total numbers
or restrictive practices. All that was ‘given’ in return was the establishment of a joint
employer/trade union committee reviewing gang size and the total number of registered men.
Some natural wastage was achieved over the next few months but no major changes.
The reforms needed to bring about change and improvements in the port activities were
thwarted by those self-interest groups who wished for a continuation of the existing
10
unsatisfactory situation. Also potential investment in the port was discouraged politically by the
rejection of the involvement of the private sector.
Large numbers of port labour workers continued to be involved, using an outdated dock worker
registration scheme. Elsewhere , internationally, with the introduction of more efficient
management and operations systems, equipment and employment schemes, the port transport
industry had increased efficiency and performance with the introduction of better conditions for
a higher skilled, albeit with lesser number, labour force. These improvements also offered the
potential for future port development. These opportunities were being denied to both the port
and workers in Chittagong. Chittagong was falling behind.
Since coming into being in March/April 2007 the changes that have been achieved by the
recommendations of the Task Force have, by any yardstick, been dramatic and of great benefit
to the port and port users. It also provides evidence of what should be possible in future.
5.1 Task Force Recommendations
Working with CPA and port users the Task Force recommendations have seen major changes
in the following areas;
• Container berth management

• Illegal work payments
• Gang size and labour force numbers
• Elimination of the Dock Workers Management Board
• Stevedore work organisation
• CHC procedures
• Removal of containers from the port area
• Improved port/berth security
• Port charges – containers
• Port charges – agents
In the first instance the changes were made in respect of the work at the container terminals
where one private sector management organisation was contracted to manage the working of
the terminal.
The introduction of the a local company, Saif Powertech, as the one management organisation
controlling the container operations has had a dramatic effect on the turn round times of
vessels from days to hours. This has been achieved with the same people, the same
equipment and in the same working area as previously. So, what has changed.
11
Instead of a variety of organisations involved the control of the ship discharge, the operation is
now managed by one. Also, because of the change in the national climate of anti-corruption,
the previous practice of illegal demands from workers for money to even perform normal
operations has been replaced with a higher wage but no illegal payments. The effect is
dramatic.
Not only was the working time on a container vessel reduced, arrangements were also put in
hand to reduce congestion in the working area. This was achieved by the movement of
containers requiring un-stuffing being removed from the berth working area by transfer to
various CHC/CPA authorised Inland Container Depot (ICD) units outside the port.
A CPA estimate is that the effect of these reforms so far has been to improve port efficiency by
30% and reduce costs by 40%.
It demonstrates what is possible with improved control and organisation and also what is the
potential for further improvements in performance given more time and extension of the
changes in working practices.
What is important now is to not let this initiative slip and to build on it for all areas of the port’s
activities.
With the cessation of the work of the DWMB, the Task Force also recommended that the one
employer concept be applied also to the general cargo berths. Accordingly, the Stevedore
companies (excluding those who worked at the anchorages) were allocated between the
remaining non-container working berths on the basis of 3 or 4 firms at each berth. One of the
firms was designated ‘lead’ contractor for the purposes of work organisation with the other
companies in support. The Shipping Companies do not therefore nominate their preferred
contractor as that decision is determined by the berth allocated by CPA.
This is an interim arrangement which allowed the continued employment of the stevedore
companies after the demise of the DWMB. A proposal is with the MOS for CPA to be able to
appoint one contractor for each berth. With this introduction it is hoped that the number of
Stevedore companies will reduce and will also overcome the problems currently experienced
relating to the poor handling of general cargo and the correct use, and availability of,
equipment. There is also an opinion that one contractor per berth without the link to two/three
other companies, as now, will also reduce the cargo handling costs.
An important issue when awarding such terminal employment contracts is the financial strength
and experience of the company selected. What is being sought, in addition to the work
experience, is an organisational of substance, able to properly employ workers using sound
employment practices (personnel procedures, safety measures, health, pension and so on) and
with sufficient resources to invest in the required equipment.
12
While considering the general cargo berths it is also noted that the delivery of certain cargoes
directly from vessel (not passing through the shed) to vehicles on the quay is still a common
practice in Chittagong.
Port performance in terms of ship turn round time is important. Vessel cargo discharge delayed
or slowed because of the non-arrival of vehicles is not acceptable. The purpose of cargo sheds
at berths is for the temporary storage of cargo awaiting collection from, or delivery to, vessels.
Direct delivery from ship is charged by the port at a lower rate than stored cargo. The need for
direct delivery in respect of hazardous and some ‘dirty’ cargoes is entirely understood.
However, if this practice is only adopted to meet consignees own convenience and costs then it
should be questioned.
For the ship owner/charterer this direct delivery practice only extends the ship voyage time and
increases vessel berthing costs. From the CPA point of view it delays the use of the berth for
other vessels. The consequent increase in vessel costs (demurrage costs between 15,000 –
20,000 US$ per day) will be passed on down the transport/consumer chain.
The benefit gained for some organisations (hauliers/cosignees) in parts of the chain result in
extra, avoidable, costs borne by the ship-owner, the port and in the end the consumer.
6. Development Projects
The port berths have been divided into 6 designated as container berths and 6 as general
cargo. For the general cargo berths groups of existing stevedore contractors have been
allocated to work on the berths with one contractor nominated as the ‘Group Leader’. After the
4 month monitoring period contracts for work will be tendered for each berth at which term one
contracting organisation will be appointed. It is anticipated that groupings of the existing
companies are likely to occur as potential bidders.
Although there are 6 berths currently nominated for container working these are additional to
the existing container terminal. It is envisaged that the when the CTMS system is fully
introduced and operational three container terminals will eventually be required. However,
these will require more than the existing nominated general cargo berth areas, which do not
have, as presently designated the required land back up areas needed for modern container
terminals.
The requirement for back up areas is not confined to container berths. The remaining general
cargo berths will then need to be developed to provide more open working quayside areas and
storage areas. Experience shows that as general cargo diminishes with the transition into
containers the remaining cargoes become more specialised in requirement for berths, areas
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and equipment. These specialised facilities are often developed for the handling of timber, logs,
grains, cars, dry bulks and so on.
There are large quantities of logs, ‘long iron’ items, heavy metal items and vehicles in the open
stowage areas between and around the sheds. These traffics could well form the basis of cargo
for specialised handling terminals in future port developments. Further examination of this
aspect should be undertaken by the Master Plan Study.
The sheds are generally speaking in poor condition and not very much utilised. Conversely the
open stowage areas as indicated above are very much utilised.
The Chittagong Port Trade Facilitation Project, T/A 4136 (TERA) report focused on the
improvements to operations. The current CTMS work is a follow up to that report. At that time
the only institutional aspect of the report required under that TOR was in respect of the
Environmental area, again reflected in following projects. The functioning of the CPA
organisation for the whole port was not considered.
In order to meet the challenges of globalisation and trade liberalisation of the world economy,
Chittagong Port has undertaken many projects to enhance its capacity and performance and
also to build adequate services and facilities to make it a regional standard port.
6.1 CPTFP Programme
Under the above three components of work have been undertaken. All of them are ADB
funded.
Component A: Chittagong Port Component
• Package-1 - Supply and Installation of computer software

(CPA-1) (CTMS & MIS)
• Package-2 - Supply and installation of equipment for waste
(CPA-2) reception and oil spill.
• Package -3 - Facilitation for Environment management such
(CPA-3) as land development, construction of waste oil
reception tanks and building pontoon Mooring,
gangway etc.
• Package-4 - Reconstruction and up gradation of internal
(CPA-4) roads and canal bridge between CCT and GCB
and gate control equipment.
• Package-5 - Port service road and bridge across Mohesh
(CPA-5) Khal.
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It is anticipated that with the implementation of these five Packages, the operational efficiency
of the port will increase greatly and advance into a new era of development as a modern port.
Component B: Chittagong Custom House of Component
• Provide assistance towards activation of ASYCUDA ++ computer System of CHC

with an interface to CPA’s computer system.
• Installation of Container Scanner intend to help meet emerging national and
international security standard
Component C: Roads and Highway Department Component
• Construction of an access controlled link road (Flyover) from port access road to
CCT and NCT at Chittagong Port
6.2 Other CPA Projects
In addition to the above projects, CPA has in mind a further range of items (listed below) for
consideration and development. It may be possible for some to be funded from within CPA own
revenue. Others indicated by (*) are likely to require external funds and this could be a major
area where the port development can be assisted by involving the private sector.
There are some areas were further work is required in order to evaluate project viability. The
interim period whilst the new organisation constitutional/legal matters are being prepared would
present a good opportunity for these items to receive consideration, as follows:
Short Terms Projects
CPA has embarked upon a plan for implementing a group of new projects classified as short
term, mid term and long term. Short-term projects comprise
• Appointment of Terminal operator for New Mooring Container Terminal on S.O.T

(Supply, operate and transfer) basis
• Construction of backup facilities behind 400-meter berth of New Mooring Container
Terminal (*)
• Procurement of cargo handling equipment for General Cargo and Container
• Procurement of vessels and crafts
• Construction of one Truck terminal in the vicinity of port area on BOT basis
• Introduction of Personal Management Information System (PMIS)
• Development a Data base for estate department
• Renovate X- Y shed area for FCL/LCL container stripping and build a large CFS (*)
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Mid-Term projects consist of
• Construction of Karnaphuli Container Terminal (KCT) at existing jetty 11, 12 & 13 of

Chittagong Port (*)
• Constructing of berthing facilities for inland vessels at the upstream of river
Karnaphuli
• Installation of VTSS (*)
• Procurement of one high power Tug
• Procurement of one patrol Boat
• Develop Dock Labor Colony area for FCL/LCL container stripping and build CFS
and truck perking area (*)
Long-Term Plan Comprises of
• Construction of Patanga Container Terminal (PCT) near Khal no 15

• Construction of one Intermodal yard near Chittagong Port Access Road (CPAR) (*)
• Modernisation of River Mooring 3 and River mooring 4
• Construction a connecting road between CEPZ square and Baro Pole
• Develop specialized sheds and CFS for GCB in the Marine Workshop area (*)
• Construct a tunnel underneath of the KP River along the Clinker Jetty (For future
expansion of the port on the other bank of the river)
It should be emphasised that any project for the development/rehabilitation of facilities must be
related to a particular trade/traffic/customer and an appropriate return on revenue/expenditure.
Port facilities are too expensive of scarce financial resources to build on speculation alone. This
is where the need for an independent Master Plan, as recommended at Section 9, is of
particular value.
6.3 CTMS
The CTMS contract is still being negotiated at the time of writing. At present it will only apply to
the Chittagong Container Terminal (CCT), the general cargo berths at which containers are
currently handled and the Port Park area now under construction. It may eventually be
extended to the New Mooring Container Terminal (NMT).
The system calls for a very large measure of training of existing CPA personnel which the
successful bidding company will undertake. Some 200 staff will need to be trained on the
foundation computer aspects of the system while a further 300 will need training in the use of
system equipment (radios, etc.). This will cause major issues of personnel commitment in terms
of performing the day to day operations at the same time as introducing new systems. It is
understood that the training process and installation process will achieve a start date for the
system of early 2009.
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The CTMS system envisages an autonomous management structure for the terminal which
may assist in the introduction of a separate berth employer. More discussion is needed with the
CTMS project team to develop the stages required beyond the implementation of the CTMS
system.
This work will impact on the CPA re-organisation process. There is a limit to the amount of
change that any organisation can accept at one time.
6.4 Procurement of Equipment – Containers
With the introduction of 3 shifts and the Single Berth Operator system the speed of container
handling and productivity of the port has increased hugely. However, procurement and
availability of equipment has not kept pace. As a result there is a shortage of supply over
demand of equipment in the yards. Also converting Port Park and X-Y shed into a container
yard and CFS has augmented the demand. It has been assessed that to meet the current
demand of equipment it is necessary to procure 35 Straddle Carrier and 14 empty handlers
immediately.
Procurement is not an easy process and there are local interest issues that make the situation
even more difficult. If CPA cannot procure the required amount of equipment the progress in
container handling will slow or stall. For this reason CPA made an agreement in January, 2008
for the hire of extra container handling equipment. The availability of this equipment will
commence in March, 2008.
In a situation of a Contracted Terminal Operator the issue of the provision of equipment would
be determined in the contract terms. It would normally be expected that the contractor would
provide and maintain this item. This is one reason why when considering potential contractors,
the sound financial position of the companies is a key consideration. It is understood that the
existing contractor is not in a position to fund this level of investment.
6.5 Other Projects
Construction of New ICD at Dhirasram in Gazipur District
A feasibility study is going on by CPA and BR to construct a new ICD at Dhirasram in Gazipur
District. This is to handle increased number of containers and provide adequate intermodal
facilities to ensure the effective and efficient movement of containers for the tradable sectors of
the economy in the key Dhaka- Chittagong transport corridor. The total area of the land is 100
acres. Holding capacity will be 12000 TEUs and annual throughput is expected to be 300,000
TEUs. The BR has to build Dhaka Chittagong railway double track to have better connectivity
with hinterland.
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Construction of New ICD at Pangaon
A CPA funded new ICD is being constructed by the BIWTA at Pangaon in Narayangang. The
CPA has provided Tk 154 crore for implementation of the project. When the ICD will be
commissioned 60-70% container will be transported by river route. Total area of the ICD is 44
acres and holding capacity will be 8000TEUs. Waterways are the cheapest means of
transportation. Transporters/shippers should be encouraged to build suitable transport so that it
can carry 70 to 80 TEUs of containers. This will also reduce the ever-increasing pressure on
roads.
Renovation of GCB Area
It is expected that with in 2012, 70% of the cargo/goods coming to Chittagong Port will be
containerized. Anticipating that CPA has taken massive program to develop container yards
demolishing the old sheds and paving the unused land of the GCB area. Under this initiative No
1 yard, G shed JR yard areas are already paved. Around 800 new car parking area has
developed near A & B shed. In order to implement the Karnaphuli Terminal Project measures
have been taken to remove the customs auction shed from port operational area.
7 Core Issue
The Inception Report of the PEIP expressed the view that the problems of the port were not all
within CPA power to control or correct. Nothing that has been seen or heard since the start of
the project has changed that view. The port was characterised by the activities of self-
interested groups of port workers or users. The only occasions of coming together was in times
of confrontation and problems. The situation in the port now is completely different from that
which existed 12-18months ago. The core issue now to be addressed is what will be the
position when the State of Emergency ends and the work of the Task Force is completed.
The present position and the improved situation in the port have only been achieved with firm
and resolute management action. There still remains much to be done and it is imperative that
when the Emergency ends the important changes that have been introduced are able to be
sustained. A vacuum must not be allowed to develop which will then allow for the return of the
old practices and all the organisational problems and corruption that they created. This is the
role that a new CPA must be in a position to tackle.
7.1 CPA
Arising from the Consultant’s own observations and discussions with CPA personnel and Port
users since the commencement of the project, the main operating issues that required attention
have been addressed following the recommendations of the Task Force as indicated in Section
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5. However, in order to address the core issue as described above it is the institutional aspects
that will be of key importance in sustaining the improvements and establishing how the port is
managed and developed. These are the items that require urgent attention.
CPA is governed by the Chittagong Port Authority Ordinance – 1976 (as amended upto 16th
September,1995 in terms of The Chittagong Port Authority(Amendment)Act No.19).
Subject always to the overall GOB. legislative requirements, under this Ordinance the
Establishment of the Authority, Chapter II and the Powers and Functions of the Authority,
Chapter III, Sections 9 and !0 give CPA the authority to manage the everyday affairs of the
port working within guidelines of policy from the MOS. In practice, until recently, local and
national political requirements, coupled with the interests of the variety of strong lobby groups
which influence them, were denying the port the firm and positive management actions needed
not only at present but for its necessary future development.
Recruitment into CPA, or any Civil Service post, is governed from the Ministry of Establishment.
Since 1986 permission for recruitment, other than a small number of agreed technical positions,
has been denied by this Ministry. This has applied to all GOB posts not just CPA.
The result of this decision has been to leave CPA with a very imbalanced, in age terms top
heavy, workforce as detailed in Section 2.
One of the reforms recommended by the Task Force was the introduction of a Terminal
Operator with the terminal workforce being controlled by one employer, not CPA. This is in
place on the Container Berth and working well. These arrangements were also introduced later
for the other berths and are still on a trial basis at the time of writing this report. However, the
plan is that after an initial period permanent arrangements should be put in place based on the
GOB public tender bidding process (PPP).
With contractors personnel employed on the quayside management operations these new
arrangements, would therefore envisage, in future, a much lesser role for CPA personnel with
fewer numbers required particularly in the operational area. However, this is not the whole
picture for a revised organisation of CPA.
The current organisation has the main Departments serviced by large numbers of small
sections within the dept., each of which is manned by a Section leader and support teams.
Because of the link to the overall GOB Civil Service, appointment to the various senior positions
(officer level and above) is directed by the Ministry of Establishment. Other than a few
specialised recruitment positions this applies to all the CPA establishment. Transfers of
personnel between CPA positions and other Civil Service undertakings is dictated by the
Ministry of Establishment based on availability and a centrally agreed job descriptions. The
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more junior positions may be filled from within the existing personnel but there is a strong
emphasis on seniority in the grade.
In addition to autonomy in respect of job descriptions and personnel appointments, a new CPA
organisation will also require a management structure and organisation that is skilled and
flexible. It will need to work with the staffs of international customers who are similarly skilled
and using the latest communication techniques and management systems.
A new CPA organisation is likely to require less people than at present but significantly also,
people with different skills. For example, the CTMS project has already identified that for the
future many posts for skills of computer use will be required. There will need to be training
programmes for existing personnel, recruitment of new personnel and release for others. The
human resource aspects of a new CPA organisation will be very large and the requirements
complex.
Although it is clear that the new organisation will require less people it is not possible at this
early stage to indicate actual numbers that will be required under the new arrangements. There
will be some depts. which will continue with similar duties, there will be some depts. whose
responsibility will change and there will be others newly introduced.
The re-organisation process is the key to the future strategy of the port. Once the decision is
taken, the new arrangements are likely to take many months to put in place and then there will
be a ‘learning curve’ period. It may be possible to set in train the required revisions to the CPA
constitution, relationship with the GOB and so on, for implementation to follow after the
introduction of CTMS and when the State of Emergency is over. For this reason it is
recommended that a Working Party be established, formed from CPA/MOS senior personnel
who would plan and monitor the various stages needed in the transition of CPA from the
present position to the new proposed organisation. Because of the need to retain the support of
the staff involved the personnel management aspect of these stages will be of particular
importance.
It is proposed that when contracts are awarded for terminal management, it should be
conditional that successful contractors give consideration in the first instance to existing CPA
employees for employment, provided they have the necessary skill/experience to be transferred
to the new contractor.
7.2 Customs
From a port operations perspective, much of the congestion problem resulted from Customs
requirements for dealing with the stripping of containers. For security reasons Customs
required that all CFS operations should take place inside the main terminals. Firstly, Customs
regards the containers themselves as dutiable items. Secondly, a Customs officer was required
to observe the cargo as it is removed from the container to see if it contains contraband. The
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former reason is in contrast to international norms and the second is primarily a result of not
having an adequate computerised risk assessment system in place to determine which
containers should be inspected.
Both the main import CFS facility and FCL stripping operations take place at the CCT terminal.
These activities are one of the most important factors slowing down operations at the CCT.
They occupy from 20% to 40% of the CCT operating space depending on the time of day.
The CFS operation for the stripping of LCL containers also has a significant negative impact on
the efficiency of the CCT yard operations. The warehouse occupies approximately 10,000 sqm
of the CCT not including the storage of associated containers. It is located directly adjacent to
the entrance route for export containers entering the main gate. The boxes to be stripped must
be stored along this route and the activities associated with their positioning and discharging
create a major bottleneck in that area, which affect the terminal as a whole.
The completion and bringing in to use of the Port Park facility should be of great assistance in
this situation.
The lack of an automated cargo clearance system also provides many opportunities for
cultivating informal relationships/illegal payments to facilitate the clearance process. The
shippers in turn contribute to the problem by accepting this practice and not reporting it, as the
cost of doing business.
8 Re-organisation of CPA
The international maritime trade and associated modern technology is always seeking to
improve with measures of new cargo handling methods and acquisition of new facilities. A port
is a service-oriented organisation whose purpose is to provide, operate, and maintain facilities
to meet the trade requirements and able to adapt to the changing needs of the industry.
Chittagong Port, being the main point for Bangladesh maritime trade must be run efficiently and
provide those services required by port users in a cost effective way.
These facilities incorporating the need to work to the International guidelines of ISPS,
Environmental and other conventions, include a sound operating harbour and navigational
channel, ship-receiving systems, stevedoring, sheds and yard management, as well as
adequate availability of required equipment with good infrastructural facilities, sound personnel
management, and rational tariff systems.
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8.1 Present
The 1976 Ordinance established the CPA with a view to providing a more autonomous
Authority following the experience of the problems of managing in a Trust Port status. Chapter
II, item 5(2) of the Ordinance states that CPA should react to GOB guidelines given from ‘time
to time’. In practice the GOB influence is continuous with the CPA management completely
under the direction and control of the Ministry of Shipping with also particular references to
Ministry of Finance and Ministry of Establishment.
The 1976 Ordinance, as also with some port bye-laws, is now outdated and will not meet the
needs of providing a management organisation that is able to face the challenge of taking the
port forward, including also making up for time lost in the past.
For example, CPA currently does not have authority over;
• its Tariff, amendments to which need Ministry of Shipping and then Ministry of
Finance approval.
• personnel matters - overseen by the Ministry of Establishment which covers all Civil
Service positions. and
although stemming from its dollar related revenue, CPA is perceived as ‘Taka rich’ but;
• cannot spend any of its funds, other than very small items, without Ministries of
Shipping and Finance approval
• the GOB can withdraw revenue from CPA funds at any time.
8.2 The Private Sector
International experience has shown that it has always proven to be a difficult situation for any
national Government to manage a major port. The dilemma is in trying to balance the
importance of an effective port from the nation’s point of view with the competition for funds
against other fundamental areas such as, for example, health and education projects.
Internationally, in recent times it has been demonstrated that successful ports are those where
the private sector has been allowed to become involved but without the loss of the national
interest.
In the event that a policy decision is taken by Government to seek to involve the private sector,
experience elsewhere also suggests that such private sector investment will only take place
when the current problem areas of employment, trades unions, organisation and management
of the port and business sectors are effectively addressed and the port activities are seen as a
healthy place for private investment. Again experience in other countries has shown that private
sector involvement will only happen if the Government prepares the ground thoroughly. Private
22
sector investment and involvement will not happen automatically simply following legislation to
allow it.
As an introduction to private sector involvement the award of specific management contracts for
specified port services can provide a useful starting point. For example, a management contract
for the provision of plant and equipment maintenance. It is understood that this type of
arrangement had been considered by the CPA during the last 12 months. The provision of such
an arrangement could be seen by the port customers as an example of positive action being
taken by CPA. A management contract for the supply of marine activities ( e.g. towage,
mooring gangs, water supply ) might also be considered. A contract for leasing container
handling equipment was signed in January, 2008.
Another factor which can come from involving the private sector is the competitive element.
Currently, in Chittagong, there is just the one container terminal but the traffic forecasts indicate
the need for more. With the construction of other container terminals, operated by different
organisations and offering similar facilities, customers will have a choice which they will be able
to base on comparative costs and services provided. This commercial competition should
encourage the provision of efficient services and very competitive charges which in turn will
benefit the port and its reputation.
This feature is not restricted to container traffic. In the event of other general and specialised
cargo terminals also operated by competing organisations the above benefits will also apply.
However, it must also be recognised that some functions do not sit easily managed by the
private sector. In particular, the environment, navigation and health and safety issues, which
are subject to international Codes of Practice and are not recommended for private sector
management. These must not be left to the behest of commercial considerations and must
remain within the control of the Government sector/CPA organisation.
8.3 Privatisation
The ‘landlord’ concept is sometimes referred to as privatisation, often used by those groups
who oppose the idea. It should be made very clear that the ‘landlord‘ concept is not a
privatisation of the port either in terms of the transfer or purchase of property or asset
ownership to another organisation. The port, as the custodian of the national interest, retains
the ownership of the port land and leases, rents or other arrangement, to a third party for the
performance of the cargo handling functions on the land. Often the port becomes a partner with
the terminal operator, with the land being the port contribution to the venture. The contracted
terminal company then provides the terminal with equipment, infrastructure, management
systems and so on as its investment contribution. There are a variety of legal arrangements
that can be used, of which there are many examples worldwide, and which will match the
requirements of both sides.
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It should be made clear at every opportunity, that rather than disposing of assets the ‘landlord’
proposal is about generating commitment, finance and investment into the future of the port. It
gives the opportunity for the port to attract experienced operators that can bring tried and tested
operational methods and systems without the need to experiment using scarce national
resources.
The introduction of the private sector can be a sensitive topic and a careful presentation of what
is being proposed, highlighting the national advantages that it will bring, needs to be made to all
the interested groups and the media.
8.4 Future
Working within the framework, and with clear guidelines of GOB overall national transport
policies, the new CPA should be responsible for the policy, safety, security and overall strategic
planning for the port, with the authority to contract out to the private sector for those areas of
activity from time to time considered appropriate.
In order to achieve this, looking ahead to some form of corporatisation for CPA, legislation will
be required for a new organisation which provides more authority than the existing CPA is able
to exert. It is recognised that it cannot be at the level of the ‘Local Government’ bodies which
are elected. However, in order to recognise its importance to the national interest it should be at
the most senior level possible under the next, local authority, band. It is recommended that the
new CPA should have this appropriate status, and that therefore its personnel will also have the
appropriate status, to perform the task of effectively managing the affairs of the port.
Development of such a structure for CPA will also assist in attracting the most suitable
personnel for the posts.
As a clear indication that it was a new organisation it might also be of assistance if

consideration was also given to changing the name of CPA. For example, it could be called
“Port of Chittagong” or “Chittagong Port Corporation”.
Working with clearly defined job descriptions, and within a clear remit from Government, it
should not be necessary for the senior post holders in a new CPA to continually refer/travel to
Dhaka for decisions regarding the day to day management of the port.
It is suggested that the arrangement for selection of the current Chairman and Members would
need to change. Experience in other ports shows a structure, nominated by the GOB through
the Ministry of Shipping, of a Chairman and (say) 5 to 8 Board members who would form the
CPA Policy Board. The people nominated should be personnel experienced at senior levels of
business, which could include maritime transport experience but this not essential. Just as
relevant would be experience in banking/finance, marketing and large organisation
management. It is certain that this experience is available in both the public and commercial
24
sectors. This Board would be the policy making level for the organisation with the Chairman
and members nominated by the Minister of Shipping. The Board would probably be required to
meet only once every month. From among the nominated Board members they would elect a
Vice-Chairman. These would be non-executive and not full time posts. It is important to
recognise that what is being recommended is not a return to the Trust Port situation where it
was often felt Board members supported their own business interests rather than made policy
decisions for the Port benefit. In the new situation Board members appointed to the CPA Board
are to represent CPA interests. For this reason it is recommended that some external
assistance might be given in the early stages by appointment to the Board of suitably
experienced people nominated by ADB.
For the day to day management of the organisation a Chief Executive (full time) would be
appointed as would a number of Directors responsible for specific areas similar to the present
members, also on a full time basis. They would carry out the management policies decided by
the Policy Board. These full time personnel would all also be members of the main Policy
Board.
Under the existing Ordinance, Chapter II, item 8, the GOB may appoint an Advisory Committee
for ‘advising the Authority in respect of such matters as may be referred to it by the Authority or
by the Government’. This Committee was regarded by many in the industry as only addressing
the commercial interests of those members from time to time appointed and in the new
circumstances it should no longer be required.
What is required for the future is an autonomous CPA organised with fully delegated authority
bringing together the various groups for the total port benefit. Responsibility cannot be
exercised without having the full authority to do what is necessary.
There needs to be fully devolved authority to the new CPA of, broadly;
• Financial authority – in respect of capital spending; maintenance expenditure,

charges flexibility and day to day expenditure
The current authority of 12 crore could be increased to say 100/150 crore.
• Personnel procedures – employment, dismissal, disciplinary matters, pay and salary
procedures
The current Ordinance under section 31 could be empowered without reference to
Ministry of Establishment.
• Contractual matters – tender issues and evaluations
Authority would need to be increased to contracts of (say) 200 crore, possibly
relating to the GOB Private Sector Participation Guideline.
25
The new organisation and its managers need to be able to act, and react, promptly to a variety
of situations without the need to refer all the time to various ministry levels - or the continual
travelling/reference to Dhaka for consultations and meetings.
The commercial organisations with whom the new organisation will be dealing day to day have
this ability and they will expect it also from the port authority. If this ready response is not
available it will only lead to frustration and delay and be detrimental to the working relationship.
This much reduced chain of management will also assist in reducing the possible number of
opportunities of corrupt practices.
The new organisation should have an establishment basically of lesser numbers of employees
but higher skilled/qualified than now and including also positions requiring new skills. It should
be structured to reflect an organisation where responsibility and job definition is clear with the
appropriate authorities delegated to the personnel involved. Appointment/promotion/
advancement should be based on merit, experience and performance, not just time in the job. It
is recommended that the personnel in a new CPA organisation be separated from the Civil
Service, or at the very least in some way segregated to provide, in the main, its own core
establishment.
Figure 4 shows an outline suggestion for the senior level of a new organisation.
Figure- 4
Source: KBR
26
The new proposed organisation is more akin to the structure of a corporate/commercial

organisation. This could assist the relationship that will need to be developed between the Port
Authority and its major customers.
As the port develops, CPA will be dealing with international organisations – ship owners,
agents, trade associations - with modern management systems and procedures. It must be
able to meet them on level terms in relation to management decision making. It must be
dynamic and flexible, not only able to respond to its customers but also be innovative in terms
of port development. The current organisation will not be able to do this.
The adoption of a ‘landlord’ port approach and the introduction of the private sector will also
signal to the maritime industry that the port intends to progress and that the improvements that
have been achieved in the last 12 months are to be continued.
Within the Industry in Bangladesh - Ministry, CPA, Customs and various port user business
groups - there is a wealth of experience that, if brought together, could be used to tackle many
of the problem issues in the port, rather than individual associations working for the different
business interests.
8.5 Tariff
It must be remembered that a port is a transit point - it is not a warehouse. Therefore any tariff
in place must be designed to encourage consignees to move cargo through as quickly as
possible.
It obviously necessary to ensure also that any tariff reflects fully the costs of the operations to
be performed.
With these two items in mind with imported cargoes there should be a lower rate for cargo
which only remains in the port for a short period of time and the owners get benefit from making
arrangements for early collection. The owners are then influenced to ensure efficient
documentation, Customs clearance, transport, etc. to take advantage of the lower charges.
Cargo remaining in the port for a longer period must attract higher charges by virtue of the need
to store and secure it longer. It occupies space that the port might profitably use for other cargo.
If owners of cargo are continually leaving goods in the port awaiting collection it is almost
certainly because it is cheaper for them to do so than provide warehouse/storage space of their
own. In such a situation the port needs to consider if its charges are too low and adjust as
necessary.
27
Port charges should also be as simple as possible in their understanding and application.
Complicated charges only increase the workload and there is greater room for corrupt practice,
argument and misunderstanding.
In a new CPA organisation working arrangement the tariff for cargo handling will rest with the
terminal operator under the supervision of a CPA contract. CPA will still need to collect its own
charges/dues in respect of vessel movements, pilotage, towage and so on.
Included in the Task Force recommendations are actions in respect of interim charges between
the Terminal Operators and CPA and the elimination of some irregular charges levied by some
of the port agencies. The CPA has also just introduced increased charges in respect of certain
items – in some cases by as much as four times the original. The effectiveness of these interim
arrangements will need to be reviewed and then adopted as appropriate in a new operating
situation.
Even in a new situation CPA charges should still cover the costs of CPA activities even if the
cargo handling charges are in future levied by the contractors performing the operation. In the
new situation it is clear a Tariff review will be required.
9 Strategy
The Maritime Industry is one that can truly be regarded as international. Many of the advances
in systems and technology are transferred from one port to another following the involvement of
many of the shipping lines/agents and operators in multi-national activities. From the point of
view of developing ports this is an important ingredient in their future progress.
Institutionally, ports internationally have been moving forward on the basis of forming
operational partnerships using the worldwide experience of others to provide the technology
and systems with the port organisation providing the local facility, business environment and
policy.
Following the recommendations of the Task Force significant improvements were immediately
achieved in the port operation and performance. Because of the State of Emergency, these
improvements have been achieved probably at a much faster rate than any consultant would
have felt able to suggest. Making up at least some lost time, these improvements must not be
lost. In terms of planning for the future it is important to sustain and build on these and
incorporate them with others still to be made. The CPA organisation for the future must be able
to manage the port in order to achieve this. In order to do this the current situation needs to
change.
28
The so called ’landlord concept’ allows for the necessary developments in the port facilities,
funded by investments and management from the private sector but with monitoring
arrangements in place in a port authority to ensure required levels of service are provided to
meet national circumstances.
This is the key aspect of the Strategy for the development of Chittagong Port. Without the
introduction of the changes in the CPA management organisation and responsibilities described
in Section 8.4 the required progress in the efficient operation of Chittagong Port will not be
achieved.
9.1 ‘Landlord’ Concept
One of the most effective of the public/private sector involvement arrangements is the ‘landlord’
port arrangement. This format seems best able to allow the combination of continuity of national
interest with private sector participation. In essence, the arrangement keeps the effectiveness
of the port within the nation control while encouraging and benefiting from the investment by the
private sector in systems, equipment, etc. and which will not, therefore, draw on scarce national
resources. It has the added advantage that the private sector can bring proven, wide
experience in management and operations at other ports and terminals.
As example, the experience in Chittagong container terminal. The improvements in this case
achieved by the effect of one management organisation, albeit a contractor with limited local
experience and limited resources in respect of equipment. It is for consideration what further
improvements might be achieved on a terminal linked to an internationally experienced
company with the concomitant resources of equipment and systems.
It is recommended that the ‘landlord’ port concept is the format that CPA should now work
towards in terms of port operations. While at the same time it should provide the leadership in
port development and ensure a harmonious working relationship with all the other port
organisations, e.g. Customs, port users.
One method of achieving harmonisation is to hold regular meeting (say every 2/3 months) of all
port users (customs, agents, ship owners, hauliers and so on) under the Chairmanship of CPA
at a Port Users Consultative Committee. Not just confrontational meetings at times of problem
but a genuine opportunity to discuss mutual issues of port development and future prospects.
Another possibility is port marketing. Although not a factor in the present situation, marketing
and the commercial development of the port will be an important feature of future CPA activities
and there is strength in this being undertaken, as appropriate, on a joint CPA/Port User basis.
29
9.2 Customs
The efficiency and effectiveness of Customs in processing trade goods has a significant
influence on the international competitiveness and economic growth of the country and in the
expansion of foreign trade in the global marketplace. The harmonisation of Customs processes
and procedures is essential to the objective of facilitating global trade. Customs regulations and
policies must not negatively impact on the effective and efficient transfer of goods through the
Port. A primitive paper based clearance process directly or indirectly has an effect on the image
of the port.
Port efficiency around the world is closely related with the efficiency of customs administration.
The port provides the infrastructure, logistics for landing, storage and movement of international
trade goods, while the customs authority is responsible for enforcement of fiscal, import and
other regulations applicable to such goods or cargo. Facilitation of international trade requires
that both port authority and customs operation to be efficient. The efficiency of a port is affected
by a poor performance by customs authorities, as with any other port services. Reforms of
customs arrangements should be addressed as are the reforms in the Port management area
not only from the point of view of efficiency but also as a measure to eliminate areas of
corruption.
9.3 Government Action
Because of the wide-ranging implications of the suggested port reforms for the national
economy, deciding to embark on the path to reform must be an initiative fully supported at the
highest levels of government. Once the principle is agreed by GOB, it is suggested that
because of the involvement of a number of different ministerial departments, consideration be
given to the establishment of an inter-ministerial working group (IWG) under the chairmanship
of a senior official. The drafting and approval of this IWG mandate would be the first step to set
the reform process in motion.
Due to its relationship to the Good Governance programme and the fact that most of its
proposed decisions will have a far-reaching impact across a number of ministerial departments
it is recommended that the IWG in this instance to report directly to the head of government or
prime minister’s office.
The IWG will have to define the objectives of port reform and draft a new or revised institutional
framework for the sector based on these objectives. Its proposals should be included in a port
sector policy paper that should be endorsed by the council of ministers. This policy paper then
could be distributed for comments from all of the stakeholders within the port and maritime
sectors. Based on the sector comments, the policy paper would then be adapted as appropriate
and submitted to parliament or the concerned parliamentary commission for approval. In
30
particular, this policy paper will propose a preferred choice for the new port management model
to be implemented.
What is important now is to not let slip the improvements, and experience, that have been
achieved and to build on it for all areas of the port’s activities.
The port organisation has to be in such a position to be able to accept the modern requirements
of international port operation. The national situation in terms of financial arrangements must be
such as to be attractive and facilitate an external investor but sufficiently well organised that the
national requirements for trade are served also.
9.4 Master Plan
The range of work envisaged by the above proposals and the suggested re-organisation of
CPA indicate an urgent need for an early Master plan of Chittagong Port.
The last master plan study was undertaken within CPA in the mid-1990’s. Some of the recent
external studies have looked at particular aspects of port activities and these now provide some
of the guidelines in use. However, none have considered the whole port situation.
A master plan now would assist in support of the sustainability of the operational improvements
resulting from the fundamental changes introduced in the last 12 months. It would also provide
up to date information which could assist the development and decision making of the new CPA
organisation.
As indicated in earlier reports such a master plan study should be performed by an

internationally experienced independent organisation and would include an independent traffic
forecast. This latter point is particularly important if international donor finance or investment is
sought (as indicated by those items in section 6.2).
As indicated in Section 8.5, the port tariff which will require a complete renewal with the
introduction of private terminal operations can also be considered within a Master Plan study.
An integral part of all port projects is health and safety issues. Prior to the action taken on the
Task Force recommendations, the situation in the port working area was poor. The improved
security and reduction of congestion of cargo, vehicles and extraneous personnel from the
working area and the port generally has improved the position considerably. The rationalisation
of berth areas with the development of the container handling activities and the removal of
redundant buildings will provide the opportunity for also allow revised berth layout, roadways
and the proper fencing and demarcation of the working areas.
31
Other items for inclusion in the study could be
Small vessel anchorages

Capital dredging,
New main port road, and
Port area road directions, both inside and outside the port gate
A clear idea of the future development of the port, which would be provided by a Master Plan,
would also allow CPA to make a contribution to the planning activities of port users in the
development of projects on port land and the infrastructure developments around the port.
9.5 Timing
In essence the strategy for Chittagong is in two parts – policy and practical. It is urgent that the
process is started.
The policy is in the decision making process to change the constitution of CPA into a fully
autonomous body able to take the port forward. Within that autonomy is also the ability to
involve the private sector in the port operational activities either in terminal arrangements or
other activities.
The practical is in the progress of the existing and proposed projects identified earlier as
required to develop the port in line with the national requirements.
There is a limit to the amount of change that the port organization can handle at any one time.
The existing projects are likely to be on going for at least a further 6-12 months.
It is suggested therefore that the strategy to be adopted should be that whilst the current
projects are finalised the decision and the associated preparatory work for a new organisation
should get underway. If it is possible for that to be achieved ahead of the conclusion of the
other aspects of the Good Governance programme that would be beneficial.
At the same time, the Master plan study could be commenced which among other things could
identify the priorities for the various projects and also make a start on the revised tariff
arrangements.
There is an urgent need to address the current human resources issue of CPA. There is need
to correct the massive imbalance that exists in the age ranges. It is suggested that some form
of interim specialist recruitment might be necessary. The ‘specialism’ in this context is in terms
of age and experience. In order to provide for some succession planning it is necessary to
address the age imbalance identified earlier. More detailed work on this item is necessary.
32
The imbalance in the age profile of CPA personnel is not the best starting point for the large
changes that will be required over the coming years. Managing change itself is a complex and
sensitive issue. Experience shows that the successful introduction of management changes will
follow;
• other recent successful changes and,
• needs the positive participation of those people likely to be affected.
Neither of these criteria is currently present in CPA.
It has been suggested that there might be a cultural obstacle to the inclusion of non-
Bangladesh personnel involved in the new CPA Board organisation. To assist the transition, in
the first instance it may be that nominations from ADB could be used. At an appropriate time
before implementation of the new arrangements, visits might be organized to some similarly
situated, may be, regional ports by senior MOS/CPA personnel to learn from the experience of
other ports that have implemented the ‘landlord ‘port arrangements.
Appendix 4 gives an indicative timetable for the major issues.
9.6 National Transport Policy
Various of the projects mentioned above relate to port access. It cannot be stressed too
strongly that access to/from the port is an important factor in determining the efficiency of the
port. Efforts are being made to improve the road, rail and water access to the port but there is
still a long way to go. Consideration of the impact on the port activities should always be
included in any consideration of any national transport development, particularly if the full
benefits of ‘door to door ‘ container traffic are eventually to be realised.
10 Management Support
Designing and implementing a port sector reform program involving increased private sector
participation in port services requires substantial economic, financial, technical, and legal
expertise, and the coordination of this expertise. The process requires detailed work, first
refining the institutional option to be implemented, then preparing the legal and regulatory
measures required to support it, and finally drafting complex documents, such as the necessary
enabling laws (port law, competition law, and more), reform policies and procedures, and model
concession agreements. Managing these advisers then becomes a primary task of the IWG.
The port organisation has to be in such a position to be able to accept the modern requirements
of international port operation. The national situation must be such as to be attractive to an
external investor but also sufficiently well organised to serve the national requirements for
trade.
33
The time frame for conceptualising and implementing reform, however, must be realistic. Time
requirement depends on the local economic context and on the physical magnitude of the
sector. Altogether, a two- to three-year time frame from the inception of the reform process to
when the new sector organization is up and running would seem a reasonable estimate.
The scale of work required in changing the CPA organisation to bring it in line with International
conditions is large. It is suggested that assistance is provided to the GOB and CPA as follows;
i) Management Adviser
Working directly to the CPA Chairman, a port management executive with experience at
Chairman/Director level to assist in the establishment of the new organisation relationship with
GOB/Ministry and other bodies and the internal systems required to successfully manage the
new organisation.
Full time – 2 years.
ii) Board members
The suggested structure of a Board consisting of non – executive members, drawn from
experienced business people is not like the situation that existed under the old port trust
arrangement. The new arrangement will be similar to any commercial company board with the
Board members working for the company’s interest – in this case CPA. It will not be members
with shipowner or agency backgrounds representing views of shipowners or agents. CPA
Board members should represent CPA interests.
This may be, culturally, difficult to accept and it is suggested that in the first instance
suitably experienced ex-patriot personnel be nominated ( possibly by ADB ) in order to assist
the early stages of the new arrangements. Those nominated should have experience of the
maritime sector and be also widely experienced in other business activities e.g. banking,
insurance.
Part time – 2 years
iii) Legal
As identified earlier a new organisation will require a new constitution, including bye-law
changes and assistance will be needed in drafting this and in the preparation of the required
legislation. In addition, the new organisation will be entering into concession agreements/
terminal agreements etc. and assistance will be required in developing the necessary
experience.
34
[It is understood that the Office of the Chief Adviser has already asked CPA, as with all
GOB areas, for comment on what changes they wish to see in the current Ordinance which
establishes the CPA constitution.]
Full time 1 year, Part time 1 year
iv) Commercial
The role of the new organisation will be in developing the port area. The operating area
will be serviced by operating and terminal agreements. An experienced Commercial manager
will be required in CPA who can oversee these contracts and is able to negotiate new items,
renewal of contracts and has the ability to lead the port commercial liaison work.
Full time – 2 years
11 Conclusions and Recommendations
It is unlikely, simply because of its geographical position, that that Chittagong will ever be a hub
port on the major world container trade routing and it is likely that it will continue to be served
for the containers from the likes of Colombo and Singapore. However, CPA strategic aim
should be that it becomes the internationally important central port for the region, having in
mind its location and opportunities that are provided from not only a developing Bangladesh
economy but also in relation to the surrounding Indian states and Nepal.
Chittagong has a national importance. An organisation that is given the responsibility for
managing the Port is working on behalf of the Government. It is important that it is fully
recognised that with responsibility there must also be given the authority to perform the tasks
required. The Government must therefore devolve to a new CPA the appropriate powers to do
the job.
Chittagong Port is not only the major opening to the economy of Bangladesh, but there is no
second installation in Bangladesh equal to Chittagong considering its strategic, economic and
political importance. The Port is a place where international shipping either originates,
terminates or transits and thereby of necessity making it highly dynamic venue which will keep
pace with increasing commercial and economic activities.
The PEIP Inception Report has already commented that the existing CPA was unable to correct
all the issues currently affecting the port. This project is associated with CPA and called the
Port Efficiency Improvement Project. There are many ways that port efficiency can be improved
over and above the amount of cargo moved by a gang in one hour. The port’s customers are
interested in the services and costs of a whole visit of a vessel to the port, the facilities and the
time taken moving to/from the berth, berth availability and so on. CPA ability to influence these
35
issues is far greater than it is to influence the cargo handling rates. It is in this area that a re-
organisation of the way the whole port functions and is managed would impact on port
efficiency.
The working situation in the port that existed in the port before January, 2007, and the
fundamental reasons that promoted that situation, must not be allowed to return. Equally, the
improvements that have been made in the last 12 months must not be allowed to be lost.
To this end it is recommended;
1. CPA must be re-organised to provide an effective, firm and resolute management and be
the focus for co-ordination of all port activity and development. The port policy should be
to adopt the ‘landlord’ concept. A new Board structure and appointment arrangements will
be required. Also a new management organisation structure will be required that will
reflect the new focus of CPA responsibilities.
Legislative changes will require to the CPA constitution, regulations and bye-laws in order
to bring them up to date and meet the requirements for autonomy of the new organisation.
A change of name for the new organisation could also be considered as a demonstration
of the new management.
CPA will maintain direct control of all navigational matters in addition to the
implementation of port health and safety, security and environmental issues.
CPA will be responsible for the maintenance of good relationships across the whole port
community.
2. An Inter Ministerial Working group be established to co-ordinate the various ministerial

interests that might arise from the new organisation. It will be necessary to link the new
organisation with other revisions to legislation across all areas of GOB that might result
from the Good Governance project.
3. The private sector should be able to invest in the port cargo handling operation facilities,
working on terminal working contracts/agreements to service levels required by CPA.
CPA will perform a supervisory and monitoring role on the port operations while guiding
future port development. It will be necessary to ensure that the appropriate financial
arrangements exist that will encourage investment from the private sector.
4. With a view to achieving more efficient Customs clearance arrangements, Customs

regulations and procedures should be reviewed, including the Auction House
arrangements and location.
36
5. As soon as possible a Port Master Plan Study by an Independent International

organisation should be implemented. The TOR should include a Tariff Study.
6. The recommended management advisers should be appointed.
7. There should be a Working Party comprising CPA and MOS personnel to oversee the
various stages required to move CPA from the present organisation to the above new
proposed arrangement. This Working Party will be a key item in the port strategic
programme. The personnel issues alone will probably require that it functions for at least
two years – maybe more.
In relation to Good Governance and Anti-corruption strategies, when implemented, the re-
organisation of CPA should provide;
• Clear lines of management responsibility and devolved authority

• Shorter management chain and therefore less opportunity for interference
• Quicker management response
• More direct personnel regulation and control
• Fewer people
• Simplified tariff
• Majority of port charges automatically prepared, invoiced and collected
• Computer related operating systems
• Monitoring with Management Information Systems
• Potential for commercial competition to ensure cost effective charges
An indicative timetable for the various items is attached at Appendix 4.
37
Appendix- 2
Source: MOS
38
Appendix- 2 Continued
Source: MOS
39
Appendix- 3
Source: CPA
40
Appendix- 4
Item Report Ref. Action Timing
1.CPA Strategic Plan All GOB/MOS acceptance and June. 2008

- new organization approval
- landlord concept
- name change
2.Inter-ministerial Sect.9.3 GOB Jan. 2009
Working Group
3. Private Sector Sect.8.2 GOB Sept. 2008
Involvement
4.Review Customs Sect. 9.2 GOB/Min. of Finance/NBR Jan. 2009
- regulations
- auction procedures
-
5.CPA Master plan Sect. 9.4 Request ADB Sept. 2008
project
-including tariff study Tender Oct. 2008
Appoint consultants Dec. 2008
Commence Jan. 2009
Complete Aug.2009
6.Appoint CPA Sect. 10 GOB/MOS From Jan. 2009
Management Advisers
7. CPA/MOS Working Sect. 7.1 CPA/MOS Sept. 2008

Party
Source: KBR
41

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Technical Assistance Consultant’s Report

Project Number: 37332 (TA 4506)

Bangladesh: Chittagong Port Efficiency Improvement

Kellogg Brown & Root Pty. Ltd.

Chittagong Port Efficiency Improvement Project

CPA – STRATEGIC PLAN

Kellogg Brown & Root Pty. Ltd.

The implementation of the task Force recommendations, as detailed in Section 5, has

It is important to understand that to members of the maritime industry outside Bangladesh,

ADB Asian Development Bank

GOB Government of Bangladesh

MOS Ministry of Shipping

CPA Chittagong Port Authority

PEIP Port Efficiency Improvement Project

CPTFP Chittagong Port Trade Facilitation Project.

CHC Custom House Chittagong

KBR Kellogg, Brown and Root

ICD Inland Container Depot

NBR National Board of Revenue

DWMB Dock Worker Management Board

LPR Leave prior to retirement

BGMEA Bangladesh Garment Makers Employers Association

NMT New Mooring Terminal

2. Current CPA Organisation

The current CPA organisation chart is shown at Figure 1.

4.1 Clearance Process

4.2 Auction House

5.1 Task Force Recommendations

• Container berth management

6.1 CPTFP Programme

Component A: Chittagong Port Component

• Package-1 - Supply and Installation of computer software

Component B: Chittagong Custom House of Component

• Provide assistance towards activation of ASYCUDA ++ computer System of CHC

Component C: Roads and Highway Department Component

6.2 Other CPA Projects

Short Terms Projects

• Appointment of Terminal operator for New Mooring Container Terminal on S.O.T

Mid-Term projects consist of

• Construction of Karnaphuli Container Terminal (KCT) at existing jetty 11, 12 & 13 of

Long-Term Plan Comprises of

• Construction of Patanga Container Terminal (PCT) near Khal no 15

6.4 Procurement of Equipment – Containers

6.5 Other Projects

Construction of New ICD at Dhirasram in Gazipur District

Construction of New ICD at Pangaon

Renovation of GCB Area

For example, CPA currently does not have authority over;

8.2 The Private Sector

As a clear indication that it was a new organisation it might also be of assistance if

• Financial authority – in respect of capital spending; maintenance expenditure,

The new proposed organisation is more akin to the structure of a corporate/commercial

9.1 ‘Landlord’ Concept

9.3 Government Action

9.4 Master Plan

As indicated in earlier reports such a master plan study should be performed by an

Other items for inclusion in the study could be

Small vessel anchorages

Neither of these criteria is currently present in CPA.

Appendix 4 gives an indicative timetable for the major issues.

9.6 National Transport Policy

Full time – 2 years.