India has invited Bangladesh to use two of its ports in Kolkata, a move which can potentially reduce lead time in apparel exports of the latter by a significant margin.
The move comes as part of a government-level agreement between the two countries to share each-others’ ports for shipping and transporting products and goods – at a time when Bangladesh’s apparel exporters are suffering on many fronts; one of which is lead time.
Bangladesh is expected to sign an agreement with India to this purpose in October. Under the agreement, Bangladesh has offered India to use its Chattogram and Mongla ports for transporting goods to its northeastern states. According to media reports, India has offered Bangladesh to use Kolkata and Haldia ports in West Bengal.
Complains are, Bangladesh’s Chattogram port – its prime shipping point that handles over 80 per cent of the country’s overall exports and imports – is highly inefficient; taking upto 12 days for shipping due to congestion. This cost the exporters in logistics and weakening business relationships for delivery delay.
If Bangladesh responds to India’s proposal, Bangladeshi exporters can send their products from Pangaon to Haldia to be loaded on to Colombo or Singapore-bound ships – an opportunity for transhipment on the way to its major market segments in North America or Europe. The entire process will be complete in a maximum of four days.
Apparel exporters have said, they are unawares of the specifics of the proposal. Wishing to remain anonymous unless the government takes a move in this regard, several top apparel exporters have told Apparel Resources that they are indeed looking for “faster, cost effective and guaranteed” means of shipping.
Seeking anonymity, a director of Exporters Association of Bangladesh (EAB) told Apparel Resources, “We can consider the proposal after knowing the specifics. If their capacity meets our requirements, then it may be a good option. But, we can’t really make a statement unless the government makes its position clear in this regard.”
Meanwhile, the congestion at Chattogram port is pursuing due to a lot of variable factors. Recently, Bangladesh procured six gantry cranes to ensure quick container handling – three of which have already been assembled and are working full time. Four more cranes are expected to arrive by February next year. Also, the port is working to increase its capacity – which is expected to take time.
Omar Faruk, secretary to Bangladesh Port Authority, told Apparel Resources: “Previously, it took two days to handle containers of a cargo ship. Now, after the use of gantry cranes, the process will be much quicker.” He assured that the authorites have drawn up elaborate plans to increase the capacity of Chittagong port – like building container terminals in Patenga with four jetties – and yards at different other places is already underway.
