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Presentation Topic: The advent of Inland (river) Container Terminal in the Inland Water Transport (IWT) t fB ld h (IWT) system of Bangladesh; an important infrastructure development long overdue for cheaper, safer and eco friendly mode of transportation of containerized goods through our inland waterways in the DhakaChittagong (DC) and DhakaMongla Kolkata (India) IWT corridor, and the investment opportunities, lies therein. Keynote speaker : Mr. Mahboob Ahmed Managing Director Shipwrights Bangladesh Limited ( A consulting & design engineering house engaged in the business of developing ICT, Shi d d ti l i B ld h) Shipyards and container vessels in Bangladesh)

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Page 1: Presentation on ICT

Presentation Topic:The advent of Inland (river) Container Terminal in the Inland Water Transport (IWT) t f B l d h(IWT) system of Bangladesh;

an important infra‐structure development long overdue for cheaper, safer and eco friendly mode of transportation of containerized goods through our inland waterways in the Dhaka‐Chittagong (DC) and Dhaka‐ Mongla –Kolkata (India) IWT corridor,

and the investment opportunities, lies therein.

Keynote speaker : Mr. Mahboob Ahmedy pManaging DirectorShipwrights Bangladesh Limited( A consulting & design engineering house engaged in the business of developing ICT, Shi d d t i l i B l d h)Shipyards and container vessels in Bangladesh)

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K W dKey WordsThe use of inland waterways for moving goods across 18000 miles of rivers andcanal in Europe by scores of mom & pop barge operators have come off age to haulabout 8.5 million TEU containers inland per year, by big operators today. In Asia forexample, the Yangtze river network alone handles about 70% of China’sinternational trade in containers.

On the other hand in spite of having the main hinterland of industry and commerceOn the other hand, in spite of having the main hinterland of industry and commercein and around greater Dhaka region connected by all seasonnavigable rivers with the country’s two seaports, absence of inland river basedcontainer handling infra‐structures the export/ import sector of Bangladesh iscontainer handling infra structures, the export/ import sector of Bangladesh isdeprived of the most economic and eco‐friendly mode of inland transportation,directly affecting the viable pricing of goods.


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The Dhaka Chittagong (DC) Transport CorridorThe Dhaka‐Chittagong (DC)  Transport Corridor

The Dhaka‐ Chittagong (DC) economic corridor contains about 32% of population,The Dhaka Chittagong (DC) economic corridor contains about 32% of population,generates 50% of GDP and about 85% of our international trade through ChittagongPort. But most of the freight & passenger traffic moves on a congested two lanehighway and on a capacity & equipment constrained railway system.

The consistent annual growth of about 11.25% in container handling in ChittagongPort from the year 2000 onwards, will result in 3 million plus TEU’s in 2020 from thecurrent 1.12 million, according to a recent study.

80% of these containers are Dhaka bound and origin.

Only about 20% of the Dhaka bound/origin ‘containers’ moves inland, Railwayspicking up about 80,000 TEU’s annually leaving the rest for the road transport.


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The Dhaka‐Chittagong (DC)  Transport Corridor( contd.)

The remaining 80% are un‐staffed (import) and staffed (export) at CHT Port andnumerous other off‐ dock terminals and moved as break bulk in overloaded, unsafetrucks contributing to higher cost, delays, damages, pilferage and uncertainty in thedelivery of shipped goods either way.

This uncertainty has led to a bone of contention particularly between the apparely p y ppexporters and the consignees overseas. FOB documented goods as loose cargocarried by covered Vans/ open trucks are being handed over to the Carrier’s Agentin Chittagong risking loss/ damage to the consignment before actually on boardwithout any liability taken by the Agent


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The Dhaka‐Chittagong (DC) Transport CorridorThe Dhaka Chittagong (DC)  Transport Corridor( contd.)

A l d i i h d h k i i h hAs a result, untoward situations have prompted the exporters to take it up with theConsignees to agree to accept consignment as FCA rather than FOB to avoidlitigation. Few have agreed, but the war is still on according to BGMEA, the apexbody for the apparel exportersbody for the apparel exporters.

Constrained by rail capacity, costly container movement by road in Bangladesh isgrowing faster than the investment and maintenance capacity available for thegrowing faster than the investment and maintenance capacity available, for theroad system.

To ensure competitive transport costs and more reliable movement of containers,the ongoing Export Infrastructure Development Project, supported by the WorldBank, the Government of Bangladesh has planned to construct a modern railwayICD at Dirasram, Gazipur district with 200,000TEU handling capacity, completiond t h i k


date however, is unknown.

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Introduction to the Inland Waterwaysyof Bangladesh

Occupying about 11% of the country, some 700 natural rivers & tributaries with anoverall 24 000 km long network crisscrossing the country Bangladesh has one ofoverall 24,000 km‐long network crisscrossing the country, Bangladesh has one ofthe largest inland waterway networks in the world, connects almost all thecountry’s major cities, towns, and commercial centers.

With the space of time and ignorance in maintenance dredging, 12000 km of classified waterways in 1970  have now dwindled to about 6500 km. 


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Introduction to the Inland WaterwaysIntroduction to the Inland Waterwaysof Bangladesh ( contd)

Almost 40% of the classified river network shrinks during the dry season, makingAlmost 40% of the classified river network shrinks during the dry season, makingnavigation for mechanized vessels above 500 DWT difficult. About 4000 km ofwaterways remain navigable throughout the year.

IWT system handles about 40 percent of the nation’s foreign trade through fiveIWT system handles about 40 percent of the nation s foreign trade through fiveClass I perennial river Routes, navigable ( day‐night) throughout the year with leastavailable draft (LAD) is 3.5 meter during the dry season.

The LAD in the dry season in Dhaka‐Chittagong route is 4 meter and in the Dhaka –Mongla‐ Kolkata (India) regional IWT system is 3.5 meter.g ( ) g y


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Government Strategy for IWT

Until recently, however, the maintenance of river network by dredging anddevelopment of IWT sector had received little attention from the Government of

l d h h l l d ll d d lBangladesh with only limited resources allocated to its development.

The Bangladesh government now have taken extensive measures to equip itselfwith 9 new dredgers, enhanced fund allocation by many folds, invited private sectorparticipation in dredging in bigger scale than the past, to revive the dwindling rivernetwork, the nation was proud of, once.

In 2000, a National Shipping Policy was adopted to introduce reform and private sector participation in ports and inland waterways, which was once the domain of 


public sector

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Inland (river) Container Terminal (ICT)Inland (river) Container Terminal (ICT)

-the beginning of a new era in IWT system in the beginning of a new era in IWT system in Bangladesh

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What it will do for the Bangladesh economy ?What it will do for the Bangladesh economy ?

A study by the American Waterway Operators shows that the distance one gallon ofA study by the American Waterway Operators shows that the distance one gallon offuel moves one ton of cargo is 59 miles by truck, 202 miles by train and 514 miles byinland barge according to a World Bank report published in 2002.

d d b h h hAccording to a survey made by the Chinese experts; the energy consumption ratio of highway, railway and waterway transport is 14:1.8:1.

Environmentally speaking the ratio of emission per kilograms among roads railwaysEnvironmentally speaking, the ratio of emission per kilograms among roads, railways and inland waterways is 14.8:1.2: 1 according to a published report.

If container transportation by trucks pays full cost for road depreciation, thep y p y p ,transport cost of containers by road is 50 times higher than that of river transport,says experts.

C l i Th b it llConclusion: The above says it all


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1st Inland (river) Container Terminal ( Dhaka ICT)1st Inland (river) Container Terminal ( Dhaka ICT)

The good news is that BIWTA and CHT Port Authority jointly is building the 1st ICT inThe good news is that BIWTA and CHT Port Authority jointly is building the 1 ICT in  Pangaon, known as Dhaka ICT, on the bank of river Buriganga, west of Dhaka, with a capacity to handle 116‐160,000 TEU’s annually.

Originally planned in 1994, The Dhaka ICT will finally see daylight in end 2010 to be operated by private enterprise under a long term concession bidding process.

A policy is also underway in the Shipping Ministry to allocate ten 100TEU capacitycontainer vessels initially for operating to and from Dhaka ICT , 4 for thegovernment’s own IWT operator BIWTC and the rest 6 vessels for the private sectorg p poperators. The idea is to protect investment against over capacity.


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Inland (river) Container Terminal ( Dhaka ICT)(contd.)

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RPL ICT b R P t & L i ti S i LtdRPL ICT by Rupayan Port & Logistic Services Ltd.

Rupayan Group, a leading real estate group of the country is becoming theRupayan Group, a leading real estate group of the country is becoming theforerunner in building the first ever 100% privately owned and operated inland rivercontainer terminal with an initial capacity to handle 230,000 TEU’s import/ exportcontainers on the bank of river Sitalakhya, in the district of Narayangonj, west ofDhaka with full Customs clearance system in place.

The dedicated container Terminal is being designed by Shipwrights Bangladesh  Limited, in association with Seaport Innovations of Seaport Group EU  providing complete design engineering, port operational system,  turnkey commissioning,  with state of the art IT system in place for almost paperless operation.

Relevant government Agencies like Customs and Vet/ health inspection departments will have modern facilities like mobile container scanning system and fumigation etc. g


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RPL ICT by Rupayan Port & Logistic Services Ltd (contd )RPL ICT by Rupayan Port & Logistic Services Ltd. (contd.)

SBL will also develop  an inter‐modal water and road transport system to deliver and  pick containers door to door under one bill in all the major industrial belts arounDhaka without the need to enter the Dhaka city.

The RPL Terminal will engage about sixteen 120 TEU vessels for Dhaka‐Chittagong route, 20 river barges for Dhaka‐Kolkata regional IWT route and 50 road trailers  under a franchise system to operate to and from it’s Terminal in Narayangonj.

According to a recent WB study titled “Revival of Inland Water Transport: Options and Strategies”,  IWT has the potential to become a major actor in the transport of g , p j pcontainer between Dhaka and Chittagong and between India and Bangladesh.


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Investment and Business Opportunities in IWTInvestment and Business Opportunities in  IWT system of Bangladesh

The  new business opportunities exist such as development of newer inland container terminals in around Dhaka and container/ MPC Vessels for transportcontainer terminals in around Dhaka and container/ MPC Vessels for transport between Dhaka and Chittagong and inland river barges for carrying containers between India and Bangladesh.

An understanding had been reached by the two governments recently to introduce containerized transportation of goods between India & Bangladesh.

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Investment and Business Opportunities in IWT system ofInvestment and Business Opportunities in  IWT system of Bangladesh ( contd.)

Bangladesh‐India RouteBangladesh India Route

Inter‐country cargo traffic between India and Bangladesh, the later being at the receiving end, has grown from  414,000 tons in 2004/05 to almost a million ton now.

Translated into value, the import figure was USD 3375.10 million  in 2006‐07, export hanging at   358.08 million dollars in the same period.

B l d h i f I di i l h dl d b k h h B l l dBangladesh imports from  India are mainly handled by trucks through Benapole land   port where 300 Indian trucks enter each day to unload cargoes with another 300‐400 trucks waiting in the queue across the border for minimum 5 days.

With the ICT projects in Dhaka, the conditions will be in place to set up container transport services by inland river barges that would be faster and cheaper than the current mode of transport.


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Investment and Business Opportunities in IWT system ofInvestment and Business Opportunities in  IWT system of Bangladesh ( contd.)

Bangladesh‐India Route

Facilities are in place for Container transportation by rail by Container CorporationFacilities are in place  for Container transportation by rail by Container Corporation of India ( CONCOR ) from across the country to Kolkata/ Haldia Port in India to be loaded on Dhaka bound river barges.

Currently about 220 plus  700‐1200 DWT dry cargo vessels ply between Kolkata/ Haldia Port and Dhaka regions through the bordering inland waterways of  Bangladesh and India.Bangladesh and India. 


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Opportunities in Shipbuilding

These developments in the Bangladesh IWT system will bring about a major boon in the domestic shipbuilding with 30‐35 Class vessels between 1600‐1800 DWT and  about 100 river barges, if not more with about 80 TEU capacity each, will have to be built in the next 4‐6 years.

Shipyards who want to build ships for export will not have to wait for orders from  overseas during the current international meltdown but will have an ideal opportunity to sharpen their skill by quality domestic shipbuilding of this  magnitude in the meanwhile.

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Thank you for your attention !