CPD RMG Study Stitching a better future for Bangladesh
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Chittagong congestion raises US cotton shippers’ costs
A flare-up of congestion at the port of Chittagong with no end in sight is compounding US cotton exporters’ concerns that there will not be enough capacity to move their containerized commodities to Bangladesh’s textile and apparel factories, JOC.com reported.
In response to congestion that has been mounting for weeks, the port authority has instituted tighter limits on how long ships may remain at Bangladesh’s top port. Bangladesh cotton importers said they have been advised of a surcharge of $150 per TEU because of congestion that is reaching a “critical level” at Chittagong, the report added.
GSP doesn’t take Sri Lanka far as Bangladesh edges ahead in RMG exports
GSP has not really helped Sri Lanka enhance its exports to the EU. Production and labor costs remain high compared to competitors’, and it is doubtful if the country can meet its goal of doubling exports by 2020, Fashionating World reported.
Bangladesh, for instance, has moved ahead in textile and apparel production in the last few years. Bangladesh accounts for 6.4 per cent of global clothing exports compared with Sri Lanka’s 1.2 per cent, the report added.
Chittagong port in troubled waters
It has been over the last decade that the Chittagong port situation has come to this point. The volume of goods has increased, but infrastructure has not, Prothom Alo reported.
In 2007-08 a total of 10 lakh (1 million) containers were unloaded. In 2016-17 this more than doubled to 24 lakh 19 thousand (2 million 419 thousand). Yet no new jetties for sea vessels were constructed since 2007, the report added.
