CPD RMG Study Stitching a better future for Bangladesh
Published in the Financial Express on 1, August 2017
Leaders of the country’s apparel sector Monday expressed concern over the ongoing congestion at Chittagong port and sought immediate steps to resolve the crisis for averting possible damage to the export-oriented industry.
If the situation prevails, they feared, it would create an adverse impact on the sector as the port handles around 80 per cent of the total apparel exports. It might cause failure in meeting the lead time, resulting in shifting of orders to competitor countries like Ethiopia, India, Myanmar and Vietnam.
The feeder vessels were leaving the port without using their full capacity, which had never happened before, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md Siddiqur Rahman told a press conference, expressing concern over the ‘unprecedented’ situation.
He pointed out that it was the worst congestion created due to the feeder vessels’ leaving the port with number of containers less than that of their respective capacities.
BGMEA senior vice president Faruque Hassan and vice presidents Mohammed Nasir and Ferdous Perves Bivon, among others, were present at the conference at the BGMEA headquarters in the capital.
Mr Rahman alleged that the sector was suffering a setback due to slow delivery of imported raw materials from the port, making it difficult to produce and ship the products timely.
It was taking 15-20 days for un-stuffing the LCL (Less than Container Load) containers from the ships while the berthing of vessels was being delayed by 7-8 days, he informed the press conference.
“In many cases, we are being forced to make costly air shipments mainly to meet lead time,” he said, blaming inefficiency of the port management.
The BGMEA president further alleged that many feeder vessels missed the mother vessels due to slow pace of loading and unloading activities.
The move of the port authorities in reducing the congestion has become a new challenge for the exporters to loading their products on the ships, he said, blaming inadequate handling equipment and shortage of jetties and yards for the congestion at the port.
There were 13 jetties at the port before the war of liberation while only seven additional jetties have been added in last 46 years, he said and mentioned that the trade body has long been pressing for enhancing the capacity of the port through installing more jetties and yards, and increasing handling equipment.
Since 2004, the capacity of the port has not been enhanced though the activities went up significantly with increased exports and imports, he added.
Quoting buyers, he claimed that the industry was losing work orders worth $1.0 billion as the delivery of samples were taking much time due to congestion in the airport.
The BGMEA leader demanded of the port authorities to make operational all the four gantry cranes after repairing the two damaged ones and procuring or hiring all the handling equipment shortly to resolve the ongoing crisis.
He held some government officials responsible for the congestion and requested the government to assign right people in right places.
“It is not acceptable that we the businessmen will make investment and incur losses, and you the government officials will take your salaries from our tax money without doing your job,” he said.
He also alleged that a group of people were giving miss-information to the international community about the country’s readymade garment sector.
“Buyers are losing their confidence and exploring other destinations to shift their business to other countries due to negative propaganda,” the BGMEA president added.
