Container Terminal Development: PICT In perspective of Short Sea Shipping prospect between India & Bangladesh

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Anthony Jenkins
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1 Container Terminal Development: PICT In perspective of Short Sea Shipping prospect between India & Bangladesh Ahamedul Karim Chowdhury Terminal Manager Pangaon Inland Container Terminal Keraniganj, Dhaka, Bangladesh id : tm.ict.pangaon@gmail.com

2 Background information of PICT 1991 : Studied by JICA 1995: Project was taken in hand 2006: The initial work was started 2010 : CPA & BIWTA signed MOU 2013 : Construction has been completed; it takes 8 years total to build (June 2013) : Formally inaugurated by the Honorable Prime Minister Sheikh Hasina in 07 th November,2013

3 Infrastructural Facilities Length of Jetty : 180 meters (width 26 meters) Two RSVs can be accommodated at any given moment; Yard Area : 55,000 Sq. Meters Stuffing & Un-stuffing Area : 13,969 Sq. Meters; CFS : 5815 Sq. Meters; Connecting road with highway : 5 Kilomètres Reefer plug in : 48 Nos Yearly Handling Capacity 116,000 TEU Static Capacity : 2400 TEU Laden 1100 TEU Empty

Equipment Facilities Mobile harbor Crane - 1 nos.

Forklift 9 nos. Cargo Lifting Crane - 3 nos.

24 hours uninterrupted electricity and water supplied for

Two generators capacity of each 1250 (KVA/1 MW) has been

4 Equipment Facilities Mobile harbor Crane - 1 nos. Straddle Carrier - 2nos. Tractor trailer 2 nos. Forklift 9 nos. Cargo Lifting Crane - 3 nos. of 50MT, 20MT & 10 MT capacity. 24 hours uninterrupted electricity and water supplied for the container handling activities. Two generators capacity of each 1250 (KVA/1 MW) has been installed. Another one generator capacity of 2.5 MW is fully set up. A pump house has been installed for water supply and fire fighting operation.

Customs & Banking facilities at PICT Customs PICT is fully

A full pledged customs house has been established by the

Appraisement, Assessment, duty payment and releasing of

Bank Sonali Bank limited established a branch office in

5 Customs & Banking facilities at PICT Customs PICT is fully customs bonded. A full pledged customs house has been established by the National Board of Revenue in PICT. Appraisement, Assessment, duty payment and releasing of cargo everything will be done from Pangaon ICT Customs House. ASYCUDA World and automation process already been started. Bank Sonali Bank limited established a branch office in PICT. Financial transaction has been started in full swing in that branch. Customs duty and port charges can be paid in that branch as well as normal banking for individuals and private sectors.

Container Transportation CCT & NCT area will be

NCT Jetties will be used if necessary The

or build RSVs in both public and private

RSVs are ready to ply ; M.V. Harbour-1 (Neepa Paribahan Ltd) M.

6 Container Transportation CCT & NCT area will be used in CPA end; CPA own equipment will be used NCT Jetties will be used if necessary The Government permitted 42 organization to procure or build RSVs in both public and private sectors; CPA procured 3 (three) reconditioned Ships which are now chartered by Summit Alliance Port Limited as bareboat ; Three more RSVs are ready to ply ; M.V. Harbour-1 (Neepa Paribahan Ltd) M.V. KSL Gladiator & M.V. KSL Pride (Karim Shipping Lines).

7 Pangaon: Container Handling figure till 01 August,2016 Year Inbound Outbound Total Growth % %

8 Utilization of handling capacity (3.1%)

12 India-Bangladesh Trade Import from India (USD 6.1 billion in ) Major Import Items are; Cotton & Yarn Iron and steel Sugar and Cereals Glass and Glassware Vehicle, Equipment and Machineries Aluminum, plastic and copper articles Medical, surgical or veterinary furniture Utensils of base metal Export to India (USD462 million in ) Major Export Items are; Textile fiber Paper Yarn Fish Apparels Minerals fuels Salt Cement Bran or husk

Benefits of direct short sea services up to Pangaon ICT : On revise tariff Proximity to the factory premises;

Safety Less handling of containers in transit Security No long distance trucking; Easy tracking due to

50,000/- minimum cost up to Tongi/Gazipur/Savar from Off dock, Ctg BDT 19,500/- maximum cost up to

13 Benefits of direct short sea services up to Pangaon ICT : On revise tariff Proximity to the factory premises; Time saving; Transit time of Maritime journey; Onward transportation to factory or ultimate destination Safety Less handling of containers in transit Security No long distance trucking; Easy tracking due to proximity Less risk of accident Competitive price MLOs cost in CGP USD80/40 and in Pangaon USD 22/40 BDT 50,000/- minimum cost up to Tongi/Gazipur/Savar from Off dock, Ctg BDT 19,500/- maximum cost up to Tongi/Gazipur/Savar from Pangaon ICT Compliance to fulfill the Commitment towards Global Environment and Sustainability ; less CO2 emission

Port tariff review; To make attractive to use initially All users and stakeholders opined to make it attractive and cost effective in compare with

All participants suggested to review the costs elements and to mandatory few import commodities such as raw cotton and capital machineries; FBCCI

14 Port tariff review; To make attractive to use initially All users and stakeholders opined to make it attractive and cost effective in compare with roads and rail initially at least; NBR arranged focus group discussion and meeting with different trade bodies to make PICT vibrant. All participants suggested to review the costs elements and to mandatory few import commodities such as raw cotton and capital machineries; FBCCI & MCCI arranged meeting to discuss these issues; all participants unanimously said to review the tariff in order to make it cost effective or competitive with rail and road. Therefore, port authority propose to review the existing tariff from 50-70% and few of them for next three years (effective from the publication of the gazette) only. Ministry of Finance already issued concurrence on this proposal. Within two weeks it will into effect, I hope.

15 Comparative Cost Calculation per TEU on average of 1X20 +1X40 as laden & repo as empty Roadways (Round trip) Railways (Round trip) Inland waterways (round trip) after revision Short sea Shipping directly to Pangaon ICT Cost items 20'L 40'L 20'E 40'E Total 20'L 40'L 20'E 40'E Total 20'L 40'L 20'E 40'E Total 20'L 40'L 20'E 40'E Total CPA Lift on/off On carriage to DHK Storage charge MHC CGP NA NA NA NA NA NA NA NA Load/Disc. CGP NA NA NA NA NA NA NA NA Load/Disc. PGN NA NA NA NA NA NA NA NA MHC PGN NA NA NA NA NA NA NA NA On carriage to FD NA NA NA NA Cost per TEU OFF Dock Storage Charge : 20' : BDT 75 Per day & BDT 150 per 40' Exchange rate : USD 1= BDT; Trailer Charge from CGP to DHK final destination (Round trip) : BDT per 20' & BDT per 40' Trailer Charge from KICD to DEPZ & Gazipur as final destination (Round trip) : BDT 9000 per 20' & BDT 9000 per 40' Trailer Charge from PICT to DEPZ & Gazipur as final destination (Round trip) : BDT per 20' & BDT per 40' NA : Not applicable Average dwell time of import laden containers : 12 days (including 7 days free time) Average dwell time of empty containers : 15 days (including 10 days free time)

16 Comparative Cost per TEU up to consignees premises on average of 1X20 +1X40 from CGP as laden & repositioned to CGP as empty Mode Cost per Teu Rail 24,851 Road 29,452 IWT 25,326 Short Sea 18,165

17 Thank You all Any Question?

Tariff Review (On going) Existing Tariff Proposed Tariff PCT tariff item No.

5: Harbour Crane Charge BDT480/20 (L), BDT720/40 (L) & BDT240/20 (E), BDT360/40 (E) PCT tariff item

2: Berthing/Unberthing of ship BDT 1000 per occasion. PCT tariff item No.

18 Tariff Review (On going) Existing Tariff Proposed Tariff PCT tariff item No. 2: Berthing/Unberthing of ship BDT 1500 per occasion. PCT tariff item No. 5: Harbour Crane Charge BDT480/20 (L), BDT720/40 (L) & BDT240/20 (E), BDT360/40 (E) PCT tariff item No. 6: QGC Charge; BDT1000/20 (L), BDT1500/40 (L) & BDT500/20 (E), BDT750/40 (E) PCT tariff item No. 2: Berthing/Unberthing of ship BDT 1000 per occasion. PCT tariff item No. 5: Harbour Crane Charge BDT240/20 (L), BDT360/40 (L) & BDT120/20 (E), BDT180/40 (E) PCT tariff item No. 6: QGC Charge; BDT300/20 (L), BDT450/40 (L) & BDT150/20 (E), BDT225/40 (E)

PCT tariff item No. 17: Stuffing/Unstuffing Charge BDT300 per MT PCT tariff item No.

19 Tariff Review (Ongoing) Existing Tariff PCT tariff item No. 13: Loading or Discharging charge: FCL BDT1500/20 (L), BDT2225/40 (L); LCL: BDT4450/20 (L), BDT6720/40 (L) & BDT750/20 (E), BDT1220/40 (E). PCT tariff item No. 17: Stuffing/Unstuffing Charge BDT300 per MT PCT tariff item No. 18: Lift on/lift off Charge : Notes; Proposed Tariff PCT tariff item No. 13: Loading or Discharging charge: FCL BDT450/20 (L), BDT667.50/40 (L); LCL: BDT1335/20 (L), BDT2016/40 (L) & BDT225/20 (E), BDT366/40 (E). PCT tariff item No. 17: Stuffing/Un-stuffing Charge BDT150 per MT PCT tariff item No. 18: Lift on/lift off Charge : Notes;

20 Tariff Review (On going) Existing Tariff Proposed Tariff PCT tariff item No.19: Storage Charge and Non CPA Equipment: Free Time : 4 days (Imp Laden) 7 days (Exp Laden); BDT500/20 per days up to 7 th day, BDT1000/40 per day up to 7 th day: BDT1000/20 from 8 th day to 20 th day, BDT2000/40 from 8 th day to 20 th day For subsequent days BDT2000/20 per day BDT4000/40 per day CPA tariff item No. 4.1: Loading or Discharging : FCL USD43.40/ /40 LCL: USD130/20 USD195/40 Empty USD22.10/20 USD33.20/40 PCT tariff item No.19: Storage Charge and Non CPA Equipment: Free Time : 10days (Imp Laden) 10days (FCL Exp Laden), 7 days (LCL Exp Laden): BDT120/20 per days up to 28 days, BDT240/40 per day up to 28 days: BDT360/20 from after 28 days to onward, BDT720/40 from after 28 days to onward Above rates will be changed if storage charge of ICD, Kamalapur has been changed. CPA tariff item No. 4.1: Containers bound to Pangaon through Chittagong and come from Pangaon to Chittagong for shipment shall be charged 30% of rate shown for 3 years.