04
Sep
11

India’s Neighbor Benefits

Being neighbors to the second most populous country that is exploding with growth and potential is not a bad thing. Bangladesh is the beneficiary of the hour. Aside from being next door to India, Bangladesh also pulls quite a bit of its on weight.

Bangladesh

Huge Potential

Bangladesh is the world’s third largest exporter of textiles, behind Turkey and China. As of 2009 80% of their exports were from this sector, which accounted for $15 billion in revenues and employed over 3.5 million workers. Despite some of the political issues that are a hindrance, the cheap labor there is enough of a draw card to keep big companies interested.

Port hits new Milestones

Chittagong and Mongla are the only two natural sea ports in the world that also play host to the two large economic hub groups, ASEAN aand SAARC.

“Both the growth and the volume of trade created new milestones at the port last year,” Enamul Karim, terminal manager of Chittagong Port Authority (CPA) said. He also said average growth of the port’s annual container handling had hovered around 12-13 per cent over the last decade. And that number is double the 6.5% GDP growth the country has been experiencing.

“But this year it stood nearly double the average growth rate because of the around 40 per cent hike in export and import,” he said. Karim said because of this high growth some 70 per cent of Chittagong Port’s existing yards were utilized in the last fiscal year, up from 58 per cent a year before. Top shipping company executives said the port capacity was now bursting at its seams as the external trade was increasing at a hefty pace without any tangible efforts to expand terminal capacity.

“I am afraid container congestion will be a daily scene at Chittagong in 2013 if the CPA (Chittagong Port Authority) does not expand its container handling capacity quickly,” said a senior executive at a shipping company.

But port officials rejected this gloomy prognosis, saying that the CPA has undertaken a raft of development projects to cope with increasing demand for containers.

Mohammad Sarwar, head of traffic, said the CPA has planned to launch container terminal management systems (CTMS) later this year and a new back-up of the New Mooring Container Terminal would be ready by mid-2012.

“The new NCT alone can accommodate more than two million containers. It will be equipped with 10 gantry cranes. The CTMS will also boost the port’s capacity and productivity,” said Sarwar.

Some believe, if the new NCT and CTMS get ready in time, Chittagong Port will be equivalent to India’s largest seaport, the Jawaharlal Nehru Port Trust, at Mumbai.

Image: BNDP

Source: CargoNewsAsia, Wikipedia

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Gain unearned income. Own shipping containers and lease them to us. We contract with companies who need to ship materials.

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