Pangaon terminal still shunned by businesses

Despite being free of risks of arson, businesses are shunning the river route to transport goods to and from Chittagong port via the Pangaon inland container terminal in Keraniganj.

The reasons put forward are: higher feeder cost and other tariffs, a lack of logistic support in and around the terminal and the unavailability of vessels on the route.

It costs $204.14 to transport a 20-foot equivalent unit (TEU) of container from the Pangaon terminal to Chittagong port for industrial units in Dhaka, Narayanganj, Gazipur and Ashulia.

The same container could be transported to Chittagong port by rail for just $78.88 and by road for $150.

Functional since December 2013, the Chittagong Port Authority through its three container vessels has so far transported only 1,150 TEUs from the terminal, which was constructed at a cost of Tk 150 crore.

The route could be the best alternative for exporters, especially during adverse situations, if its drawbacks could be addressed, said Nasir Uddin Chowdhury, chairman of the standing committee on port and shipping of Bangladesh Garment Manufacturers and Exporters Association.

Another reason for disregarding the route, Chowdhury said, is that businesses have to bear additional costs, on top of the high freight charges, to get the containers to the Pangaon terminal in the first place.

Subsequently, Chowdhury recommended revising down the costs to make the route and the terminal useable.

Not only that, exporters and importers can get private off-dock facilities for stuffing and un-stuffing goods before shipment and after delivery in Chittagong Port but there is no such facility in Pangaon.

Ahsanul Huq Chowdhury, senior vice-chairman of Bangladesh Shipping Agents Association, said the customs facility at Pangaon terminal is not as well-oiled as in Chittagong, while the store rent for containers in the terminal is much higher than in Kamalapur inland container depot.

Both of them, however, hope that the route would be viable in time with some development work.

CPA Chairman Nizamuddin Ahmed said they already proposed to the shipping ministry for revising the feeder costs and tariffs at the terminal and the ministry would take decision in this regard soon. The three vessels have three scheduled trips a month but businesses are not interested in using the route, according to port officials.