Arrival of larger ships at Chattogram Port speeds up cargo delivery, cuts transit time, cost

CHATTOGRAM : The number of containers and cargoes being handled at Chattogram Port, the country’s primary seaport, has surged in recent times, improving its trade efficiency, despite a decrease in the number of ship arrivals.

Stakeholders have attributed this growth to relatively larger ships now being able to dock at the port’s jetty with more containers and goods on board, improving trade efficiency.

According to the port’s data, in the nine months from July to March of fiscal year 2023-2024, 3,001 commercial ships from various countries docked at the port. The figure is a slight decline from the 3,231 ships that arrived during the same period in the previous financial year, marking a decrease of 7.12% in ship arrivals.

However, despite the decline, container handling at the port has increased by 7.64%, with 178,666 TEUs (twenty-foot equivalent units) more containers being handled compared to the previous fiscal year. Similarly, cargo handling has also witnessed an increase of 4.20%.

Chattogram Port officials and stakeholder institutions said that enhanced navigation facilities along with the arrival of larger vessels have allowed for the transportation of more goods despite the reduced number of ship arrivals.

Before 2023, the port only accommodated ships with a maximum length of 190 metres and a draft of 9.5 metres. With an aim to enhance the port’s capabilities, the UK-based organisation HR Wallingford conducted a survey, “Details Hydrologic & Hydraulic Study in the Karnaphuli River”, based on which the port authorities took the strategic decision to allow for the docking of ships of up to 200 metres in length and with a draft of 10 metres at the jetty from January 2023.

As a result, container ships are now able to carry an additional 1,000 plus containers and up to 15,000 tonnes of goods in open cargo ships.Freight charges have also come down as more goods are being transported.

According to shipping agents, a 190 metre vessel with a 9.5 metre draft can carry 2,500 to 2,600 containers, whereas a 200 metre vessel with 10 metre draft can carry 3800 to 4000 containers at the port.

Chattogram Port Authority Secretary Md Omar Farooq told TBS, “The port has significantly benefited because of the increased draft limit, as ships can now transport a significantly larger volume of containers.”

“Due to this, a reduction can be seen in the number of ships arriving at the port in terms of numbers, but we can also see an increase in the transportation of goods, which is positively impacting the port’s revenue,” he added.

Bangladesh Shipping Agents Association Vice Chairman Mohammed Shafiqul Alam Jewel told TBS, “Our [the port’s] success lies in the increase of the draft limit, the expansion in enhancing shipping capacity and reducing transportation costs.”

Elaborating on the reduced costs, he said, “Ships carrying imported goods come to the port through transshipment in Singapore, Colombo, Malaysia and, similarly, export goods go to Europe and America through the transshipment ports.

“Previously, due to the draft limit restriction, ships could not carry more than a specified number of containers. Now, as navigability has increased, import ships are able to carry more goods. Thus shipping costs are also decreasing.”

Citing examples of expedited cargo delivery, reduced transit times and cost, Shafiqul Alam Jewel said, “Recently, some of our consignments of imported goods arrived at Chattogram port from China in just 15 days. But, earlier, it took 20 to 25 days to reach the port through transshipment ports.”

Muntasir Rubayat, head of operations at Mediterranean Shipping Company (MSC), told TBS, “Even 15 years ago, ships with a capacity of only 600 to 700 TEUs were coming to the port, and now ships of 2800-2900 TEUs are being docked. Costs have also come down due to more containers being loaded on larger ships. This has also reduced feeder freight charges.”

Feeder vessel companies, operating on the Chattogram port to transshipment port route, said that currently the freight charge per TEU container is around $200. However, at the beginning of 2023, this freight charge was $300 to $350.

According to Chattogram port data, container handling during the nine months of the 2023-2024 fiscal year reached 2,338,361 TEUs, with cargo handling totaling 91,649,659 tonnes. In July-March of the 2022-23 fiscal year, the number of containers handled were 2,159,695 TEUs and cargoes handled were 87,804,837 tonnes.

Currently, the total number of jetties, where container ships and open cargo are unloaded, at Cattogram Port is 18. In January 2015, the draft of the port was increased to 9.5 metres and since then, the trade volume has been increasing every year.