After successfully completing his duties as the chairman of Mongla Port Authority, Rear Admiral M. Shahjahan, NPP, BCGMS, ndc, psc, (BN), joined the Chattogram Port Authority as the chairman on 31 January 2021. Prior to this, he was the Deputy Director General of the Bangladesh Coast Guard, and was also responsible for the members of Chattogram port (Harbour). He was also responsible for members of the Blue Economy cell in the ministry of power, energy, and mineral resources.
Rear Admiral M. Shahjahan commenced his professional life when he joined the Bangladesh Navy as a cadet back in 24 July 1984. He was commissioned as an officer on 1 January 1987. Afterwards, he was assigned multiple important roles in the Navy. Under the UN mission, he led the team of military observers in Sierra Leone and also worked in Haiti as a peacekeeping officer for BANCON-2. He recently spoke to CPA News about ports in Bangladesh, Blue Economy and the overall state of maritime affairs.
After five years of success, CPA News is now in its sixth year of publication. Do you have something you’d like to say to the readers of CPA News?
CPA News has become a phenomenon and the supreme milestone for maritime sensitisation in Bangladesh. From the start, you have taken CPA News forward as a publication with current and standard contents in English language. I believe that by maintaining the regularity and upgrading the publication in phases, CPA News will make an important contribution to the maritime awareness of Bangladesh.
You were once a member of the Chattogram Port Authority (Harbour), after which you became the chairman of the Mongla Port Authority. Following that you then took the position of chairman of the Chattogram Port Authority. What are your thoughts on the new responsibilities?
I have been responsible for the role of a member of the Chattogram Port Authority (Harbour) in the past. This experience has proved to be invaluable when it came to taking up the role of the chairman. I believe this experience and knowledge will be extremely helpful for me to carry out my duties as the chairman.
As a member (Harbour) my duties were focused on a specific field. Now, I shall need to plan the overall development of the port. To put it another way, my responsibilities as chairman are far broader. I have to consider the country’s overall economic activities and do whatever possible to keep it healthy. The port plays an essential role because the entire maritime trade is dependent on it and maritime transportation is the driving force of our economy. Importers and exporters also rely on the port for conducting their activities. They have to face massive losses if their products fail to reach their destination at the right time. Exporters have to deal with the added risk of export orders being cancelled if the products do not reach the right port at the right time. In fact, this has occurred multiple times. Therefore, the port always has to strive shipping export products without any delay.
Ports are becoming increasingly important for economic development all over the world. Countries like China and Singapore have achieved incredible levels of economic success, thanks to their port-led development plans. The government of Bangladesh has also taken up and implemented various plans surrounding ports. What are our priorities for establishing a safe port sector for the future of Bangladesh?
Sea ports can be seen as a lighthouse for the economy. When it comes to the imports and exports of a country, ports play the key role. Since Sheikh Hasina became the honourable prime minister, various plans which involved increasing the capacity and expanding the periphery of work in ports have been undertaken. The development and expansion of port capacity has become one of the most important regulators of national growth.
Several development projects are underway in the country, with the aim of becoming a developed one by 2041. At the same time, establishing an easy and smooth line of communication with the ports is also being taken into consideration. The price of goods is determined by adding the cost of production to the cost of transportation, so if the cost of transportation rises, the cost of goods will rise as well. This, in turn, would have an impact on the market. As a result, our biggest challenge right now is exporting goods as smoothly and quickly as possible, as well as ensuring that imported goods are transported to the hinterlands. The government has plans to build production centres near the ports. As a result, a number of new ports and terminals are being built along the coast. Alongside this, we also have to construct a strong infrastructure between the ports and all nearby and distant industrial zones. To maintain a competitive edge in the export goods industry, it is crucial to decrease lead time along with ensuring the quality of goods. A strong communication infrastructure and well organised ports are essential for achieving this. Singapore is a port-dependent country, and its efficiency has taken it to the height of success. If there are even minor inadequacies in the process of sending imported goods to hinterlands or getting the export goods onto ships efficiently and on time, this can negatively affect the country’s economy. We are currently working on eliminating these risks following the government’s guidelines and appropriate decisions. Presently there are also many other ongoing plans involving the development of port infrastructure and expanding the periphery of its work.
Our economy is growing every day. Along with this there is a growing demand for container handling at the Chattogram port. What are some of the port-centric plans to meet these growing demands?
If we take the COVID-19 pandemic out of the equation, the Chattogram port has been experiencing double digit growth for the last few years. In the last six years, container handling increased more than double and this growth was aided by the uninterrupted growth of Chattogram port’s capacity. This has been made possible by getting the cargo transport sector back on track and overcoming the tarrif and duty barriers.
Our ports must play a much larger role if we are to become a developed country by 2041. To reach the intended goal, we have to achieve a growth of 9% by 2031, and a growth of 9.9% by 2041. In this case exports and imports will be the prime regulators. By 2031, there will be a growth of 12.05% in the import sector, and a growth of 11.65% in the export sector. In 2041, the import sector will grow by 10% and the export sector will grow by 11%. The current state of the port facilities cannot handle this massive pressure of growing imports and exports. And that is why the capacity of the port is being increased.
Along with adding new equipment to the port, the Chattogram port is also constructing a bay-terminal which covers 907 acres of land in the coastal areas of Patenga. Construction work on the terminal will be complete by June of 2021. Ships which have a draft of over 9 and a half metres and are larger than 190 metres can dock here. Mother vessels with the capacity of 5 thousand TEU can also drop anchor here. Construction has also started on a deep sea port at Matarbari and it will become functional in 2025. Work is also being done to expand the infrastructure of the ports at Mongla and Payra. Aside from this, one of our priorities is obviously the Bay terminal. Overall, I believe we are on the right track to face the challenges of the coming days.
The government has undertaken many port-led developmental projects such as increasing port capacity, and also constructing deep sea ports. What is the ultimate goal of these projects?
Our Hon’ble Prime Minister Sheikh Hasina has stated that by 2041, we expect to be a developed nation. On our way to become a developed country, we want to see the Chattogram port as a sub-regional transhipment hub. I always say that if Bangladesh is declared as a sub-regional hub, we can transform our liabilities into assets.
Now, the question is which ports will use our ports as sub-regional transhipment hubs and why? Once the deep sea port at Matarbari becomes operational, the Chattogram, Mongla, and Payra ports will use it as a feeder port. Some of India’s ports on the Bay of Bengal belt, such as Kolkata’s (currently the Shyamaprasad Mukhapadhay port), Haldia’s, Visakhapatnam’s, Kakinada’s, and Andaman and Nicobar’s will be able to use this port. Additionally, some of Myanmar’s ports such as Akiyab, Yangun, Phuket in Thailand, and some other small ports will also be able to use it. Thus, these ports will be Matarbari-centric. Now, it can be questioned why will they use Matarbari? Because compared to the ports in that area, Matarbari has the largest draft. Thanks to the 18 metre draft, ships with a 10,000 TEUs can dock here.
Currently, we use Singapore as the transhipment hub. In fact, Bangladesh, India, and Myanmar all use Singapore as the transhipment hub. We import goods from Colombo and Tanjung Pelepas. Every ship coming from these ports bring in 1,200 to 1,800 TEU containers. Instead of this, if we can bring in 10,000 TEU containers, it will reduce the freight by 40% to 50%. For this reason, Bangladeshi business sector will naturally choose the Matarbari port. In addition to cutting back on costs, they will also receive their goods faster. This means we can hope that this port will become the service port of the transhipment hub. As a result, if we can put in place the grand plans that our honourable prime minister has for our Blue Economy and maritime sector, we will undoubtedly achieve our goal of joining the developed world by 2041. It will transform from a pipe dream into a reality.
There exists a tried and tested model known as the landlord port model, in which the private sector plays a major role in the management of port activities alongside the established authority. Around the world this model has given us examples of success. What plans do the authorities have to inspire the private sector to take part in the development of the port sector?
In the landlord port model, the private sector is responsible for managing the main port facilities. They acquire, use, and preserve the superstructures they consider necessary, such as cargo handling equipment at the terminal. To handle the ever increasing demands of imports and exports, the Bangladeshi government is also seriously considering implementing the landlord port model. In the interest of increasing efficiency, India’s government recently made a similar decision and handed the responsibility of managing 11 of their 12 ports to the private sector. Recently, in one of their reports, the World Bank also expressed their support for this idea and said that Bangladesh and her south Asian neighbours can achieve great success by increasing the involvement of the private sector, both in the present and in the near future.
In the seventh 5 year plan, drawing in investments from the private sector towards the growth of the port sector, and utilising the resources of the Bay of Bengal was discussed. In the eighth 5 year plan, this was reiterated. In this case, do you think private sector investment in certain ports will be comparatively profitable? Also, what are your plans on achieving the goals mentioned in the seventh 5 year plan? And what about the ones mentioned in the eighth 5 year plan?
Firstly, there’s a chance of investing greatly in the infrastructure sector. Just as it is important to expand port infrastructure to speed up imports and exports, it is also equally important to grow its capabilities, such as increasing the port’s efficiency by adding more automation, keeping up with the rest of the world by making the ports more environment friendly, etc. Our primary responsibility is to ensure that freight movement is as smooth as possible. Naturally, private investment into these sectors will be beneficial. The government will provide policy formulation as well as other necessary assistance. In reality, there are numerous opportunities for private investment in all sectors.
There’s also a decent possibility that the transportation and logistics industries will become more efficient and faster. In this case, adopting a joint approach with an experienced company can be a great option. The road and rail freight transport companies can build up a partnership with the internal shipping lines to conduct business with multinational companies. If it is possible to start a new type of barge-service between Dhaka and Chattogram, this will reduce the pressure of transporting cargo by truck on the roads. Therefore, the logistics situation will improve if the waterways are used more often. At the current moment, we are at a turning point of economic progress. It is essential for us to ensure the uninterrupted development of port, road, rail, and inland water transport sectors. Bangladesh is on the path to becoming the future “Asian Tiger”. And our private sectors are prepared to invest to help Bangladesh on this journey. We are specifically thinking of increasing competition between the organisations which provide customs, infrastructure, and logistics services and developing the container tracking and tracing sectors.
The government has given recognition to the success which has been achieved by the Chattogram port in meeting the goals outlined in the seventh 5-year plan. The assessment of the seventh 5-year plan stated that the Chattogram port has achieved all their goals. In some cases, it has even surpassed its goals. The eighth 5-year plan places great importance on increasing the efficiency of ports to accelerate the competitiveness of our economy. I am hopeful that under the skilled guidance of our Hon’ble Prime Minister Sheikh Hasina, we shall be able to accomplish this.
A port itself is a logistic platform, which requires the active participation of multiple stakeholders to function smoothly. How are you going to establish this highly important cooperation between the port and its stakeholders?
A port can only thrive when each of its related stakeholders are being fully cooperative and carrying out their responsibilities. This matter is similar to a relay race. You can only start your race once the other person has finished theirs and passes the baton onto you. Without the focus, concerted effort, and wholehearted participation necessary to achieve the objectives, success is impossible. Following specific directions from our honourable prime minister, activities to keep the port running 24/7 have been strengthened. If we want to keep the this very important port running like clockwork, it is absolutely mandatory for each and every stakeholder to participate. We have not yet been able to take up the practice of keeping public and private offices open during holidays.
Congestion at the ports is increasing because importers aren’t taking their container deliveries on time. To overcome these weaknesses, the decision has been made to keep important offices such as quality control organisations, nuclear energy commission, and the quarantine department open for 24 hours. To make this successful, there has to be greater cooperation between port authority, the customs office, BSTI, the quarantine department, banks and other partners. To be successful, our Hon’ble Prime Minister Sheikh Hasina has given directions to carry out the work in three shifts. As one of the important stakeholder, the National Board of Revenue (NBR) has already sent out 94 of their assistant revenue workers and 9 assistant commissioners to Chattogram. Similar forward mobility has been observed among other stakeholders, too. Alongside this, the port authority has mid-term and long-term plans to increase the skills of the port workers and speed up other port activities. All stakeholders including customs house, C&F agents, and freight forwarders will have to work in three shifts for 24 hours.
In most of the ports in developed countries, the formalities surrounding customs are carried out beyond the periphery of the ports, but it is different in the case of the Chattogram port. The port’s regular speed has been impeded due to the customs delivery and examination being carried out inside the port. What plans do you have to improve this situation?
The government is focused on constructing off-dock facilities to ensure quick unstuffing of Full Container Load (FCL) cargo from the port region and also to ensure faster deliveries. These can be private Container Freight Stations (CFS) or Inland Container Depot (ICD). Currently, there are 17 private ICDs near the Chattogram port. Aside from customs formalities, these installations are used to store low-risk import goods and empty containers. They can provide unstuffing and delivery of 37 goods. There is a talk of building 12-13 more private ICDs to reduce the pressure on the Chattogram port. The government will soon approve of constructing more ICDs and Inland Container Terminals (ICTs) to lessen congession at the ports. Dhaka and its surrounding ICTs are working to deliver goods via the waterway from Dhaka to Chattogram. The government is sincerely committed towards reducing pressure on the Chattogram port supply chain. I am sure that in the coming days, our combined efforts will result in fall in the costs of conducting business.
You carried out duties at the Mongla port before you were appointed as the chairman of the Chattogram port. In recent times we have seen plenty of activities at the Mongla port. What is the reason behind this interest of port users?
I became the chairman of the Mongla Port Authority in the midst of the COVID-19 pandemic. I am very grateful to our Hon’ble Prime Minister Sheikh Hasina that she had faith in me and gave me the important responsibility of overseeing the Mongla port during a period of disaster. I have tried my best to pay my due respects towards her faith in me. I have been able to utilise the experience I had as a member of the Chattogram port (Harbour) at the Mongla port.
As you know, for a long time the Mongla port has been a losing concern. It was a great challenge for me to bring back to life a 70-year-old port which has been inactive for a long time. After accepting the responsibilities, I saw that ships weren’t coming to the port. When I looked into the matter, the first problem I discovered was a navigability crisis. The port’s management was also quite weak. It turned out that the appraising, delivery, and examination were all being done at the same place. This was lowering the productivity of the port. After recognising these issues, I set out to manage the Mongla port in the manner of an international port. Separate yards were created for appraising, examination, delivery, export and stuffing-unstuffing. The port’s operations became more organised as a result, and the port’s productivity improved.
I also completed the capital dredging in the outer bar one month before the scheduled deadline. This resulted in increased navigability in the harbour area. By using our website and international networks, we were able to inform everyone that ships which have 9 to 10 metre drafts can enter the port, and also welcomed people to use the Mongla port. We projected the fact that tariffs are lower at the Mongla port compared to the Chattogram port. Whereas previously only 50 ships visited the port in a month, this culminated in about 130 ships visiting the port in a month.
There was poor navigability around the jetty as well and ships with a higher draft than 7 to 7 and a half metres could not approach the port. So, through maintenance dredging, we dredged the jetty head. Our goal was to bring in ships which have a draft of 8 to 8 and a half metres and we successfully achieved that goal.
The Mongla port authority has discussed the matter of increasing the navigability and efficiency of the port with exporters and importers. Shipping and delivery of goods have been improved greatly by developing the port infrastructure and other renovations. This means goods can be released very fast. To ensure the security of the goods, the port installations are now monitored by CCTV. Brand new container and cargo handling equipment have also been added to the port. The traffic, mechanical, and marine departments of the port have been refurbished. Along with bringing radical changes to the port management, employees and officers of the port are now also held accountable. Port users now feel more comfortable using the Mongla port than they did previously as a result of all of these improvements.
One other thing which should be mentioned here is that the Mongla port is particularly suitable for importing food items and cars. The government has issued a Statutory Regulatory Order (SRO) to import 40% of food items and cars through the Mongla port. We used this for publicity. We prioritised ships which carry foodstuffs, and we reduced the freight for ships carrying cars. Therefore, the shipping agents and freight forwarders who were disinterested to use the Mongla port, they are now using the port and this has increased the number of ships. The sheds of Mongla port are now filled with cars. These cars have also raised the revenue of Mongla port.
Work is currently underway on dredging the inner bar of the port. Once this is completed, ships with drafts of 9-10 metres can dock at the jetty. The Padma bridge will improve connectivity between the Mongla port, Dhaka, and North Bengal once it is operational. And goods-carrying transport can reach Nepal, Bhutan, and other neighbouring countries using the bridge. But the challenge here is to maintain the navigability of the port which we have created. This is why regular maintenance dredging is necessary.
You have worked with this new front of the economy as a Blue Economy cell member of the ministry of power, energy, and mineral resources. You also got the chance to work with this sector when you were the director of the Naval Headquarters. Say a few words on the prospects of Bangladesh in the Blue Economy and how we can utilise that.
The issue of 118, 813 square kilometres of disputed land with Myanmar in 2012 and with India in 2014 was resolved thanks to our Hon’ble Prime Minister Sheikh Hasina’s foresight and competent leadership. This established the sovereignty of Bangladesh at the Bay of Bengal. Through this, fishing at sea, collecting minerals and fossil fuels, shipping, and marine tourism-centric economic possibilities have reached a new horizon. We have to acquire this priceless treasure through proper research and utilising skilled human resources. Work has already started on this. Work is also being done to look for oil and gas in the deep sea. The shipping industry has also been revived. Bangladesh Shipping Corporation (BSC), along with private entrepreneurs, have come forward with large investments. The government’s policy support has played a special role in importing ships. If the fleet of sea-going ships is strong enough then we will be able to save a significant amount of rental costs. These savings will further strengthen our economy.
Sincere thanks to you for giving CPA News your time.
I’d like to thank CPA News as well.
