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

Ahamedul Karim Chowdhury

Terminal ManagerPangaon Inland Container Terminal

Keraniganj, Dhaka, Bangladesh Email id : tm.ict.pangaon@gmail.com

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).

• 2013 : Formally inaugurated by the Honorable Prime

Minister Sheikh Hasina in 07th November,2013

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.• 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 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 used in CPA end;

CPA own equipment will be used

NCT Jetties will be used if necessary

The Government permitted 42organization to procure or build RSVsin both public and private sectors;

CPA procured 3 (three) reconditionedShips which are now chartered bySummit Alliance Port Limited asbareboat ;

Three more RSVs are ready to ply ;M.V. Harbour-1 (Neepa ParibahanLtd) M.V. KSL Gladiator & M.V. KSLPride (Karim Shipping Lines).

Pangaon: Container Handling figure till 01 August,2016

Year Inbound Outbound Total Growth

2014 433 551 984

2015 656 591 1247 26.73%

2016 1047 998 2045 304%

Utilization of handling capacity (3.1%)

India-Bangladesh Trade

Import from India (USD 6.1 billion in 2013-2014)

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 2013-2014)

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;• 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/Savarfrom Off dock, Ctg

– BDT 19,500/- maximum cost up to Tongi/Gazipur/Savarfrom 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 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.

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 revisionShort sea Shipping directly

to Pangaon ICTCost 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 4.1 3472 5208 1768 2576 3472 5208 1768 2576 1042 1562 530 773 0 0 0 0

Lift on/off 1000 1500 375 563 600 900 300 450 600 900 300 450 0 0 0 0On carriage to DHK 27000 30000 0 0 9000 15000 3500 5500 12000 19200 6000 12000 0 0 6000 12000

Storage charge 3840 7680 1125 2250 960 1920 1800 3600 960 1920 600 1200 960 1920 600 1200

MHC CGP NA NA NA NA NA NA NA NA 240 360 240 360 240 360 240 360

Load/Disc. CGP NA NA NA NA NA NA NA NA 450 668 225 366 450 668 225 366

Load/Disc. PGN NA NA NA NA NA NA NA NA 450 668 225 366 450 668 225 366

MHC PGN NA NA NA NA NA NA NA NA 240 360 240 360 240 360 240 360On carriage to FD NA NA NA NA 9000 9000 0 0 13000 13000 0 0 13000 13000 0 0

35312 44388 3268 5389 88357 23032 32028 7368 12126 74554 28982 38637 8360 15875 75979 15340 16975 7530 14652 54497

Cost per TEU 29452 24851 25326 18166

OFF Dock Storage Charge : 20' : BDT 75 Per day & BDT 150 per 40'

Exchange rate : USD 1= BDT; 80.00

Trailer Charge from CGP to DHK final destination (Round trip) : BDT 27000 per 20' & BDT 30000 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 13000 per 20' & BDT 13000 per 40'NA : Not applicableAverage 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)

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

Thank You all Any Question ?

Tariff Review (On going)

Existing Tariff

• PCT tariff item No. 2: Berthing/Un-berthing 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)

Proposed Tariff

• PCT tariff item No. 2: Berthing/Un-berthing 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)

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/Un-stuffing 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;

Tariff Review (On going)

Existing 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 7th day, BDT1000/40’ per day up to 7th day: BDT1000/20’ from 8th day to 20th

day, BDT2000/40’ from 8th day to 20th day

• For subsequent days BDT2000/20’ per day BDT4000/40’ per day

• CPA tariff item No. 4.1: Loading or Discharging : FCL USD43.40/20’ 65.10/40’ LCL: USD130/20’ USD195/40” Empty USD22.10/20’ USD33.20/40’

Proposed Tariff

• PCT tariff item No.19: Storage Charge and Non CPA Equipment: Free Time : 10days (Imp Laden) 10days (FCL ExpLaden), 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.