Port Sector Opportunities

An Expert's View about Sea, Coastal and Inland Water Transport in Bangladesh

Posted on: 18 Jul 2012

Bangladesh has significant infrastructure needs including sea ports development. Chittagong port and Mongla ports are the two sea ports in Bangladesh.

Sector briefing Port Sector Opportunities in Bangladesh Why Bangladesh? The International Monetary Fund (IMF) has indicated that Bangladesh’s economy has th become the 48 largest in the world and is worth US$225 billion on a PPP basis. Similarly JP Morgan, a global leader in investment banking has also included Bangladesh in their Frontier Five, based on relative market attractiveness. Investors Chronicle, a UK based research firm, has indentified Bangladesh to be one of the seven hottest emerging markets in the world owning to its relatively stable currency with solid foreign reserves and record foreign remittances as well as 6.7% real growth rate in 2011. The present Government ’’According to IFC, in Bangladesh has set ’Vision 2021’ to move Bangladesh to a economic growth has been consistent in middle income country by 2021. In line with 2011. 33% of the total national budget of this strategic vision, the Bangladesh 2010-2011 is allocated to infrastructure. Government has undertaken massive Annual Development Plan (ADP) programmes for infrastructure development in allocation has been enhanced 32% in partnership with the private sector. 2010-2011 budget.’’ Find general information on the Bangladesh market on UKTI’s website. The Doing Business Guide for Bangladesh gives an overview of Bangladesh’s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Port Sector opportunities in Bangladesh in Bangladesh has been estimated at $2770 million. As a result of the ongoing discussions Bangladesh Overview with the development partners on credit assistances, it is expected that $2 billion will be The Peoples’ Republic of Bangladesh covers an 2 available in the next 3 years. area of approximately 144,000km and its geographical location is to the east of India. nd On 2 January 2012, the Bangladeshi Government approved the draft of the Sonadia Statistics Deep Seaport Authority Act to pave the way for constructing the country's first deep seaport in GDP per capita (FY 2011) $755 the Bay of Bengal. Bangladesh has taken move GDP $111.75 billion to construct the deep seaport on Sonadia GDP Growth Rate 6.66 % Island under the country's south eastern Cox's (FY 2011) Bazar district, 391 km southeast of capital Population (est in 2011) 142.3 m Dhaka, as large-scale ships with 188-meter or Birth rate (2011) 19.4/1000 people more length cannot pass through the narrow Net population growth rate 1.3% channel of the principal seaport Chittagong. (2011) The first phase construction cost of the deep Foreign exchange reserves $10.01 billion seaport in Sonadia area in Cox's Bazar district (June, 2012) was estimated to be US$2.24 billion. Inflation (May 2012) 9.15% Financial year July-June Bangladesh is in the process of negotiating a transit agreement to allow India for use of the Sou available facilities at Chittagong port as a rce: World Bank and IMF transit point. It is expected that this framework will also help Nepal, Mayanmar, Bhutan and China to use Chittagong port as a commercial Port Sector in Bangladesh outlet for its southern Yunnan province. Bangladesh has significant infrastructure needs Cargo handling of Chittagong Port has gone including sea ports development. Chittagong th into automation on 27 December 2011 port and Mongla ports are the two sea ports in With the implementation of the system, the Bangladesh. Chittagong port is the principal complete operational activities have come seaport of Bangladesh handling about 92% of under online networking system including all import-export trade of the country. With the payment of charges and dues. economic growth of the country and its response towards globalisation/trade The problem of navigability will be removed for liberalization, both these ports are now playing the development of Mongla port, increase very important role for the overall development containers for export, modern equipment for of the country. Because of steady growth in the container handling and the port will be brought volume of container arriving at the port, the under automation system soon. port authorities has been implementing various programmes in phases for creation of The Government has taken an initiative to set infrastructure facilities and procurement of up a third sea port under the public-private handling equipment for container and partnership (PPP) in southern region, possibly containerised cargo. Present government has at Patuakhali coast. A proposal has already given top priority for developing both the port been moved to the Cabinet Economic Affairs facilities up to international standard. Committee for approval. If the proposal is approved, a detailed feasibility study (DFC) will In the pursuit of achieving its 2021 vision, the be made. Before the proposal was made they Government has put increased emphasis on have conducted a study to determine the site infrastructure development and this is reflected for the port. in national budget. For more private sector participation, special importance is given on A committee conducted the preliminary study public-private partnership. The Govt allocated in 2011 and selected the Barnabad Channel at US$375 million for PPP. Patuakhali coast. On the basis of the preliminary feasibility report, the Shipping In Bangladesh, most of the port sector projects Ministry initiated the move for setting up the in the public sector are financed by foreign aid. port. In 2010-2011, the disbursement of foreign aid UK Trade & Investment Sector briefing: Port Sector opportunities in Bangladesh As the country's import and export has been Major events and activities growing by 20% per year most of which is being done through the Chittagong port. The 1. Marine Tech Bangladesh Mongla port will face greater load when the Venue: Dhaka Sheraton Hotel, Dhaka, Bangladesh Padma Bridge is completed. Bangladesh Govt Date: 11 – 13 January 2013 thinks that in such a situation, a third sea port Organizer: Expo Net Exhibition Private Limited is essential to meet the future demand. Next steps - Incentives for Foreign How UKTI can help investors British companies wishing to develop their Bangladesh offers generous opportunities for business in the Bangladesh market are investment under its liberalised Industrial advised to undertake as much market research Policy and export-oriented, private sector-led and planning as possible in the UK. UKTI’s growth strategy. The Board of Investment team in Bangladesh with its wide local (BOI), established by the government for knowledge and experience can provide a range accelerating private investment, provides of services to British-based companies wishing institutional support services for potential to grow their business in global markets. investors. Bangladesh offers some of the world’s most competitive fiscal non-fiscal This can include: incentives. Private investment from overseas • Provision of market information sources is welcome in all areas of the economy • Validated lists of agents / distributors / with the exception of the four reserved sectors Partners (www.bangladesh- • Key market players or potential bank.org/investfacilityinvesfac.php). Such customers in the Bangladesh market investments can be made either independently • Establishment of interest of such or through Joint Venture. contacts in working with you For detail about the incentives please visit the • Arranging appointments and website of BOI (www.boi.gov.bd). You can accompanying during the meetings also visit the central bank website for similar • Organise seminars or other events for information. you to meet contacts and promote your www.bangladesh-bank.org/investfacility/index.php company in the Bangladesh market • Introducing your company to the local Opportunities Press & Media The Bangladesh port sector offers opportunities This work is available via our Overseas Market ranging from export of machinery & Introduction Service (OMIS) a chargeable equipment to technological collaboration, service which assists British-based companies consultancy, construction, dredging, MIS wishing to enter or expand their business in development, supply of vessels & crafts and overseas markets. joint ventures. To know more about Chittagong port future development plan please visit: To find out more about commissioning this http://cpa.gov.bd/portal/home.php?option=arti work, or accessing other UKTI services and cle&page=57&item=development_plan specialist advice, please visit the UKTI website to find contact details for your local UKTI To know more about Mongla port future office. development plan, please visit: http://www.mpa.gov.bd/developmentprojects/ development-project.html UKTI contacts In Annex A, Please find attached the detail Suraya Jahan information about some forthcoming business Deputy Director of UK Trade & Investment opportunities. You can be alerted to British High Commission Bangladesh infrastructure opportunities simply UN Road, Baridhara by registering on the UKTI website. More on Dhaka-1212 UKTI’s business opportunities service Tel: +88-02-8822705-9, Ext: 2282# Email: Qumrun.Naher@fco.gov.uk UK Trade & Investment Sector briefing: Port Sector opportunities in Bangladesh Annex A k. 8 x 10T Mobile Crane (Additional), Project cost: Unknown. Fund: Chittagong Port, Status: For the ongoing tenders please visit the below Procurement will be done by 2012 mentioned websites: l. 2 x 20T Mobile Crane (Additional), Project www.cpa.gov.bd cost: Unknown. Fund: Chittagong Port, Status: www.mpa.gov.bd Procurement will be done by 2012 www.cptu.gov.bd m. 3 x 30T Mobile Crane (Additional), Project Please find below the upcoming business cost: Unknown. Fund: Chittagong Port, Status: opportunities for Port sector. Most of these Procurement will be done by 2012 tenders will be published within 2012. n. 4 x 40T Heavy Trailer (Additional), Project Top Business Opportunities cost: Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 1. Port Handling Equipments for Chittagong port. Details as below: o. 2 x 10T Mobile Crane (Replacement), Project cost: Unknown. Fund: Chittagong Port, Status: a. 2 x 20 Ton Forklift Truck, Project cost: Procurement will be done by 2012 Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 p. 3 x 25T Heavy Trailer (Replacement), Project cost: Unknown. Fund: Chittagong Port, b. 2 x Mobile Harbour Crane, Project cost: Status: Procurement will be done by 2012 Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 q. 2 x 10T Mobile Crane (Replacement), Project cost: Unknown. Fund: Chittagong Port, Status: c. 4 x Rubber Tyred Gantry, Crane (Additional), Procurement will be done by 2012 Project cost: Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 r. 2 x Weighbridge (Replacement), Project cost: Unknown. Fund: Chittagong Port, Status: d. 3 x Straddle Carrier 4H, (Additional), Project Procurement will be done by 2012 cost: Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 s. 2 x Weighbridge, Project cost: Unknown. Fund: Chittagong Port, Status: Procurement e. 3 x Straddle Carrier 2H, (Additional), Project will be done by 2012 cost: Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 Other opportunities with funding f. 1 x 10 Ton Forklift Truck, (Additional), identified Project cost: Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 1. Dredging at the Harbour Area in the Pussur Channel (41.96 Lac Cum.) g. 5 x 07 Ton Reach Staker ((Replacement), Project cost: US$12.5 million. Fund: GOB Project cost: Unknown. Fund: Chittagong Port, Status: Tender is open S tatus: Procurement will be done by 2012 2. Dredging at the Outer Bar in the Pussur Channel (31.99 Lac Cum.) h. 3 x Straddle Carrier 4H, (Replacement), Project cost: US$1.5 billion. Fund: GOB Project cost: Unknown. Fund: Chittagong Port, Status: Expected tender in next 6 months. Status: Procurement will be done by 2012 Opportunities that have yet to have i. 4 x 10T Mobile Crane, (Additional), Project funding confirmed cost: Unknown. Fund: Chittagong Port, Status: Procurement will be done by 2012 1. Establishment of Deep sea port at Sonadia, j. 20 x 03 Ton Forklift Truck (Additional), Cox’s Bazar. Project cost for the first phase is Project cost: Unknown. Fund: Chittagong Port, US$2.24 billion dollars. In the first phase BD Status: Procurement will be done by 2012 Govt plans to construct 9 berths. Status: Short listing of the consultant for the design UK Trade & Investment Sector briefing: Port Sector opportunities in Bangladesh consultancy is done. Fund is not finalized yet. Expected date of completion is 2020. UKTI Bangladesh June 2012 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Port Sector opportunities in Bangladesh
Posted: 18 July 2012