4:42 pm - Thursday January 18, 9720

Evaluation document of Ctg Port by ADB

More than a third of the Bangladesh’s economic activity was located within the Dhaka–Chittagong corridor, where the bulk of international trade is generated. Three modes of transport serve the corridor—road, rail, and inland waterways, which together account for 20 million tons of freight annually.

export-importThere are three main ports in Bangladesh: Chittagong, Mongla, and Dhaka–Narayanganj, with 80% of the trade flowing through the port of Chittagong. Chittagong Port is an integral part of the subregional transport and logistics chain connecting northeastern India, Bhutan, and Nepal to Europe, North America, and Southeast Asia. The efficiency of the transportation system in the Dhaka–Chittagong corridor and the port of Chittagong in particular, was considered vital for sustained economic growth.

Container dwell times at Chittagong Port remained high, and were rising sharply due to manual operations management and document processing methods. Under the manual methods, documents passed through various stages, requiring 48 endorsements, which increased dwell times and created opportunities for corruption. The manual container tracking system delayed container movements in the yard. Without information technology, berth productivity was expected to further decline and add to shipping costs. Even with a computerized port management system, a few customs processing rules in force could limit port capacity. Delays on taking delivery of import cargoes and the inefficient auctioning rules of the Customs House of Chittagong (CHC) for unclaimed consignments added to container dwell times.

The project’s expected outcome was increase in container terminal capacity. The outcome performance indicators were (i) sustained annual growth in container throughput at above 6% in the first 6 years after project completion; (ii) reduced port charges by 20% within 2 years of project completion; and (iii) reduced vessel turnaround time and berth occupancy rate by 20% within 2 years of project completion.

This report validates the completion report’s assessment of the project. IED overall assessment: Successful.