The absence of syndicates in the Ctg port reduces the transport costs of lighter vessels by 25%

In the absence of various units acting as syndicates, owners and agents of imported goods now transport their cargoes by hiring vessels of their own choice

With the removal of shipping syndicates, goods are now being transported from the outer anchorage of Chattogram port to 34 sea lanes under the open market system, which traders say has reduced the cost of transporting lighter vessels by at least 25%.

It is expected that this reduction will have a positive impact on product prices on the market.

Stakeholders say the Water Transport Cell (WTC) earlier controlled the movement of goods from Chattogram port using lighter vessels. Following a dispute between shipowners’ organisations, the Mercantile Marine Office (MMO) set up the Bangladesh Water Transport Coordination Cell (BWTCC) in April last year.

However, the BWTCC did not function because shipowners did not join the organisation.

In the absence of these cells acting as syndicates, owners and agents of imported goods now transport their cargoes by hiring vessels of their own choice.

According to stakeholders, these syndicates have not been functioning at all since the Awami League government was ousted from power in the face of mass protests.

Those involved in the activities of the MMO, the government body responsible for the registration of ships, as well as shipowners and importers, have expressed their opposition to using the services of any cell or syndicate to transport goods via sea routes.

They argue that a free market system would reduce transportation costs by Tk 20 per tonne, which the syndicate charged as commission, and would curb the practice of charging extra tolls.

However, since the fall of the Awami League government, there have been significant disruptions in the transportation and clearance of goods at the Chattogram port. In particular, ships have been unable to unload goods for at least five days due to vandalism and attacks on unloading points in Dhaka and Narayanganj.

Seacom Group Chairman Mohammed Amirul Haque told TBS that earlier, the transportation of goods was controlled by different units that set fixed rates. This control is no longer in force.

“The syndicate was completely disbanded in the wake of the student anti-discrimination movement,” he added.

He noted that the price per tonne from Chattogram port was Tk 585, but now it has come down to Tk 440. “With the fall in transportation cost, the price of goods in the market will naturally come down,” he said.

Haque stressed that it was necessary for the parties concerned to reach an agreement to prevent the transport system from being taken over by a new syndicate.

He stressed that general shipowners, logistics companies and industrial owners should ensure that goods are transported according to their preferences.

According to data from Chattogram port, 45% of the ships arriving from all over the world are bulk carriers or open cargo ships. About 75% of the open cargo is unloaded onto lighter vessels at the outer anchorage, while the remaining 25% is unloaded at the port quay.

The goods are transhipped onto smaller vessels at the outer anchorage of Chattogram port. Around 2,500 smaller vessels transport these products through 34 sea lanes within the country.

Of these, around 1,300 ships were previously controlled by WTC, and 400 ships belonging to large industrial companies also participated in the transport.

Various logistics companies also operated lighter vessels outside WTC’s control. After WTC’s dissolution, the Inland Vessel Owners Association of Chattogram (IVOAC) and Bangladesh Cargo Vessel Owners’ Association (BCVOA) separately issued ship serial numbers.

Currently, around 100 smaller ships belonging to private owners, industrial groups and logistics companies also transport goods every day.

Captain Sabbir Mahmood, MMO’s chief officer, told TBS: “The shipment of goods through sea lanes is now happening in the open market with cargo owners booking vessels directly.”

He added: “During the previous government, an attempt was made to set up a new cell, but it was not feasible due to lack of consensus among the shipowners’ organisations. Whether a new cell will be set up depends on the decision of the current caretaker government.”

Mahmood said: “The current open market system has led to a decline in shipping costs compared to previous years.”

Shafiqul Alam Jewel, managing director of Amms Group, a logistics company, said the WTC was set up to coordinate the movement of goods from the port’s outer anchorage. But it started controlling the trade and transportation of goods. The cell charged a commission of Tk 20 per tonne.

“Those at WTC allocated ships at their discretion. In case of delay in transporting goods, they charged double the fee. As a result, the cost of transporting goods doubled,” he said.

In 2003, the Bangladesh Cargo Vessel Owners Association (BCVOA), Bangladesh Coastal Vessel Owners Association and Chattogram Inland Vessel Owners Association (IVOAC) jointly established the Water Transport Cell.

Shipping industry representatives said the WTC was overseen by BCVOA, which was supervised by Salman F. Rahman, advisor on industry and investment to former Prime Minister Sheikh Hasina, former Madaripur-1 MP Noor-e-Alam Chowdhury Liton and WTC coordinator Nurul Haque Chowdhury.

The Chattogram-based IVOAC was controlled by former Foreign Minister Hasan Mahmud, former Chattogram City Corporation Mayor Azam Nasir Uddin, former Narayanganj MP Shamim Osman, former Noakhali MP Ekram Chowdhury, IVOAC spokesman Parvez Ahmed and other leaders.

IVOAC spokesman Parvez Ahmed told TBS that since both IVOAC and WTC have ceased operations, contractors are now using their own fleets to transport goods via sea routes.

Bangladesh Cargo Vessel Owners’ Association BCVOA Secretary Nurul Haque said that currently the ships are not under the control of any unit. It is a random state now. “But we will fix it later,” he said.

Bangladesh Federation Joint Secretary General Naujan Sramik Nabi Alam said that loading of cargo onto lighter vessels from Chattogram port was normal. “The situation has started normalizing since August 10,” he added.