Local apparel makers can reduce the cost of business if the government copes with the demand for optimal use of the Mongla port for quicker shipments to save time and money, BGMEA leaders say.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said its members can export readymade garments through the Mongla port, provided the government ensures smooth ferry service at Mawa ghat for crossing the River Padma before construction of Padma Bridge.
Besides, the association demands that the authorities build container yards near Mawa ghat for housing the containers before transhipment to Shibchar on the other side of the river by the ferry.
The BGMEA has already held meeting with the shipping ministry officials and made a formal proposal in this regard.
Shipping Minister Shajahan Khan told the Dhaka Tribune that his ministry would provide the garment exporters with exclusive ferry service for optimum use of the Mongla port and reduce pressure on the Chittagong port, which remains very often congested.
He said the businesspeople should come up with detailed proposals so that the government could proceed to materialise their demands, taking into account the construction of Padma Bridge starting in June or July this year.
BGMEA leaders said they made the proposal considering the enormous problems the exporters faced in November-December when the troublemakers snapped the Chittagong port from the rest of the country by attacks in Sitakunda, the gateway to the port city.
An alternative port could ensure smooth export and reduce the fare as the authorities have been monopolising the Chittagong port, they added.
Shahidullah Azim, a BGMEA vice-president, told the Dhaka Tribune that use of Mongla port would be very viable for RMG trade.”Not only the smooth ferry service, the government will have to guarantee container yard at ferry ghat; otherwise the businessmen will not use it.”
He said RMG traders paid US $15,000 to US $18,000 for a standard consignment to Europe.
“In Mongla, the price will be lesser as the businessmen can bargain with the Chittagong port. It will help us reduce the cost of business,” said Shahidullah.
Abdul Wadud, another RMG exporter, said a covered van charges up to Tk15,000 for a trip from Chittagong port to Dhaka, but it would not cross Tk10,000 for Mongla. He said traffic jam on the Dhaka-Chittagong highway and congestion at the port very often delayed the shipments.
“Usually, we need three days to load the consignment in Chittagong port, but we would be able to ship the products on one day if the government guarantees uninterrupted ferry service and necessary infrastructures,” he said.
The traders must pay the port authorities additional charges for every single day in case of delay of shipments, ultimately hiking the cost of business.
The main reason for which Bangladesh turns into the second largest RMG exports in the world is least labour cost, giving competitive advantage against other apparel exporting countries such as China, India, Pakistan, Vietnam, Sri Lanka and others.
The businesspeople said only reduced cost of business can help Bangladesh retain its status as a giant in the RMG.
Salam Murshedy, a former BGMEA president, said use of Mongla port could reduce their time to ship the consignments.
“Time is money for us. If we use Mongla, we can easily ship the consignments as the port is underused and is not congested. This port can be an alternative to Chittagong port,” he told the Dhaka Tribune, suggesting that the government should associate the personnel with good knowledge on customs regime.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) is also positive about optimal use of Mongla port.
Mohammad Hatem, the first vice-president of BKMEA, told the Dhaka Tribune that Bangladesh’s earnings from RMG would exceed US $100 billion from US $21.5 billion (2012-13).
“In that case, Mongla port can help us reduce pressure on the Chittagong port, provided the government puts in place necessary infrastructures and smooth facilities, including banking and customs,” he said.
Hatem said the current volume of global RMG trade was US $450 billion, which would touch US $700 billion by 2025.
Salam Murshedy said a vibrant Mongla port would also help the businesspeople shift their RMG units from Dhaka to the south-western districts such as Khulna, Bagerhat and other nearby districts if other components of investments such as gas, electricity and better infrastructures were ensured.
The railway authorities have already taken measures to set up a rail link from Khulna to Mongla port.
