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Containerization in Bangladesh World Maritime University The Maritime Commons: Digital Repository of the World Maritime University World Maritime University Dissertations Dissertations 1988 Containerization in Bangladesh Ghulam Rabbani WMU Follow this and additional works at: https://commons.wmu.se/all_dissertations Recommended Citation Rabbani, Ghulam, "Containerization in Bangladesh" (1988). World Maritime University Dissertations. 837. https://commons.wmu.se/all_dissertations/837 This Dissertation is brought to you courtesy of Maritime Commons. Open Access items may be downloaded for non- commercial, fair use academic purposes. No items may be hosted on another server or web site without express written permission from the World Maritime University. For more information, please contact [email protected]. WORLD MARITIME UNIVERSITY MALMOE SWEDEN COrvST" A. X ivlEE; Fi X E3 AT X OM X |vl E3. AMCE5L„ A OEl£SI~i BY GHULAM RABBANI BANGLADESH A Daper submitted to the Faculty of the World Maritime University ivs partial . seit is-f act ion of the requirements fQr the award of a MASTER OF SCIENCE DEGREE i n GENERAL MARITIME ADMINISTRAT The cent (ants of this; paper reflec-t my pensonal yiews and are not necessarily ejndorsed by the University« S i g n a t u r e s Date ; Octobei:' 198S Supervised atnd cisses>s;ed bys Doctor Hercules Haralambides World Maritime Univers;ity Co-Assessed by : Professor Albert Westerlink Director , Merchant Marine Academiy , Be 1 g iurn ■C O' T hA, X fvl EX F? X. S T" X. O' M .X IM O A r-4 OS L... ^*1. O EX EJ1- GS i—S LJ 5_«A M F? A B i 3 A X. i ABSTRACT OF CONTAINERISATION IN BANGLADESH The paper studies the feasibility of the develop- ment of containerisation in F3angladesh under the existing socio economic conditions .The subject is very topical for developing countries . It is in the strong interest of Bangladesh that she should keep pace by adapting herself to the new techno logy of containerisation . The effects of not joining the technological progress could be detrimental for the national economy as well as for the port and shipping industry . The paper attempts to study the development of complete system of containerisation in Banglade?sh with emphasis on the internal distribution system . The paper also attempts to give a fair idea of what Bangladesih has in terms of infrastructure , equip­ ment and institutional framework presently and what would be required for the development of a complete system of containerisation . Most of the containerisable cargo originates or is destined for the Dhaka area . There are only very limited prospects for containerisation outside the Dhaka Chittagong* jrorridor . 11 • % The paper also attempts to identify the need for a Rail based internal distribution system with an ICD at Dhaka as a minimum requirement for workability . The design and operational layout of the ICD is outside the scope of this paper . A phased development plan seems to be appropriate-- he?re and such a plan has been proposed . Elstimates of capital and operating costs of. the Rail based container service and the ICD are also given . It is stressed in the paper that it is indispen­ sable for Banngladesh to extend , modernise and optimise her port facilities and operational capabi 1 itie?s for con­ tainer traffic . Harmonisation of different plans for containerisation has to be made . Ill PREFACE As part af the curriculum , students at thes World Maritime University (WMU) are expected to undertake a stu- dy project and produce a thesis on. a maritime field in partial fulfilment of the re?quirements for obtaining the Masters degree The subject chosen for the thejsis is "Containerisa­ tion in Bangladesh" . My- interest on the? subject was deve­ loped during the? course of studies in the first year at the WMU and visits to the ports of Bremen and Bre?mer Haven during the field trip to Ge?rmany in October 1987 and the port of Halifax during "On the Job Training" in Canada in March '88 . hJone of the students from Bangladc-?sh at the WMU has undertaken a study project for his thesis on containeris - at ion so fair . f3e?sid£?s , some? reference maiterial on this subject is reaadily available .1 be?ing from the Navy had little knowledge of commercial shipping before coming to the WMU . The subject chosen has given me a good exposure to mamy aspects of commercial shipping . The subject is also very topical for developing countries . This thesis project is int6?nded for those readers , who while possessing a general knowledge? about shipping , wish to know more , particularly about prospects and fea­ sibility of containerised shipping , in Bangladesh. iv This thesis project includes a number of quotations and many references , but the main source for this study has been the "Rail Container Transport Study - Bangladesh, Draft Final Report -- Prepared for Asian Development Bank acting as executive agency for UNDP -- September 'S7" CRCTSl and "Transport of Containers in Bangladesh ~ Feasi­ bility Study and Detailed Engineering - Phase I Draft Report -Prepared for the World Bank on behalf of the UNDP - December '85" . The statistical data , maps and figures used in this study project are mostly from RCTS . This being said I- am now faced with the tai.sk of thawiking the organisations and individuals , without whose* help , guidance and understanding this study project would have been dif ficu11 to comp1ete . .1 shall name s Dr H L Beth , visiting profesor at the WMU who helped me formulate the outline <mnd framework and gave me vali.iable advice for my thesis project ; Dr H i-laralaimbides , lecturer a^t the WMU , my siuptsrvisor ; and not forgetting to mention the visiting professors and the resident staff of the WMU and the WMU librarian Mr Richard Poisson who helped me by providing valuable material and guidance during the preparation of my thesis project ; Kazi Mahbubul Huq , Director , Bangladesh Consultants Limited , who was very kind to allow me to make copies of the abpve named project reports for myself after having failed to*, obtain.. _ them from the Bangladesh Ministry of Ports Shipping and IWT 5 Mr Omar Hadi , Chief of Planning and Mr Anwar Hossain , Deputy Chief of Planning at the Ministry of Ports Shipping and .IWT both of whom briefed me V on shipping and containerisation in Bangladesh and supp­ lied me with some material and identified for me other sources for collecting data and material ; Mr Yar Ahmed , Traffic Officer , Incha\rge of the^ Interim I CD at Kamalapur Dhaka who gave me a briefing and showed me around the fa\cility this January . In the end I wish to mention my wife , Mohua , who has shown a great deal of patience and understanding during her stay with me in Malmo aind during the prepara­ tion of the thesis project when on many occasions she was deprived of my company when I was burning the; midnight oil writing my thesis or typing it on the Word Processor at the WMU . She gave me a lot of encouragement and never complairied . She has a lot of contribution in the comp­ letion of this thesis project . vx LIST QF TABLES F^age 2.1 D e V e 1 o p m e n t o f C o n t a i ri e r H a n d 1 i n g at Selected South Asian Ports ......... 15 3.1 Bangladesh Imports FYSD-l to FY85”6 ...... 21 \^) » jd Bangladesh Exports FY80-1 to FY85-6 Main Trading Partners - Bangladesh External Trade by Region FY85-6 ....... .id} B a n g1ad esh Non Bu1k Im po rt a nd Export Tonnage;s .......................... 28 3.5 Forecast Container Penetration of Bangla­ desh Non-Bulk Imports and Exoports ...... 3.6 Forecast C o n t a i n e r T o n n a g e f o r B a n g 1 a d e s i"i Imports and Exports ..................... 3.7 Chittagong-Forecast of Container Imports and Export .............................. 41 3.8 Advantages and Disadvantage of Rail , Road and Inland Waterway Transport ...... 42 4.1 Estimated Si;:e of Operational Cargo Fleet '85 ( BITWA a Private I ........... 6.1 Objectives for avi Integrated Infor- maition System ........................... 86 6.2 Options for Management .................. 90 6 E 3 Ship Profile? in Developing Country Trades . 118 7.1 Summary of Capital Expenditure 126 7.2 Annual Rent for ICD Land .................. 126 7.: Summary of Equipment Financial Operat­ ing costs ........... 127 Vil 7.A Summary of Equipment Operating Cost Compovievits . « . » « . « ■ . « * ■ " " " 7.5 Summary of ICD Staff Staff Costs 7.6 Summary of Railway Operating Profile 7.7 Summary of Railway Operating Costs 7.8 Cost of Rolling Stock Depreciation . V11 ;i. LIST OF FIGURES Page 2.1 Map of Bangladesh .......................... 6 3.1 Import-Export Cargo Movement To and From Chittagong Port ......... 24 3.2 Rail Transit Routes - India-Bangla- desh-Nepal .................................. 29 3.3 Forecast Growth-Containerised Tonnage Through Chittagong and Mongla Ports ...... 39 3.4 Potential Container Transport Network .... 43 4.1 Map of Karnafuli River and Approach ...... 48 4.2 Chittagong Port General View ....'........ 49 4.3 Chittagong-Dhaka Road Map ........ 56 4.4 Dhaka to Mongla Road & IWT Routes .......... 57 4.5 Types of Cargo Carrying Vessels .... 62 6.1 Integrated Container Terminal System .... 89 6.2 Container Cargo Transport Links To Dhaka/Narayanganj Through Chittagong ..... 102 6.3 Container Cargo Transport Links To Dhaka/Narayangan j Through Chalna 103 6.4 Possible ICD sites in Dhaka Area .......... 108 6.5 National Rail Container Network - Likely and Possible Rail Flows ................... 112 7.1 Development Time Table ..................... 138 ix % GLOSSARY ADB Asian Development Bank BG Broad Guage BIWTA Bangladesh Inland Water Transport Authority BIWTC Bangladesh Inland Water Transport Corporation BNCC B a n g1ad esh Nationa1 Cont aine r Com pany BSC B a n g 1 a d e s h S hi i.
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