Technical Assistance Consultant’s Report Project Number: 45078 September 2015 People’s Republic of Bangladesh: Strategic Master Plan for Chittagong Port (Financed by the Japan Fund for Poverty Reduction) Prepared by: HPC Hamburg Port Consulting GmbH KS Consultants Limited, Dhaka, Bangladesh Sellhorn Ingenieurgesellschaft mbH, Hamburg, Germany For: Ministry of Shipping Chittagong Port Authority This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Asian Development Bank Chittagong Port Authority STRATEGIC MASTER PLAN FOR CHITTAGONG PORT Final Report, Part 1 Asian Development Bank Chittagong Port Authority STRATEGIC MASTER PLAN FOR CHITTAGONG PORT Final Report, Part 1 HPC Hamburg Port Consulting GmbH Container Terminal Altenwerder Am Ballinkai 1 21129 Hamburg Germany Phone: +49-40-74008-205 Fax: +49-40-74008-133 E-Mail: [email protected] Internet: http://www.hpc-hamburg.de In Technical Cooperation with KS Consultants Limited Sellhorn Ingenieurgesellschaft mbH House # B/173 (2nd Floor) Teilfeld 5 Road # 23, DOHS Mohakhali 20459 Hamburg Dhaka - 1206 Germany Bangladesh Phone: +49-40-361201-0 Phone: +88-02-8872512 Fax: +49-40-361201-28 Fax: +88-02-8812304 E-Mail: [email protected] E-Mail: [email protected] Internet: http://www.sellhorn-hamburg.de Copyright © by HPC 21/09/2015 21/09/2015 11:55 F:\PROJ\PPOS\26321_Bangladesh_Chittagong Masterplan\Reports\Final Report\Part 1\Final_Report_Part_1.docx Strategic Master Plan for Chittagong Port – Final Report, Part 1 iii TABLE OF CONTENTS Page EXECUTIVE SUMMARY 1 1. INTRODUCTION 9 2. MACROECONOMIC DEVELOPMENT 11 2.1 Regional Economic Trends 11 2.2 Demographic Prospects in Bangladesh 13 2.3 Industrial Developments and Trade Patterns of Bangladesh 15 2.4 Economic Growth and Outlook for Bangladesh 22 2.5 Bangladesh Energy Requirements and Outlook 28 3. PORT THROUGHPUT DEVELOPMENT 43 3.1 Port of Chittagong 43 3.2 Port of Mongla 48 3.3 Other Potential Competing Ports 49 4. HINTERLAND OF CHITTAGONG PORT 53 4.1 Regional Structure 53 4.2 Existing Infrastructure 61 4.2.1 Road Connections to/from Chittagong Port 61 4.2.2 Rail Connections to/from Chittagong Port 65 4.2.3 Inland Waterway Connections to/from Chittagong Port 69 4.2.4 Identified Problems 71 4.2.5 Planned Improvements 71 4.3 Existing ICDs 72 4.3.1 General Overview 72 4.3.2 ICD Locations 73 4.4 The Role of the Export Processing Zone 75 4.5 Chittagong Port Infrastructure Connections 79 5. TRAFFIC FORECAST 83 5.1 Methodology and Approach 83 5.2 Projection of Handling Volume Potentials 85 5.2.1 Containers 85 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants iv Strategic Master Plan for Chittagong Port – Final Report, Part 1 5.2.2 Break Bulk/RoRo Cargo 88 5.2.3 Dry Bulk 92 5.2.4 Liquid Bulk 106 5.2.5 Other Bulk 112 5.3 Traffic Forecast Summary 114 5.4 Interpretation of Chittagong Port’s Handled Bulk Cargo Volumes 116 6. VESSEL FORECAST 118 6.1 Container Ships 118 6.2 Dry Bulk Carriers 122 6.3 Tankers 124 6.4 Break Bulk/General Cargo and RoRo Vessels 126 6.5 Vessel Forecast Summary 127 7. INVENTORY OF CHITTAGONG PORT’S FACILITIES 129 7.1 Inventory of Physical Facilities 129 7.1.1 General Overview 129 7.1.2 Current Facilities 129 7.1.3 Berths - Key Data 132 7.1.4 Terminal Infrastructure 141 7.1.5 Navigational Aids 159 7.2 Identification of Different Development Alternatives 164 7.2.1 Current Plans 164 8. BERTH- AND TERMINAL OPERATIONAL DATA FOR CHITTAGONG PORT FACILITIES 173 8.1 Physical Operations Review and Check 173 8.2 General Overview 173 8.3 Berth and Terminal Data Sheets 175 8.4 Port Data Base 175 8.5 Status of the Hydraulic Tender Process 175 8.5.1 Objectives 175 8.5.2 Tender Process 176 8.5.3 Time Plan 177 9. DOCUMENT REGISTER AND LIST OF MEETINGS 179 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants Strategic Master Plan for Chittagong Port – Final Report, Part 1 v ANNEX Annex 1: Traffic Forecast Results Annex 2: Data Sheets Terminal Infrastructure Annex 3: Terminal Data Sheets Annex 4: CPA Overview Map Annex 5: List of Abbreviations HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants vi Strategic Master Plan for Chittagong Port – Final Report, Part 1 TABLE OF FIGURES Page Figure 1: Bangladesh Exports by Country (%-share in total) 20 Figure 2: Bangladesh Imports by Country (%-share in total) 22 Figure 3: Bangladesh Ranking in Doing Business 24 Figure 4: Comparison of Energy Demand Per Capita 2010 (in kgoe) 28 Figure 5: Bangladesh Gas and Coal Production Areas 31 Figure 6: Economy and Energy Correlation in Bangladesh 37 Figure 7: Port of Chittagong Containerised Imports by Type of Cargo 2008- 2012 46 Figure 8: Port of Chittagong Container Handling by Terminal 47 Figure 9: Port Locations 50 Figure 10: SASEC Road Corridor 4/SAARC Highway Corridor 8 and SASEC Road Corridor 9/SAARC Highway Corridor 4 54 Figure 11: SAARC Road Route 6 55 Figure 12: Bangladesh Railways Network 57 Figure 13: Regional Waterways 59 Figure 14: Chittagong Access Roads 62 Figure 15: Waterways Route between Chittagong Port and Pangaon (Narayanganj) Container Terminal 70 Figure 16: Location of ICDs/Off-Dock Terminals in Chittagong - Overview 82 Figure 17: Chittagong Container Handling Potentials to 2043 87 Figure 18: Chittagong Container Handling by Type and Direction to 2043 – Base Case 88 Figure 19: Chittagong Vehicle RoRo Handling Potentials to 2043 91 Figure 20: Chittagong Food Grain Handling Potentials to 2043 95 Figure 21: Chittagong Sugar Handling Potentials to 2043 97 Figure 22: Chittagong Salt Handling Potentials to 2043 98 Figure 23: Chittagong Fertiliser Handling Potentials to 2043 101 Figure 24: Chittagong Cement Clinker Handling Potentials to 2043 103 Figure 25: Chittagong Coal Handling Potentials to 2043 105 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants Strategic Master Plan for Chittagong Port – Final Report, Part 1 vii Figure 26: Chittagong Dry Bulk Handling Potentials to 2043 by Type of Cargo – Base Case 106 Figure 27: Chittagong Crude Oil Handling Potentials to 2043 107 Figure 28: Chittagong Petroleum Products Handling Potentials to 2043 108 Figure 29: Chittagong Naphtha Handling Potentials to 2043 109 Figure 30: Chittagong Edible Oil Handling Potentials to 2043 111 Figure 31: Chittagong Liquid Bulk Handling Potentials to 2043 by Type of Cargo – Base Case 112 Figure 32: Chittagong Other Bulk Handling Potentials to 2043 114 Figure 33: Chittagong Port Handling Potentials to 2043 – Base Case 115 Figure 34: Chittagong Container Vessel Forecast 122 Figure 35: Chittagong Dry Bulk Vessel Forecast 124 Figure 36: Chittagong Liquid Bulk Vessel Forecast 125 Figure 37: Chittagong Break Bulk/General Cargo Vessel Forecast 126 Figure 38: Chittagong RoRo/Vehicle Carrier Forecast 127 Figure 39: Summary of Vessel Call Potentials at Chittagong to 2043 – Base Case 128 Figure 40: Port Area – General Layout (South) 130 Figure 41: Port Area – General Layout (North) 131 Figure 42: Transit Sheds (Quay Wall Area) 142 Figure 43: Baggage Shed 143 Figure 44: “O”-Shed 143 Figure 45: "D"-Shed 144 Figure 46: "F"-Shed 144 Figure 47: Automobile Yard 144 Figure 48: "F"-Shed 145 Figure 49: "P"-Shed 145 Figure 50: "M"- and "N"-Shed 145 Figure 51: CCT Container Freight Station 146 Figure 52: CCT CFS 146 Figure 53: Central Workshop 147 Figure 54: Booking Office and Workshop C 148 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants viii Strategic Master Plan for Chittagong Port – Final Report, Part 1 Figure 55: Motor Garage 148 Figure 56: CCT-Workshop 148 Figure 57: CCT-Workshop - Outside Area 149 Figure 58: NCT-Workshop 149 Figure 59: Crane inside NCT-Workshop 149 Figure 60: Gates of General Cargo Terminal 150 Figure 61: Gates of New Container Terminal (NCT) and Chittagong Container Terminal (CCT) 151 Figure 62: GCB Water Supply Network (with future extensions) 152 Figure 63: NCT/CCT Water Supply Network 153 Figure 64: Storm Water Facilities GCB 154 Figure 65: Outlet Structures GCB 155 Figure 66: Storm Water Gullies and Channels 155 Figure 67: Power Distribution System of CPA 156 Figure 68: GCB Pavement Types and Damages 157 Figure 69: CPA Residential and Service Facilities 158 Figure 70: Port Buoy Karnaphuli River 161 Figure 71: Lighthouses Karnaphuli River 164 Figure 72: General layout - Back-up Facilities at Berths 4 and 5 of NCT (without CFS) 165 Figure 73: General layout - Back-up Facilities at Berths 4 and 5 of NCT (with CFS) 165 Figure 74: Progress of Construction Works of Back-up Facilities at Berths 4 and 5 of NCT December 2014 166 Figure 75: New Water Treatment Plant 167 Figure 76: Location New Water Treatment Plant 168 Figure 77: New Jetty at Capital Dredging Project 169 Figure 78: Planned New Layout of KCT 170 Figure 79: Possible Location and Layout of New Bulk Terminal 171 Figure 80: Possible Location and Layout of Bay Terminal 172 Figure 81: Excerpt of Request for Expression of Interest 176 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants Strategic Master Plan for Chittagong Port – Final Report, Part 1 ix LIST OF TABLES Page Table 1: Forecast Volumes for Chittagong Port for the Base Case 6 Table 3: South Asian Economic Development 12 Table 4: Development of Population in Bangladesh 14 Table 5: Manufacturing Growth Projection 18 Table 6: Value of Bangladesh Exports by Commodity 19 Table 7: Value of Bangladesh Imports by Commodity 21 Table 8: Bangladesh Economic Indicators 24 Table 9: Bangladesh Foreign Currency Inflows (in million USD) 26 Table 10: Bangladesh Real GDP Growth Forecast by Scenario 27 Table 11: Bangladesh Energy Indicators 29 Table 12: Bangladesh Coal Reserves 32 Table 13: Bangladesh Oil Imports by Type 36 Table 14: Bangladesh Energy Consumption by Source to 2043 40 Table 15: Port of Chittagong Cargo Handling by Type and Direction 2002- 2012 45 Table 16: Port of Chittagong Container Handling by Type and Direction 2002-2012 (No.