Ctg port's LCL cargo handling moves off-dock in August, to save delivery time

Chattogram Port's less-than-container load (LCL) cargo handling process will take place outside the port area from August this year, providing much-needed breathing space to the overworked seaport.

Two container sheds, located 2.2km or six minutes away from the port's gate-4, are now undergoing renovation for unstuffing and discharging of LCLs. 

The size of the sheds is 18,906 square metres, spread over five acres of land. Rents will be collected according to the current tariff of the port.

Bay Cargo Centre, a private company, has been entrusted with the task of carrying out the entire operation, including the renovation of these two abandoned sheds of the port, and the construction of roads and yards.

The move will enable importers to release goods within 24 hours of arrival at the port, reducing chances of theft and spoilage of goods. 

Md Shamsul Azam, director of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The Business Standard that if delivery of cargo comes down to one day, lead time for export of ready-made garments will be reduced and store rents will be reduced.

However, it must be ensured that port charges remain the same, he added.

Fearing a tariff hike in light of similar experiences earlier, importers also demanded that the port authority ensure that businessmen are not held hostage by any private company in the unstuffing process.

What is LCL?

Less-than-container load is a shipping term used to describe container loads that are filled by multiple orders or goods. Smaller shipments that need to be sent economically and are less time-sensitive are sent on LCL containers.

LCL containers are unloaded and stored in the sheds of Chattogram Port. From there the importers take delivery of their products.

In contrast, a full container load means a single container that is booked by the shipper exclusively for the transportation of their cargo only. 

Chattogram port delivers 3,000 to 3,500 TEU every day, according to port data.  

Of these, 300-350 TEUs or 10% are LCL and the remaining FCL.

Why the move

Chattogram Port for long has been suffering from a lack of storage space. The port authority has often written to various businesses urging them to release their imported goods quickly.

Furthermore, the port has been implementing the "International Ship and Port Facility Security" code since 2004. The code requires ports to have their delivery operations outside the main port area.

The port authority also plans to demolish the old sheds inside the port in phases.

Contractor

According to Bay Cargo Centre, the Chattogram Port Authority signed a five-year contract with the company on 8 September. 

The company's General Manager Kazi Ashake Ahamed told TBS his company started preparing for the job immediately after the signing of the contract. "One of the sheds is ready for unstuffing, work on the yard and roads are also done."

"Initially, we can deliver 75 to 100 containers. The port authority can increase the number later if they want," he said. 

Goods can be unloaded and delivered within 24 hours of arrival at the port, he stated.

"We can start operations after getting the approval of the revenue board," Kazi Ashake Ahamed added.

Chattogram Custom House Joint Commissioner Mushfiqur Rahman told TBS that the port has applied to the revenue board for a bond licence in order to start operations at the two sheds.

In this regard, the Custom House held a meeting with various stakeholders on 14 June, he said. "We will send the feedback of the meeting to the revenue board within a month."

Current store rents

At Chattogram Port, four days' free time is taken after the product is taken out of the container and placed in the shed.

There is no storage charge up to four days after the container unloading. The store rent for the next seven days after the free time is Tk16.72 per tonne, Tk41.80 per tonne for the next seven days. 

The charge then spikes to Tk66.88 per tonne for each day.      

The port has 1,000 TEUs of storage capacity for LCL containers at 11 sheds. 

The sheds are at Chattogram container terminal, one at New Mooring container terminal, one at overflow yard and eight at general cargo berth.