Improving container handling efficiency at ICDs to reduce cost up to 50%: Study

Improving container handling efficiency at inland container depots (ICDs) will reduce the handling cost by up to 50%, said a study of the USAID Feed the Future Bangladesh Trade Activity.

According to the findings of the study titled "Improving the Capacity and Efficiency of ICDs," capacity development at ICDs is critical to keeping up with the growing global trade.

Improved efficiency of ICDs can increase their yard capacity in the empty container stacking yard by up to 20%, which means more trade and income for the country, it added.

The USAID Feed the Future Bangladesh Trade Activity shared the findings on Wednesday at the Hotel Radisson Blu Chattogram in the port city.

International port operations specialist Edy Dani presented the key findings based on a detailed survey of all the ICDs in Chattogram. Owners and management level officials of private ICDs in Chattogram were present at the workshop.

The study recommended fixing the grounds, marking the yard, setting up a planning department, upgrading their terminal operating system to include planning and equipment control modules, and connecting their container handling equipment to the system.

They also need to work with the port authority, shipping lines, and freight forwarders to streamline requirements and improve health and safety-related practices, it added.

Marc Shiman, Chief of Party for the Trade Activity, said, "Our major focus is reducing the time, and the trade cost in this country. We want to make export-import business, especially exports from this country, more affordable."

He also said the USAID Feed the Future Bangladesh Trade Activity supports ICDs to improve their efficiency as they play a vital role in international trade. The study findings have been analysed in light of global best practices, and the recommendations that "we have made will support the ICDs in improving their efficiency."

The Feed the Future Bangladesh Trade Activity supports the Government of Bangladesh's efforts to bolster economic growth and food security by improving trade facilitation, enhancing market access, and improving the business-enabling market, said Marc Shiman.

The Trade Activity provides technical assistance, training, institutional strengthening, and other direct support to the government of Bangladesh and non-governmental partners. He also stated that it encourages greater collaboration among the government, private sector, and civil society organisations.

Quazi Murad Hossain, executive director of Nemsan Container Limited, said Chattogram port is unwilling to allow import cargo delivery activity outside the port. Maximum import item delivery takes place inside the port. Only export items are allowed to be handled outside the port.

"But cargo delivery activity at all ports across the world occurs outside ports. So how can private ICDs grow? As a result, no private investor has come into the ICD sector," he added.

Md Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depots Association, and ICD officials also shared their opinions at the workshop.

The Activity also organised a "Safety and Basic Operations" training for the ICD staff in the afternoon.