Pvt sector to be engaged in port operations: Salman F Rahman

2026 is set to be a landmark year for Bangladesh's economy as the country's deep-sea port in Matarbari is slated to begin operation early that year, said Salman Fazlur Rahman, private industry and investment adviser to Prime Minister Sheikh Hasina.

"With Japan taking charge of the port's management, this project promises to be a game-changer for the nation's economy," he said in response to a question from the moderator of the "Business Leader Panel: Bangladesh-The Big Picture" at the Bangladesh Business Summit-2023 organised by the country's apex business body, the FBCCI, on Saturday.

The programme was moderated by CNN journalist Richard Quest. In addition to Salman F Rahman, FBCCI President Md Jashim Uddin, World Trade Organization Deputy Director General Xiangchen Zhang, and CMA CGM Asia Pacific Limited CEO Laurent Olmeta answered various questions on the occasion. Prime Minister Sheikh Hasina inaugurated the summit prior to the question and answer session.

Salman said the government is working to increase the capacity of Chattogram, Mongla, and Payra ports to conduct import and export activities smoothly and efficiently. Discussions are underway with Singapore and Saudi Arabia in this regard, he added.

"The government is also considering giving the responsibility of managing these ports to private operators to ensure improved services," maintained Salman.

Salman F Rahman also said these ports will only be given to different countries for management and will not be given away to any private ownership.

Chattogram port is strategically located at the intersection of several major international shipping routes, making it a convenient transshipment hub for regional and global trade. But Bangladesh cannot take advantage of it because of some limitations.

Chattogram port faces several challenges when compared to the ports in neighbouring countries. For example, the port has limited drought and berthing capacity, which makes it difficult to accommodate large vessels and handle large volumes of cargo. The port faces significant congestion due to inadequate infrastructure and operational inefficiencies, which can lead to delays and increased logistics costs for shippers and users.

When compared to neighbouring ports such as Colombo in Sri Lanka and Port Klang in Malaysia, Chattogram port lags behind in terms of overall efficiency and service quality. These ports have invested heavily in modernising their infrastructure and implementing state-of-the-art technologies to streamline their operations and reduce turnaround times for ships.

At the beginning of the session, its moderator Richard Quest asked how Bangladesh, a country where there are strong allegations of bureaucratic complexities, will transform into a trillion-dollar economy and what the government's plans and preparations to this end are.

In response, Salman F Rahman quoted the prime minister's speech at the inauguration of the summit and said the prime minister himself has taken initiatives to eliminate bureaucratic complexities, so, this issue will no longer exist.

Besides, Bangladesh will go to export diversification in the future, said Salman, adding, "Till now, Bangladesh is principally exporting only one product. But the country has capabilities in many other sectors and there are demands for those products in the global market."

To a specific query from the moderator, FBCCI President Jashim Uddin said various sectors including pharmaceuticals, light engineering, and information technology have huge potential to contribute significantly to the country's export income.

Bangladesh's next priority is IT or digital exports, he said, adding that the country is also working on building a sustainable economy. Bangladesh has already built some of the world's top local green factories.

Then, Quest wanted to know from the WTO deputy director general whether Bangladesh really has the potential to grow as per its aspiration and whether it will be possible for the country to implement its plans post-LDC graduation.

In response, Xiangchen Zhang said new sectors should be given the opportunity to come forward in the market. That is why state policies are needed and the policies should be implemented with transparency i.e. with equal importance to all.

Bangladesh also has potential in the shipping and logistics sector, he observed.

In response to another question, Xiangchen Zhang said the mega projects undertaken by the Bangladesh government will boost the country's economy. He, however, asked for taking up initiatives to widen the benefits of mega projects.

To a query, FBCCI President Jashim Uddin said businesses want policy support, infrastructure in various sectors including industry and logistics, skilled human resources, and business-friendly bureaucracy to be able to grasp the future potential.

Bangladesh also has a chance to benefit from the changes in China's trade activities, said WTO Deputy Director General Xiangchen Zhang. But Bangladesh has to prove itself as an ideal country for foreign direct investment (FDI), he added.

In this regard, CMA CGM Asia Pacific Limited's Laurent Olmeta said 65% of Asia's business activities are linked to China while Vietnam's share is 7%. As a result, Bangladesh has an opportunity to take advantage of the shifting of businesses from China.

In response to a question about health, education, and improvement of quality of life, Salman F Rahman said the government is giving more emphasis in these areas.

"Educational institutions, and both the private sector and the government making concerted efforts. Academic courses are being adapted to the demands of the fourth industrial revolution. Skilled manpower generation is now the main goal. And if the efficiency of manpower increases, other sectors will also progress," he said.

It takes two hours to travel two kilometres in Dhaka city, mentioned Quest and asked Salman F Rahman what measures the government has undertaken to solve this problem.

Salman said the problem will not last long, adding, "Metrorail service has been launched partially and it will be fully operational soon. Other sectors of communication are also improving. As a result, when Mr Quest will travel to Bangladesh in the future, he will be able to travel two kilometres [in Dhaka city] in a maximum of 20 minutes."

In the open question and answer session, Salman also said that the government is giving equal importance to small projects and issues to take the country forward.

One of the goals of the government now is to make people skilled in technology and to spread technology to people so that a "Smart Bangladesh" can be formed by building smart citizens, a smart society, and a smart government.

FBCCI President Jashim concluded the question and answer session saying he is very optimistic about a smooth journey of Bangladesh toward its goal of becoming a trillion-dollar economy. "This is because businessmen of different levels of the country, CEOs of national and international companies of different sectors, bureaucrats, and economists have sincerely participated in this conference. We hope there will be no bureaucratic complications in the future. Everyone will work together. As a result, the journey to become a trillion-dollar economy will be easy."