GAS1 Ltd to build ICD in Mirsarai to ease container handling

Infographic: TBS

Highlights:

• ICD at NSEZ to simplify customs, speed up cargo clearance
• GAS1 Ltd aims to start ICD operations in July 2025
• 25 acres allocated for GAS1 Ltd's ICD project at NSEZ
• 90% of allocated land has already been developed
• The ICD will have capacity to handle 204,000 TEUs annually

GAS1 Ltd is building an Inland Container Depot (ICD) at the National Special Economic Zone (NSEZ) in Mirsarai, Chattogram, with an investment of Tk300 crore, aiming to simplify the customs process and speed up cargo clearance.

The Bangladesh Economic Zones Authority (Beza) has allocated 25 acres of land for the project, and the company has already developed 90% of the land.

GAS1 Ltd is a partner company of InnStar, a leading real estate and construction company in Bangladesh, focusing on residential and commercial projects.

InnStar Director SNR Tawfiq told TBS, "We have invested around Tk40 crore in the construction of the ICD so far. Our goal is to begin operations in July 2025. Government agencies, including customs, will provide services here. We will build the infrastructure and equip the facility with modern machinery for container handling."

ICDs operate to expand export trade, simplify import procedures, and secure government revenue. Currently, there are 19 ICDs in Bangladesh.

The National Special Economic Zone (NSEZ), the largest economic zone in the country, spans around 33,000 acres across the Sitakunda, Mirsharai, and Sonagazi upazilas of Chattogram and Feni. It is being developed under a master plan by the BEZA.

According to Beza sources, nearly 12 companies are already in production within NSEZ. Once the private ICD is completed, it will benefit the companies within the zone. Additionally, companies outside the economic zone will also be able to use the facilities.

Sources indicate that within the next five years, around 17,000 acres of land in NSEZ will be fully prepared for investors, with all necessary facilities provided. The project will be completed in three phases over 20 years, and when fully operational, it is expected to create employment for about 15 lakh people.

SNR Tawfiq said, "We will provide logistics services for import and export cargo handling. When exported goods are handed over to us, we will complete the customs formalities and load them onto the ship. Similarly, when imported goods arrive, the containers will go through customs procedures here and then be cleared for delivery."

He further mentioned, "The capacity of the ICD is 204,000 TEUs per year [36,000 for imports, 84,000 for exports, and 84,000 for empties]. Our primary focus will be the companies within the economic zone. As more industrial companies set up here, we will expand the facility. If about 60% of the capacity is utilised, it will create around 600 jobs."

Tawfiq said, "We are making a large investment and want to ensure that the existing government facilities are quickly made available to us."

"To operate this business, we require clearance from the National Board of Revenue (NBR), customs, and port authorities. With prompt clearance, our investment will be secure," he said.

JICA Bangladesh Office Senior Representative Yamada Eiji said, "It takes more time to import and export goods in Bangladesh compared to competitor countries. The Chittagong Port often experiences container congestion. Therefore, it is essential to have a customs office at the special economic zone for customs clearance."

Dr Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), told TBS, "This is a good initiative. Such efforts increase trade facilitation and will help reduce both costs and time."

"However, it is important to follow international best practices. We have seen cases in the past where dangerous goods were stored in ICDs, leading to accidents. Proper monitoring should be ensured," he added.

Aparup Chowdhury, CEO of the Bangladesh Economic Zones Investors Association (BEZIA), told TBS, "We hope the ICD becomes operational quickly. Several companies have already started production at NSEZ, and more will follow soon. They will be able to store their containers within the economic zone."

Meanwhile, Bangladesh Railway has planned a new railway line to connect the NSEZ with the existing Dhaka-Chattogram railway line. The proposed railway line will be 13.4 km long, starting from the Bartakia railway station. This will ensure connectivity between the NSEZ and Chattogram Port via road, waterways, and rail, facilitating the movement of goods.

On 19 November, at a press conference in Chattogram, Chattogram Port Authority (CPA) Chairman Rear Admiral SM Moniruzzaman announced that container handling at the Chattogram Port over the past three months (August to October) reached around 8.30 lakh TEUs, which is an increase of 76.98 TEUs or 9.016% compared to the same period last year.

Around 92% of the country's import-export trade passes through Chattogram Port, and around 98% of all cargo containers transported through Bangladesh's seaports are handled at this port.