Container backlog at Ctg port not easing as rail transport of goods, oil stalls

Highlights: 

• Rail disruptions stall container movement between Ctg port and Kamalapur ICD
• From 19 to 30 July, 1,596 TEUs meant for Kamalapur ICD remain stranded at Ctg port
• Also, 500 export containers could not be transported from Kamalapur to Ctg port

Chattogram Port, the country's main trade gateway, continues to face container backlogs as rail transport disruptions stall the movement of imported goods and oil to Dhaka and other parts of the country.

Additionally, export containers from Dhaka could not be transported to the port via train either, causing financial losses to exporters and importers alike, according to traders and shipping agents.

Around 3% of containers from the port are transported by rail to the state-run Kamalapur inland container depot (ICD) in Dhaka, with fuel oil also distributed by rail across the country, said Chittagong Goods Port Yard sources.

However, rail transport of goods from the port was halted on 18 July due to the ongoing quota reform protest, clashes and curfew.

Chittagong Port officials, shipping agents and C&F agents said the yard can store 825 Twenty-foot equivalent (TEU) containers which are bound for Dhaka ICD via trains.

Between 19 and 30 July, some 1,596 TEU of import containers meant for Kamalapur ICD remain stalled at Chittagong Port due to suspended rail services. 

Additionally, at least 500 TEU of export cargo containers could not be transported from Dhaka ICD to Chittagong Port.

"While cargo transport by train resumed on 1 August, it remains limited, and train movement is still being disrupted at many points towards the capital," said Abdul Malek, chief yard master of Chittagong Goods Port Yard.

 "On 1 August, container trains, stranded in different areas, were able to reach Dhaka ICD. A container train departed from the yard on 2 August, but goods transportation is far from reaching normalcy."

According to Chittagong Goods Port Yard, four container trains normally travel from the yard to Dhaka ICD, along with three oil trains to Dhaka Cantonment, Sylhet, Sreemangal, and Rangpur. However, all train services were halted due to the unrest.

Port data shows, on 2 August, 100 TEU of import containers were transported by rail from Chittagong Port to Dhaka ICD. Additionally, around 30 export containers arrived at the port from Dhaka.

Around 88,507 TEU of containers were transported from Chittagong Port to Kamalapur ICD during FY24, averaging 243 containers per day.

Traders face losses due to delivery delay

Imported raw materials and commercial products belonging to various industries, including steel, are transported to Kamalapur ICD by rail. Once at the depot, traders take delivery of the goods through customs clearance.

Traders said delays in receiving products are disrupting factory production. Some exporters are even resorting to costly air shipments for timely delivery.

Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told TBS, "On 1 August, due to the ongoing crisis, we had to airship $151,000 worth of goods at a cost of $75,000. The congestion at the port has no clear end in sight."

"Factory production is suffering because we cannot receive imported raw materials from Dhaka ICD. The losses in both import and export are mounting daily," he added.

Chittagong Port Authority already sent a letter to the Railways last Thursday, requesting expedited container transport, said Chittagong Port Authority Secretary Md Omar Faruk.

He told TBS, "Containers meant for Dhaka ICD by rail are not permitted to be transported by road, as these import consignments must be cleared at Dhaka ICD Customs."

"The available space at Chittagong Port for storing Dhaka ICD-bound containers is now full, requiring them to be kept elsewhere in the yard," he added.

Responding to traders' call, the Ministry of Shipping has granted a seven-day waiver on port demurrage fees for all imported goods currently held at Chattogram Port.