- Feb 3, 2015
- Reaction score
Ctg port set to fall out of 'three-million-club'
Global ranking performances are also likely to be poorer by the end of 2022
- The downgrade is blamed on Russia-Ukraine war, dollar shortage, inflationary pressure, and fears of prolonged global recession
- The port got the "three-millionaire-club" status in 2019 and 2021 for handling more than 30 lakh and 32 lakh TEU of containers respectively
- The port handles around 4,000 ships annually and is responsible for around 92% of the country's external trade
The country's premier port Chattogram is set to miss the 30 lakh twenty-foot equivalent unit container handling milestone this year too, according to estimates arrived at as a result of sluggish external trade.
Besides, Chattogram's current position in the global list of 100 busiest ports may also slip, according to officials, as they attributed the downgrade to the Russia-Ukraine war, dollar shortage, inflationary pressure, cold shouldering to LC opening by banks and fears of a prolonged global recession.
The port achieved the feat of joining the "three-million-club" in 2019 and 2021 for handling more than 30 lakh and 32 lakh (3.21 million) twenty-foot equivalent unit (TEU) of containers respectively.
Till November this year, the port's container handling stands at around 26 lakh TEUs – around 2.36 lakh TEUs on average per month. This suggests that annual container handling could be around 28 lakh TEUs at the end of 2020.
Mohammad Omar Faruk, secretary of the Chattogram Port Authority, said container handling has declined all over the world due to the Russia-Ukraine war and other reasons.
"Container traffic at Chattogram port has decreased significantly in the past few months. Our performance in global ranking will be clear at the end of the year," he told The Business Standard.
For the first time, Chattogram port entered the "three-million-club" in 2019. The port could not maintain the position in the following year due to the Covid fallout. In 2020, Chattogram port handled around 28 lakh TEUs of containers.
This drove the port's ranking to 67th in 2020 from the previous year's 58th in Lloyd's List, the oldest journal on port and shipping.
As the pandemic waned subsequently, Chattogram port logged the highest 32 lakh TEUs container handling record in 2021. As a result, Chattogram port's position in Lloyd's List moved up by four notches to 63rd in 2021.
Anjan Shekhar Das, director of the Chattogram Chamber of Commerce and Industry, said the war fallout-led negative impact on external trades is the same all over the world.
"Bangladesh's export-oriented companies hopefully will be able to overcome the situation by mid-2023," he told The Business Standard.
Md M Mohiuddin Chowdhury, a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said business is currently down by 30%-40%, causing a decline in both imports and exports compared to regular times.
"I do not see any possibility of a turnaround in exports before May 2023," he told The Business Standard.
Chittagong port handles around 4,000 ships annually, as it is responsible for around 92% of the country's external trade.