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Reform Initiative

Reform Initiative
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Productivity of Chittagong port was being greatly hampered by the unstable political situation prevailing in the country in the last quarter of 2006 and activities of labour organizations. Acting on the instructions of the Caretaker Government, a number of steps were taken to increase productivity, efficiency, and quality of service at the port. Changes that yielded results can be summarized in the following paragraphs:

Improved Operational Efficiency

Work Shifts

Work shifts have been organized to 03 per day instead of previous 02, This allows for round the clock operation, 24 hours a day for 363 days a year (except two Eid days). The outcome is that vessel 'Turn around Time' has now been reduced to 3.6 days from 11 days; container dwell time (DTQ) is reduced to 18.3 days from 26 days. The net result is no container congestion in port, increased volume of cargo handled, and the cost of services significantly less for both the port itself and users.

Reduction of Container Congestion

The following steps have significantly reduced container congestion in port
  1. Delivery of certain items outside the port,
  2. Removal of empty containers to 'Off Docks'
  3. Introduction of 'green Channel'
  4. Destruction of food unfit for human consumption
  5. Fixed cut off time of arrival for export containers

One Stop Service

All paper formalities to clear port dues are now done under one roof and any transfer of money is done electronically.

Infrastructure & Logistic Development

Increase in Container Holding Capacity

Three berths of New Mooring Container Terminal (NCT) were brought into operation in Feb 07, this increased container holding capacity from 16,400 to 23,191 TEUs. Total capacity is expected to be 30,000 TEUs by December 07.

Procurement of Cargo Handling Equipment

Addition of 27 cargo handling equipment worth Tk. 47 crore has increased present cargo handling capacity by 30%.

Chittagong Port Access Road (CPAR)

The 12 km long CPAR was opened for traffic in February 07. This enabled direct dispatch of approx. 2,000 vehicles daily to and from port and complete by passing of Chittagong City. This has significantly reduced traffic congestion in the city.

Institutional Development

Berth Operator System

To get rid of unfair practices, Berth Operators (BO) has engaged instead of earlier Stevedores. This has given rise to productivity and lessening of cost of port usage. Amendment of Regulation for Working of Chittagong Port (Cargo and Container) 2001' has published through Gazette Notification.

Introduction of Window-Berthing system

In order to facilitate fixed berthing and sailing time of vessels in Chittagong Port window-berthing system has been introduced. Tentative berthing schedule is made in advance based on application from feeder operators. Introduction of window-berthing system will pave efficiency of entire port operation by alleviation of vessel and cargo congestion.

Private Sector participation in Integrated Operation

A private operator has been appointed for integrated single point operation of Chittagong Container Terminal (CCT) since March 07, which has resulted in reduction of cargo handling cost by 30%.
Operation of NCT on Supply, Operate and Transfer (SOT) Basis. The process of operation of NCT on SOT basis is in progress.

Improved Personnel Management

Abolition of Dock Workers Management Board (DWMB)

A proposal to amend Bangladesh labour Law 2006 to abolish DWMB has been sent to Ministry of Labour and Employment. This amendment, if approved, will eliminate corrupt labour practices and subsequently cost of using port is expected to be reduced by 70%.

Reduction of Number of Trade Unions

Presently, 32 trade unions, including 05 from CPA, operate in port. A proposal to amend Bangladesh Labour Law 2006 to limit trade union activity by CPA employees has been sent to Ministry of Labour and Employment. Currently there is no trade union activity in port and productivity is uninterrupted.

Amendment of Rules and Regulations

Increased Container Storage Charge

Container storage charge of USD (1.50/container/day has now been increased to USD 6.00 with incremental rates charged for longer durations. This has significantly reduced container congestion.

Auction of Unclaimed Cargo

CPA Ordinance allows auction of unclaimed cargo after 45 days, whereas customs regulations allow auction after 30 days. Presently, CPA is following the 30-day limit, which has increased availability of cargo space. A proposal has been sent for amending CPA Ordinance.