Technical Assistance Consultant’s Report€¦ · Analysis of current port infrastructures and...

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Technical Assistance Consultant’s Report This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Project Number: 45078 September 2015 People’s Republic of Bangladesh: Strategic Master Plan for Chittagong Port (Financed by the Japan Fund for Poverty Reduction) Prepared by: HPC Hamburg Port Consulting GmbH KS Consultants Limited, Dhaka, Bangladesh Sellhorn Ingenieurgesellschaft mbH, Hamburg, Germany For: Ministry of Shipping Chittagong Port Authority

Transcript of Technical Assistance Consultant’s Report€¦ · Analysis of current port infrastructures and...

Page 1: Technical Assistance Consultant’s Report€¦ · Analysis of current port infrastructures and port operations; Alternatives to improve port facilities, investment plan and assessment

Technical Assistance Consultant’s Report

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Project Number: 45078 September 2015

People’s Republic of Bangladesh: Strategic Master Plan for Chittagong Port (Financed by the Japan Fund for Poverty Reduction)

Prepared by:

HPC Hamburg Port Consulting GmbH

KS Consultants Limited, Dhaka, Bangladesh

Sellhorn Ingenieurgesellschaft mbH, Hamburg, Germany

For: Ministry of Shipping Chittagong Port Authority

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Asian Development Bank

Chittagong Port Authority

STRATEGIC MASTER PLAN FOR

CHITTAGONG PORT

Executive Summary

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21/09/2015 13:43 F:\PROJ\PPOS\26321_Bangladesh_Chittagong Masterplan\Reports\Final Report\Executive Summary.docx

Asian Development Bank

Chittagong Port Authority

STRATEGIC MASTER PLAN FOR

CHITTAGONG PORT

Executive Summary

HPC Hamburg Port Consulting GmbH Container Terminal Altenwerder Am Ballinkai 1 21129 Hamburg Germany Phone: +49-40-74008-205 Fax: +49-40-74008-133 E-Mail: [email protected] Internet: http://www.hpc-hamburg.de In Technical Cooperation with KS Consultants Limited House # B/173 (1st Floor) Road # 23, DOHS Mohakhali Dhaka - 1206 Bangladesh Phone: +88-02-8872512 Fax: +88-02-8812304 E-Mail: [email protected]

Sellhorn Ingenieurgesellschaft mbH Teilfeld 5 20459 Hamburg Germany Phone: +49-40-361201-0 Fax: +49-40-361201-28 E-Mail: [email protected] Internet: http://www.sellhorn-hamburg.de

Copyright © by HPC 21/09/2015

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TABLE OF CONTENTS Page

RATIONALE 1

1. PORT HANDLING DEMAND PROJECTION 3

2. PORT FACILITIES AND OPERATIONS TODAY 8

3. FUTURE CAPACITY REQUIREMENTS 12

4. FINANCIAL & ECONOMIC ASSESSMENT 18

5. HINTERLAND LINKS 20

6. ENVIRONMENTAL & SOCIAL ASSESSMENT 23

7. RECOMMENDATIONS 26

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TABLE OF FIGURES Page

Figure 1: Port Locations 4

Figure 2: Chittagong Port Handling Potentials to 2043 6

Figure 3: Chittagong Container Handling Potentials to 2043 6

Figure 4: CPA Terminal Map 9

Figure 5: Transition from GCB to KCT1 and MPT 14

Figure 6: Potential Location of Bay Container Terminal 16

Figure 7: Proposed Layout of BCT by Phase 17

Figure 8: Hinterland Transport Capacities by Mode 22

LIST OF TABLES Page

Table 1: Container Terminal Gap Analysis I (in 1,000 TEU) 13

Table 2: Container Terminal Gap Analysis II 15

Table 3: Financial Indicators for the Expansion Projects 18

Table 4: Economic Evaluation for the Expansion Projects 19

Table 5: Impacts of Proposed Port Development Project Activities 24

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Strategic Master Plan for Chittagong Port – Executive Summary 1

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RATIONALE

Bangladesh extends to 147,570 km² with a population estimate of about 160

million people in 2013 and a population density of 1,033.5/km², which makes

Bangladesh one of the most densely populated countries in the world. Bangladesh

has experienced an annual economic growth of over 6% during the past ten years.

The economic growth combined with the increasing trade has increased the

pressure on Chittagong Port.

Chittagong is the principal sea port of Bangladesh, situated in the south of

Bangladesh, handling more than 92% of the sea-born trade. The port is basically a

river port situated 16 km upstream from the Bay of Bengal. The port has

successively changed and adapted the handling facilities with a focus on container

handling. This has led to a narrowing scope for handling of break-bulk and bulk

cargoes and there is a need for investigating different expansion possibilities.

Additionally, it is important to improve the current hinterland connections and the

different intermodal connections and links as the road and railway links between

Chittagong and Dhaka are facing capacity bottlenecks.

The important role of Chittagong Port for Bangladesh underlines the necessity of

investigating how the port should be developed best to meet the future challenges.

All pervious development plans for the port are outdated and the last Chittagong

Port Master Plan covered the period 1995-2010. Against this background the

government of Bangladesh has approached Asian Development Bank (ADB) with

the aim of preparing a new Chittagong Port Master Plan for the coming 30 years.

The aim of the Strategic Port Master Plan is to improve the capacity of Chittagong

Port which will support and maintain sustainable economic growth in Bangladesh.

In July 2013, the joint venture partners HPC Hamburg Port Consulting GmbH

(lead), Sellhorn Ingenieurgesellschft mbH (both from Hamburg, Germany), and

KS Consultants Limited (Dhaka, Bangladesh) were commissioned by Chittagong

Port Authority (CPA) to carry out the ADB funded master plan. A comprehensive

number of tasks were accomplished during the study period and in September

2015 the Final Report was submitted and the results and recommendations

presented during a national workshop in Dhaka.

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The Strategic Master Plan for Chittagong Port included the following works:

Analysis of existing hinterland transport network of the Port of

Chittagong;

Analysis of past and present cargo throughput, of competitors and

economic developments;

Development of a traffic forecast by cargo groups;

Analysis of current port infrastructures and port operations;

Alternatives to improve port facilities, investment plan and assessment of

financial viability;

Preparation of phasing plan for port development for next 25-30 years incl.

land use plan;

Assessment of port security system and of institutional and governance

capacity of CPA;

Review of manpower requirements and assessment of need for legal

reforms;

Preparation of Terms of Reference for hydraulic and hydrologic study for

Karnaphuli River, evaluation of proposals;

Monitoring of study progress and identification of potential port expansion

areas;

Support regarding financing issues of the Master Plan;

Identification of further needs for support.

This Executive Summary presents the major findings of the master planning,

which are detailed in the Final Report Part 1-3. In the following the traffic

forecast, the analysis of existing port facilities and operations, the future

requirements, and the related financial assessments as well as the analysis of

hinterland links and environmental implications are presented.

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1. PORT HANDLING DEMAND PROJECTION

The determination of the future demand for port handling capacities is the

basis for the master planning.1

Bangladesh has followed market-oriented policies since the mid-1970s, which has

been maintained by the current government. The government’s main priorities

include relieving poverty, expanding national power generating capacity, and

improving price stability. Assistance from bilateral and multilateral donors is still

crucial to achieving these policy objectives in the short to medium term.

The real GDP growth has been on average 6% per year during the past ten years

despite frequent natural disasters and the fuel, food price and global financial

crises. Bangladesh’s short and medium term macroeconomic development

depends on internal stability and structural reforms.

About 80% of the value of all merchandise exports of Bangladesh is ready-made

garments (woven products and knitwear), i.e. this is the main export revenue item

for the country. Furthermore, frozen food as well as jute and leather products

contribute to the export earnings. The most important import commodities for

Bangladesh are petroleum products, edible oils, cotton, and machinery and

equipment. Due to the principal export commodity, ready-made garments, a large

amount of yarn and textiles are required.

Economic growth of a country is directly linked to the demand for energy as

energy is required for the production of industrial and agricultural goods, for the

services industry and not at least for transport and households. The country suffers

from energy shortages and frequent power disruptions. Due to a further increasing

population and an accelerating industrial development the future energy demand

will grow significantly.

While at present at least 75% of energy demand is met by domestic natural gas, by

2030 the government plans to diversify the energy sources to 50% coal (of which

half domestic), 25% natural gas (of which 20% domestic and 5% LNG imports),

as well as 25% others (mainly oil imports and 5% domestic hydropower and

renewable energy. Although sufficient reserves of high quality coal have been

discovered, the exploitation faces severe problems so that increasing coal imports

can be expected. The domestic natural gas reserves are expected to be totally

1 For details see Strategic Master Plan for Chittagong Port, Final Report Part 1, Chapters 2, 3, 5, and 6.

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exploited within the next ten years, i.e. LNG imports will play an important role

in meeting the forecast gas demand. Bangladesh has to import all crude oil and

currently has only one refinery; with the planned expansions of domestic refining

capacities, however, it is expected that the crude oil imports will rise over-

proportionately.

The Port of Chittagong handles 92% of all imports and exports, and 98% of the

container trade of Bangladesh, i.e. it plays a significant role for the economy. The

total port throughput increased from 19.2 million tonnes in 2002 to 41.9 million

tonnes 2012 and further to 44.2 million tonnes in 2013, i.e. on average by 8% per

year. While the containerised traffic during this period grew by 11.0% p.a., the

volumes of bulk transport rose by 7.0% per year. In 2012, a total of 93.0% of the

overall exports were containerised but only 25.6% of the imports, however, both

showing a considerable increase in the degree of containerisation over the past ten

years.

Total container handling in the port of Chittagong amounted to 1.4 million TEU in

2012 and to 1.5 million TEU 2013, compared to 0.5 million TEU in 2002, which

means an average annual growth of 10%. This growth applied both to the imports

and to the exports.

Figure 1: Port Locations

Source: HPC 2013

The port of Chittagong almost has a monopolistic position in Bangladesh due to

the fact that well over 90% of the country’s foreign trade and even 98% of the

container trade is handled there and with the small port of Mongla only one other

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seaport currently exists. Competition from seaports in other countries, like

Kolkata in India, is also very limited due to the geographical location of

Bangladesh and the fact that the cargo handled at Chittagong is national cargo, not

transit or transhipment volumes for other countries. New port projects under

consideration are Paira and a deep sea port (Sonadia) in Bangladesh and Sittwe in

Myanmar, which may have an effect on the handling volumes in Chittagong in the

medium to long term.

In summary, the port of Chittagong does not face real competition as long as the

port of Sonadia is not operational, which, however, is located further away from

the main industrial centres around Dhaka and will require considerable hinterland

infrastructure investments. Therefore, Chittagong has to prepare for rising import

and export volumes.

The forecast of the handling potentials at the port of Chittagong looks at a period

of 30 years, i.e. until 2043 and differentiates between three scenarios. However,

due to the long time horizon, the forecast can account only for average effects, i.e.

not considering business cycles. In the Base Case scenario, which has been used

as the basis for the future capacity planning, for projecting the future economic

development of Bangladesh a continuous annual average growth rate of the GDP

of 6.3% has been assumed during the forecast period, while the High and Low

Cases show variations of this development. Based on the economic and industrial

developments the volume projections differentiate between container, break bulk

cargo, dry bulk, and liquid bulk handling.

The developed traffic forecast shows that the port of Chittagong has a large

development potential based on the import demand for raw materials, dry bulk

and food as well as on the prospects of export oriented industries of Bangladesh,

even taking into account the capacities of competing ports. The total handling

volumes at the port of Chittagong are expected to increase from almost

42 million tonnes in 2012 to 124 million tonnes in 2043 in the Base Case.

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Figure 2: Chittagong Port Handling Potentials to 2043

Source: HPC 2013

Container handling in Chittagong expected to grow from 1.5 million TEU in 2013

to 2.9 million TEU in 2020 and by 2036 a peak of 5.6 million TEU is achieved.

As from 2026 onwards a deep sea port (Sonadia) is expected to be operational and

by the end of the forecast period in 2043 Sonadia will have a market share of 50%

in Bangladesh’s container handling, reaching 5.1 million TEU, container handling

in Chittagong will slow down to 5.0 million TEU in 2043. This is attributed to the

fact that Sonadia will offer facilities for larger vessels so that any potential direct

calls of container ships will go there, while it is assumed that Chittagong will

continue to be called by feeder vessels.

Figure 3: Chittagong Container Handling Potentials to 2043

Source: HPC 2013

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With regard to dry bulk handling the most important commodity will continue to

be cement clinker, standing for half of the total dry bulk imports in 2043, which

reflects the large potential of the construction industry. Another dry bulk

commodity, which is expected to become of significance, is coal due to its

importance for the Bangladesh energy sector development. With respect to liquid

bulk handling a major change is expected in connection with the planned

expansion of the refining capacities, which will lead to considerably increasing

imports of crude oil with simultaneously decreasing imports of petroleum

products.

It is important to underline that of the large volumes of bulk cargo handled at

Chittagong Port, the major part are volumes handled at the “outer anchorage”

where these volumes are discharged and loaded onto other vessels, due to the

limited depth at Chittagong Port. Then, approximately 70-80% of these volumes

are transported to the region of Dhaka. As regards especially coal and liquid bulk,

the importers have their own jetties and will directly discharge at these.

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2. PORT FACILITIES AND OPERATIONS TODAY

The current status of the infra- and superstructures on the one hand and of

the handling operations and organisation on the other hand is another

determinant for the future planning.2

The main port area contains the major berthing facilities of the Chittagong Port

Authority and their attached storage and operational facilities in the adjacent

hinterland. These are, from North to South:

General Cargo Berths (GCB): 13 consecutive berths (total length 2,100m

approx.) constructed during 1954-1979 and used for handling of general and

container cargo only by ships’ gear; the marine structures are in a very bad

condition. Further there are 21 sheds and warehouses of different shape and

size for storage of break bulk cargo; all have defects. The central workshop is

in a very good condition. The media supply systems and their related facilities

are mostly in a very bad condition. The traffic systems are very poor. Large

parts of the roads and logistic areas are damaged or even unpaved. The gates

apparently do not conform to with ISPS-regulations.

Chittagong Container Terminal (CCT): built 1986, dedicated 450m quay wall

for container handling with STS cranes; the facilities are in acceptable

condition. The media supply systems and their related facilities are apparently

in a good condition. The same can be said of the traffic systems. Even if some

gates a newly built and equipped with all required equipment, it is unclear if

all of the CCT gates comply fully with ISPS-regulations.

New Mooring Container Terminal (NCT): built 2007, 1,000m long quay wall

(5 berths à 200m) for container cargo operations; the structure is in good

condition. The terminal has so far no sheds and warehouses allocated on the

NCT. The workshop is newly built and in a good condition. The media supply

systems and their related facilities are new and apparently in a good condition.

The same can be said of the traffic systems. It is unclear if all of the NCT

gates comply fully with ISPS-regulations.

2 For details see Strategic Master Plan for Chittagong Port, Final Report Part 1, Chapters 7 and 8 as well as

Final Report Part 2, Chapters 3, 4 and 5.

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Figure 4: CPA Terminal Map

Source: CPA 2015

The analysis of current port operations in Chittagong shows that containers are

handled at three locations, at GCB (50% of volumes), CCT (30%) and NCT

(20%).

GCB works far beyond the nominal capacity of 510,000 TEU and

simultaneously quay and yard operations are below standard (no truck

scheduling; trucks are blocking the apron hindering the traffic; no yard traffic

management exists).

CCT operations is hampered by the direct delivery of export containers to the

quay with limited area availability and the lack of export stowage planning,

which leads to low crane productivity and long vessel waiting times.

NCT is used as extension of CCT, working as buffer for quayside handling

and is not yet fully operational not at least because equipment is lacking.

Vessel traffic at Karnaphuli River is subject to considerable restrictions. Vessels’

maximum length is 190m; maximum draft must not exceed 9.5m. 2014, some 15

regularly scheduled container services have been calling Chittagong, not including

any slot charter service. These services represent sufficient weighted carrying

capacity to cater for the present throughput at Chittagong Port. Vessels are not

only limited in terms of their TEU intake. Some services also use vessels that are

significantly smaller than the permitted maximum vessel dimensions.

NCT

CCT GCB

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Pilotage and tugboat assistance are compulsory at Chittagong Port and due to the

heavy traffic on Karnaphuli River with up to 3,000 movements within 24 hours,

vessels above 165m have daylight restrictions for navigation, which practically

means there is no navigation after 22:00 hrs, due to sight limitations.

Customs in Bangladesh is a division of the Bangladesh National Board of

Revenue (NBR). The customs traffic control and tariffing of border crossing

trades are a main source of NBR revenues. The annual growth rate of these

revenues for 2013/14 was around 15%, which is much higher than the BIP

growth, and illustrates that customs is in first instance considered as a revenue

generator and not considered in terms of trade facilitation. This explains why

customs regulations are rather tight, imposing considerable constraints on trade,

especially on imports.

The Chittagong Customs House handles around 50% of the total volume of the

import to Bangladesh and 80% of the total volume of export, and is thus the most

important customs station in Bangladesh. At present all import containers go via

the yard, then 19% are transported to off-dock depots, 6-8% to consignees’

premises, 3-4% by rail to Dhaka, 10% go to customs inspection, and 60-63% of

the import containers are stripped in the port and cargo is loaded on conventional

trucks.

Organisation and responsibilities within the port area regarding IT are split

between the different areas of CPA. Some areas are operating their own systems,

servers and databases independently in remote network environment. The output

of the CTMS system in operations is partly inefficient due to lack of information

about container bookings in the export process. The export loading process is

completely under manual coordination which leads to the port not being able to

provide an electronic departure bay plan for the vessel to sail. This export

procedure, caused by missing container booking information from the shippers’

side and extremely late arrival of export containers, is not according to modern

international standards. In state-of-the-art container terminal organisations, the

CTMS will always be used in real-time mode in order to allow efficient operation

of the terminal.

Regarding gate operation for all kinds of vehicles, an overall future-oriented gate

concept with IT integration has not been implemented yet. The present physical

situation at the gates and the access procedures for vehicles are leading to frequent

heavy traffic congestions on the terminal already today which affects operation.

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Projected future traffic will make this situation even more difficult. To control this

increased amount of traffic in the future, an overall integrated gate concept

including truck announcement, pre-gate clarification, electronic access control and

CTMS integration is required. The main idea in this concept will be to integrate

the requirements for safety, security and operations in the gate processes for all

kinds of cargo flow and all kinds of vehicles or persons who request to enter the

port area.

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3. FUTURE CAPACITY REQUIREMENTS

In order to determine the future capacity requirements and identify

necessary investments a gap analysis compares the installed container

handling capacities with the future container handling volumes gained from

the traffic forecast.3

As immediate remedies to improve the port performance and capacity, some short

term measures have been designed, which are characterised by their

comparatively short lead time to availability and their comparatively low level of

required investments. The main target of these measures is to establish regular

container handling operations in Port of Chittagong, which includes the stacking

of all export containers before commencement of loading operation; this is a

condition for acceptable vessel turn-around times but requires more yard capacity

than currently available.

The following short term measures are proposed for the different terminals;

however, these short term measures have also to be considered as prerequisites to

port development measures on a larger scale.

NCT: purchase of six STS cranes and of additional six RTGs, area

preparation for container stripping, fencing, completion of gates and

preparation of processes for gate integration with a terminal operating system

(TOS), stop of centralised berth assignment, liberalisation of port tariff,

change of tariff for export stacking, and tendering for concession.

CCT: yard expansion to allow export container stacking on terminal, establish

dedicated stripping, inspection and LCL area, re-design of gate area, establish

control of internal traffic, purchase of additional RTGs, change of tariff for

export containers and storage, implementation of full TOS control of yard and

quay operations, establish traffic management system, integrate terminal gate

control with CCT operator, streamline terminal area and operations, and

fencing of entire terminal area

GCB: it is not recommended to invest in effective upgrade measures; instead

a transfer to a modern container terminal and a modern multipurpose terminal

is proposed.

3 For details see Strategic Master Plan for Chittagong Port, Final Report Part 2, Chapters 6 and 7.

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Taking these short term improvement measures into consideration, the following

table shows the resulting capacities and compares these with the projected traffic

volumes. It can be seen that the capacity deficit is intensely increasing. The deficit

to be expected 2015/16 will probably be catered for at the existing terminals, at

costs of performance.

From 2019 onwards, even this practice will not be feasible anymore. With the

given capacities, the port will become the bottleneck and the limiting factor to the

country’s foreign trade. With more containers being routed through the port, the

performance will deteriorate and lead to a further increase of unnecessary

shipping costs. Therefore, an increase of the container handling capacities is

urgently needed.

Table 1: Container Terminal Gap Analysis I (in 1,000 TEU)

Source: HPC 2014

The fastest way of increasing handling capacity in the port and providing this

capacity to the market at state of the art operations would be the transition of parts

of the GCB area into a full and independent container terminal that can be

licensed to an operator. In order to reduce the possible interference with

operations at GCB, the transition should be realised at berths 10 to 13, named

Karnaphuli Container Terminal (KCT1) with the construction planned 2018-2019.

The quay wall will have to be built completely new, in order to provide sufficient

draft and carrying capacity for STS cranes. For this reason, the quay wall can be

straightened to a full length of 640m (three berths) leading to a quay capacity

826,500 TEU. A new container terminal area (approx. 260,000 m²) with 16 RTG

blocks will lead to a yard capacity of 772,000 TEU. Furthermore, the reallocation

of shed “F” to be used as Cargo Freight Station (CFS) as well as the demolition of

several surface constructions, the replacement of pavements, and the

establishment of a rail head are planned.

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Despite the fact that container handling operations will increase in Chittagong

general cargo and bulk cargoes will continue to be imported. A dedicated Multi-

Purpose Terminal (MPT) should be set up for the expected volumes of more than

4.7 million tonnes of non-containerised imports until 2043. It is proposed to

develop the existing GCB berths 1 to 9 for pure non-containerised cargo handling.

The transition from GCB to MTB is planned 2024-2029 and will include a new

quay wall of 1,475m length with six berths of 245m each. The quay side cargo

handling will be done with mobile harbour cranes. Behind the berth an area of 42

ha for general cargo and bulk storage is available if cleared from the presently

container and various other cargo storage. From the present nine sheds along the

berths it is suggested to keep only the three sheds from berths 1 to 3. As for

KCT1, establishment of MPT will require the demolition of existing structures

and the clearance of the site, removing existing pavement and utilities.

Figure 5: Transition from GCB to KCT1 and MPT

Source: Sellhorn 2014

Even with the implementation of the short term measures and the establishment of

KCT the then existing capacities will not be sufficient to cope with the projected

KCT

MPT

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container handling volumes until 2043. To identify the still existing gap, the

following assumptions have been made:

CCT will increase its current annual handling capacity of 520,000 TEU by 1%

each year through improvement measures;

NCT will increase its current annual handling capacity of 400,000 TEU to

700,000 TEU after completion of NCT1 in 2017 and afterwards by 1% each

year through improvement measures; from 2017 onwards another 300,000

TEU annual handling capacity will be available at NCT2, also increasing by

1% each year through improvement measures;

GCB will maintain its current annual handling capacity of 850,000 TEU until

2017; then the container handling capacity will be reduced stepwise to

300,000 TEU by 2020 when KCT1 replaces this capacity, and will disappear

from 2024 onwards when the remaining part of GCB is converted into MPT.

Table 2: Container Terminal Gap Analysis II

Source: HPC 2015

As the table shows, this leaves an increasing gap of container handling capacity

which will have to be covered by a new terminal that has to be completed by

2023. The highest gap applies between 2033 and 2037 when additional handling

capacity of around 2.8 million TEU per year is required. This value represents the

capacity that has to be provided by a new container terminal.

Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2028 2033 2038 2043

Project Year 1 2 3 4 5 6 7 8 9 10 15 20 25 30

Installed Handling Capacities (TEUs p.a.)

GCB 850.000 850.000 850.000 850.000 725.000 725.000 300.000 300.000 300.000 300.000 0 0 0 0

CCT 520.000 520.000 520.000 520.000 520.000 520.000 520.000 520.000 520.000 520.000 520.000 520.000 520.000 520.000

NCT as is 400.000 400.000 400.000

NCT1 0 0 0 700.000 700.000 700.000 700.000 700.000 700.000 700.000 700.000 700.000 700.000 700.000

NCT2 0 0 0 300.000 300.000 300.000 300.000 300.000 300.000 300.000 300.000 300.000 300.000 300.000

KCT1 0 0 0 0 0 0 770.000 770.000 770.000 770.000 770.000 770.000 770.000 770.000

Total Installed (TEUs p.a.) 1.770.000 1.770.000 1.770.000 2.370.000 2.245.000 2.245.000 2.590.000 2.590.000 2.590.000 2.590.000 2.290.000 2.290.000 2.290.000 2.290.000

Improvement Potential (TEUs p.a.)

GCB

Improvement p.a. 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Improved Capacity (TEUs p.a.) 850.000 850.000 850.000 850.000 725.000 725.000 300.000 300.000 300.000 300.000 0 0 0 0

CCT

Improvement p.a. 0% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

Improved Capacity (TEUs p.a.) 520.000 525.200 530.452 535.757 541.114 546.525 551.990 557.510 563.085 568.716 597.727 628.217 660.262 693.942

NCT1

Improvement p.a. 0% 0% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

Improved Capacity (TEUs p.a.) 400.000 400.000 404.000 700.000 707.000 714.070 721.211 728.423 735.707 743.064 780.968 820.805 862.674 906.679

NCT2

Improvement p.a. 0% 0% 0% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

Improved Capacity (TEUs p.a.) 0 0 0 300.000 303.000 306.030 309.090 312.181 315.303 318.456 334.701 351.774 369.718 388.577

KCT1

Improvement p.a. 0% 0% 0% 0% 0% 0% 0% 1% 1% 1% 1% 1% 1% 1%

Improved Capacity (TEUs p.a.) 0 0 0 0 0 0 770.000 777.700 785.477 793.332 833.800 876.332 921.034 968.016

TTL

Total Annual Handling Capacity (TEUs) 1.770.000 1.775.200 1.784.452 2.385.757 2.276.114 2.291.625 2.652.291 2.675.814 2.699.573 2.723.568 2.547.195 2.677.127 2.813.688 2.957.214

Forecast Volume (TEUs p.a.) 1.593.579 1.764.369 1.955.546 2.167.857 2.398.223 2.645.768 2.901.324 3.170.087 3.451.442 3.744.622 4.754.641 5.437.765 5.535.178 5.048.032

Capacity Lack (TEUs p.a.) 0 0 -171.094 0 -122.109 -354.143 -249.032 -494.272 -751.869 0 0 0 0 0

Volumes for Bay Cont. Terminal (TEUs) 0 0 0 0 0 0 0 0 0 1.021.054 2.207.446 2.760.638 2.721.490 2.090.818

Share of Bay Container Terminal 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 27,3% 46,4% 50,8% 49,2% 41,4%

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For this purpose the Bay Container Terminal (BCT) is proposed as the best

alternative location at the seaside approx. 8-10 miles north of the estuary. The

terminal is suggested to be located next to the Port Link Road, connecting the N1

highway to Dhaka with the existing port. The railway line Chittagong – Dhaka is

within close vicinity. The draft restrictions would be only slightly better than at

the existing port, but LOA restrictions due to the navigability of the river will no

longer apply. The possible footprint of the terminal, measuring up to 2,500m quay

length and up to 1,000m depth of land is shown below. This leads to a total area

of about 250 ha.

Figure 6: Potential Location of Bay Container Terminal

Source: Google Earth/HPC 2014

The terminal, for which planning and construction is expected to take eight years,

can be developed in two phases:

BCT Phase I, to be operational in 2023 with a quay length of 1,000m plus a

berth of 340m for river vessels/barges

BCT Phase II, to be ready in 2028 with a quay wall extension of another

500m and installation of bulk facilities

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Figure 7: Proposed Layout of BCT by Phase

Source: HPC/Sellhorn 2014

Even with the extension of the existing container terminals and the almost

complete conversion of GCB there will remain a capacity gap of around 750,000

TEU in 2022, which has to be compensated until the Bay Container Terminal will

be fully operational in 2024. Possible solutions are that the existing container

terminals accept some temporary work overload and the introduction of a system

that allows to load/discharge at least empty containers at dolphins or at anchorage

on the river. This solution then requires a land location where those containers can

be landed ashore or loaded from shore on the barges, respectively. Such feeder

barge systems are e.g. in use in the ports of Hamburg and Singapore.

The projected throughput developments at Chittagong Port require that both

options, KCT1 and BCT, are developed to have additional capacities as fast as

possible (KCT) and in order to provide sufficient capacities for further growth in

the near future. The planned new terminal capacities are also expandable to cater

for cargo even beyond the forecast horizon of the present report (BCT).

IWT quay

Breakwater

Bulk Loading Facility – Conveyor Belt

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4. FINANCIAL & ECONOMIC ASSESSMENT

While the financial assessment focusses on the viability of the three

investment projects KCT1, MPT and BCT for the promoters and investors,

the economic assessment concentrates on the costs and benefits of the

projects for the society and the users of the terminals.4

The analysis of the financial viability of the development concepts for the three

new terminals is based on the required investments in civil works and equipment

as well as on the related operating costs and the revenues over the project period

until 2043. The financial assessment is based on the project cash flow. The project

cash flow does not consider financing issues and therefore is an indicator for the

overall commercial capability of the projects.

The following table provides an overview of the required investments (civil works

and equipment), the related operating costs (labour, energy, maintenance, other)

as well as the expected revenues for the three terminal expansion projects as

suggested by the Consultant and shows the financial results.

Table 3: Financial Indicators for the Expansion Projects

(in ‘000 USD) KCT1

(start operation 2020)

MPT (start operation

2024)

BCT (start operation

2023)

Civil Works Investments (total initial)

172,480 239,628 717,918

Civil Works Investments (total replacement)

26,933 12,825 70,767

Equipment Investments (total initial)

143,193 49,813 365,993

Equipment Investments (total replacement)

66,327 10,480 21,746

Operating Costs (average per year)

16,450 4,800 42,270

Revenues (average per year)

93,280 56,000 221,800

Internal Rate of Return 25.2% 21.3% 17.1%

Net Present Value in ‘000 USD (i = 13%)

187,738 77,455 172,943

Payback Period (static, in years)

8.0 7.0 8.0

Source: HPC 2015

4 For details see Strategic Master Plan for Chittagong Port, Final Report Part 2, Chapter 7 and Final Report

Part 3, Chapter 5.

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The financial assessments of the planned investments into the proposed expansion

projects show that all three terminals are not only necessary from an operational

and capacity point of view, but at the same time are profitable and financially

sound. The financial calculations indicate that all three projects can be considered

attractive for private operators; therefore, it should be considered to implement

concession agreements with private operators that maintain competitive and

feasible handling rates at the respective terminals.

Besides the financial evaluation, the economic evaluation of the projects shows

that the calculated benefits are larger than the estimated costs for the planned

investments. The three terminal expansion projects are expected to generate

benefits from operation and utilisation improvements such as improved vessel

utilisation (decrease in ship waiting and service time), cargo handling efficiency

and lower freight rates (BCT can accommodate larger ships). The mandatory

compliance to the International Ship and Port Facility Security Code (ISPS) for

ports handling foreign trade, results in benefits of enhanced port security and

safety.

Table 4: Economic Evaluation for the Expansion Projects

EIRR (%)

NPV

(million USD)

BCT 15.64 224.39

KCT1 16.79 81.27

MPT 15.75 42.02

Source: HPC 2015

The intensified activity within the existing commercial port and the future

expansion of the port can be expected to result in a significant number of

employment opportunities associated with both the construction and operational

phases of these works. The implementation of the Chittagong Port Master Plan

can enhance competitiveness of Bangladesh exports as prices of imported and

export commodities decrease as a result of shorter shipping time and lower

shipping costs. In addition, exporters may incur lower financial costs for their

shipments due to the shorter processing and shipping time for their cargo, which

also results in higher profitability for exporters and more investments.

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5. HINTERLAND LINKS

The projected growth of port handling volumes requires a corresponding

expansion of the concerned hinterland links.5

The present transport networks have inadequate coverage in terms of integration

among the transport sub-sectors and they have been facing problems in the

context of management and efficiency; for instance, improvement of transport

services and maintenance of infrastructure. In addition, the port is within the

Chittagong City area and under the jurisdiction of Chittagong City Corporation

(CCC). The port access roads are urban roads under the City Corporation. On the

other hand, National Roads (N1, N106 and N107) connect up to entry/exit point

of Chittagong City roads and the national roads under the ownership of Roads and

Highways Department (RHD). Therefore, synchronised access road development

programmes between CCC and RHD are needed. The study has identified the

following bottlenecks of road connectivity to and from Chittagong Port.

Traffic congestion at entry and exit points of Chittagong Port area;

Inadequate use of Chittagong City bypass road;

Lack of traffic management programmes;

Inadequate capacity of Dhaka-Chittagong National Highways (N1) essentially

at the entry and exit points.

Bangladesh Railway inherited small truncated portions of the then British-Indian

railways in 1947 with two different gauges, broad and metre gauge. Today 76% of

the railway network is directly connected with Chittagong Port through metre

gauge. In respect of rolling stock BR has shortages of locomotives, passenger

carriages and appropriate freight wagons, especially container freight wagons are

missing.

The Dhaka-Chittagong railway corridor is still bearing the majority of carrying

goods and passengers in Bangladesh. Presently, two-pairs of container trains are

running every day from Chittagong Port to Kamlapur ICD in Dhaka. There is a

large potential to increase the container rail transport volumes. Since there is no

scope for expansion of Kamlapur ICD, a new ICD at Dhirassram has been

5 For details see Strategic Master Plan for Chittagong Port, Final Report Part 1, Chapter 4 and Final Report

Part 3, Chapter 2.

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planned, which needs to be constructed as early as possible, to attract the

increasing container traffic to rail.

Keeping in mind the future limitations of roads and railways, the Government of

Bangladesh has constructed an Inland Container River Terminal at Pangaon,

Dhaka, to introduce container movements in the IWT sector. Although the

construction was completed in December 2013, the terminal is still not fully

operational due to lack of vessels.

The Chittagong Port Master Plan recognises the need for an integrated planning

among road, rail, waterways and cargo handling operations. The plan also

proposes and recommends the following development projects to be able to

handle the future forecast cargo volumes:

Construction of ICD at Dhirassram near Dhaka,

Construction of off-dock container terminal at CGPY,

Construction of Khanpur ICT,

Immediate operation of Pangaon ICD,

Completion of Akhaura – Laksham railway section into double track,

Promotion of access controlled Dhaka-Chittagong Expressway,

Good rail and road connectivity for the Bay Container Terminal (BCT) for

easy handling of port traffic.

Therefore, a joint/coordinated planning and implementation is necessary of these

projects i.e. (Bangladesh Railway, Roads and Highways Department and

Bangladesh Inland Water Transport Authority integration) in order to create

sufficient hinterland infrastructure capacity. Chittagong Port has been identified

by the Government as a key international gateway which is a major component of

the nation’s transport system that is critical both to the functioning of that

transport system, and the economic success of the country. The principal

component of cargo flows moving to and from the port over land is containers.

Currently 95.6% of the 70% of containers going to Dhaka are transported by road;

rail moves 4.4% of the containers to Dhaka and water transport is altogether

absent as of today.

It is estimated that the existing four-lane road capacity of Dhaka–Chittagong

Highway will come to its limits before 2025. The capacity of the implemented and

planned inland waterway ICD and ICT is assumed to remain at 0.24 million TEU

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and reach its limits in 2025. Therefore, the Government and the implementing

agencies need to urgently increase the rail share.

Figure 8: Hinterland Transport Capacities by Mode

Source: KS Consultants 2015

It is necessary that all the identified transport components as well as ancillary

facilities are to be developed and operated timely in order to manage and provide

sufficient transport capacity for the forecast cargo volumes. Therefore, very close

cooperation between the concerned transport agencies will be required to ensure a

viable and sustainable port expansion solution, which will be beneficial to all

stakeholders and policy makers.

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6. ENVIRONMENTAL & SOCIAL ASSESSMENT

An environmental and social assessment has been carried out in the form

of an Initial Environmental Examination (IEE) and safeguard policy

statement along ADB Guidelines and the Bangladesh legal and policy

framework.6

The IEE contributes to the understanding of the impacts of port development

under possible development scenarios and recommends measures strengthening

the sector in order to reduce impacts and manage the sector in an environmentally

and socially sustainable manner. The implementation of various components of

the proposed ‘Strategic Master Plan for Chittagong Port’ will be governed by

Government of Bangladesh (GoB) Environmental Acts, Rules, Policies, and

Regulations.

The design, construction and operation of the Port shall comply with good

international industry practice (GIIP) through the incorporation of impact

avoidance and management measures into each project phase. The Environmental

Impact Assessment (EIA) shall identify and specify relevant GIIP to avoid and

manage environmental and social risks and impacts associated with port design,

construction and operation.

The influence area (impact zone) for the EIA is the area directly affected by the

development of the Port Master Plan and the immediate surroundings where

development could be visible and audible. The proposed construction activities

that have the potential to create significant impacts are:

Dredging and dredge material disposal: habitat removal/degradation, river

water quality decline;

Jetty construction: habitat removal, river water quality decline; and

Landside development: habitat removal, resettlement, loss of livelihoods,

business relocation.

For better management of the environmental and social issues during the

implementation of port development projects under the Port Master Plan

intervention areas, clear strategies and plans are needed. Therefore, Chittagong

Port Authority needs to adopt an Environmental Management System (EMS) to

6 For details see Strategic Master Plan for Chittagong Port, Final Report Part 2, Chapter 8 and Final Report

Part 3, Chapters 3 and 4.

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operate port environmental management and strengthening the Institutional

Capacity. CPA will set up an Environmental Management and Monitoring Cell

(EMMC) at Bandar Bhavan, consisting of environmentalists, laboratory

technicians, samplers and other required personnel from available manpower

under the existing setup of CPA.

As the proposed port development project location is exposed to Bay of Bengal,

there is possibility of tidal water flooding due to global warming and sea level

rise. Climate change considerations will play a crucial role in the design of port

development and its components. Chittagong Port has encountered a number of

challenges with regard to safety, health and environment concerns in the port. As

Chittagong Port has been developed in a coastal area, it has experienced multi-

resource conflicts among other coastal users.

Several mitigation measures to reduce or eliminate negative environmental and

socio-economic impacts from the port development projects are proposed in the

IEE. The follow up will largely have to be through the detailed planning and

implementation of each project. This will require that an EIA is carried out for

each project in the plan, taking into account how the design and construction

techniques could contribute to minimizing the various negative impacts from the

master plan.

Table 5: Impacts of Proposed Port Development Project Activities

Activity – Construction Stage

Air Quality

Surface Water

Quality

Soil/ Sediment

Ground Water

Quality

Fresh Water

Environ-ment

Marine Environ-

ment

ST LT ST LT ST LT ST LT ST LT ST LT

Dredging M L M L L M L L H M H M

Dredge material disposal

M L H M L M L L H M H M

Land filling M L M L L L L L M L M L

Site clearing M L M L L L L L M L M L

Building construction

M L M L L L L L M L M L

Building renovation

M L M L L L L L L L M L

Utility construction

M L M L L L L L M L M L

Note: The type and magnitude of impact is dependent on the extent to which an activity occurs, its proximity to

sensitive receptions, and the controls employed by the port or its tenants; ST- Short Term; LT-Long Term; L-

Low impact; M-Moderate impact; H-High impact

Source: KS Consultants 2015

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Finally, having reviewed all the potential environmental impacts and following

the recommended mitigation measures as per this EMP, the proposed port

development projects under Strategic Master Plan are expected to proceed without

having unacceptable environmental effects.

The port expansion projects proposed in the Strategic Master Plan will require

displacement of the residential, commercial and community properties which will

eventually have impact on income and livelihood of the people living/dealing in

the proposed site, particularly at Laldia and Bay Terminal area. Amongst these

Laldia area alone requires displacement of more than 700 households and shops

while Bay Terminal area requires economic displacement due to loss of fish

cultured pond. A detailed census survey, consultation meetings with various

stakeholders, focused group discussion with various occupation groups have been

conducted in Laldia and Bay Terminal area with displaced households/people.

They are still in favour of the project although they have lots of complaints/

grievances over the Government rule applied on them in several times especially

regarding their displacement. They want necessary support in case of relocation in

anywhere in the surrounding area so that they can continue their present means of

livelihood. Ensuring about their relocation in a suitable location may ease

implementation of the project. Chittagong Port Authority has to find alternatives

for their relocation. A full resettlement plan will need to be prepared during next

phase of the project to address all issues relating to compensation, relocation and

livelihood restoration.

It should be underlined that it is currently not planned to use the Laldia area as a

port terminal. The carried out survey within the framework of the Port Master

Plan should be seen as a “back-up measure” in case CPA decides to proceed with

the development, whereas the development of the Bay Terminal area is highly

recommended.

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7. RECOMMENDATIONS

The Strategic Master Plan for Chittagong Port has addressed different aspects,

which are important for the future development of the port. These include internal

and external factors, such as changes in the current organisation of CPA, the use

of IT, the support of customs authorities, the cargo handling operations, the

planning and realisation of new terminals, and the integrated planning among

road, rail, waterways and cargo handling operations.

In the current organisation of CPA, the following short term improvements are

proposed:

Department of Planning: The Department of Planning should be strengthened

with employees with multi- disciplined skills with the knowledge of

Engineering, Operation, Economics and Statistics. It is considered as

important to strengthen the capacity of this department.

Department of Civil Engineering: The vacant posts of the department should

be filled up with immediate effect and recruitment at the entry level of

officers should be made and ensured on regular basis. Furthermore, their

timely promotion to higher positions should be ensured so that there is no

vacuum at any level at any time in the department.

Traffic Department: The manpower of the department should be optimised in

view of the work load of the department,

Estate Branch: The Estate Branch should be strengthened and developed into

a department with proper authorities where collection of rent is administered

properly.

Training Institute: The Training Institute should be strengthened and upgraded

in respect of management, budget and infrastructure facilities.

Welfare Activities: The welfare activities of CPA and the expenditure on this

head should be gradually reduced from the responsibilities of CPA. CPA’s

main focus should be on running the port services in a professional and

commercial basis.

In order to strengthen and improve CPA’s organisation and operational

efficiency, the following organisational improvements are proposed:

The port authority should be made a fully autonomous body with a large

degree of flexibility and the right to make independent decisions regarding

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recruiting necessary manpower and developing investment and expenditure

budgets including setting the port tariffs. These questions should be handled

and decided by the Port Authority without referring all these matters to the

government and wait for approval. A larger degree of autonomy would enable

CPA to take decisions in a timely manner and help CPA to develop the port

according to the market requirements.

A transition of CPA towards a Landlord Port is recommended

With regard to the used IT systems at Chittagong Port, the organisation and

responsibilities within the port area is split between the different areas of CPA.

Some areas are operating their own systems, servers and databases independently

in remote network environment. The following improvement recommendations

are made:

In order to achieve the best benefit of the entire IT infrastructure in the port

for every user, all IT activities including IT support should be coordinated by

a central department within CPA, headed by a CIO (Chief Information

Officer).

The outcome of the Container Traffic Management System (CTMS) in

operations is partly inefficient due to lack of information about container

bookings in the export process. Whereas the container terminal is using the

CTMS and mobile data terminals to organise efficient operation during

discharging of containers, the loading process is completely under manual

coordination which leads into the fact that the port is not even able to provide

an electronic departure bay plan for the vessel to sail.

This export procedure, caused by missing container booking information from

the shippers’ side and extremely late arrival of export containers, is not

according to modern international standards and should be improved. The

exporting companies and their shipping agents should improve their booking

forecast processes as they should also be interested in efficient procedures in

the port. In state-of-the-art container terminal organisations, the CTMS will

always be used in real-time mode in order to allow efficient operation of the

terminal.

From the technical side, the server hardware of the CTMS is not powerful

enough, the SQL database should be changed to ORACLE and the software

version of the CTMS is very old and should be updated.

Regarding gate operation for all kinds of vehicles, an overall future-oriented

gate concept with IT integration has not been implemented yet. The actual

physical situation at the gates and the access procedures for vehicles are

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leading into frequent heavy traffic congestions on the terminal already today

which affects operation. Future traffic increases will make this situation more

difficult.

To control this increased amount of traffic in the future, an overall integrated

gate concept including truck announcement, pregate clarification, electronic

access control and CTMS integration is required.

The main idea in this concept will be to integrate the requirements for safety,

security and operations in the gate processes for all kinds of cargo flow and

all kinds of vehicles or persons who request to enter the port area. This

coordination will be even more important if additional container terminal

operators will be working in the port.

In order to be able to optimise the use of the CTMS system on the existing

container terminals and to increase terminal capacity, container stripping

activities and the subsequent intensive vehicle traffic in the RTG areas should

be moved to other areas. A clear separation of areas between full-container

operation and cargo operation including stripping will provide major

advantages for the container terminal areas.

Finally, after having been upgraded to a later version, the CTMS should be

introduced in the non-containerised cargo areas where a higher degree of

efficiency can be achieved with the use of this system.

The analysis of the customs regulations and practices at Chittagong Port shows

that for the facilitation of trade development through Chittagong Port, customs

authorities in Chittagong can contribute by measures that address the following

areas:

Import: Increase the number of commodities released for devanning outside

the port. This measure is already practiced by customs authorities but might

be accelerated. More containers stripped outside the port will reduce costs,

speed up the lead time of imports through the port and would reduce the road

traffic inside the port.

Import: Customs should acknowledge more depots in the Chittagong area. If

this would require more customs officers at the depots, customs should

address this internal human resources issue by training and/or recruitment.

Operations: Customs should be prepared to define jointly with Port of

Chittagong authorities’ procedures for the removal of long standing containers

and cargo. Cargo for auctioning blocks operational/storage areas for too long.

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Operations: Customs should jointly with the port and terminal operators

define the responsibilities for a single gate-out stop.

Asycudas: Although the Asycudas 2 system has been implemented, a lot of

paper documents are processed at customs, as well as in the port; it is

recommended to fully use the Asycudas system in order to increase the

reliability and the process time of notification and clarifications.

Furthermore, the analysis underlines the importance to establish regular container

handling operations in Port of Chittagong, which shall include the stacking of

export containers before commencement of loading operation – this is a condition

to achieve acceptable vessel turn-around times. In order to establish regular

container handling operations at the existing container terminals in Chittagong

Port, the following measures are proposed:

CPA should change its current practise of berth assignment, so the terminals

and operators could be free to compete for vessel calls, including a

liberalisation of the port tariff,

Establish container terminal concessions for the operation of the different

container terminals with the aim to improve handling productivity. The

benefit of private concessions is seen on the investment side of the project.

Private concessionaires are normally, depending on the concession agreement,

obliged to invest in equipment, superstructure and even infrastructure. In

return, private concessions are granted for longer periods, counting often

several decades. Typical concession durations are in the range of 20 to 35

years. For projects with the infrastructure already developed, i.e. NCT or

CCT, concessions could be shorter as the capex requirements for the

concessionaire would be lower.

The NCT Container Terminal needs urgently to be equipped with STS Gantry

Cranes as the basis for standard terminal handling capacities and performance.

At least the first batch of six STS should be purchased by CPA. With a lead

time of 24 months, action needs to be taken immediately,

The CCT Container Terminal needs to be upgraded and additional stacking

capacity is needed in order to establish independent operations at CCT. This a

pre-requisite to enable an independent concession for the terminal,

The future development of Chittagong Port should foresee a facility for inland

waterway vessels. These vessels have lengths of below 80m; currently

deployed vessels have an LOA of 73m. It is proposed to consider a dedicated

berth with a total quay length of 187m, where two berths for inland waterway

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vessels could be established which should be served by Mobile Harbour

Cranes.

To meet the forecast increasing handling volumes the following recommendations

are made with regard to additional terminal capacities:

The fastest way of increasing the handling capacity in the port would be the

transition of parts of GCB area into a full independent container terminal that

can be licensed to a private operator. The transition should be realised at

berths 10 to 13 (Karnaphuli Container Terminal, KCT1). The KCT1

Container Terminal is planned to have a capacity of 770,000 TEU.

To be able to provide the required container terminal capacity, the KCT1

needs to be in operation 2020, according to the gap analysis. It is

recommended to immediately start with the planning of this terminal.

In parallel with these activities, it is also recommended to immediately start

with the planning of the new Bay Container Terminal which will be required

from 2023 to meet the forecast container volumes with a capacity of

2.8 million TEU.

It is estimated that between 2018 and 2022 there will be a capacity lack

(751,000 TEU) which have to be compensated by temporary measures. It is

proposed to use feeder barge system that has been introduced in the port of

Hamburg in order to unburden the container terminals in peak situations.

For the future handling of general cargo and break bulk it is recommended to

develop a new Multi-Purpose Terminal (MPT) facility. The new terminal

facility should be able to handle up to 4.7 million tonnes of non-containerised

import cargo until 2043.

The Chittagong Port Master Plan further recognises the need for an integrated

hinterland planning among road, rail, waterways and cargo handling operations.

Therefore, a joint/coordinated planning and implementation is necessary of these

projects i.e. (Bangladesh Railway, Roads and Highways Department and

Bangladesh Inland Water Transport Authority integration) in order to create

sufficient hinterland infrastructure capacity. The plan also recommends the

following development projects to be able to handle the future forecast cargo

volumes:

Construction of ICD at Dhirassram near Dhaka,

Construction of off-dock container terminal at CGPY,

Construction of Khanpur ICT,

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Immediate operation of Pangaon ICD,

Completion of Akhaura – Laksham railway section into double track,

Promotion of access controlled Dhaka-Chittagong Expressway,

Good rail and road connectivity for the Bay Container Terminal (BCT) for

easy handling of port traffic.

Capacity and efficiency of Chittagong Port contribute significantly to the

competitiveness of the Bangladesh economy as a whole. Therefore, the Strategic

Master Plan for Chittagong Port needs to be implemented now.

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