How Can Shipowners Navigate the Challenges Posed by the Bangladesh's Chittagong Port, Known as the Captain's Nightmare, Following Major Investment?

Bangladesh, situated on the delta formed by the Ganges and Brahmaputra rivers in the northeastern part of the South Asian subcontinent, is a friendly neighbor to China and a key country along the Belt and Road Initiative. Chittagong Port, the largest port city and the second most populous city in Bangladesh, handles over 92% of the country's maritime trade and 98% of its container trade. It also serves as a transshipment hub for some containers from Southeast Asia and South Asia, with an annual container throughput of approximately 3 million TEUs. Due to its continuous trade flow but outdated port infrastructure, it has recently attracted $11.5 billion in investments from top-tier terminal operators. With the ongoing development of Chittagong Port and the steady growth in trade volume, shipping is expected to flourish further. However, due to historical reasons and local port conditions, shipowners urgently need protective agents to assist them in completing vessel services at Chittagong Port and other ports in Bangladesh more efficiently, thereby enhancing maritime trade.

Chittagong Port, the "World's Most Congested"?Port, Witnesses a Growing Demand

Chittagong Port in Bangladesh, known as the "world's most congested port", is notorious for its frequent port congestion and long vessel waiting times. In the past four years, Chittagong Port has consistently ranked poorly in the Global Container Port Performance Index (CPPI). For instance, in 2023, it was ranked 334th out of 405 ports worldwide. The reasons for its congestion are as follows:

Increasing Trade Demand: Due to cheap labor and favorable tariffs, Substantial economic growth potential, due to cheap labor and favorable tariffs, exists in Bangladesh, its neighboring Southeast Asian countries, and the South Asian giant India. Chittagong Port handles a significant volume of containers, with an annual throughput of around 3 million TEUs in recent years. Over the past decade, Bangladesh, the second-largest garment exporter globally, has achieved an annual economic growth rate of 6.5%.

Outdated Infrastructure: Chittagong Port currently has three terminals: GCB, CCT, and NCT. The terminals, with a designed container throughput capacity of only 1.7 million TEUs, faces challenges due to its poor water depth conditions, with berths ranging from -6.4 to 8.5 meters deep. Even at high tide, it can only accommodate ships with a draft of 9.5 meters and a length of 200 meters. Additionally, the old port equipment and low operator efficiency contribute to the port's chronic congestion. The port's outdated infrastructure also results in low loading and unloading efficiency, frequent delays, and excessive demurrage costs for shipowners.

The three terminals are equipped with 18 quay cranes, 5 mobile harbor cranes, 47 yard cranes, and 44 straddle carriers, with the quay and yard cranes having a lifting capacity of only 40 tons. The insufficient water depth prevents large container ships from docking, relying instead on feeder vessels, which, however, are in critically short supply, exacerbating port congestion. Furthermore, the terminal operator, whether by the Chittagong Port Authority or Saif Powertec, is inefficient, with considerable room for improvement. Strikes and the customs of "Ramadan" also contribute to the port's congestion.

Shipowners Urgently Need Protective Agents to Navigate Chittagong Port's Complexities

Chittagong Port poses a significant challenge to every captain and crew member who has navigated its waters, often referred to as the “nightmare of captains”. It is crucial to find an Owner’s Protective Agent ( OPA ) for shipowners docking at Chittagong Port for the first time. The port faces such issues as significant tidal variations, strong currents, frequent anchor drifts, chain breaks, lost anchors, and grounding incidents, leading to occasional collisions while it is considered "safe" from a technical perspective. The port's numerous adverse conditions and high risks make it arguably the most dangerous port in the world. Moreover, beyond its operational challenges, Chittagong Port and Bangladesh at large are plagued by security issues marked by the prevalence of theft and robbery, posing a threat to the security of assets and the safety of the crew member.

As the representative of the shipowners, Protective Agents play a vital role. The Owner’s Protective Agent oversees the counterpart agent and orderly arrange shipowner affairs during port calls throughout the port stay, ensuring efficiency, safety and the benefits of the shipowner. Their engagement can help spare the conflicts that may arise between the shipowner and the many stakeholders involved in the port docking process.

Protective Agents intervene to supervise operations when Chittagong Port faces low loading and unloading efficiency, ensuring more cargo is delivered in a shorter time, keeping vessels on schedule.

Local security remains a concern marked by nine piracy incidents reported in Bangladesh in the first five months of this year. Protective Agents provide continuous escort services for crew members and supervise service processes, preventing injuries and ensuring safe port entry and exit.

Shipowners unfamiliar with the port are daunted by Bangladesh's complex government system and high, opaque costs. Protective Agents, familiar with local port policies and experienced in dealing with the port authorities, coordinate closely with the Chittagong Port Authority and review the Proforma Disbursement Account (PDA) for better rates negotiation, and propose alternative solutions. They monitor local port rules and restrictions, providing relevant advice to avoid disputes with local port authorities, charterers, and their agents.

Chittagong Port remains a hotspot for investment, handling over 90% of Bangladesh's foreign trade despite its frequent congestion and outdated infrastructure. Bangladesh, as an important South Asian country, continues to attract global supply chain shifts with strategic geopolitical importance despite its economic slowdown and political corruption. Shipowners will increasingly engage in maritime trade with Chittagong Port. Hereby, E-PORTS' local Protective Agents in Chittagong will be your eyes and ears, ensuring your interests are safeguarded.

If you have shipowners' affairs such as loading, unloading, or port calls in Chittagong, please contact E-PORTS WhatsApp: 13816101982. E-PORTS customer service is at your service around the clock!